TERTA KO years on Tanker Operator

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TERTA KO years on Tanker Operator Powered By Docstoc
					TA KEROperator
APRIL 2010         

 40 years of tanker advice
 Iran conundrum
 Quality cadets needed
 Class consultants
 Bunker specs problem
 Tanker exhaust scrubbers
       Intersleek 900        ®

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fuel consumption and
emissions by up to 9%
Mercator Lines Ltd is one of India’s fastest growing
shipping firms and are pioneers of the latest
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In October 2007, Intersleek®900 was applied to the          we are now achieving up to 9%
vertical sides of ‘Prem Pride’, a 109,610 dwt Aframax       reduction in fuel consumption under
tanker operating at 14 knots. The resulting reduction in
                                                            comparable conditions.
fuel consumption of up to 9%, convinced Mercator Lines
to coat the entire underwater hull of the ‘Prem Divya’ in
June 2008.                                                  Mr Amit Agarwal, General Manager
                                                            of Mercator Lines Ltd
In addition to reduced fuel usage, the coating has
cut greenhouse gas emissions to the environment
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03     Markets
       Tonne/mile balance upset

06     News focus
         Shoreside recruitment on the increase
         EU ship surveillance system

                                                                  27      Technology
                                                                          27 Classification Societies
                                                                               RS promotes Arctic shipping
                                                                               ClassDirect LIVE explained
                                                                               DNV consultancy initiative
                                                                          33 Bunkers
                                                                               Compliance challenges
                                                                               Fuel spec draft update
                                                                               Bunker tankers make debut
08     Profile
       INTERTANKO celebrates 40 years
                                                                               Analyser for safety specs
                                                                          41 Profile
                                                                             Scrubber technology for European tankers
12     Middle East Gulf Report
         Iran sanctions discussed
                                                                          43 Shuttle Tankers
                                                                             US Jones Act vessels delivered
         Dubai rides out the storm                                        44 Tank Servicing
         Piracy – security concern speaks out                                Inert gas problems addressed

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19     Manning & Training
         What of the future?                                          NO ANNUAL
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                Front cover photo                                       RCM VIBRATION ANALYSIS LINK

                Engineer cadets seen learning the ropes via                                               SYSTEM

                simulators. Will there be enough coming through
                                                                                             For further details please contact us on:
                the door in the future to cope with the large
                                                                      Tel: +44 (0)1304 840009 Fax: +44 (0)1304 840075 Email:
                tranche of newbuildings coming on stream? That
                is the question.                           
                Photo credit – Anglo-Eastern.

April 2010   TANKEROperator                                                                                                                               01

News from London’s Albert Embankment
More work needed despite GHG progress, IMO admits.                               The resolution also urged countries that have not already done so to
At the 60th meeting of the IMO’s Marine Environment Protection                ratify the convention, which will enter into force 12 months after the date
Committee (MEPC 60), it was admitted that more work needed to be              on which not fewer than 30 states, the combined merchant fleets of which
done before it completes its consideration of the proposed mandatory          constitute not less than 35% of the gross tonnage of the world’s merchant
application of technical and operational measures for regulating and          shipping, have become parties to it. To date, it has been ratified by 22
reducing greenhouse gas emissions (GHG).                                      countries representing 22.65% of the world’s gross tonnage.
   As a result, the committee agreed to establish an intersessional              Eight ballast water management systems making use of active substances
working group to build on what it claimed was significant progress            were granted ‘basic approval’ and five were awarded ‘final approval’.
made during the meeting on technical and operational measures to
increase vessels’ energy efficiency. The working group will report back                                Recycling of ships
to the Committee’s next session (MEPC 61), in September 2010.                 The committee continued its work on developing guidelines for safe and
   Although the meeting was able to prepare draft text on mandatory           environmentally sound ship recycling and commenced the development
requirements for the Energy Efficiency Design Index (EEDI) for new            of Guidelines for the development of the Ship Recycling Plan.
vessels and on the Ship Energy Efficiency Management Plan (SEEMP)               Guidelines for the authorisation of ship recycling facilities, for ship
for all ships in operation, the committee said that among other things,       inspection and for survey and certification will also be developed in due
issues concerning ship size, target dates and reduction rate in relation to   course. Once adopted, the guidelines will assist ship-recycling facilities
the index requirements all required finalisation.                             and ship operators to begin introducing voluntary improvements to meet the
   The committee agreed on the basic concept that a vessel’s attained         requirements of the Hong Kong International Convention for the Safe and
index shall be equal or less (eg- more efficient) than the required EEDI,     Environmentally Sound Recycling of Ships, which was adopted in May 2009.
and that the required EEDI shall be drawn up based on index baselines
and reduction rates yet to be agreed. The committee also noted                                       Garbage special areas
guidelines for calculating the index baselines using data from existing       The committee agreed to establish 1st May 2011 as the date on which
ships in the Lloyd’s Register/Fairplay database.                              the discharge requirements for the Wider Caribbean Region Special
   With regard to market-based measures, it was agreed to establish an        Area under MARPOL Annex V Regulations for the prevention of
‘expert group’ on the subject to undertake a feasibility study and impact     pollution by garbage from ships will take effect.
assessment of the various proposals submitted for a market-based instrument      MEPC also considered the report of the 10th meeting of the OPRC HNS
for international maritime transport – again, reporting back to MEPC 61.      technical goup, which met in the week prior to the committee’s session, and
                                                                              approved for publication the following texts developed by the technical
                      MARPOL amendments                                       group - Manual on Oil Pollution, Section I – Prevention; publication
Among other items in a packed agenda, the committee adopted                   checklist for new IMO manuals, guidance documents and training
amendments to the MARPOL Convention to formally establish a North             materials; guidance document on the implementation of an incident
American ECA in which SOx, NOx and particulate matter (PM)                    management system; and guidelines for oil spill response in fast currents.
emissions from vessels will be subject to more stringent controls than           In his closing remarks to the meeting, IMO secretary-general
the limits that apply globally.                                               Efthimios Mitropoulos focused on the progress made in dealing with
  Another new MARPOL regulation, to protect the Antarctic from                GHG emissions from ships and the challenges that still remain.
pollution by heavy grade oils, was also adopted.                                 Placing the committee’s work in its wider context, he said, “Global
  These amendments are expected to enter into force on 1st August 2011.       issues demand global solutions. Let the world learn from the lessons of
                                                                              Copenhagen so that the same mistakes are not repeated in Cancun. At the
                  Ballast water management                                    same time, let us build on the undeniable successes Copenhagen has
The MEPC addressed issues relating to the implementation of the               scored, by providing a forum for heads of state and government to listen to
International Convention for the Control and Management of Ships'             and understand each other’s problems, concerns, worries and sensitivities
Ballast Water and Sediments, 2004 and adopted a resolution that               and, thus, pave the way for a more successful next round of consultations.”
requests administrations to encourage the installation of ballast water          The shipping world, he concluded, should proceed, “….not in a
management systems on new ships, in accordance with the application           fragmented manner, but as responsible members of a community that
dates contained in the convention.                                            has a role to play in this effort.” Amen.

