Newsletter 057

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T&T SHIPBUILDER & REPAIR NEWS ISSUE #057 – JANUARY 2013.

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T&T SHIPBUILDING & REPAIR (S&R) CLUSTER

Diversifying our Economy, one Ship at a time©... Hello S&R Stakeholders, DAMEN 2013 SHIP CALENDAR HAS DOCKED! We are happy to once again receive this year’s Damen 2013 Calendar from their local representative, LP Marine and Industrial Supplies Limited. The Damen Shipyards Group Calendar features unique photographs of the wide range of ships built by Damen. The Dutch multinational group was established by two brothers in 1927 and has a leading position in shipbuilding with more than 6,000 employees and a presence in 35 countries. To view the new 2013 Damen Shipyards Calendar online, please click the following link on our Flickr website here: http://flic.kr/s/aHsjEyxhh7

PORT OF GALEOTA TO BE READY THIS YEAR Port Galeota will be ready this year, senior energy officials from the Ministry of Energy & Energy Affairs and the National Energy Corporation have said. Last year, Energy Minister Kevin Ramnarine said: “We started work on the Galeota Port, which was a project of the previous administration that had been stalled. We un-stalled the Galeota Port and it has commenced, and we expect the port to be completed some time this year.” To read more, please click the following website link: http://guardian.co.tt/business-guardian/2013-0220/port-galeota-be-ready-year Page 2 of 26


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T&T ENERGY CONFERENCE SOLD OUT! The Trinidad & Tobago Energy Conference is a premier event which covers the dynamic Trinidad & Tobago energy sector. It is one of the biggest events that gives information about Trinidad and Tobago’s well developed hydrocarbon and petrochemical sectors, the emerging neighbouring Guyana/Suriname basin and new opportunities in renewable energy in the region. Several of our S&R Stakeholders, including ASCO and Caribbean Analytical Services Limited (CASL) will be participating in this event, which includes a Trade show to be held from January 28-30, 2013 at the Hyatt Regency Trinidad. To view Conference and Trade show photos, please click the following website link on our Facebook New La Brea Vision website here: https://www.facebook.com/media/set/?set=a.4 73456122702919.98788.132243123490889&typ e=1&l=4a37a8d300 Sincerely, T&T Shipbuilding and Repair Cluster.

Wilfred de Gannes. Deputy Leader.

Be always at war with your vices, at peace with your neighbors, and let each New Year find you a better man.” – Benjamin Franklin, Author, Inventor & Diplomat

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T&T SHIPBUILDER & REPAIR NEWS ISSUE #057 – JANUARY 2013.

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DNV TO COOPERATE WITH KOREAN GAS CORPORATION ON A FEASIBILITY STUDY OF LNG BUNKERING IN SOUTH KOREA DNV and Korea Gas Corporation (KOGAS), South Korea's national gas company, have entered into an agreement to cooperate on a feasibility study on the establishment of an LNG bunkering infrastructure in Korea. This is one of the largest and most comprehensive feasibility studies ever initiated in the worldwide LNG bunkering industry.

One of the largest obstacles to widespread take-up of LNG as fuel is the lack of a bunkering infrastructure.

Based on this agreement, DNV will qualitatively and quantitatively study the feasibility of implementing LNG bunkering in ports in the south-eastern area, Pusan, and western area, Incheon and Pyeongtaek. This project will be led by Dr. Sun Il Yoo, Senior Customer Service Manager in DNV Korea, who will be assisted by the DNV Clean Technology Centre in Singapore. KOGAS has formed consortiums with Korea's major energy companies to carry out the feasibility study. It will be run by a consortium consisting of KOGAS and Kyungnam Energy in the south-eastern area, and by a consortium consisting of KOGAS and Samchully in the western area. Through this project, DNV aims to define Korea's commercial opportunities related to LNG Page 5 of 26


