Salvage World Q3 2013

SEPTEMBER 2013

INTERNATIONAL SALVAGE UNION

Costa Concordia – success in critical phase TITAN Salvage and its partner Micoperi have celebrated the successful parbuckling of the wrecked cruise liner Costa Concordia off the Italian Island of Giglio.

The world waited with bated breath as force was applied to the network of chains and cables and, invisibly to the naked eye, the hull was rotated upright in an operation lasting many hours and supervised by South African Senior Salvage Master, Nick Sloane. The operation went according to plan with the vessel now settled on the subsea platform built to support her during the next phases of the job when additional buoyancy structures will be added to the starboard side to refloat her.

The air-filled sponsons on the port side will be ballasted with water to hold the Costa Concordia firmly to the supporting platform. Next, the starboard sponsons will be towed around to the inshore side and precisely ballasted for positioning against the starboard hull.

Strand jacks mounted on each sponson will pull against the chains, now running beneath the hull, to hold the boxes tight against the hull once pressurized. This will enable the Costa Concordia to be ready for the final phase.

Pictured left, Captain Nick Sloane, Senior Salvage Master.

a port for redelivery to the owners for final disposal. Once the vessel leaves the wreck site, divers will remove the structures left behind, including the concrete-filled grout bags, platforms

and anchor blocks. Marine biologists will carefully monitor the environment, helping to restore the flora and fauna that may have been impacted (continues Page 2).

Over 500 people work on the project from 26 nations: • 120 divers • 70 welders/carpenters/fitters The Micoperi/TITAN team will use powerful pneumatic blow-down systems mounted on the ship to gradually begin emptying water from all the sponsons.

This displacement will gently lift the vessel from the subsea platform though – despite all the external buoyancy – 60 feet of the hull will remain beneath the water. The wreck will then be towed to

• 60 technicians/grouters/pilots and ROV technicians • 60 coordinators/salvage officers/security-safety and health officers • 50 engineers • 140 crew members • 10 biologists 1

Some of the Titan Costa Concordia team.

The job has been one of superlatives.

Removing the wreckage required up to 500 specialists from 26 countries working around the clock, seven days a week.

More than 100 specialized divers, from eight different countries, have worked twenty-four/seven to help keep the project on schedule. And for every diver there are five workers on land in support.

The quantity of steel used in the

platforms is three times the weight of the Eiffel Tower.

But the fact that 32 people died as a result of the accident is not lost on the team. “Not a day goes by that the workers don’t think about why they are on this job,” said Senior Salvage Master, Nick Sloane. “Nobody on the crew ever forgets about the people whose lives have been altered by this accident.”

The world's media await developments.

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Sloane concluded: “With the complexities and amount of engineering, with the scale of the equipment we are bringing in, to the size of the teams … this is by far the largest salvage job that has ever been done.”

ISU NEWS Places of Refuge The ISU has published its position paper on the issue of Places of Refuge and is now in discussions with the International Chamber of Shipping and others to explore ways of making progress on this issue.

The ISU position recognises that the issue of Places of Refuge for casualty vessels is sensitive and that the risk of pollution from casualties cannot be completely removed. ISU also recognises that decisions with regard to handling casualty vessels carry political implications and may impact coastal communities. But it says failure to grant a suitable Place of Refuge may prevent successful salvage intervention and therefore allow a casualty’s condition to worsen and ultimately lead to pollution over a wider area.

ISU has identified that in the international legal context for the issue there is significant legislation in place internationally and regionally, in particular, IMO Resolution A.949, “Guidelines on Places of Refuge for ships in need of assistance”; the 1989 Salvage Convention and the EU Directive 2002/59/EC. The ISU does not therefore see merit in pursuing additional international legislation which will be a lengthy process and will consume resources. Instead, ISU will work with other interested parties, notably shipowners, to campaign for better application of, compliance with

and enforcement of existing rules and guidance.

ISU therefore urges coastal states to formally recognise that granting a Place of Refuge to a casualty vessel may be the most appropriate course. States should establish an authority to assess each case on its merits without political interference.

They should engage people with the appropriate credentials and experience to undertake an assessment of a casualty requesting a Place of Refuge.

Such assessment must include a visual inspection and conclude with recommendations for managing and mitigating the risk of any impact on local coastlines and communities. The assumption should be that a Place of Refuge will be granted if needed and that there should be “no rejection without inspection”.

In order to achieve the foregoing, ISU wishes to see wider adoption by coastal states of simple, robust, “single point” command and control models akin to that of the United Kingdom and in line with the requirements of the relevant EU Directive.

