Salvage World Q2 2017 by Marine Salvage

July 2017

INTERNATIONAL SALVAGE UNION

ISU publishes 2016 salvage industry statistics David Pockett (L) and John Witte consider the ISU statistics at the AMCF event in Singapore.

Revenue from LOF cases as a percentage of the total of all “dry” salvage revenue was 33% and is a continuation of the decline. The figures were 46% in 2015 and 55% in 2014. Similarly, the number of LOF cases as a percentage of all “dry” salvage cases is the lowest at 11% in 2016 (16% in 2015). It reflects the continuing trend to use other commercial contracts and terms in place of LOF.

The International Salvage Union statistics for 2016 show an industry providing an increased number of vital services to the shipping industry but, at the same time, gross revenues have fallen significantly adding to the commercial pressure on ISU members. Gross revenues for ISU members in 2016 from all activities fell to US$ 380 million. It compares with US$ 717 million in 2015, a drop of 47%. The statistics are for income received in the given year but which may relate to operations from a preceding year. The total number of ‘dry salvage’ services recorded in 2016 was 306. It is the highest number since 1999 and compares to 212 services in 2015.

500 450

Revenue from Lloyd’s Open Form (LOF) 400 cases at US$ 69 million is the lowest 350 300 since 2003 and continues the downward 250 trend of LOF. The number of LOF cases 200 that realised revenue in 2016 was just150 34 compared to the all-time low figure100of 50 33 for 2015. Average revenue from LOF 0 cases, which includes SCOPIC revenue, was US$ 3.90 million, down 40% from 2015. At the same time, revenue from

Revenue derived from the Special Compensation P&I Club Clause (SCOPIC) in LOF cases decreased significantly to US$ 64 million compared to US$ 139 million in 2015, a fall of 54%. Total salved values (ship and cargo) in LOF cases rose to US$ 845 million in 2016 up from US$ 638 million in 2015. The average value salved in LOF cases

also rose to US$ 25 million. The figure has stayed within the US$ 15 – 25 million band since 2010. Average LOF revenue expressed as a percentage of average LOF salved value has fallen for the third consecutive year and was 8.13%. Commenting on the statistics, ISU President, John Witte said: “These numbers show a contradiction. It would be expected that a 47% drop in total revenue would have been brought about by a reduction in the number of cases. However, the total number of cases, both ‘dry salvage’ and wreck removal, increased from 276 in 2015 to 437 in 2016. Clearly, therefore, the average revenue from all cases declined. It may be due to fierce competition forcing salvors to undertake cases for much lower returns. And general commercial pressures across shipping could be squeezing the margins. “These statistics again show the variability of our industry and the fluctuations in the sources of revenue. But it seems there has been a fundamental shift downwards. “Despite the pressure on salvors’ revenue, members of the ISU continue to stand ready to provide vital services that benefit shipowners and insurers by mitigating loss. And a sustainable salvage sector is very much in the interests of the shipping industry.”

All sources of revenue 1999 - 2016

More statistics on page 2

850 800 750 700 650 US DOLLARS (Millions)

US DOLLARS (Millions)

Wreck removal income has grown during the past decade, however revenue from this source in 2016 fell to US$ 172 million, 850 down from US$ 397 million in 2015 - a800 750 fall of 57%. It represented 45% of all ISU members’ revenue in 2016. The 2016700 650 statistics record 131 wreck removal jobs 600 550 compared with 64 in 2015.

operations conducted under contracts other than LOF was also down at US$ 75 million, a fall of 23% on 2015. Average revenue from nonLOF contracts was US$ 277,000 a fall of 50%.

600 550 500 450 400 350 300 250 200 150 100 50 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

LOF REVENUE ARTICLE 14 REVENUE SCOPIC REVENUE LOF REVENUE OTHER SALVAGE REVENUE WRECK REMOVAL REVENUE SCOPIC REVENUE

WRECK REMOVAL REVENUE

ARTICLE 14 REVENUE OTHER SALVAGE REVENUE

ISU Statistics 2016 continued Number of “Dry” Salvage Services per Year

Number “Dry” Salvage Revenue (exc. SCOPIC) 360

350

330 300

300 270 240

US DOLLARS (Millions)

NUMBER OF CASES

250

200

150

210 180 1500 120

100

90 60

30 0

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 NUMBER OF LOF CASES TOTAL NUMBER OF CASES

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

NUMBER OF NON LOF CASES

LOF REVENUE TOTAL REVENUE

Wreck Removal Activity

LOF Revenue as a Percentage of Salved Value

PERCENTAGE (%)

NON LOF REVENUE

600

500

400

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100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

LOF PERCENTAGE

NUMBER OF SERVICES REVENUE GENERATED (US$ MILLIONS)

American Salvage Association defends its members from criticism It came after US salvage and marine firefighting providers (SMFF) – whose services are required by shipowners and operators under the wider requirements of OPA 90 – had their ability to respond and resources questioned. Mr Schauer suggested that commercial interests lay behind the criticisms.

The President of the American Salvage Association (ASA), Todd Schauer (above), has defended the response capabilities of the industry at a US Congressional hearing.

Mr Schauer said that there would be no delays [to response] caused by contractual issues and said that all the contracts of the SMFF providers met the the SMFF requirements. He went on to explain that no provider can offer 100% availability of resources without back up. It is not possible, he

said, to offer every type of resource all the time at all locations and that was not the intention of the SMFF regulations. The range and cost of equipment would be prohibitive. Mr Schauer said that SMFF providers rely, therefore, on the system of “vessel of opportunity” and “resource of opportunity.” Compliance with verification programmes and extensive oversight by official agencies ensured the requirements were met and which had been demonstrated by successful responses in practice, he said.