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distribution and shipping by addressing possible LNG supply chains and infrastructures, technologies related to LNG shipping and bunkering, standards, regulations and issues regarding public acceptance. "DNV is one of the globally leading risk management service providers that have extensive experience in LNG sectors. KOGAS has already cooperated closely with DNV on R&D and Health, Safety, Environmental and Quality (HSEQ) management. We're looking forward to continuing our partnership, to which DNV can bring its risk-analysis expertise in the LNG sector, and especially in the LNG bunkering field, and help us to take this LNG bunkering project one step closer to reality," says Yang, Young Myung, Vice President and Head of the R&D Division at KOGAS. "For years, DNV has developed comprehensive knowledge of the entire LNG value chain. We are the first classification society to present guidelines on LNG-fuelled vessels and have recently been active in introducing innovative LNG shipping concepts. DNV is leading the development of rules and recommended practices in the LNG sector, including the development of bunkering standards. We are thrilled to provide our expertise to KOGAS, the largest LNG importing company in the world," comments Jon Rysst, Regional Manager of DNV Korea & Japan. ************************

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INTERNATIONAL NEWS Vigor Places $40 Million Order for Huge Floating Drydock - Jan 14, 2013 Vigor Industrial announced today they have reached an agreement with Daoda Marine Heavy Industry Company (DDHI) to purchase a new floating drydock for a total consideration of US$40 million. At 960 feet long, with an inside width of 186 feet and a lifting capacity of 80,000 long tons, it will be the largest floating drydock in the United States upon delivery. The new drydock, set to be stationed in Portland, will be 300 feet longer than the largest drydock Vigor currently owns. It will be one and half times wider and will be able to lift more than triple the weight. DDHI will build the drydock at its facility in Jiangsu Provence, China, for delivery by March 2014. It will be towed to Portland in three pieces for assembly, and its first job will likely be to prepare Vigor’s largest Portland-based drydock for use at Vigor’s Seattle facility. This would provide the Seattle shipyard with a new capacity to service Panamax-sized vessels.

SKF Combines Join with Blohm & Voss in $104 Million Merger - Jan 9, 2013 SKF AB, the world’s largest maker of ball bearings, agreed to buy Hamburg-based shipcomponent maker Blohm & Voss Industries GmbH to expand its offering to the marine industry. SKF will pay 80 million euros (US$104 million) and assume net loans and cash of 18 million euros, the Gothenburg, Sweden-based Company said.. The acquisition from Star Capital Partners is subject to regulatory approval. BVI makes products such as shaft components, stabilizers and oily water separators and will strengthen SKF’s position as a preferred application partner with a full life-cycle offering, SKF said. BVI will bolster service capabilities and has a complementary market presence.

Maersk Line Pressures Hong Kong on Low-Sulfur Fuel - Jan 7, 2013 Maersk Line, the world’s biggest container-shipping company, threatened to stop using cleaner fuel at Hong Kong port from next year if the government doesn’t mandate higher quality oil for carriers berthing in the city. Without rules, shipping lines that burn polluting fuel benefit from cheaper costs compared with Maersk, which uses a cleaner fuel that is also expensive, said Tim Smith, its North Asia head. The company and 17 other operators have voluntarily used low-sulfur oil for the past two years to help curb Hong Kong’s pollution, the worst among global financial centers. Government incentives for switching to cleaner fuels for shipping lines calling on the world’s third-busiest container port, a key contributor to the island’s pollution, don’t cover additional costs and the payments are often delayed because of processes, Smith said. Reverting to dirtier oil will be a blow to Hong Kong Chief Executive Leung Chun-ying’s plans to clean up Asia’s World City even as residents choke on smog that causes more than 3,000 deaths a year. Page 7 of 26


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Millionaire’s Private Navy Ready to Take on Somali Pirates - Jan 7, 2013 A new British private navy will soon begin plying the Indian Ocean to help support the fight against Somali pirates. The UK’s Sunday Times reported yesterday that the new navy, founded by companies led by the commodity giant Glencore International Plc (GLEN), will protect its first convoy of oil tankers and bulk carriers from Somali pirates in the Indian Ocean in late March or April, according to their interview with Glencore Chairman, Simon Murray. Typhon, as the venture is called, was formed by a group of U.K. businessmen led by Murray and will recruit 240 ex-Royal Marines and sailors for its navy, the London-based newspaper reported. The company will use a mother ship and high-speed patrol boats to escort convoys of merchant ships – and sometimes yachts – through the pirate infested waters of the Indian Ocean.