AGM Final Preparations are being made for the Annual Meeting to be held at the InterContinental Hotel, Kowloon, Hong Kong, Tuesday 22nd October to Friday 25th October 2013. The ISU Executive

Committee will meet on Wednesday 23 October, the business of the AGM will be conducted on Thursday 24 October and there will be various social events.

Salvage and Wreck Conference ISU is supporting the 2013 Salvage and Wreck Conference in London, 11-12 December at the Hilton, London Paddington. The ISU President will give a speech and the general manager and communications adviser are also speaking and chairing a panel, respectively. ISU Members may obtain a 25% discount on the booking fee.

To register, visit www.informamaritimeevents.com/ FKT2539ISUN International Chamber of Shipping and IUMI Conferences ISU General Manager, Mark Hoddinott, represented the ISU at the International Chamber of Shipping conference in London in September and also attended events linked to the International Union of Marine Insurance (IUMI) conference.

Mr Hoddinott commented: “It is important for ISU to maintain good relationships with the key people in the shipping industry. These two events – for owners and property insurers – were a great opportunity to keep in touch. There is a real appetite for people to know more about the salvage industry and its issues.

We must work closely with those for whom we provide services.”

MOL Comfort puts boxship casualties back in the public eye Mitsui OSK Lines (MOL) and classification society ClassNK continue to investigate the causes of the incident that led to the dramatic loss of the 8110 teu containership MOL COMFORT in June.

The vessel split in two in the Arabian sea portion of the Indian Ocean in adverse weather while in transit from Sinagpore to Jeddah.

Both sections remained afloat for some 10 days. However the aft section sank on 27 June with the loss of some 1700 containers and the fore section caught fire on 06 July before sinking five days later, losing 2400 containers with a further 4000 containers unaccounted for: some may well have sunk, others may float for a while causing a navigational hazard. All 26 crew were rescued by the Indian Coastguard.

ISU members Nippon Salvage and Smit Salvage were contracted to provide salvage services to tow the forward part before its sinking.

It is not known what caused the fire to break out but observers have suggested that the slow speed under tow combined with hot weather may be the reason.

Some 1500 tonnes of fuel was estimated to be in the aft part of the vessel and 1600 in the forward part but no significant pollution has been reported.

The incident raises questions about the original design of the ship which was only five years old and MOL ordered an inspection of the casualty’s six sister ships. An initial review confirmed that the design was compliant with ClassNK rules and IACS regulations but the sister ships will be strengthened in a process to be overseen by Lloyd’s Register.

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ClassNK Executive Vice President, Toshitomo Matsui, has said that the ClassNK Casualty Investigation Team’s analysis and investigation will take longer than initially expected which will delay the release of its findings. The team had expected to complete its analysis and investigation of the casualty in early September but now expects to release its findings to the public by the end of October 2013.

ISU, along with others, has noted that containerships make expensive casualties and wrecks because of the time and difficulty involved in handling the containers. And container fires have been a source of concern for some time with notable cases like the HYUNDAI FORTUNE and MSC FLAMINIA.

MEMBERS' NEWS POSH Semco In March this year, POSH Semco Pte Ltd’s EPIC (Engineering Procurement Installation and Commissioning) Division and Terasea Pte Ltd merged to form POSH Terasea Pte Ltd (“POSH Terasea”). The company says the new entity brings together the largest fleet of specialized and dedicated deep sea ocean tugs in the world.

POSH Terasea currently operates a young and modern fleet of seven powerful, long distance anchor handling towing tugs ranging from 150 to 205 tonnes bollard pull, with experienced crew and a dedicated project management team ashore.

The fleet comprises two 16,300 bhp tugs, TERASEA FALCON and TERASEA HAWK; two 13,500 bhp tugs, SALVANGUARD and SALVISCOUNT and three 12,000 bhp tugs, SALVERITAS, SALVICEROY and SALVIGILANT. The fleet of tugs is suited for towage, salvage assistance, oil spill and pollution response, fire-fighting, rig moves and positioning work. An additional two 16,300 bhp tugs TERASEA EAGLE and TERASEA OSPREY with 200 tonnes bollard pull built by Japan Marine United at the Keihin yard in Yokohama are set to join the fleet in November 2013 and February 2014, taking the POSH Terasea fleet to a total of nine vessels.

The company says that in addition to meeting demands from oil majors, underwriters and other maritime contractors for higher safety standards and younger and more powerful vessels, these vessels have also been specially designed for efficient long distance ocean towage, with large fuel tanks compared to standard towing tugs, reducing the need for port calls, saving time and expense and increasing safety margins in the event of adverse weather conditions.