ISU NEWS The full ISU Executive Committee meeting in London, June 2017.

JMCC

Marine Under 35s event

The second regular meeting of ISU with the London Joint Marine Claims Committee took place in June. ISU was represented by Mark Hoddinott and Executive Committee Member, Smit’s Richard Janssen and communications adviser, James Herbert.

The ISU Salvage sub-Committee has, among other topics, engaged with the challenge of the declining use of Lloyd’s Open Form. It has considered ways to improve understanding of the benefits of LOF among younger members of the shipping industry and its supporting professions. Sub-committee member, Resolve Marine’s Daniel Dettor gave a well-received presentation about the salvage industry and LOF to the London based Marine Under 35s group to try to improve knowledge.

JMCC members represent both the Lloyd’s insurance market and the composite international insurers. The meeting considered the ISU’s industry statistics, the state of the industry, contracts and operational matters.

Annual Review ISU AGM 2017 The ISU AGM will be held in Singapore on Thursday 07 September and registration is now open. It is a fully online registration system - including reservations for the AGM Hotel, the Ritz Carlton Millenia - that can be accessed via the following link:

International Salvage Union

Annual Review

2016

A block of rooms has been reserved for ISU members at the Ritz Carlton Millenia and registrations must be completed by Monday 14th August 2017 following which any remaining rooms will be released for general sale.

RESPONSECON INTERNATIONAL SPILL RESPONSE CONTRACT (FOR USE OUTSIDE THE UNITED STATES OF AMERICA)

PART I 1. Place and date of Contract

2. Date of commencement of services/mobilisation

3. Requesting Party/place of business (full style, address, email and fax no.)

4. Contractor/place of business (full style, address, email and fax no.)

5. This is a contract for

6. Nature of services/scope of work (see Annex A)

(a) Equipment and Personnel services (b) Equipment hire only* *If option (b) is chosen, Clause 6, Subclause 7(b)(vi) and Subclause 8(e) will apply. 7. Personnel rates (see Annex B)

8. Equipment rates and particulars (see Annex C)

9. Basis of hire (daily rate)

10. Frequency of invoicing

11. Payment details

12. Expedited payment amount

Currency: Bank: Address: Account Number: Account Name: IBAN: BIC/Swift:

13. Interest rate

14. Dispute Resolution Clause (state alternative 15(a), (b) or (c); if (b) is agreed, state Singapore or English law; if (c) is agreed, state governing law and place of arbitration) 15. Additional clauses

It is mutually agreed that this Contract shall be performed subject to the conditions contained herein consisting of Part I, Part II, additional clauses stated in Box 15, if any, and, when they have been agreed, Annexes A, B and C. In the event of a conflict of conditions, the provisions of Part I and any additional clauses shall prevail over those of Part II and Annexes A, B and C to the extent of such conflict but no further. Signature and company stamp (Requesting Party)

Signature and company stamp (Contractor)

The International Spill Response Contract, as approved by BIMCO and ISCO, conforms with the International Group Guidelines on Vessel Response Plan Contracts outside the United States of America. Copyright © 2017 ISCO and BIMCO. All rights reserved. Any unauthorised copying, duplication, reproduction or distribution of this document will constitute an infringement of ISCO’s and BIMCO’s copyright. Explanatory notes are available from BIMCO.

A BIMCO Working Group comprising BIMCO; ISU; the International Group P&I Clubs; the International Spill Control organization and the Spill Control Association of America has concluded the new RESPONSECON 2017 and US RESPONSECON 2017 (for use in USA only). The contracts have been approved by the BIMCO Documentary Committee and are available for use along with their relevant Explanatory Notes and Conditions of Use. They can also be accessed via the BIMCO website: www.bimco.org

http://www.isuagm2017.com/ A number of events are fully sponsored (funded) this year by ISU and our hosts, Swire Salvage, notably the Welcome Reception and Gala Dinner. There is also a high quality tour and activity programme to make the most of our time in Singapore.

Bimco response contract

SCOPIC talks

ISU has published its Annual Review for 2016 which is available at: www.marine-salvage.com The document is not a statutory requirement but records the formal business and accounts of the ISU and is intended to demonstrate ISU’s willingness to be transparent about its activities. 3

ISU has continued to participate in the discussions of a SCOPIC Committee sub-Group. The key area for discussion remains changes to the termination and demobilisation arrangements set out in SCOPIC's Clause 9 in order to strengthen co-operation between the contractor and shipowner. Also, to review the ISU5 Guarantee provisions and review those parts of SCOPIC that may be affected by any agreed changes as well as a re-write of the Code of Practice between ISU and the IG P&I Clubs.