Single Bluefin Tuna Fetches $1.76 Million at Auction - Jan 3, 2013 Kiyomura K.K., a Tokyo-based sushi chain, paid a record 155.4 million yen (US$1.76 million) to outbid an affiliate of a Hong Kong-based rival for a tuna it said would be enjoyed by Chinese and Japanese customers alike. The fresh whole tuna weighed 222 kilograms (489 pounds) at the market’s first auction of 2013 yesterday. The price compares with the 56 million yen Kiyomura paid last year to take an auction Itamae Sushi Japan K.K., an affiliate of the Hong Kong- based Taste of Japan Group, won the previous year. Kiyomura could lose as much as 154 million yen on the purchase, based on the estimated 15,540 yen it paid for each piece of sushi and the minimum 128 yen it charges per serving. The chain’s president said last year it made the record bid to ensure the fish was won by a Japanese following the March 11, 2011, earthquake. This year, amid heightened geopolitical tension with China, President Kiyoshi Kimura said he expected people from both countries to partake.

Meyer Werft Delivers the Dual Fuel-Powered LNG Carrier - Jan 3, 2013 German shipyard Meyer Werft announced today the delivery of the Liquefied Natural Gas (LNG) tanker CORAL ENERGY to Rotterdam-based shipowner Anthony Veder. It is the first ship of a new gas tanker type which is equipped with an eco-friendly Wärtsilä 50DF dual-fuel main engine, and a pair of Wärtsilä 20DF dual-fuel auxiliary engines. The DF engines will be run mostly on environmentally sound, liquefied natural gas (LNG), but have the capability of being switched to diesel fuel if and when required. This will be the first newbuild vessel with a dual-fuel engine mechanically driving the propeller. ************************ Page 8 of 26


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T&T SHIPBUILDER & REPAIR NEWS ISSUE #057 – JANUARY 2013.

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THE ARCTIC WILL BE ICE-FREE IN SUMMER WITHIN 20 YEARS, RESEARCH SAYS Ships will be able to sail in open water to the North Pole in the summer of 2020, according to a study that found a rapid acceleration in the loss of sea ice.

The Arctic will be ice-free in summer within 20 years, the study found, while the Earth will lose the white cap that can be seen in photographs taken from space.

The Polar Ocean Physics Group from Cambridge University compared measurements of ice thickness recorded by a Royal Navy nuclear submarine with those taken two years later in the same area by Pen Hadow, the explorer.