Furthermore, the vessels also have the capability to run on either IFO or MGO, providing clients with flexibility and cost efficiency.

Fairmount The tugs FAIRMOUNT SUMMIT and FAIRMOUNT ALPINE have delivered the world’s first floating, storage and regasification unit (FSRU), Toscana, safely offshore Livorno, Italy. The Toscana was towed from Dubai via Malta where its final equipment was installed. After

delivering the Toscana, both Fairmount tugs assisted in mooring the unit to her six pre-installed anchors.

The Toscana, now moored 12 miles offshore Livorno, will be used as a terminal and export point for liquefied natural gas (LNG). The unit is the converted 2004 built, 288 metre LNG tanker Golar Frost.

Multraship Multraship has held the christening ceremony for its new tugs.

MULTRATUG 26 was christened by Yvonne Nuijten, mother of Pepijn Nuijten, Multraship's joint managing director.

MULTRATUG 27 was christened by Desiree Muller, daughter of Leendert Muller, joint managing director.

Saipem, Fairmount’s client, was pleased with their performance and Albert de Heer, CEO of Fairmount, said he was “delighted to have been so closely involved in this truly unique assignment.’’

Elsewhere, Fairmount’s EXPEDITION has delivered the offshore support vessel Harvey Rover safely to the port of Paramaribo, Suriname after she encountered engine problems while enroute from South Africa to Trinidad. And FAIRMOUNT SHERPA has delivered accommodation barge Ayang 2 offshore Angola from Romania where it had been undergoing an upgrading. The tow, over a distance of 6,100 miles, was conducted in 30 days at an average speed of 8.5 knots.

Yvonne Nuijten christens MULTRATUG 26.

TITAN Salvage TITAN’s Lindsay Malen, director, business development, recently spoke about the enforcement of OPA 90 non-tank regulations during the Marine Response Alliance (MRA)’s OPA 90 regulatory seminar entitled, “Navigating U.S. Waters,” held in Hamburg, Germany.

Opened by TITAN’s Captain Dennis Brand, director of global commercial operations, the seminar brought together speakers from different sectors of the industry around the world, allowing each to provide their perspective on handling salvage incidents in the US. Gigilinis On 8 August Gigilinis was called to assist a container ship suffering engine trouble off Brindisi, Italy. Gigilinis mobilised its tug SPARTAN from Piraeus in Greece via the Corinth Canal. The tug reached the casualty on 10 August, connected in less than an hour, and the convoy set off to the Greek isalnd of Astakos where the casualty was re-delivered to her owners on 12 August.

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Desiree Muller flanked by Pepijn Nuijten (left) and her father Leendert Muller (right).

SMIT SMIT has again secured the contract for the supply of an Emergency Towing Vessel (ETV), the SMIT AMANDLA, and pollution prevention and emergency response services for the South African coast. The contract commenced on 01 September 2013 and is for a minimum period of 3 years.

In addition to the ETV services, SMIT also has a comprehensive salvage store and full salvage team available in South Africa on a 24/7/365 basis to the Department of Transport via their contract managers, SAMSA. Recent South African salvage operations in which SMIT Salvage has been involved include the grounding of the MV KIANI SATU and the ongoing case of the MV SMART with fellow ISU member, Subtech.

Tsavliris intervenes with "T-Boned" bulkers

On 04 July Tsavliris dispatched its salvage tug MEGAS ALEXANDROS from Piraeus to assist the bulker carrier KATHERINE 28,711 dwt and laden with 26,400 tonnes of hot briquetted iron, following collision with the bulk carrier BARU SATU, 16,190 dwt, in the Kafirea Strait, Aegean Sea. The bulbous bow of the BARU SATU had penetrated the KATHERINE’s No 5 cargo hold, which flooded, locking the two vessels together. The BARU SATU sustained severe bow damage including flooding of her fore peak tank and No 1 cargo hold.

Tsavliris also sent the salvage tug ALEXANDER 5, the anti-pollution vessel AEGIS I and the tug AGIOS NEKATARIOS to the casualty’s position.

Priority was given to stabilizing both vessels and oil-booms were deployed around the casualty but no fuel tanks were breached.

On Friday 05 July, full inspections and diving surveys were undertaken to assess damage and devise salvage plans. Detailed trim, stability and strength calculations were undertaken to verify buoyancy and drafts around the vessels were taken as well as also soundings in all ballast tanks and cargo holds.