Members’ News

ISU welcomes the following new member: AFRICAN MARINE SOLUTIONS GROUP (PTY) LTD (AMSOL) ADDRESS: HEAD OFFICE: 31 Carlisle Street, Paarden Eiland, 7405, South Africa P.O. Box 1339, Cape Town, 8000, South Africa Tel: +27 21 507 5777 Email: amsol@amsol.co.za AMSOL acquired the business of SMIT Amandla Marine, a leading provider of marine services in the Southern African region, in late 2016. SMIT Amandla Marine was formed in 2005, and, as a 30% Black South African owned company, enjoyed significant growth to 2016, expanding into Mozambique and Namibia.

environmental awareness of the wider public and students as well as the creation of similar ‘MEPA’ associations in seven more countries. Dignitaries from other MEPA countries including Australia; Cyprus (where the organsisation’s chairman is Georage A Tavliris); North America and Turkey attended the celebration. Tsavliris is a full member and an ardent supporter of HELMEPA. Tsavliris Salvage Group took part in the annual Charity Rowing Competition held by Hill Dickinson LLP on 8 June 2017 at the picturesque Microlimano in Kastella, Piraeus and won the silver medal. Twelve teams competed and contributed to the charity “Doctors of the World”. Bugsier Fairplay

Prior to 2005, the company operated as a wholly owned subsidiary of SMIT International since their acquisition of the business in 2000. The roots of the business lie in Pentow Marine, a South Africa owned entity that quickly established itself as a market leader in the early 1990s.

Bugsier and Fairplay have announced their intention to merge to expand and strengthen their presence in Germany and other parts of of Europe. The intention is for Fairplay Schleppdampfschiffs-Reederei Richard Borchard GmbH to acquire the Bugsier-, Reederei- und Bergungs-Gesellschaft mbH & Co. KG in the second half of the year. Both parties have signed a Letter of Intent. Bugsier will be maintained as a brand within the Fairplay Towage group.

Tsavliris

Global Diving & Salvage Global Diving & Salvage, Inc. has expanded its regional operations with a new office in Juneau, Alaska. The new office will support several of Global’s services - marine construction; marine salvage and emergency response and diving operations across southeast Alaska.

(L-R) Andreas Tsavliris with George A Gratsos (Chairman, HELMEPA) and Dimitris Mitsatsos (Director General, HELMEPA)

On 6 June 2017 the Hellenic Marine Environment Protection Association (HELMEPA) celebrated 35 years of operation. HELMEPA is the pioneering voluntary commitment of Greek seafarers and ship owners to safeguard the seas from ship-generated pollution, undertaken in Piraeus in 1982. Dr George Gratsos, HELMEPA’s Chairman, referred to the association’s voluntary contribution to the maritime training of Greek officers, raising

Global has been providing marine services in southeast Alaska for years through its Anchorage and Pacific Northwest offices. Global says the new Juneau office is being established in response to client requests for a dedicated base, which, it says, will bolster the capacity of operations in that region. Bill Akan, a longtime member of the Global team, will serve as Southeast John Operations Witte Alaska Coordinator for the new Juneau location. “I’m thrilled to be returning to Juneau with Global,” Akan said. “There are numerous opportunities for us in southeast Alaska, and opening a location here will allow us to serve more 4

clients with faster response times.” Ardent Ardent has celebrated its second anniversary and announced a reorganization of its business into two “self-sustained business pillars”: the Emergency Management pillar covering Emergency Preparedness and Response and the Projects pillar covering Wreck Removal, Offshore Decommissioning and Subsea Services. Oliver Timofei is the Director of Emergency Management and Jon Minshall has been appointed as the Director of Projects. “The new structure is intended to ensure that we have for both business areas ‘fit-for-purpose’ processes, resources and culture which will enable us to serve the respective customer segments even better than today,” explained Ardent CEO, Peter Pietka. Ardent said the new structure intends to ensure that it can retain its focus on its original core business while increasingly offering “adjacent services – such as within an offshore context.” The company continues be 50 percent owned by Svitzer (Maersk) and 50 percent owned by Crowley. Ardent has also announced that it has maintained a zero lost time incident record since its inception. Mr Pietka said: “Despite the initial focus on implementing the merger and challenging market conditions Ardent has successfully won and executed 125 contracts over the last 2 years”. He continued: “Salvage operations are inherently risk filled and completing 125 contracts without a single lost time incident is a testament to the professionalism of our teams. “Whereas we have done well in the market place it is also true that over the past two years a tremendous amount of focus has gone into internal issues related to the merger implementation and the recent organizational restructuring. We look forward to the next stage.”

Harbor Star

Group Ocean

Harbor Star Shipping Services, Inc. (HSSSI) is spending some US$ 16 million this year in order to expand and diversify its business operations locally and overseas. HSSSI is allocating US$ 8 million mainly to acquire more tugs for domestic operations, group chairman and president Geronimo Bella, Jr. said on the fringes of the company’s annual stockholders' meeting. Up to US$ 8 million more is allotted for its regional operations, Mr Bella said. The budget will be funded through bank loans and the company’s follow-on offering that is scheduled for the fourth quarter.

Ocean has celebrated its 45th Anniversary. President and founder, Gordon Bain said: “When I founded Aqua-Marine in 1972, I had in mind to offer integrated marine services. The confidence of the customers, the support of the partners and the ingenuity of my team allowed Aqua-Marine to become Ocean, a leader in the maritime industry.” Ocean has grown considerably in the

past few years and it has expanded its range of services and territory across Canada and in the Caribbean. It has 850 employees in three main sectors: shipbuilding and repair; harbour towing and maritime transport; rental of specialised marine equipment and dredging. To mark the anniversary Ocean has produced a new anniversary image (above).

Boluda

Harbor Star senior management including Geronimo P Bella Jr and Ricardo Rodrigo P Bella (third and fourth from left)

Harbor Star said it is looking at opportunities in other Asian countries such as Malaysia, Indonesia, and Myanmar. It said, for example, it is in talks with a power plant operator in Malaysia for the chartering of four to six tugs and to the port authority of Myanmar and another company in Indonesia for possible projects. Mr Bella also revealed plans to diversify into construction support and the renewable energy industry, particularly in solar and hydro power plant operations. By late 2016, Harbor Star had established operations in 15 ports across the Philippines, providing services to about 10,549 ships. HSSSI also owns 45% of Peak Flag Sdn Bhd, a Malaysian tug company.