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The two sets of measurements were consistent, revealing that the findings by HMS Tireless in 2007 were not an aberration caused by a particularly warm year. Peter Wadhams, Professor of Ocean Physics at Cambridge, said that cargo ships would no longer need to rely on special ice-breaking vessels to cross from the Pacific to the Atlantic via the Northwest Passage. The route would be ice-free for several months every year, cutting more than 3,000 miles from the normal journey from the Far East to Europe via the Suez canal. "The North Pole will be exposed in ten years. You would be able to sail a Japanese car carrier across the North Pole and out into the Atlantic," Professor Wadhams said. "The ice will retreat to a zone north of Greenland and Ellesmere Island by 2020 and that area will be less than half the present summer area. The change in the Arctic summer sea ice is the biggest impact global warming is having on the physical appearance of the planet." This month, the National Snow and Ice Data Centre, which is part of the University of Colorado, said that Arctic ice coverage was the third-lowest since satellite records began in 1979. The coverage was greater than in 2007 and 2008 largely because of cloudy skies during late summer. Each of the past five years has been one of the five lowest years. Professor Wadhams, who was on board the submarine supervising sonar measurements of the ice, said that Mr Hadow's findings confirmed that the underlying trend was towards increasingly thin and patchy ice cover. Mr Hadow and his two team members spent 73 days between March 1 and May 7 this year walking 280 miles (450.6km) across the Arctic while taking measurements. They drilled 1,500 holes and found that the average thickness of ice floes was 1.8m (5.9ft). This was too thin to have survived the previous year's summer melting and indicated that the area of moving ice had been formed in open sea during the winter. Mr Hadow said that future expeditions to the Arctic in summer would need to change their techniques and equipment to cope with more frequent stretches of open water. "A hundred years ago explorers used dogs to haul sledges and then we went through the stage of people hauling sledges," he said. "Now we have people wearing immersion suits and needing to swim, with the sledge floating. I foresee a time when the sledge will become more of a canoe." Mr Hadow said that he had decided to change the focus of his polar expeditions from exploration to collecting data that could help to predict changes in the climate.

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Martin Summerkorn, climate change adviser to the WWF Arctic Programme, said that the loss of sea ice predicted by the Cambridge study would have profound consequences beyond the polar region. Without ice to reflect sunlight, the Arctic Ocean would warm more quickly, resulting in the release of greenhouse gases stored in the Arctic permafrost soils. These soils contain twice as much carbon as is in the atmosphere. Mr Summerkorn said that the warming of the Arctic surface waters would accelerate the melting of the Greenland ice sheet, speeding up the sea level rise. "This could lead to flooding affecting one quarter of the world's population and extreme global weather changes," he said. ************************ MY FAVORITE MARITIME MOVIE Cast Away (2000) After FedEx systems engineer Chuck Noland is ripped out of his hasty life by the clock in a plane crash, he finds himself alone on the shores of a tropical island. First, frustration gets to him and then he realizes how little his chances are to ever get back to civilisation. Four years later, Chuck has learned very well how to survive on his own: mending his dental health, catching fish with a spear, predicting the weather with a self-made calendar. A photograph of his girlfriend Kelly has kept his hopes alive all these years. Finally, Chuck takes the opportunity to take off for home: He sets off on a wooden raft with a sail that has washed ashore.

To view ‘CAST AWAY (HD) TRAILER,’ please click the following link+: http://youtu.be/yY9Nm4RF-K0

+

EDITOR’S NOTE: Please make sure to also watch FedEx Commercial ‘Castaway’ at:

http://youtu.be/Bj3esvJv33M

************************

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T&T SHIPBUILDER & REPAIR NEWS ISSUE #057 – JANUARY 2013.

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ABS GRANTS ENERGY MANAGEMENT CERTIFICATIONS TO LEADING MARITIME ORGANIZATIONS Organizations among first maritime companies to receive certification

Maersk Line Limited (USA)is the first recipient of ABS’ HSQEEn certification, in adopting energy management programs as part of their commitment to achieving sustainable and efficient energy usage.

ABS, a leading provider of global classification services, today announced the certification of several maritime industry leaders for adopting energy management systems. Gaslog LNG Services Ltd., Consolidated Marine Management and Goodwood Ship Management Pte Ltd. are among the first organizations to certify their energy management systems using the ABS Guide for Marine Health, Safety, Quality, Environmental and Energy (HSQEEn) Management. These forward-leaning companies are exceeding maritime industry requirements for energy efficiency and establishing systems that will allow them to manage operations that align with increased environmental awareness. This certification recognizes the addition of energy efficiency to these organization’s existing marine management systems. When properly implemented, energy management systems can reduce greenhouse gas emissions, support reduced energy costs and improve operating performance.