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02                                                                                                                   TANKEROperator          April 2010
                                                                                                         INDUSTRY - MARKETS

       Kozmino loadings
      upset the tonne/mile
     At the turn of the year, loading operations began at Russia’s latest oil export terminal
            - Kozmino - which is located in Eastern Siberia on the Asia/Pacific rim.
              y the opening of this terminal,      present in these markets, but on a very small   Suezmax hulls with cargo sizes typically of

B             Russia has taken a solid stance in
              the Far East oil routes, which
              could be seen as the saviour of
the tanker market.
   Indeed, Russia saw the first export cargo
                                                   scale. Today’s opening gives up completely
                                                   new possibilities.”
                                                     However, as McQuilling Services pointed
                                                   out, by replacing the long haul MEG and West
                                                   African routes, Kozmino might adversely
                                                                                                   80,000, or 100,000, or 130,000 tonne lots. The
                                                                                                   depth of water at the berth at Kozmino is 21
                                                                                                   m. Japan, South Korea and Malaysia have
                                                                                                   taken the bulk of the cargoes, but both China
                                                                                                   and the US have also taken cargoes,
of such great importance that President Putin      impact on tanker demand.                        McQuilling said.
attended the event and said at the time; “This       Exports of Russia’s Eastern Siberia-Pacific      For importers, the ESPO blend has more
is definitely a serious event. It’s a strategic    Ocean crude (ESPO) had grown from 850,000       desirable properties as it is lighter and sweeter
project, because it gives us access to             tonnes in January to 1.16 mill tonnes in        than most of the Arabian crudes, allowing
completely new markets – the Asian and             February and were forecast to grow to 1.25      refiners to yield more gasoline and kerosene
Pacific markets – which are growing and            mill tonnes by the end of March.                per barrel. Added to its favourable quality is
have a huge potential. Today, Russia is              Shipments have been made in Aframax and       the reduced cost of shipping the oil to Far East

April 2010       TANKEROperator                                                                                                                03

                                                                                                                                    %            2009
   Middle East / Far East-SE Asia                                                    VLCC                     2009      2008
                                                                                                                                  Change         Share
   Middle East / Carib-USG-USAC                                                      Middle East / Far
                                                                                                              2,724     2,828      (3.7%)        48.1%
                                                                                     East-SE Asia
              Middle East / USWC
                                                                                     Middle East / Carib-
                                                                                                                688      959       (28.2%)       12.2%
             Middle East / Europe                                                    USG-USAC
                                                                                     Middle East / USWC         214      265       (19.2%)        3.8%
   West Africa / Far East-SE Asia
                                                                                     Middle East / Europe       196      183        7.3%          3.5%
     West Africa / Carib-USG-USAC
                                                                                     West Africa / Far
               West Africa / India                                                                              459      412       11.5%          8.1%
                                                                                     East-SE Asia
Carib-Samerica / Far East-SE Asia
                                                                                     West Africa / Carib-
                                                                                                                168      232       (27.6%)        3.0%
                            Other                                                    West Africa / India        148      106       39.0%          2.6%
                                (30%) (20%) (10%)   0%   10%   20%    30%   40%      Carib-Samerica / Far
                                                                                                                346      257       34.7%          6.1%
                                                                                     East-SE Asia
                                                                                     Other                      722      593       21.6%         12.7%
                                                                                     Total                    5,665     5,835      (2.9%)        100.0%
Figure 1: 09/08 Changes in VLCC tonne/miles.                                        Table 1: Tanker demand (bill tonne/miles).