Boluda has added two smart, silent, safe and environmentallyfriendly tugs to its fleet. The VB XALOC and the VB XEREA are pioneers in the international shipping industry and eight sister ships currently under construction will be delivered in stages between 2017 and 2020 Boluda Corporación Marítima’s harbour and offshore towing and maritime rescue division, Boluda Towage and Salvage, has committed to new technology and the latest technical advances in the construction of its new tugboats. It has increased its 250-strong tug fleet by adding the next-generation vessels VB XALOC and the VB XEREA which are based in the port of Valencia. The series of ten innovative and powerful Advanced Voith Tractor (AVT) tugs have been commissioned from the Zamakona 5

Yards shipyard. Boluda said they combine its know-how and experience in the tug sector with Robert Allan’s naval architects studio. Among the specifications that classify the tug as a Smart Ship are real-time data transmission and collection, parametrization and immediate man-ship interaction. The new tugs weigh less than 500 GT and are 31.57 metres long, with 12.8m beam and 6.5m depth and a maximum speed of 13.5 knots. They possess Caterpillar Mak diesel engines powered by 7,500hp and Voith cycloidal propulsion. They have FiFi1 firefighting features.

Donjon performs emergency repairs on Great Lakes freighter In May, the 1,000-foot self-unloading bulk carrier MV INDIANA HARBOR grounded while backing into an ore dock near Conneaut, Ohio, to begin to load a cargo, sustaining damage to the hull below the waterline. The next day, representatives from Donjon Shipbuilding and Repair, LLC; American Steamship Company, the vessel owner; American Bureau of Shipping and the US Coast Guard surveyed the damage and confirmed the need for an emergency dry docking at Donjon’s Erie, Pennsylvania, Shipyard Facility. After setting the 286 required docking blocks and preparing the dock for the vessel’s arrival, the casualty entered

Donjon’s 1,250 feet long by 130 feet wide by 22 feet Graving Dock on the morning of May 15 to begin emergency repairs. The vessel was built in Sturgeon Bay, Wisconsin by Bay Shipbuilding Co. and entered service in July of 1979. She was designed with 37 hatches that feed into 7 cargo holds with a carrying capacity of 78,850 tons. She also holds the distinction of carrying the “largest single passage cargo through the Soo Locks” in 1998. The hull damage amounted to just over 100 foot of steel that required replacement. A total of approximately 15 tonnes of steel was needed to complete the repair to the stern starboard quarter.

Giant containership The world's largest container ship, the 21,413 TEU OOCL HONG KONG, has made its maiden call at European ports. The 210,890 gross tonne vessel was built at Samsung Heavy Industries' (SHI) shipyard in Geoje, South Korea. Measuring 400 metres in length and with a width of 58.8 metres, the OOCL HONG KONG serves the Asia-Europe trade as part of OOCL's LL1 service.

OOCL HONG KONG seen here at the UK port of Felixstowe

There was also some additional work required to complete the repair which included replacing three blades on the starboard wheel and flame straightening portions of damaged or distorted shell plating. The fitting and welding repair work was done mainly in two daily 10 hour shifts in just over 2 weeks - well below initial estimates. Donjon said that the quick action of the owners as well as its team at Donjon Shipbuilding and Repair enabled the INDIANA HARBOR to quickly get back into service at the height of the Great Lakes Shipping Season.

Tsavliris operations ANASTASIA K grounded in the Parana River

stern. The vessel refloated successfully and proceeded to the anchorage area, escorted by the tugs and she was safely anchored and the tugs released. Also in April, the LPG Tanker GEMINI GAS - 9,490 tonnes dwt and laden with 4,400 tonnes of LPG - experienced a fire in the engine room about 130 miles south-east of Salalah, Oman. The vessel sustained severe damage due to the fire and sadly a seaman lost his life.

In March, Tsavliris dispatched the AHT DUTCH POWER from Rotterdam to assist the motor vessel SCANDINAVIAN REEFER, 11,054 tonnes dwt and laden with refrigerated products. The vessel had anchored in the North Sea, 45 miles from Flushing, following a mechanical breakdown. The tug safely connected and towed the casualty to Rotterdam/Damen shipyard and delivered her to port tugs and the DUTCH POWER was released.

In April, the bulk carrier ANASTASIA K 79,500 tones dwt - grounded off Rosario, Argentina, in the Rio Parana. The vessel was on passage from Rosario to Saudi Arabia laden with 46,500 tonnes of grain and soya beans.

Tsavliris dispatched the Salvage Tug GLADIATOR - BHP 8,000 and 120 tonnes bollard pull - from Djibouti to the casualty. A salvage team was mobilised from Greece to Salalah where the convoy arrived on 8 April. The cargo’s stable condition was maintained by retention of the required tank pressure/freezing level. The GEMINI GAS berthed with the assistance of port tugs, electrical repairs were carried out by the salvage team using portable diesel generators and power was restored.

Tsavliris’ local salvage master boarded the vessel while the tugs COOPER ESTIBADOR and RANQUEL were mobilised from San Lorenzo and Rosario respectively. Both tugs arived on the same day and connected to the casualty’s

Subsequently, the salvage team and four armed guards boarded the vessel for the onward voyage to Duqm where the tug was released and the salvage team completed works in the engine room and the casualty was redelivered.