Fellow ISU member, SMIT Salvage, working with Megatugs, had been engaged by the owners of the BARU SATU (see story Page 11) and adverse weather conditions forced the decision to

tow both vessels, locked together, to the east of Kea Island for shelter by MEGAS ALEXANDROS and ALEXANDER 5 with the other tugs escorting.

On Saturday 06 July, the salvage team, in cooperation with the salvors of BARU SATU, began to try to separate the two casualties. It required cutting away deformed plates from the KATHERINE in order to separate the two vessels.

Following completion of the works, the two casualties were separated the next day and the casualty was taken to the place of refuge Thoriko Bay, north of the port of Lavrio, after approval by the Greek authorities.

With the two salvage tugs and pollution counter measures vessel on standby, two barges of 800 tonnes and 1,500 tonnes and a floating crane barge of 150 tonnes were dispatched to the casualty’s position to discharge the cargo.

The casualty’s No 5 hold was breached and flooded as a result of the collision and water had entered cargo holds 2 and 3, through the bilge line system.

The cargo, briquetted iron, reacts with sea water and the reaction produces 5

high temperatures and the explosive gas hyrdrogen. Careful monitoring was essential and a marine chemist was placed on board to continuously check the temperatures of the cargo. At one stage, smoke was discovered over No 3 cargo hold and temperatures up to 62 degrees Centigrade were recorded.

16,000 square metres of land was rented in Lavrio port to store the cargo in separate heaps, according to its condition. The “shuttling” of the discharged cargo from Thoriko Bay to Lavrio port lasted one month and some 25,625 tonnes of cargo was stored at Lavrio.

Cargo operations were completed on 31 July and the KATHERINE was towed to Neorion Shipyards at Syros for repair and the salvage tugs were demobilized. The vessel was redelivered to her owners at Syros on 15 August and the cargo redelivered on 02 September at Lavrio.

ASSOCIATES' NEWS TugAdvise TugAdvise, the specialist unit of shipping law firm Tatham Macinnes, has announced that John Reeder QC is to join as a consultant. Mr Reeder is an extremely well known silk with vast experience of maritime law. He will provide expert counsel’s opinion “in house” as well as working on a general case load of contentious and noncontentious, “wet” and “dry” matters.

In addition to his great experience of traditional towage and salvage matters, Mr Reeder will offer TugAdvise clients particular expertise in the growing field of maritime cultural heritage and treasure salvage. TugAdvise’s Simon Tatham said: “It is a complex area but one which generates considerable commercial interest. John Reeder is an expert on the UNESCO Convention on the Protection of Underwater Cultural Heritage which governs much practice in this field.

People interested in prospecting for treasure should take advice.”

John Reeder is also an expert on General Average and Simon Tatham noted: “These are specialist areas of expertise and our clients will benefit from having access to John's formidable understanding of these topics and his other specialties. John's consultancy will be exclusive to our clients in England and it is a real coup for Tatham Macinnes and demonstrates the high regard in which our firm is held.”

Mr Reeder is editor of the 5th edition of Brice, the leading text book on salvage law and is a former Lloyd’s Salvage Arbitrator and Appeal Arbitrator. Mr Reeder will continue to expand his practice as an arbitrator and mediator through his association with Stone Chambers where he will remain an associate member.

John Reeder said: "I am looking forward to getting stuck in and guiding clients direclty in a way that isn't really possible in chambers. I have always enjoyed the practical aspects of shipping law and technical considerations."

Shipowners P&I Club Shipowners P&I has published new guides to highlight best practice, good seamanship and sensible, practical operational procedures to try to reduce the incidence of property and vessel damage by raising operating standards.

The new booklets have simple, concise and clear text and diagrams and are valuable for small vessel operators trading in coastal waters and harbours and are designed to complement the usual statutory safe navigation rules documentation.

The new publication "Tides" aims to allow the seafarer to have a better understanding of how to undertake tidal calculations.

The publication, "Towards Effective Navigation" is aimed primarily at those mariners who are not fully trained in the art of navigation and it is hoped that this booklet will offer a better understanding of the subject including: positional and directional references; using gyro and magnetic compass; bearings and reading charts.

The booklets have been authored by Captain H. Subramaniam who has trained mariners in india for over 34 years.

Koffeman Consult Koffeman Consult BV has published the revised, second edition of its popular Pocket Guide to Salvage. The booklet includes sections on the key conventions and contracts as well as general information on maritime matters and salvage. Geert Koffeman said: “From the many people who already have the booklet we know that it is highly valued.”