destinations, which has attracted a growing          – a country whose crude demand will continue       detrimental impact of the US recession on
list of buyers.                                      to outpace all others in the coming years.         domestic liquid fuels imports.
                                                        Although Russia’s pipelines cannot answer
                  Short haul                         all Asia’s demand, 600,000 barrels per day                      Demand increase
A tanker voyage from Kozmino to Japan takes          over land could mean that China would              In contrast to these losses, VLCCs saw a 39%
just three days, compared with TD3 (AG/              require nine less VLCC cargoes per month by        increase in demand trading West Africa/India, a
Japan), which takes 20 days. Taking 1.25 mill        2012. Furthermore, Kozmino’s short haul            35% gain on Americas/Asia trades, and a 12%
tonnes of exports per month, this equates to         barrels can potentially detract from 7.1 bill      rise in West Africa/Asia (See Figure 1). These
1.1 bill tonne/miles to Japan. If it is further      tonne/miles of tanker demand taken by the          traditional back-haul West/East trades combined
assumed that this amount replaces Ras Tanura         VLCC sector as well.                               to take a 16.8% share of VLCC demand in
loadings, vessels loose about 8.2 bill                  While Russia’s entrance into the Eastern        2009, up from a 13.3% share the previous year.
tonne/mile demand, or a net 7.1 bill by              markets is a comfortable position for the             These results lead the consultancy to question
substituting with the short haul trade,              Kremlin, the long term effects on tanker           the industry’s definition of the front-haul/back-
McQuilling estimated.                                demand may not yield cosy results for all,         haul, highlighting that TD1 now commands a
   While the potential effect on tanker              McQuilling concluded.                              lesser share of VLCC demand than the
demand caused by the introduction of such a                                                             West/East trades at 12.2% versus 16.8%. To be
short haul trade is alarming, there is a cap on                     VLCC demand                         fair, most of North America was mired in
just how far Russia can feed the Asian crude         The popularity of the West/East trades, which      recession last year while economies in the East
markets. The Siberian regions estimate that          gained momentum through 2009, has provided         continued to grow, McQuilling pointed out.
new fields under development will not be             significant tonne/mile demand for an                  While hard demand data for 2010 is not yet
able to produce more than 35 mill tonnes of          otherwise over-supplied VLCC market.               available, the consultancy said that it can attest
crude annually for ESPO, despite a target               In particular, the crude oil/dirty product      to the West/East trade’s growing resilience
capacity of 80 mill tonnes per year. The             trades from West Africa and the Americas to        given current spot fixture records. VLCC
majority of the oil is sourced from the              India and the Far East have seen year-on-year      fixtures were tracked on these routes up 92%
Vankor and Samotlor fields.                          growth that took off in the 4Q09 and               year-to-date from the same period last year.
   McQuilling calculated that this would mean        prompted a rally in the spot freight rates that    This pointed to the growing demand for liquid
that should all the ESPO production go to Far        has yet to fizzle out.                             fuels in China and India, along with expansions
East buyers, it would only cover around 4.6%            As these trades continue to consume a           of the Reliance’s refineries whose Jamnagar
of Asia’s demand – up from 2% at current             greater portion of the fleet, losses on other      complex now boasts the world’s largest
output levels.                                       major trades are largely being offset by this      refining capacity at 1.24 mill barrels per day.
                                                     long-haul’s emergence.                                The forecast for economic growth in China
             Pipeline options                           With updated data reflecting actual             and India remains bullish through 2010 and
The only thing more detrimental to the tanker        tonne/mile demand through 2009, McQuilling         beyond. Concurrently, liquid fuels supply
market than a short haul trade is a pipeline.        was able to validate its previous commentary       from Colombia and Brazil is forecast to
The year 2012 will see the completion of the         regarding changing VLCC trading patterns.          increase by 12% and 9%, respectively.
Skovorodino/Manchuria pipeline, bringing             The traditional front-haul TD1, moving crude       Growing demand in the East, combined with
output up to 600,000 barrels per day from the        MEG/ US Gulf, lost over 28% of its demand          rising output predominantly sourced from
300,000 barrels per day forecast for late this       since 2008, slipping from a 16.4% share of         West Africa and South America, will likely
year, McQuilling said.                               total VLCC business to 12.2% in 2009 (See          continue to provide a healthy boost to VLCC
  By further reducing transportation costs,          Table 1). Furthermore, the TD4 trade from          demand. But if and when the industry begins
Russia’s infrastructure investments will enable      West Africa/ US lost almost 28% of its             referring to the West/East trade as the new
them to further capitalise on exports to China       demand year-on-year, emphasising the               front-haul remains to be seen.                  TO

04                                                                                                                    TANKEROperator        April 2010
                                                                                                                       INDUSTRY - NEWS

IBIA highlights need to comply with                                                                       New GL head
new UK regulations                                                                                        office up and
The International Bunker Industry
Association (IBIA) has
                                                     embrace the following requirements:
                                                        A 0.1% sulphur limit on fuel used by
emphasised that, with effect from                       inland waterway vessels and by seagoing           At the beginning of March, GL’s
20th April, 2010, EU regulations                        ships at berth in EU ports.                       1,600 employees moved a couple
on the sulphur content of fuel                          A ban on the marketing of marine diesel           of km along Hamburg’s
used by ships at berth in EU ports                      oils with a sulphur content exceeding 1.5%        waterfront from Vorsetzen to
become law in the UK.                                   by mass.                                          HafenCity.
Ships failing to comply will face the risk of           A ban on the marketing of marine gas oils with    The new Head Office is located at
prosecution.                                            a sulphur content exceeding 0.1% by mass.         Brooktorkai 18 in Hamburg's HafenCity
   The UK Merchant Shipping (Prevention of           IBIA CEO Ian Adams said, “It is essential that       district.
Air Pollution from Ships) (Amendment)                ships operating in UK waters are in full                By relocating, the company has brought 14
Regulations 2010 essentially implement in the        compliance with the new regulations. As              separate GL Hamburg sites under the same
UK, EU Directive 2005/33/EC, which requires          already emphasised, ships are not exempt on          roof, the class society explained.
that member states must take all necessary           the ground that the fuel changeover is unsafe           At its new head office, the worldwide
steps to ensure that ships at berth in their ports   because modifications have not been made to          technical assurance and consulting company
do not use marine fuels with a sulphur content       their boilers, or to the ship itself. All non-       and ship classification society now
exceeding 0.1% by mass.                              compliant ships are at risk.                         concentrates and focuses its business segments
   The new regulations amend the Merchant               “The new regulations, which make no               - maritime services, oil & gas and renewables.
Shipping (Prevention of Air Pollution from           reference to the new lower sulphur limit for            GL’s new office spans two construction
Ships) Regulations 2008 and implement the            ECAs of 1%, which comes into effect on 1st           sites offering an office space of 45,000 sq m -
marine fuel elements of the EU Sulphur               July, 2010, are a good illustration of how           equivalent to seven soccer fields. The new
Content of Liquid Fuels (SCLF) Directive.            domestic implementing legislation often lags         building was designed by the architectural
   In addition to the requirements under             behind the decisions of international                offices gmp and Jan Störmer.
MARPOL Annex VI, the new regulations                 organisations,” he warned.                              Its location offers a bright and airy office
                                                                                                          landscape with views of the Elbe River and