Asian Marine Casualty Forum Some 375 shipping professionals attended the second Asia Marine Casualty Forum (AMCF) hosted by London Offshore Consultants (LOC) during Singapore Maritime Week in late April.

ISU General Manager, Mark Hoddinott

AMCF 2017 highlighted risk management, the demise of the Lloyd’s Open Form (LOF), progress with places of refuge and cooperation with authorities. There was also an insight into the search for the lost Malaysian Airline flight MH70.

ISU President, John Witte

The agenda was developed in close cooperation with the industry including the International Salvage Union which was also well-represented with President, John Witte, and General Manager, Mark Hoddinott, giving presentations and pastPresident, Leendert Muller appearing as a panellist. Other speakers were drawn from P&I Clubs, salvors, coastal authorities, marine lawyers and ITOPF. Debates took place on the future of LOF and global progress with places of refuge and delegates heard views on risk assessment and management from the points of view of consultants, Clubs and salvors. Progress on closer cooperation between insurers and authorities under the IG Outreach initiative was discussed - questioning the need to remove wrecks which do not pose a threat to navigation or the environment drew particular interest. 7

AMCF conference chairman, David Pockett, said: “The forum’s success showed the industry at its best, working together to provide an event at minimal cost but rich in content addressing the topical issues of the day.” LOC managing director Andrew Squire said: “When we launched AMCF in 2015 we agreed our industry needed a forum in which to openly discuss the many pressing issues which salvors and casualty specialists face today. We also felt the best way to achieve this was to encourage the industry to be 100% stakeholders hence the underlying principle of the forum, “arranged by the industry for the industry”. “The success of the first event led us to produce a second AMCF and the response was even more enthusiastic.”

Associates’ and Affiliates’ News ISU welcomes the following new Associate Member: Divetech Marine Engineering Services LLC Al Wahda Commercial Tower 19th Floor, 1903, Hazza Bin Zayed Street PO BOX .51675 Abu Dhabi, UAE Tel: + 971 2 6353531 / + 971 2 6353532 Email: info@divetechuae.com Web address: www.divetechuae.com Brand Marine

Under the takeover all of the company’s 12 staff at offices in Bremen and Hamburg will join BMC which has offices in London, Singapore and Mumbai, in addition to its Hamburg head office. BMC, was founded in 2014 by master mariner, SCR and former Titan operative, Dennis Brand and provides casualty management, surveys and engineering services, while Pandi Services J. & K. Brons focuses on claims handling services on behalf of P&I insurers and shipowners. The new joint group will have 21 employees and more than EUR 2.5 million (US $2.8 million) in turnover per annum. Mr Brand said that its range of services is “unrivalled” in the German market as surveyors and claims services providers usually operate independently from each other.

L-R: Peter Wölk (BMC), Dennis Brand (BMC), Thomas Kühl (previous owner/MD, Pandi Services), Rolf-Jürgen Hermes (MD, Pandi Services). Credit: Michael Hollmann

BMC is buying Pandi Services from second-generation family owner Thomas Kühl who continues to run marine insurance broker Pandi Marine which is not part of the transaction.

Brand Marine Consultants (BMC) has continued its expansion with the acquisition of one of Germany’s premier claims handling companies, Pandi Services J. & K. Brons.

Intercargo

Association of Average Adjusters

joined Richards Hogg Lindley in 2010 and completed secondments to the Hong Kong and Jakarta offices in 2013. Her role mainly involves handling and adjusting claims in hull and machinery, loss of hire, salvage and general average.

The Association of Average Adjusters says it is “going from strength to strength in its promotion of professional education in the marine claims sector.” In the the top category, four members qualified as Fellows in the latest series of examinations. Heather Robinson, Stelios Magkanaris, Andrew Slade and Robert Tomlinson met the exacting standards for which the Association is renowned. They were warmly congratulated by the Association chairman for 2016-17, Keith Martin, at the annual meeting, which was hosted this year at the offices of the law firm Clyde & Co. Ms Robinson, an adjusting manager with Richards Hogg Lindley in London, graduated in 2008 with an LLB (Hons) in Law from Sheffield University and

Intercargo has said it “welcomes the purpose and focus” of the IMO Ballast Water Convention due to enter force on

She said: “I am proud to be part of a profession which has such a long history and I hope it continues to evolve into the future. I think there will be a continuing, if not increasing need, for experienced and skilled marine claims practitioners. I really enjoy the complexity and variety of cases and the global nature of the work, both in terms of dealing with clients overseas and the opportunities to work abroad.” Ms Robinson added: “I think the exam process is important and valuable in maintaining quality and consistency across the marine adjusting profession. Hopefully the new Senior Associate qualification which was introduced last year will encourage more claims 8

8 Sept. 2017. But it said it believes the convention should take into account the challenges faced by existing bulk carriers, noting that applying the convention to newbuild vessels is “totally different to retrofitting an existing vessel” and that bulkers have unique requirements compared with other ship types. INTERCARGO expressed its concerns about the practical problems faced by its members in retrofitting existing dry bulk ships with Ballast Water Treatment Systems (BWTS) in two papers submitted for consideration at the next meeting of the IMO Marine Environment Protection Committee (MEPC 71) in July 2017: One paper tackles concerns about retrofitting Ballast Water Treatment Systems (BWTS) on those vessels that use gravity discharged Top Side Tanks. The second paper describes some of the other challenges - such as additional electrical powering requirements and availability of space faced by the bulk carrier industry. Intercargo said the industry would also welcome a more flexible and pragmatic transition from the first US Coastguard-approved BWTS disclosed in December 2016.