For copies, contact info@koffeman-consult.com

pioneers of the accounting profession in the country and still involved with the firm today.

Chapman Freeborn Chapman Freeborn and Air Libya have entered a partnership to offer an An26 aircraft which is now in Libya and available for ad-hoc charters. The An-26 is one of the most versatile aircraft in the market with an ability to land in remote destinations an on unprepared or unpaved landing strips. It is well suited to heavy single pieces of cargo of more than five tonnes and has fast loading and unloading capability making it useful for the movement of time-critical pieces of equipment.

Cashman Cashman Equipment has added two Manitowoc 2250 SIII 300 ton cranes to its fleet for bare boat charters. The cranes are mounted on 160' x' 60' x 10' and 150' x 60' x 10’ barges.

Hill Dickinson Following on from the launch of its Singapore office in 2009, international law firm Hill Dickinson has announced it is to open an office in Hong Kong in October to focus on marine-related work.

The firm will be launching the office in association with a local law firm after receiving the regulatory approval from the Law Society of Hong Kong. Due to a confidentiality agreement, the local firm cannot be named until the association is finalised. Hill Dickinson will be relocating a partner from the UK to lead the operation and head up a team of four, as well as being in the final stages of making a local hire.

LOC

Moore Stephens Shipping accountant and consultancy, Moore Stephens has celebrated a 50 year presence in Greece. It was the first international accountant to open an office in the country in 1963. Throughout that time the firm has been served by Damanios Constantinou, senior partner of Moore Stephens Greece, one of the 6

LOC has officially launched its Newcastle, UK, office at The Sage, Gateshead on the banks of the River Tyne. Speaking at the opening, Malcolm Jowsey, manager of the new office said: “This region is a thriving maritime hub boasting significant P&I, legal and other services which regularly engage our consultancy expertise. This new office reaffirms our commitment to the north of the UK and allows us to deliver enhanced customer service to the region.”

Smit operations On 04 July, in the Aegean Sea, close to the island Nisos Kea, two bulk carriers collided. The MV BARU SATU damaged her bow section and one hold due to the impact of the collision.

SMIT Salvage joined with the Greek salvor, Megatugs, under a LOF 2011 contract for the BARU SATU, which was loaded with 15,000 tonnes of cargo. SMIT and Megatugs deployed two tugs for the initial response to ensure stabilization, environmental protection and on site reporting. All the necessary equipment was mobilized within 24 hours to ascertain the stability of the BARU SATU. At the same time, fellow ISU member Tsavliris Salvage was contracted by the owners of the other vessel, KATHERINE (see story Page 5).

to the receivers. By 24 July all cargo was transferred to the alternate vessel and the LOF services terminated.

In July, SMIT started work on the Notificatie Mobiliteit (“NOMO”) wrecks contracts. These Dutch Government contracts consisted of the partial removal of wrecks which are presenting a hazard or may cause problems in the future in the sea lanes off the Dutch Coast.

At the location “Verlengde IJ-geul” the sheerleg Taklift 6 was employed with

a wreck grab. From this unknown wreck the boilers and other parts were removed in order to obtain the required water depth over the wreck.

The second wreck was the Jan Breijdel, a Belgian cutter which sank in 1985.

Instead of just removing the upper part of the wreck to reach sufficient water depth, SMIT decided to remove the entire wreck with using Taklift 6. The works were completed in 10 days in favourable weather and according to SMIT, the correct preparation.

BARU SATU after separation from KATHERINE.

As the vessels remained connected and with worsening weather they were towed to shelter for full assessment of the environmental and operational risks in disconnecting the two vessels. By cutting some of the bulwarks of the KATHERINE the two casualties were separated on 07 July.

The BARU SATU was towed by the tug ARGEON PELAGOS to the Bay of Elefsis for temporary repair works. After receipt of Class approval for the repair works the vessel was permitted to berth alongside. In Elefsis the LOF services were complemented by a ship to ship transfer operation using a receiving vessel to allow the cargo to be forwarded

Decade of success for China Rescue and Salvage China’s Rescue and Salvage Bureau, part of the Ministry of Transport, has revealed in the newspaper China Daily the huge scale of its operations. A total of 34,030 people - including 5,300 foreign citizens - who encountered danger at sea and 1,873 ships including 347 foreign vessels - have been saved since 2003.

The largest-scale rescue took place in May 2006, when several hundred Vietnamese fishermen and dozens of fishing boats were stranded by Typhoon Chanchu and vessels dispatched by the Nanhai Rescue Bureau travelled, in total, for up to 17 days and over 7000 miles to rescue 330 Vietnamese fishermen.