Major casualties down - IUMI                                                                              the Speicherstadt warehouse district.
                                                                                                             The modern working environment allows a
Marine insurers have welcomed                        losses, warned Cédric Charpentier, chairman          further optimisation of the workflow and
early signs of a reversal in casualty                of IUMI’s facts and figures committee.               offers varied opportunities for enhanced
experience as shipping operations                       Weather continued to be the major cause of        interdisciplinary teamwork, GL claimed.
continued to be impacted by the                      total losses, representing 43.2% between 2005           "We are delighted to have moved into our
dramatic downturn in global trade                    and 2009.                                            new international head office in the
volumes and freight markets.                            Regarding serious or partial losses, the result   HafenCity right on schedule," said Dr
Statistics compiled and analysed by the              for 2009 thus far was mixed. Charpentier said:       Joachim Segatz, member of the GL
International Union of Marine Insurance (IUMI)       “Although there was an improvement over              executive board. "In recent years, GL has
from several authoritative sources pointed to a      2008, the number remained at a high level.           evolved from a leading classification society
continuing positive trend in total loss figures –    This is the fourth highest total of serious          into a globally recognised technical
67 in 2009 declared thus far, a fall of 10%          losses reported in one year out of the last 16.      assurance and consultancy body for the
compared with 2008 at the same period last year      Indeed, we have seen a significantly higher          maritime and energy industries. The modern
(all figures relate to ships of 500 gt and over).    frequency of serious losses in the period 2006-      architecture of the new location, its size and
   The number of losses will undoubtedly rise        2009 than in any of the preceding years.”            the communicative, open office landscapes
as the year progresses. Even so, the current            The 2009 experience was particularly              meet the demands of this development in an
figure of 67 is the lowest level ever recorded.      disappointing, said Charpentier, as shipping         ideal way."
   However, this reduction did not extend to         activity dropped dramatically. The downside for         Last year alone, the GL group was
actual gt lost, the 67 ships accounting for          owners is that they faced increasing economic        enlarged by the maritime advisory and
approximately 463,000 gt, an increase of 25%         strife and more technical operating problems. The    software companies Friendship Consulting
on 2008 at the corresponding period last year.       upside for insurers was that many ships had          and Friendship Systems, as well as the UK
   Nevertheless, the total remains at a quite        less demanding and strenuous schedules and           inspection and consulting firms Noble
low level when compared with the period              overworked crews were under far less pressure.       Denton (oil & gas) and Garrad Hassan
1980-2008. But expressed as a percentage of             Machinery damage remained the primary             (renewables).
the world fleet – which continued to grow in         cause of major partial losses, accounting for           In February 2010, GL Noble Denton was
2009, with all three main sectors, tankers,          35.21% of the total between 2005 and 2009,           presented as the new oil and gas brand of GL.
bulk carriers and containerships, now showing        followed by collisions/contact and groundings.          The new address is - Germanischer Lloyd
the largest number of vessels and deadweight         Weather represented only a small proportion          AG, Brooktorkai 18, 20457 Hamburg,
capacity in history - underwriters expected to       of incidents despite being the major cause of        Germany. The telephone, fax numbers and
see an improvement both in ship and tonnage          total losses.                                        e-mail addresses remain the same.

April 2010       TANKEROperator                                                                                                                      05

Shoreside tanker placements increase
Companies recruiting again gives                   ensure they make informed decisions. On the
hope for the future, says a                        one hand this gives shareholders assurance
leading recruitment expert.                        that they are getting value for money. On the
Shipping companies are becoming more               other, it gives staff the assurance that their
bullish over prospects for the future if           salaries have been properly benchmarked
recruitment placements by employment               against other quality shipping employers.
specialist Spinnaker Consulting are anything          The annual meeting of the Forum takes
to go by.                                          place in May this year and is conducted under
   Spinnaker chairman Phil Parry said the          strict anti-trust guidelines to ensure that
market began to pick up from September last        members do not share information on
year. “We are seeing a notable return in           individual salaries.
confidence which we measure by an increase            A little less than 40% of companies froze
in vacancies and in our fee income and             salaries in 2009 and about 13% are planning
although recruitment did tailor off at the start   to do so this year. In November, the average
of 2010, it has significantly picked up in the     pay rise for 2010 was forecast at just under
last month to six weeks” he said.                  2.9% or 3.25%, excluding those who are
“Traditionally we tend to find that it is in the   freezing salaries.
latter part of the first quarter that we do well      “Pay restraint is still very much on the
and we had a very good end to the quarter.”        agenda this year,” Parry said. “We see a
   Another measure is a reduction in ‘time to      greater air of realism on the part of job
hire’ – or the time it takes to make a             seekers when negotiating job offers.”
placement – because that is an indication of an
employer’s confidence and decisively when                          Salaries static                     Spinnaker’s Phil Parry.
taking on new staff, Parry explained.              Basic salaries have not fallen, but they have
   Compared to the drybulk market which            not gone up either. “Bonuses are undoubtedly        location to location, Parry said. The challenge
enjoyed a fillip on the back of huge Chinese       lower this year for the majority of people.         for the HR professional with staff based in a
imports of iron ore and coal last year,            There are a lucky few whose companies called        plethora of jurisdictions is considerable and
recruiting patterns in the tanker shoreside        the market right in 2008 and who therefore          one of the benefits of the Maritime HR Forum
market have been slower to develop,                received good bonuses for 2009,” he said.           is that members can share information and
Parry said.                                           Parry gave as an example one owner he had        best practice.
   Some of the larger companies, such as BP,       spoken to recently who said the company was            Parry is a member of the BIMCO/ISF
have made redundancies, or implemented a           about to pay extremely good bonuses because         manpower steering committee, which
recruitment freeze. “Some of the big tanker        it had called the market well in 2008.              conducts research every five years on supply
employers had a hiring freeze last year and        However, with long-term COAs coming to an           and demand in the industry. The 2010
they haven’t all come off yet,” Parry said.        end, bonuses next year will reflect the pain        research is underway and will provide an
   That said Spinnaker has made more               felt this year.                                     authoritative assessment of the manpower
placements in the tanker sector, notably in the       “It is unlikely, in my opinion that bonuses      shortfall going forward.
product and chemical tanker markets in the         in late 2010 and early 2011 will be all that           The lack of ships’ officers coming through
last quarter, than in any of the previous three    good based on the year we are going                 the ranks, combined with the surge in the
quarters.                                          through,” the owner said.                           market definitely increased salaries over the
                                                      Acting as a consultant in HR dispute             last decade, he said.
              Tanker HR forum                      resolution forms part of the services Spinnaker        “The recession has not emptied the market
Spinnaker founded and became the secretariat       provides. Parry, a former shipping lawyer, said     of technical vacancies for people with
for the Tanker HR Forum at the behest of           that there have naturally been some                 seafaring experience,” said Teresa Peacock,
tanker clients in 2006. In 2009, it evolved into   employment disputes in the last year arising        manager of Spinnaker’s technical division.
the Maritime HR Forum with an expanded             out of the market crash. “We act as expert             “Even if a large proportion of the
membership including owners, managers and          witnesses in relation to loss of earnings, or       newbuildings on order get cancelled, we are
traders with other interests as well as oil.       anticipated salary and bonus levels and             still going to have more ships in the market
   The Forum “still has a large tanker             mitigation of losses by reference to                than we have today. It would require
membership, which uses it to benchmark             employers’ ability to find replacements”.           enormous cancellation levels, and enormous
salaries and benefits, which became more              In terms of tanker activity in the recruitment   demolition levels, to reduce the fleet, and that
critical in the boom years. Supply and demand      market, Parry said that he had not seen a huge      isn’t going to happen.
imbalances focus attention on paying staff         geographical shift.                                    “The fleet is growing. Let’s hope it
competitively and retaining them,” Parry              However Spinnaker has placed more staff in       doesn’t grow at a pace, but either way
explained.                                         the Middle East than hitherto - particularly for    we haven’t got enough people even at
   A greater focus on corporate governance         product and chemical tanker operators - because     the current size to make recruitment
has set up formal remuneration committees          of the growth of refining capacity in the region.   anything other than a challenging task,”
who demand reliable and accurate data to              Legal issues affecting employers differ from     she concluded.                                TO