practitioners to take the exams.” The three latest sittings of the Association’s examinations took place at 24 examination centres and the Fellowship exam modules have a minimum pass mark of 75%. The modules are: Marine Insurance Act 1906 and related insurance principles; hull and cargo claims; General Average, salvage and Carriage of Goods by Sea Act; hull claims including loss of hire; collision liabilities, ancillary insurances on ship and cargo claims; and practical adjustment. A new exam module, Upstream and Offshore Energy Claims (A3) was announced in September 2016, and from October 2017 can be taken as an alternative to Paper A2 (Hull and Cargo Claims) to achieve the Associateship qualification.

Associates’ and Affiliates’ News CDSA China Diving & Salvage Contractors Association (CDSA); the International Marine Contractors Association (IMCA) and the Association of Diving Contractors International (ADCI) will co-host the 2017 International Underwater Intervention Conference and Exhibition and the 4th International Diving, Salvage and Ocean Engineering Technical Forum 3 - 5 November 2017 at Xiamen, China. The theme of the forum is “Smart Ocean Strategy, Industry Innovation and Development” and the sub-forums are the “Ocean Engineering Forum”; “Diving and Salvage Forum” and “Municipal Diving Forum”. CDSA said it was expecting “high-quality papers” covering “cuttingedge academic research results with high commercial value and high applicability.” IUMI The International Union of Marine Insurance (IUMI) gave two presentations to IMO delegates on the first day of the Maritime Safety Committee’s 98th session. Focusing on key industry issues, IUMI representative Donald Harrell, Head of International Insurance & Global Head of Marine at Aspen Insurance, and Chair of the Facts & Figures Committee, highlighted IUMI’s work and objectives.

Vice Chair of the Facts & Figures Committee, Astrid Seltmann, who is also Analyst/Actuary of The Nordic Association of Marine Insurers (Cefor), followed with an in-depth analysis of vessel values, fleet and casualty trends for offshore energy and hull, showing the current challenges, opportunities and difficulties in the industry. Both presentations are available at: https://iumi.com/news/blog/iumipresentation-at-imo-maritime-safetycommittee The European Tugowners’ Association The European Tugowners’ Association (ETA) has appointed Leendert Muller (above right) as Chairman for a period of two years. Mr Muller, Managing Director of towage and salvage specialist Multraship, was confirmed as chairman at ETA’s Annual General Meeting in Trieste, Italy, on 8 June. He succeeds Tug Malta’s Chief Executive Mr Mario Mizzi. Mr Muller has been the Deputy Chairman of ETA since 2015. ETA is the only association that represents the tug sector at a European level, and has 84 full members in 24 countries, who own or operate a combined fleet of over 850 tugs in European ports. Its membership ranges from major towage companies operating more than 100 tugs worldwide to family

businesses and port authorities with small-to-medium-size tug fleets. “The fleets of ETA members provide a vital service, the importance of which can sometimes be underestimated. These vessels help keep world trade and the world fleet moving," said Mr Muller. “The following two years are going to be very testing for ETA members. In Europe and elsewhere, tug owners and operators will face a variety of challenges, including political, economic and environmental issues. "The challenge for ETA members is to continue to invest in technology and manpower so that their vessels can operate safely and efficiently in the best interests of their customers. I am confident that, together, we will achieve that aim” concluded Mr Muller.

TMC advises on SEWOL recovery The sunken ferry SEWOL was raised in one piece in late March in good weather conditions by Shanghai Salvage using two lift barges fitted out with 66 350-tonne strand-jack units attached to 33 30-metre underside beams. The delicate operation took over 27 hours to complete. ISU Associate Member, TMC, provided services to the Korean Ministry of Oceans & Fisheries throughout the operation. Once on the surface at the designed 60% emerged position (13.5m above water), drainage of the hull took place in order to reduce weight. The following day, with good weather continuing, the convoy of barges and the SEWOL were gently towed by seven tugs and floated over the 72,000 tonne semi-sub vessel WHITE

MARLIN anchored three miles away. Once in position, WHITE MARLIN deballasted to the design draft and gradually took the weight of SEWOL. When fully de-ballasted the strand-jack wires were dis-connected and the barges departed. Several days were spent draining several thousands of tonnes of water and mud from the hull of SEWOL. On 31st March arrangements were completed in Mokpo New Port and SEWOL, loaded on the deck of WHITE MARLIN, made her way through the islands of South-west Korea to her allocated berth. SEWOL arrived alongside safely where the families of the deceased were waiting to greet the vessel. On the 9th of April, 600 axles of trailers 9

were arranged on the quayside for the load-in of SEWOL at Mokpo New Port and the hull was successfully delivered on to the quayside in one piece as required by the Korean authorities. TMC and Shanghai Salvage were both personally thanked by the Korean Prime Minister on behalf of the Korean nation, for their hard work in the successful raising of SEWOL. During the entire 18 months of the operation from August 2015 to April 2017 Shanghai Salvage dive teams carried out over 6,000 dives, with over 12,000 dive hours recorded, and sustained only 3 LTI incidents, with zero major injuries or fatalities, which was a tribute to the professionalism of over 90 divers used at any one time on site round the clock.