Rescuers from China’s maritime and

salvage system have carried out more that 8,700 operations since 2003.

China has three rescue bureaus, three salvage bureaus and four flying rescue squadrons. But officials have said that, despite advances in the past ten years, it still lags behind some of its western counterparts at operating in deep water and in operating in extreme weather. And handling large oil spills and very large vessels also still presents a challenge, Wang Zhenliang, director of the rescue and salvage bureau, told China daily.

China has said it faces increasing risk of oil leaks as a result of its expanding output of oil and gas and a remarkable surge in cargo ships passing through China's waters. Mr Wang said 160,000 passages are made in China's waters by 7

oil tankers each year.

"How to dispose of a large oil spill remains a tough question for maritime authorities around the world. Current solutions can't completely remove the pollutants and they bring side effects to the environment," said Liu Jinzhang, an official at the Donghai rescue bureau.

The Chinese central government has invested heavily in maritime rescue and salvage, Wang said: “From 2003 to 2012, we built and bought more than 100 advanced, well-equipped vessels and 10 helicopters. The improvement in facilities, equipment and training has enabled us to operate in a hurricane Force 12 winds instead of the previous Force 6," he said.

POSH Semco round-up

In July, Singapore Oil Spill Resource Centre Pte Ltd was engaged to contain and recover spilled oil from the bulk carrier, ORIENTAL PIONEER after she was in collision with another bulker ATLANTIC HERO, in Singapore waters. It was reported that one of the ORIENTAL PIONEER’s bunker tanks was damaged and approximately 100 metric tonnes of fuel oil was spilled.

POSH Semco immediately mobilized its dedicated oil pollution control craft, SALVIXEN and its oil spill control team which and arrived on scene within hours of activation. The team immediately commenced oil removal and containment operations: an oil boom was deployed to contain the spilled oil; dispersants were used and oil skimmers were used to recover spilled oil. Much of the spilled oil was recovered and disposed ashore.

Elsewhere, POSH’s SALVISCOUNT went to the assistance of the laden 179,000 dwt, 292 metre-long bulker, the DONG-A LETO (pictured right) which was drawing 18.9 metres and experienced engine trouble south of Bali, Indonesia, while en route from Australia to China.

The SALVISCOUNT was in the vicinity, just off Jakarta, and mobilised rapidly and connected and towed the giant bulker to Singapore for repair. The voyage was over 1,250 nautical miles long and was acheived at an average speed of 6.1 knots.

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ISU publishes annual statistics The International Salvage Union has published its annual statistics, representing the aggregated data provided by the members of the ISU, the global trade association for marine salvors.

The numbers show a substantial international industry which today is worth more than US$ 500 million each year. The industry is, in a typical year, performing between 150 and 200 salvage services using a variety of contracts and conducting between 25-45 wreck removals.

The statistics show an increase in revenue from all salvage over the past decade but at the same time they show considerable fluctuations year on year in both the total revenue and the number of salvage services performed. There is a gradual decline in the number of services performed under Lloyd’s Open Form contracts which, in the past decade, typically, represent between 30-45% of

the salvage services carried out each year accounting for, typically, between 70-90% of salvage revenue.

LOF revenues expressed as a percentage of salved value have averaged 10.7% in the past decade.

Wreck removal revenues have increased significantly in the past decade and now account for a substantial portion of the industry’s annual income.

Commenting on the statistics, President of the International Salvage Union, Andreas Tsavliris said: “These data demonstrate a number of important points about our industry. While the total revenue from all sources has clearly grown significantly in the past decade there are still considerable fluctuations in both the totals and within the sources of revenue each year. It is noticeable that income from wreck removal activity has increased while the number of wreck removals conducted has stayed relatively

consistent – that may well be due to a relatively small number of particularly costly wreck removal operations. That is a trend identified by the insurance industry and seems to be due to the increasing demands of the coastal authorities.

“In common with the Lloyd’s Salvage Arbitration Branch statistics, we can see a gradual decline in the number of Lloyd’s Open Form (LOF) salvage cases – that is disappointing as the ISU believes that LOF still represents the most effective salvage contract facilitating rapid intervention in a casualty situation.

“While salvage income generally has risen, these statistics reveal significant fluctuation year on year of the total number of salvage services performed. It means that for individual members of the ISU, income remains variable and difficult to predict. Nevertheless, as an industry we must invest and be ready to serve the wider shipping industry and its insurers.”