06                                                                                                                 TANKEROperator       April 2010
                                                                                                      INDUSTRY - NEWS FOCUS

EMSA launches map-based shipping surveillance system
From last month, EU member
states now have access to a new,
user friendly web service for
tracking shipping in European
                                                    “     “...we will soon be in a position to offer
                                                         an integrated display system which will be
For the first time, EMSA’s new SafeSeaNet                able to identify and locate ships anywhere
tracking module — called STIRES — allows
authorities to see all commercial vessels in            in the world and also show the EU pollution
and around EU waters in a single viewing.
                                                                   and accident pictures.”
This service will be closely followed by the
picture for the whole world, EMSA said.
   The information has been available to
member states in the SafeSeaNet system for          control officers being among the latest to join
                                                                                                         Authorised users can see the position of any
some time, but this is the first time that users    the system,” he said.                             vessel transmitting an AIS signal, on a map-
are able to see it in a fully interactive, multi-                                                     based display and are able to –
functional display.                                                 Background                            Find out what hazardous cargo it is
   “This approach will give member state            The SafeSeaNet system was mandated under              carrying.
users a whole range of important new                Directive 2002/59/EC, and member states               See all high risk ships (within a list of
capabilities to work with,” said EMSA               have been involved in the set-up of the system        categories).
executive director, Willem de Ruiter.               since that time. The near real-time positioning       Ascertain what is wrong with a ship when
   “Instead of just accessing a database, they      system is based on Automatic Identification           it reports an incident.
will be able to see the whole near-real-time        System (AIS) information gathered by a                See the complete track of a ship (showing
situation for the EU displayed on a map right       network of receiving stations around the EU           where it was at different times).
in front of them, and to select all ships, ports,   coastline, and deals with information on ships        Zoom in from an EU level view to
sea areas and many other elements at the click      and their hazardous cargoes in and around EU          individual quays at any selected port (and
of a button.                                        waters.                                               anywhere in between).
   “Much better still, we will soon be in a            Until the middle of March, the exercise had        See which port a ship will arrive at (and
position to offer an integrated display system      involved member states submitting                     when).
which will be able to identify and locate ships     information to and receiving information              Plus many other functions.
anywhere in the world and also show the EU          from, the SafeSeaNet database, but the            On its own, this full EU AIS-based picture is
pollution and accident pictures. The user base      STIRES interface now ensures that the work        claimed to be of major benefit to users, such
is expanding all the time, with port state          of many years will reap much greater benefits.    as port authorities, maritime administrations,
                                                                                                      search and rescue organisations, port state
                                                                                                      control officers and many others.
                                                                                                         However, when STIRES/SafeSeaNet system
                                                                                                      is integrated with the satellite-based global
                                                                                                      Long Range Identification and Tracking
                                                                                                      (LRIT) system and the CleanSeaNet pollution
                                                                                                      monitoring system in a single display
                                                                                                      application later this year, the uses will be far
                                                                                                      greater still.
                                                                                                         To give two examples –
                                                                                                      1) The EU anti-piracy force is already using
                                                                                                          information from the EMSA-operated EU
                                                                                                          LRIT Data Centre to track ships in the Gulf
                                                                                                          of Aden and the Indian Ocean.
                                                                                                      2) Port authorities wishing to locate ships
                                                                                                          that are heading for their ports will be able
                                                                                                          to see exactly where they are, anywhere in
                                                                                                          the world.
                                                                                                      The quality and performance of the system
                                                                                                      is monitored 24/7 by the EMSA Maritime
                                                                                                      Support services team. They focus on
                                                                                                      ensuring that the system is available at all
                                                                                                      times; the comprehensiveness of data; the
                                                                                                      best possible data quality and; that
                                                                                                      emergencies are effectively monitored from
Vessel traffic in the Channel at a given moment in time.                                              an EU perspective.                              TO

April 2010       TANKEROperator                                                                                                                    07

                     I TERTA KO
                      – 40 years on
           In the first decade of the tanker organisation’s existence, as can be seen below,
                     some of the issues faced then are still very much alive today.
       n this tribute, we look at the first 10     under the name of the International