Resolve operations Resolve has successfully righted the 3,800-tonne Indian Navy missile frigate INS BETWA which capsized on her port side at Mumbai due to a loss of stability while undocking. Resolve was contracted to conduct an immediate dive survey then to stabilize, block and support the vessel to allow the drydock to be fully dewatered. Working alongside the Navy, crews inspected all compartments of the vessel, then proceeded to patch and repair all damage and secure all openings.

With a sophisticated engineering plan in place, salvage teams were able to complete extensive repairs to the internal tanks as well as the side shell of the vessel. By systematically flooding and pumping compartments, the vessel was rolled upright without the use of any external lifting force. The entire salvage operation was concluded in less than two months and required complex hydrodynamic calculations and the use of intricate measuring and monitoring systems. Elsewhere, a 50m split hopper barge capsized and sank in an active land reclamation area in Singapore waters.

reclamation team, Resolve was able to conduct the salvage operation while sand dumping continued in the immediate vicinity of the wreck site. Resolve reduced the potential environmental impact of the incident by pumping 5,000 litres of trapped hydraulic oil off the casualty. The barge was cut in half using oxyacetylene torches above water and divers with BROCO cutting torches underwater. The forward and aft sections were rigged with 3 inch lifting chain for recovery. Resolve mobilized the RMG 500 sheerleg crane from her nearby berth in Singapore. The bow and stern section, weighing 350 and 300 tons respectively, were lifted and loaded onto a deck barge for transport to a local Singapore scraping facility. Resolve completed the wreck removal operations after 14 days on site.

Coordinating closely with the land

Ardent round up In April, the 14,000 TEU container vessel, MSC DANIELA, experienced a fire while leaving Colombo bound for Europe. The vessel returned to Colombo where Ardent assisted the firefighting operation. Several local tugs and a firefighting (FiFi) tug started boundary cooling around the affected area and a full salvage team with firefighting experts was mobilized from Singapore and the Netherlands. For the next 10 days, the vessel remained at the outer anchorage of Colombo while the fire was fought continuously. When the fire was under control approval was obtained to bring the vessel alongside the container terminal to start the discharge operation which was completed by the end of April.

to the general cargo vessel SOUTHERN PHOENIX which capsized in the port of Suva, Fiji. The casualty was lying on the seabed in 15 meters of water (below). A section of the starboard bridge wing was visible above the water line. Ardent removed the floating containers and all pollutants from inside the casualty and in the vicinity. After testing, all tanks on the vessel were emptied using hot-tapping. Ardent recovered a total of more than 200 tonnes of oil. A local waste disposal company was engaged to carry out the disposal of the recovered oil in accordance with the local regulations. On its projects side, Ardent is presently

At the same time as dealing with the MSC DANIELA, Ardent responded to the bulker RESTINGA. The casualty dragged her anchor and ran aground off Port of Tarakan, Indonesia. Ardent assisted in obtaining the necessary local permits as well as executing the refloating operation with Indonesian partner Salvindo. The vessel was refloated within two weeks of the salvage contract being signed and her cargo was back-loaded. In early May, Ardent was contracted under LOF SCOPIC for rendering assistance 10

removing the wreck of FLUVIUS TAMAR in the UK. It is, so far, the largest wreck removal contract awarded in 2017. The cargo removal phase of the operation has been completed and the wreck removal operation was set to start in late June. In April, Ardent also provided search and rescue services for the sunken iron ore carrier STELLAR DAISY in the South Atlantic. And elsewhere, Ardent has been contracted for two offshore decommissioning projects. One is for ConocoPhillips in Northern Canada and the other for removal of a meteorological mast in the UK. Finally, Ardent was contracted for its third shipyard vessel launch contract over the last eight months, this time in Washington State, USA.

Smit operations

In February the container vessel ISLA BARTOLOME grounded just outside the shipping channel of Isla Puna Island, Posorja Ecuador (above). The container feeder capsized in some 6 metres of water and came to rest partially submerged with a list of some 45 degrees on a muddy bottom.

currents between the islands. Once all cargo was removed, sealing and dewatering operations commenced to safely refloat the casualty. To protect valuable machinery, the engines where “preserved” before redelivering the vessel to her owners in a stable and safe condition.

The vessel was carrying 160 containers and break-bulk cargo. Smit Salvage dispatched a salvage team to the casualty’s location from Houston and a salvage plan was prepared and approved by the owners and their underwriters.

Elsewhere, a severe cyclone hit the port and region of Kattupalli, near Chennai on the east coast of India, in late 2016 and the newly built AHTSs, HALUL 46, HALUL 47 and HALAU 64 which were moored at L&T Shipyard, partly broke away from their moorings after which they sustained heavy damage and partially submerged.

Additional salvage personnel and salvage equipment were mobilized to commence the operation. During the mobilization period, a dive survey and a risk assessment of the situation and status of the ISLA BARTOLOME and her surroundings was carried out. Towage capacity and local project support was provided by Saam – the Joint Venture partner in Saam Smit towage.

Smit Salvage and its alliance partner, VMW, mobilized to the casualty site with a team to perform a dive inspection and to make a salvage proposal to the owners. At the same time a second Smit Salvage team were working to refloat a barge which had collided with a bridge in the same port.