ISU Salvage Statistics; 1999 - 2012

US DOLLARS (Millions)

All Sources of Revenue 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

LOF REVENUE SCOPIC REVENUE WRECK REMOVAL REVENUE

ART. 14 REVENUE OTHER SALVAGE REVENUE

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Nippon Salvage refloating operation A Panamanian-flagged bulk carrier, FU SHENG HAI, 31,643 grt and built in 1993 was carrying 40,000 tonnes of plywood and steel products when she ran aground near Saeng-do Island off Korea on 02 July. Nippon Salvage responded to the casualty quickly and was contracted to provide salvage services under a Lloyd's Open Form 2011 on the following day.

The inspection to establish a salvage plan was carried out in high seas and bad weather caused by repeatedly threatening typhoons. The inspection revealed that FU SHENG HAI was tidally flooded except for the engine room and one cargo hold out of the total of eight holds.

The engine room and No 6 cargo hold were just controllable by pumping and sealing. The casualty had also sustained a large fracture extending on the shell plates in way of the No 7 and 8 cargo holds.

On 06 July the casualty broke in two at the No 4 cargo hold. The forward section completely sank in deep water, while the aft section of the vessel remained grounded at the site. Nippon Salvage continued with preparations for a possible refloating of the aft section despite the difficult conditions.

The aft section was successful refloated on 13 August due to what Nippon Salvage called its “meticulous planning, long-standing experience, unyielding efforts and some luck.” Eventually this section was docked at a shipyard in Busan and delivered to a scrap buyer.

The Japanese salvors went on to say: “Refloating a halved vessel has become something of a signature expertise of Nippon Salvage.”

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Five Oceans Salvage update The motor tanker OMEGA, 46,500 dwt, built in 1990 and laden with 37,500 tonnes of fuel oil on passage from the UAE to Egypt, was immobilized due to turbocharger damage in the southern entry to the Gulf of Suez on 30 June 2013. The vessel was drifting at night in the middle of the VTS and close to the pristine natural environment and tourist resorts of Hurghada.

Her owners signed a LOF with Five Oceans Salvage and the salvors dispatched the tug BOURBON THOR from Ras Jarrah to assist and tow the vessel to Suez Anchorage.

The casualty under tow reached Suez on 03 July and dropped anchor with BOURBON THOR standing by for safety and in compliance with the authorities’ requirements until repairs were effected.

Subsequently, BOURBON THOR was replaced by the local tug OCEAN DAMIETTA and then by the salvor’s own tug MED FOS that mobilized from Piraeus, Greece. The casualty was repaired and services terminated on 05

PERLA

In the course of the following days, the Five Oceans Salvage team joined forces with a SMIT Salvage team and eventually a joint Lloyd’s Open Form was signed between the casualty’s owners, FOS and SMIT. The fire was extinguished and the casualty was towed to Port Louis where she was berthed in the port. All the containers damaged or hanging over the

Elsewhere, the motor tanker PERLA 48,500 dwt and laden with soya bean oil from South America to Iran, was immobilized due to an engine room fire off the coast of Somalia in June. The owners signed a LOF with Five Oceans Salvage and its tug CARIBBEAN FOS went to assist with an armed security team onboard.

HANSA BRANDENBURG

August when the casualty proceeded for discharge in port Suez and salvors’ tug demobilized.

The containership HANSA BRANDENBURG, 23,500 dwt, and built in 2003 suffered a fire in a cargo hold off Mauritius whilst en route from Singapore to Durban in July. Five Oceans Salvage dispatched its salvage tug CORAL SEA FOS from her salvage station in Mauritius to assist, together with a salvage and firefighting team from Europe.

and made watertight and ready for tow by a large salvage team mobilized from Europe. However, prior to completion of the temporary repairs, she was arrested by various interests and banned from sailing. Eventually the salvors facilitated the vessel’s release and towed her to Turkey for repairs, where the casualty was redelivered in early September.

ship’s side due to the fire and explosions were removed from deck and the deck cleaned of all debris, and the vessel was redelivered to her owners on termination of the LOF. Two further salvage operations undertaken by Five Oceans and reported in the Q2 2013 edition of Salvage World have now concluded. The bulk carrier FREE NEPTUNE, 31,000 dwt, which had been damaged in a collision off Nouakchott, Mauritania was patched 11

Weather and sea conditions were very bad throughout the towage and the connection parted four times and the tug sustained damage to her hull from the bad weather and high seas. Eventually the convoy reached shelter off the coast of Oman but CARIBBEAN FOS was left with insufficient bunkers to complete the tow to the UAE. The salvors chartered the tug TIBA FOLK from the UAE to assist the convoy and also chartered the tanker ANTHEM from the UAE to supply CARIBBEAN FOS with bunkers.