I      years of INTERTANKO’s life, seen
       through the eyes of its chairmen writing
       in the 25th anniversary book published
in 1996, which set the scene for tanker
operations in years to come. This is followed
                                                   Association of Independent Tanker Owners,
                                                   which would retain the short title of
                                                   INTERTANKO, as it is known today.
                                                      Its stated aim was "to further the interests
                                                   of independent tanker owners" by co-
by more recent issues and accomplishments.         operating with the oil industry, national and
   INTERTANKO’s official coming into being         international organisations. The former
was the organisation’s inaugural meeting held      London-based association was formally put
in Oslo on 21st October 1970.                      into voluntary liquidation on 30th December
   One of the leading independent tanker men       1970.
of the day - Jorgen Jahre - was chairman
between 1973 and 1976. He died in 1998,                           The beginning
aged 91.                                           Van Ommeren’s Jan Hudig became the first
   He said that at the time that the chairman of   chairman, and a young Norwegian lawyer,
the Greek Shipping Co-operation Committee,         Tormod Rafgård, was engaged as secretary
John EG Kulukundis (Rethymnis &                    general and later managing director, posts he
Kulukundis), gave the new organisation his         successfully held for the next 25 years.
                                                                                                     INTERTANKO chairman
full support, as did other industry leaders,          Invitations had been sent to independent       Capt Graham Westgarth.
including Erling Dekke Næss (Næss                  tanker owners in 10 countries to participate in
Shipping), Mærsk McKinney Møller (AP               the foundation of INTERTANKO, to “provide         tonnage to 70 mill dwt.
Møller) and Filippo Cameli (Marittima Carlo        a forum for exchange of views and to take            The growth continued into 1971.
Cameli).                                           active steps toward the protection of the         Representatives from 80 companies attended
   The beginning of the 1970s was a time           interests of independent tanker owners” as the    the 1971 annual general meeting in Rome and
when Worldscale was being established, the         1971 Annual Report put it.                        through 1972, the membership grew to 100
pound sterling had been devalued and                  The growth in INTERTANKO’s                     mill dwt- estimated at 70% of the eligible
insurance premiums for VLCCs had                   membership in its first year of existence was     independent tonnage.
undergone an enormous increase. As a result,       phenomenal. By 1st January 1971, 25 mill             Early on INTERTANKO was faced with
it was decided that the original International     dwt of tanker shipping was entered. Within a      severe challenges. In 1967 the tanker Torrey
Tanker Owners' Association should extend the       month the total dwt had reached 31 mill,          Canyon had stranded herself on rocks off the
scope of its activities.                           comprising 500 tankers. By September, the         Scilly Isles and spilled her cargo of crude oil
   A new organisation was established in Oslo      number of ships had doubled to 1,000 and the      after breaking up. The disputes about liability
                                                                                                     for compensation and the funds available led
                                                                                                     the Intergovernmental Maritime Consultative
                                                                                                     Organisation - IMCO - the forerunner of the
     INTERTANKO membership                                                                           IMO - to consider options to make liability
                                                                                                     and compensation more certain.
     As at April 2009, the last                    tankers, while 37 owned 21 or more.                  The result was the International Convention
     figures available,                               Panama was the largest flag state              on Civil Liability for Oil Pollution Damage -
     INTERTANKO’s membership                       providing INTERTANKO members at over              known in short as the Civil Liability
     stood at 261. The members                     40 mill dwt, followed by Greece and the           Convention, or, shorter still, as CLC, of 1969.
     controlled 2,900 tankers of 249               Marshall Islands. DNV was the largest                Recognising that conventions take a long
     mill dwt.                                     class society, followed by Lloyd’s Register       time to come into effect, tanker owners had
     Somewhat surprisingly, the largest tranche    and ABS.                                          created the Tanker Owners Voluntary
     of members - 91 - fell in the two to five        As for tanker types, crude oil makes up        Agreement concerning Liability for Oil
     ship category. The next largest grouping –    by far the largest group at 1,162 vessels,        Pollution - TOVALOP - in 1969. Tanker
     66 companies – owned between six to 10        followed by products at 686.                      owners entering TOVALOP joined the

08                                                                                                              TANKEROperator        April 2010
                                                                        INDUSTRY – INTERTANKO ANNIVERSARY

International Tanker Owners’ Pollution            committee was created and issued
Federation, ITOPF, which administers the          Intertankvoy and afterwards Interconsec as
TOVALOP agreement. In practice this means         up-to-date charter forms.
that ITOPF is the body who’s marine and             During the early 1970’s, pollution control
biological experts supervise or advise on work    and tanker safety were under increasingly
on site to clean up and restore damaged seas      active discussion at IMCO at which
and coasts, which is still the case today.        INTERTANKO made its views felt. IMCO
  At this time, tanker owners were also           was considering immediate adoption of
getting squeezed by insurance rates, as well as   segregated ballast tanks on tankers to reduce
the freight rates. The relatively new             the risk of oil discharge at sea. The cost of
phenomenon - the VLCC - was incurring an          conversions would have been enormous and
insurance premium that owners found               INTERTANKO, and later other delegations at
unacceptable. INTERTANKO supported a co-          IMCO, promoted use of ‘load on top’
operation group to get the premiums reduced.      procedures to allow the oil to remain inside
  A mutual insurance scheme for VLCCs was         the cargo system and not be discharged at sea.
pioneered principally by Erling Næss - the
United Marine Insurance Company of                                 Explosions
Bermuda - with 18 member companies. The           A series of explosions in large tankers and
result was that hull insurance renewals for       combination carriers during cargo tank water
                                                                                                    INTERTANKO’s md Peter Swift.
VLCCs in 1973 showed reductions of 20 to          washing caused by static electricity sparks and
30%. INTERTANKO noted that “it has been           assisted by explosive atmospheres in tanks,         In addition, a number of high-profile tanker
indicated that the reason for easing premiums     led to the promotion of use of inert gas          casualties in the winter of 1976 kept the issue
was rather influenced by increasing               systems (IGS) to neutralise the flammable         of pollution prevention to the fore. In a short
competition than because of improving             atmospheres - purge the oxygen - from tanks.      period, 20 tankers were wrecked off the US
loss records”.                                    IGS were urged for fitting to combination         coast. Ten of these were Liberian flag and
  INTERTANKO then turned its attentions to        carriers over 50,000 dwt and oil tankers of       eight of those were over 16 years old. While
documentary issues. A documentary                 over 100,000 dwt.                                 some of these casualties were attributed to