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“Each of these companies has demonstrated a commitment to energy efficiency and developed corresponding management systems that will help drive more efficient operations,” says ABS President and CEO Christopher J. Wiernicki. “The HSQEEn Guide was developed to help owners and operators facilitate a progressive approach to integrated management systems and can be applied to a wide variety of ship operations and management styles.” ABS’ HSQEEn energy management requirements are based on ISO 50001:2011, the international standard for energy management systems. The standard, which is considered a much broader energy management tool, establishes an energy baseline, demonstrates energy reductions, creates energy goals and action plans, and helps owners and operators manage significant energy-consuming equipment. “One of our objectives at ABS is to drive innovative solutions that will help owners and operators not only meet their operational and regulatory demands, but also help differentiate themselves as organizations committed to reducing their energy consumption and limiting their environmental impact,” Wiernicki says. “As the maritime industry comes under increased scrutiny in the areas of energy efficiency and emissions control, our goal is to stay abreast of new regulatory requirements and business realities that will significantly impact maritime operations.”

These companies join Maersk Line, Limited (USA), the first recipient of ABS’ HSQEEn certification, in adopting energy management programs as part of their ongoing commitment to achieving sustainable and efficient energy usage. About ABS Founded in 1862, ABS is a leading international classification society devoted to promoting the security of life, property and the marine environment through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities. ************************

“Learn from yesterday, live for today, hope for tomorrow.” – Albert Einstein, Theoretical Physicist Page 16 of 26


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NEW SOLAS, MARPOL AMENDMENTS ENTER INTO FORCE – What You Need to Know As of January 1, 2013, the International Maritime Organization has entered into force new regulations aimed at improving the energy efficiency of international shipping and preventing accidents during lifeboat launching. Here is what’s new for 2013.

SOLAS Amendments Amendments to the International Convention for the Safety of Life at Sea (SOLAS) aimed at preventing accidents during lifeboat launching entered into force on 1 January 2013. The amendments, adopted in May 2011, add a new paragraph 5 to SOLAS regulation III/1, to require lifeboat on-load release mechanisms not complying with new International Life-Saving Appliances (LSA) Code requirements to be replaced, no later than the first scheduled drydocking of the ship after 1 July 2014 but, in any case, not later than 1 July 2019.

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The SOLAS amendment is intended to establish new, stricter, safety standards for lifeboat release and retrieval systems, and will require the assessment and possible replacement of a large number of lifeboat release hooks. Information submitted by flag States on their assessments of existing lifeboat hooks is available on the Global Integrated Shipping Information System (GISIS) under Evaluation of Hooks. MARPOL Amendments The amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL) were adopted in July 2011.New regulations aimed at improving the energy efficiency of international shipping entered into force on 1 January 2013. A new chapter 4 Regulations on energy efficiency for ships to MARPOL Annex VI, is intended to make mandatory the Energy Efficiency Design Index (EEDI), for new ships, and the Ship Energy Efficiency Management Plan (SEEMP) for all ships. Other amendments to Annex VI add new definitions and the requirements for survey and certification, including the format for the International Energy Efficiency Certificate. The regulations apply to all ships of 400 gross tonnage and above. However, under regulation 19, the Administration may waive the requirements for new ships up to a maximum of 4 years. The EEDI is a non-prescriptive, performance-based mechanism that leaves the choice of technologies to use in a specific ship design to the industry. As long as the required energy-efficiency level is attained, ship designers and builders would be free to use the most cost-efficient solutions for the ship to comply with the regulations. The SEEMP establishes a mechanism for operators to improve the energy efficiency of ships. Ships are required to keep on board a ship specific Ship Energy Efficiency Management Plan (SEEMP). Additional MARPOL amendments which entered into force on 1 January include the following. Annex VI Emissions Amendments to MARPOL Annex VI designate certain waters adjacent to the coasts of Puerto Rico (United States) and the U.S. Virgin Islands (United States) as the US Caribbean Sea Emission Control Area for the control of emissions of nitrogen oxides (NOX), sulphur oxides (SOX) and particulate matter under regulations 13 and 14 of MARPOL Annex VI. Another amendment makes old steamships exempt from the requirements on sulphur content of fuel oil used on board ships in both the North American and United States Caribbean Sea ECAs. The new US Caribbean Sea ECA takes effect 12 months after entry into force, that is, 1 January 2014. Page 19 of 26