Smit said that the location was challenging with fishing activities and shrimp farms requiring a quick removal of the casualty. To parbuckle the vessel upright a detailed ballast plan was engineered using the vessel’s own compartments and cargo removal. Once the vessel was upright the remaining cargo was removed. Working on the container vessel with a 45 degree list was difficult and rope access safety measures were crucial to work safely but Smit said all the salvage personnel are fully trained in rope access and climbing techniques. During the lightering, up righting and refloating operation the ISLA BARTOLOME was secured using an outfitted deck barge with anchors and chains and there were strong tidal

In early 2017, the 1,000 tonne sheerlegs SMIT CYCLONE was outfitted with a variety of salvage equipment at the Smit base in Singapore and was subsequently towed to the casualty location by the ocean going tug SMIT SERAYA. In the meantime, the Smit dive team had started the diving and rigging works to prepare the sunken tugs to be connected for lifting. 11

Refloating operations were commenced by a combination of pumping and lifting support. The sequence of dewatering and lifting was based on the results of the dive inspection and subsequent detailed engineering. Smit said the project was “completed to the full satisfaction of the client and the authorities and was finalized well within the given timeframe.”

Smit has summarised 2017 so far as a “busy year [which has] tested the flexibility of our staff once again”. It reports that, along with the operations noted above, services have been provided to a wide range of ship types ranging from an LNG ship with a flooded engine room to the grounding of a VLCC which had to be lightered of 60,000 tonnes of cargo and from a large car carrier to fires on board a smaller ferry. Smit said there had been a concentration on Asia with the wreck removal work in India and four groundings in Indonesia but other work had come from all continents with several emergency towages off South Africa, groundings and wreck removal work in the Mediterranean, cargo fires in the UK and several groundings and a wreck removal job in South America as well as emergency tows in the Gulf of Mexico.

International Monitor

London International Shipping Week

The UK Secretary of State’s Representative for Maritime Salvage and Intervention (SOSREP), Hugh Shaw, is to become an Officer of the Order of the British Empire (OBE) for “exemplary services to the environment and maritime salvage.”

London International Shipping Week 2017 (LISW17) takes place September 11 to 15 with more than 140 industry functions. The associated LISW17 conference will be held at the Grosvenor House Hotel on London’s Park Lane, on Thursday 14th September with speakers including Kitack Lim, IMO SecretaryGeneral; Willem Buiter, Chief Economist at Citi; Andreas Sohmen-Pao, Chairman of BW Group; Dr Martin Stopford, President of Clarkson Research and, Inga Beale, Chief Executive Officer of Lloyd’s of London, who will discuss how risk can be managed and responsibility attributed in a dramatically changing safety environment.

Hugh Shaw

research and information organisation Marine Information Services (MIS) in Greece. The MIS figures show that the Greek merchant fleet now includes 1,037 Liberian-flag ships. Liberia also leads the way in terms of total deadweight tonnage registered under its flag by Greek owners, aggregating 78 million tonnes dwt. Unmanned ships

Esben Poulsson, Chairman of the International Chamber of Shipping will also speak. Picture: Rolls Royce

The LISW17 conference will be followed on the Thursday evening by the official LISW17 Gala Dinner, also to be held at the Grosvenor House Hotel, Park Lane, London. Mr Shaw has worked for the Maritime and Coastguard Agency for over 35 years and has been SoSREP for nearly 10 years. MCA said that Mr Shaw’s OBE award recognises the “huge personal responsibility and crucial decisions he has overseen to protect the UK’s unique coastal environment from maritime incidents.” MCA said the role “carries an enormous weight of responsibility, where one wrong decision could have catastrophic repercussions. His skill and expertise has ensured that there has been no significant pollution from shipping or from offshore installations since 2008.” Speaking of his award, Hugh Shaw said: “To receive this OBE is an incredible honour and I’m humbled to be recognised for the maritime and salvage work. This honour would not have been possible without the help and support of my colleagues, both past and present, not only in the MCA, but also within our partner organisations, environment groups, marine insurance and salvage sector. There have been challenging times, but this work has given me great satisfaction, especially when I know we have made a difference to the environment for future generations.”

ICS watchkeeper The International Chamber of Shipping (ICS) and IT Energy have announced the launch of the latest release of their ISF Watchkeeper software – ISF Watchkeeper 3.5 – developed for maintaining records of individual seafarers’ work hour records, as required by IMO and ILO regulations, and to help prevent crew fatigue and to avoid issues with Port State Control. This major upgrade, which is available free of charge to existing ISF Watchkeeper users on over 8,000 ships worldwide, has been designed to reflect the evolving needs of those at sea and managers ashore. ISF Watchkeeper 3.5 offers a new working schedule planning tool; a unique means of taking account of international dateline crossings; non-conformance activity capture; multi-language key reports and STCW 2010 ‘Manila Exceptions’ calculation improvements.

IMO is considering amending the International Convention for the Safety of Life at Sea (SOLAS) to allow the international operation of remotely operated ships. Unmanned ships are controversial but their supporters say they could reduce costs and accidents as many incidents are caused by human error. Nevertheless, it is expected that, even if autonomous vessels are introduced, they will still carry a skeleton crew to deal with incidents and maintenance. The first fully autonomous ship is due to start trials in Norwegian coastal waters in 2018 - but carrying a small crew - before going fully automated in 2020.

Salvage World is produced by the International Salvage Union. For matters relating to the publication contact: James Herbert, ISU communications advisor. Tel: +44 1423 330 505 Email: admin@gemcomms.com

Greece/Liberia

For general enquiries contact:

Liberia has confirmed its position as the leading flag of choice for Greek ship owners and operators, according to statistics produced by the independent

ISU, Holland House 1-4 Bury Street London EC3A 5AW Tel: +44 20 7220 6597 Email: ISU@marine-salvage.com