April 2010      TANKEROperator                                                                                                                 09

particularly severe winter weather and to poor local aids to navigation,
there was a focus on tanker ages and standards.
   However, age and management did not always characterise tanker
casualties. In 1978, the Amoco Cadiz stranded off the North French
coast causing a major spill. A number of lessons were learned and
more careful attention to securing salvage assistance in time, and
response planning, to improve speed and effectiveness in reacting to
clean-up needs, was called for.
   Under chairman Erling Næss, INTERTANKO focused its attention
on measures to cut the causes of operational pollution. For example,
improvements were made to ‘load on top’ procedures by wider
adoption of crude oil washing (COW).
   A Protocol to the 1973 Marine Pollution Convention MARPOL and
the 1974 Safety of Life at Sea Convention SOLAS was passed by
IMCO in 1978, largely initiated by the US delegation. These protocols
addressed the conversion of existing tankers and required segregated
ballast tanks (SBT), or clean ballast tanks (CBT) to be created, or for
COW to be installed and in that case accompanied by an IGS.
   Despite the poor freight it was receiving, the VLCC had moved
centre stage in crude oil carriage. By 1977, 60% of crude oil was
carried by VLCCs, compared with 42.6% in 1973.
   The seeds of the International Maritime Industries Forum (IMIF)
had been planted by Erling Næss and Jørgen Jahre in 1975, and in
1976 it blossomed into a formal body. It drew together tanker owners,
oil companies (mainly from Europe as the US companies were bound
by antitrust laws), shipbuilders, and bankers.
   In 1978, INTERTANKO applied for consultative status at IMCO, a
move not made earlier out of concern about duplicating the work of
other associations.
   Two new clouds appeared on the shipping horizon towards the end
of Erling Næss’ term. The United Nations Conference on Trade and
Development (UNCTAD) had started to consider cargo sharing
schemes for seaborne transport. And in 1978, the Shah of the oil
producing giant of Iran was overthrown in a revolution by Ayatollah
Khomeini and his supporters.

     40th Anniversary
    The programme kicks off on Thursday 6th
    May with a Council Meeting and the Annual
    General Meeting.
    These are followed by a gala dinner for members and their
    invited guests to be held at London’s Royal Courts of Justice,
    kicking off at 19.00 hrs.
       INTERTANKO said that it will be publishing a special 10-
    14 page booklet to commemorate the anniversary.
       The following day, there will be an oil, chemical and tanker
    market seminar entitled – Challenging the Industry. This is
    to be held in the Grand Connaught Rooms.
       The past decade has been a period of change and
    challenges. The tanker industry has seen some very good
    years but has faced some more difficult times where
    increasing tanker supply has been struggling with flagging
    oil demand, and the expectations of charterer, regulator,
    environmentalist, seafarer and others still need to be
    addressed, INTERTANKO said.

                                     TANKEROperator       April 2010
                                                                        INDUSTRY – INTERTANKO ANNIVERSARY

“       INTERTANKO was one of the founder
         members of the so called Round Table
                                                                                                    banded together to discuss the relevant issues
                                                                                                    of the day.

                                                                                                               Poseidon Challenge
           of shipping industry organisations                                                       In 2006, the Poseidon Challenge was launched
                                                                                                    by INTERTANKO. This is described as a
          that have banded together to discuss                                                      long-term part of the work programmes of all
                                                                                                    those who adopt what it stands for, as they
             the relevant issues of the day.
   This particular period marked the beginning
                                                  which resulted in the call for safety measures
                                                                                                    aspire to achieve continuous improvement and
                                                                                                    set (and achieve) new goals of excellence –
                                                                                                    including striving to achieve zero fatalities,
                                                                                                    zero pollution, zero detentions.
of many of the rules and regulations that are     to be put in place, both technically and             Moving on to today, some of the main
in place today, albeit amended in many cases.     operationally. This led to the development of     issues include the threat of piracy, low sulphur
   Since that period, in the 1980s, the tanker    the OCIMF-led Tanker Management Self-             fuel control areas (ECAs) and the lack of
industry has had to put up with the Iran/Iraq     Assessment (TMSA) scheme and its successor        qualified personnel coming through the ranks
war in which many tankers succumbed to            TMSA2.                                            on board ship. Indeed, at his inauguration last
missile attacks while steaming through the           By now the IMO was also working on the         year, new INTERTANKO chairman Graham
Middle East Gulf.                                 single hull phase out regulations, which came     Westgarth said that the greatest challenge
   In 1989, the Exxon Valdez grounding            into being this year. All the while, the          facing the industry was the ‘human element’.
spawned the OPA90 convention in the US.           European Union was looming ominously in              To try to address this problem in the tanker
For such a relatively small oil spill, this       the background ready to take unilateral action.   sector, the organisation launched the Tanker
grounding was to have a major impact on              Much has happened in the last decade.          Officer Training Standard (TOTS) in 2008.
tanker operations, which is still reverberating   INTERTANKO was one of the founder                 This was followed by eTOTS last year, an
around the industry today.                        members of the so called Round Table of           electronic version put together in collaboration
   Next came the Erika and Prestige sinkings,     shipping industry organisations that have         with Seagull.                                  TO

April 2010      TANKEROperator                                                                                                                  11

                       Iran trading
                      sanctions – two
                      angles explored
          The news that some oil majors have ceased buying and transporting crude oil
               from Iran in the wake of possible US and UK led trade sanctions,
                 could have a significant knock on effect in the tanker industry.

               ne group that has been              extend to the wider shipowning community.            Such a bill, if enacted, would have profound