The tow resumed and the convoy reached Khor Fakkan where the casualty was safely anchored 26 miles off the port and the vessel was patched by divers and made ready for redelivery. Presently, the salvors remain standing by with CARIBBEAN FOS pending the provision of salvage securities and redelivery of the ship and cargo.

International Monitor Suez Canal Egyptian officials say they foiled an attack on a container ship which was aimed at disrupting shipping in the busy Suez Canal.

Canal authority head, Mohab Mamish, said a "terrorist element" targeted a Panama-flagged vessel, the COSCO ASIA, but it was undamaged. There were reports of two blasts.

Egypt has been hit by a wave of violence since Islamist President Mohammed Morsi was ousted from power.

Unverified video footage of the incident subsequently emerged on the Internet.

It appears to show two men armed with Rocket Propelled Grenade (RPG) launchers in the scrub on the banks of the canal. As the giant vessel passes by, the men appear to fire their RPGs at its flanks. It is impossible to tell whether the vessel was hit and Canal authority spokesman later said that there was, “no damage whatsoever either to the ship or its cargo.”

UK The MV DANIO carrying timber from Scotland to Belgium suffered a high profile grounding on the environmentally and culturally sensitive Farne Islands off the north east coast of England.

Media reports in the UK have suggested that the incident was the result of significant navigation errors in which the course plotted was, in effect, a straight line from Scotland to Belgium and took no account of the “bulge” of the north east coast. The freighter was refloated

by Titan Salvage who were praised by Hugh Shaw, UK SOSREP. The incident is still under investigation by the UK Marine Accident Investigation Branch.

Maritime Labour Convention In August, the International Labour Organization’s (ILO) Maritime Labour Convention, 2006, (MLC 2006) entered into force in the first 30 states to ratify the Convention, with other ILO Member States scheduled to bring it into force over the next 12 months.

The MLC 2006 is an important international regulatory instrument that will provide protection at work for more than 1.5 million seafarers who serve on the world’s fleets. It is widely acclaimed as the "fourth pillar" of the international

regulatory regime for quality shipping, and complementing the three key Conventions of the International Maritime Organization (IMO), the MLC, 2006 sets out seafarers’ rights to decent conditions of work on a wide range of subjects, and replaces almost 70 existing conventions and regulations. It also benefits shipowners with a clear, consistent set of standards with which all must comply.

Adopted by the ILO in 2006, the MLC, 2006 is the result of years of hard work and cooperation on the part of the official ILO ‘social partners’ - national shipowners’ associations co-ordinated by the International Shipping Federation (ISF) and seafarers’ trade unions coordinated by the International Transport Workers’ Federation (ITF).

were committed to stay.

Highlighting the need for a critical mass of shipping people, a trustworthy legal system, a sound infrastructure, good communications and genuinely international outlook, Mr Morooka said a pre-eminent worldwide maritime centre needs to be a ‘one stop shop’ providing immediate access to the expertise and support services required to conduct international operations on a twenty-fourseven basis.

“As a centre for maritime business services, London still truly lacks a comparable rival,” he said.

London International Shipping Week The inaugural London International Shipping Week attracted key industry figures and government representatives from more than 50 countries who attended over 60 events across the capital.

The initiative was well supported by the UK government and culminated in a sold-out Conference, and Gala Dinner for over 600 guests, attended by Stephen Hammond, the UK Shipping Minister and Patrick McLoughlin, Secretary of State for Transport.

London is “still the shipping capital of the world,” according to the Chairman of the International Chamber of Shipping, Masamichi Morooka. But he also suggested that London should not rest on its laurels and that a truly world class centre would wish to retain its position for the very long term and have an ambitious strategy for achieving this.

Speaking on behalf of the world’s shipowners at LISW, Mr Morooka outlined what he felt as an employee of a major non-UK shipping company, was needed for a city to be a first class maritime centre.

He remarked that London’s continuing success suggested that a large concentration of beneficial ship ownership was not necessary to be successful, as was also the case with its merchant banks, or indeed the British car industry. But in the long term this strategy would only work so long as the foreign companies concerned 12

ICS Chairman Masamichi Morooka (centre) taking part in the shipping round table meeting at Downing Street with UK Prime Minister David Cameron (right) and Director General UK Chamber of Shipping, Mark Brownrigg (left).

The meeting took place the day before the ICS Board Meeting in London during London International Shipping Week.

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