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Annex IV Sewage Amendments to MARPOL Annex IV Prevention of pollution by sewage from ships include the possibility of establishing Special Areas, the actual designation of the Baltic Sea as a Special Area under Annex IV, and the introduction of stricter discharge requirements for passenger ships while in a Special Area. Annex V Garbage The revised MARPOL Annex V Regulations for the prevention of pollution by garbage from ships has entered into force, following a comprehensive review to bring the Annex up to date. The main feature of the revision is the prohibition of the discharge of all garbage into the sea except as expressly provided otherwise in the Annex. The discharges permitted in certain circumstances include food wastes, animal carcasses, cargo residues, and water containing cleaning agents or additives used for washing deck and external surfaces or cargo holds. Cargo residues and cleaning agents and additives must only be considered for discharge if they are not harmful to the marine environment. The changes also include the updating of definitions; the introduction of an “en route” requirement for the discharge of garbage at sea; and the regrouping of the garbage categories for the purpose of the garbage record book. ************************

To view ‘How not to launch an FRC (Fast Rescue Craft) video,’ please click the following link: http://youtu.be/3mMN693-F3U ************************ Page 20 of 26


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MARITIME INDUSTRY WEB LINKS ABS - www.eagle.org/ ASCO - www.ascoworld.com/ AUSTAL- www.austal.com/ CARIBBEAN ANALYTICAL SERVICES LIMITED (CASL) - www.casl-group.com/ CARIBBEAN SAFETY PRODUCTS LIMITED (CSP) - www.caribbeansafety.com/ CONRADO BEACH RESORT LIMITED - www.conradotobago.com/ DAMEN SHIPYARDS GROUP - www.damen.nl/ DNV - www.dnv.com/maritime MEYER WERFT - www.meyerwerft.de/en/meyerwerft_de/ MARITIME PRESERVATION LIMITED - www.maritimepreservation.net/ MINISTRY OF TRADE & INDUSTRY - www.tradeind.gov.tt/ NEW LA BREA VISION

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QUALITECH CNC MANUFACTURING SOLUTIONS - www.qmstt.com SHOES INDUSTRIAL SUPPLIES LIMITED - www.shoesind.com/ SKF AB - www.skf.com/ T&T SHIPBUILDING & REPAIR

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VIGOR - http://vigorindustrial.com/ WARTSILA - http://wartsila.com/en/Home

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1,000 SHIPS LOCKED IN ICE OFF CHINA Temperatures in China have plunged to their lowest in almost three decades, cold enough to freeze coastal waters and trap 1,000 ships in ice, official media said at the weekend. Since late November the country has shivered at an average of minus 3.8 degrees Celsius, 1.3 degrees colder than the previous average, and the chilliest in 28 years, state news agency Xinhua said on Saturday, citing the China Meteorological Administration. Temperatures in the northeast fell even further, reaching a 43-year low of minus 15.3 degrees Celsius, about 3.7 degrees below the previous recorded average. ************************

CONTACT INFORMATION Mr. Wilfred de Gannes, Deputy Leader, T&T Shipbuilding and Repair Cluster, Post Office Box 2853, Chaguaramas, Trinidad and Tobago. Tel: +1(868) 753-6057 Fax: +1(868) 662-6326 Skype: TT SHIPBUILDING AND REPAIR E-mail: ttshipbuildingandrepaircluster@yahoo.com Website: http://www.tts-r.com Trinidad and Tobago Shipbuilder & Repair News is edited by T&T Shipbuilding and Repair Deputy Leader Wilfred de Gannes, and published monthly by the Shipbuilding and Repair Development Company of Trinidad and Tobago Limited. This newsletter is available complimentary via email. Š All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Quotation(s) from the publication is allowable with appropriate credit.

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