O              monitoring the situation is the
               International Group of P&I
               clubs, which said that it is
watching current and pending legislation in
the US and the UK, which if implemented
                                                      Of greater potential impact is proposed
                                                   legislation to amend the Iran Sanctions
                                                   Act of 1996 to expand economic sanctions
                                                   against Iran.
                                                      Two similar but not identical pending bills
                                                                                                     consequences for shipping and trade. For
                                                                                                     example, under the House of Representatives
                                                                                                     bill, sanctions would be imposed against both
                                                                                                     domestic and foreign persons or businesses,
                                                                                                     which provide Iran with refined petroleum
would impose sanctions in relation to dealings     in Congress (both confusingly titled the Iran     resources or engage in any activity that could
with the Islamic Republic of Iran and/or           Refined Petroleum Sanctions Act) would, if        enhance Iran's ability to import refined
Iranian entities.                                  passed, impose new trade sanctions on the         petroleum resources.
   There have been a number of recent              exportation of refined petroleum products to         This could include:
developments which could potentially impact        Iran. The bills have recently passed each of      (i) Providing ships, vehicles or other means
on shipowners and P&I Clubs, which the             the two chambers of the US Congress - the                of transportation to deliver refined
group has summarised below -                       House of Representatives and the Senate.                 petroleum products to Iran.
   1) US legislation. A number of Iranian             The wordings of the two bills are currently    (ii) Providing services relating to the
shipping companies (including the Islamic          being reconciled and a single bill may then be           shipping or transportation of refined
Republic of Iran Shipping Lines and some of        enacted once a common wording has emerged.               petroleum products to Iran.
its subsidiary and affiliated companies) are       Such reconciliations are not confined to          (iii) Providing insurance or reinsurance for
already ‘specially designated’ by the US           finding a ‘middle ground’ between the two                an activity described in paragraphs (i)
Treasury's Office of Foreign Assets Control        versions, but can also lead to the development           and (ii) above.
(OFAC).                                            of new principles.                                   Both bills are drafted widely enough to
   The effect of this designation is to prohibit      Once the language of the two bills has been    include owners, charterers, managers, crew
dealings by US persons (which would include        made uniform, it can be made into law. A          within the definition of shipping activity, and,
provision of insurance services) with these        reconciled version of these two bills is likely   P&I Clubs and their reinsurers under the
companies. This prohibition is specifically        to become law if the diplomatic negotiations      definition of insurance cover.
targeted at the activities of identified Iranian   with Iran over the development of its nuclear        The proposed sanctions would apply in
companies and their vessels and does not           programme break down.                             relation to any of the identified shipping and
                                                                                                     insurance activities regardless of the flag state

“      India could be slap in the middle of any
                                                                                                     and/or beneficial ownership, engaged in the
                                                                                                     trading of refined petroleum products into Iran
                                                                                                     notwithstanding that as a matter of the law
                                                                                                     governing the relevant contracts of carriage
      controversy surrounding sanctions, as the                                                      and insurance the adventure is lawful.
                                                                                                        Penalties for breaking the sanctions are
         country has a large refining capacity,                                                      likely to include barring persons and
        which relies on crude oil imports from                                                       companies from access to US financial
                                                                                                     institutions and the blocking of assets and
      the MEG and exports refined products to                                                        dollar transactions of an offending insurer
                                                                                                     located within or routed through the US.
              the region, including Iran.                                                               2) UK legislation. The UK Financial

                                                                                                     Restrictions (Iran) Order 2009 came into
                                                                                                     effect on 12th October 2009. The material

12                                                                                                               TANKEROperator        April 2010
                                                                          INDUSTRY - MIDDLE EAST GULF REPORT

provisions of the Order prohibited the             of membership of the association by operation         Separately, the International Group may
provision of insurance cover to IRISL owned,       of law. Such an amendment would ensure that         consider it necessary to amend the pooling
controlled and/or operated vessels. As a           there was an automatic cesser of insurance in       agreement to take account of a related
consequence of the Order, the IRISL entry          circumstances where it had become unlawful          problem that may arise where, by operation of
with the association ceased.                       for the association to continue to provide          law, reinsurers of a P&I Club or the
   The International Group has not been            insurance by operation of sanctions or              International Group may be prevented from
advised of any further intended action by the      otherwise.                                          paying a claim. This is a probable
UK government either in relation to insurance         At the extraordinary general meeting held in     consequence of the US legislation currently
arrangements for other Iranian companies or        January this year the association’s members         under consideration.
in relation to trading to Iran, but the            adopted changes to the memorandum and                 4. Shipowners obligations arising under
possibility should not be ruled out.               articles of association, which gave the             contracts of carriage
   3) Club cover. The anticipated US               directors a power to make changes to the rules        The Group also said that it will liaise and
sanctions will introduce complex cover issues.     during a policy year. It is anticipated that this   co-ordinate with relevant shipowner
   The International Group said that it may be     power would be exercised in only the most           associations with a view to the development
prudent for Clubs to consider amending their       exceptional circumstances, but it could be          of appropriate protective clauses for
rules to address situations where legislation,     used where changes were necessary to prevent        incorporation into charterparty and bill of
regulation or other executive action prohibit or   the association from carrying on business,          lading contracts.
impose sanctions in respect of the insurance       which has been made unlawful during the
cover provided by clubs, which could expose        course of the policy year by new legislation.                    Indian problems
club memberships at large to penalties arising        Additionally at the January board meeting,       India could be slap in the middle of any
out of the provision of insurance to individual    the directors adopted a resolution that a           controversy surrounding sanctions, as the
members whose trading activities contravene        condition of entry be endorsed on certificates      country has a large refining capacity, which
such sanctions.                                    of entry for the 2010 policy year modifying         relies on crude oil imports from the MEG and
   Additionally, the implementation of the UK      the rules of the P&I and FD&D classes by            exports refined products to the region,
Financial Restrictions (Iran) Order 2009 had       clarifying that the definition of a cesser event    including Iran.
highlighted to P&I Club managers that the          be extended to encompass a situation where,            In February, Iran's ambassador to India
cesser provisions of the association's rules       by operation of law, the association was            maintained that his country continued to
required amendment to include a termination        unable to continue to insure a member.              import gasoline from a private Indian oil

April 2010       TANKEROperator                                                                                                                 13

                                                                                                                                   Indian tanker
                                                                                                                                   owners could feel
                                                                                                                                   the pinch if
                                                                                                                                   Iranian trade
                                                                                                                                   sanctions include
                                                                                                                                   crude oil imports
                                                                                                                                   and product
                                                                                                                                   Photo credit -

refinery, even though the firm, Reliance            incorporated most of the provisions in the Iran    sold tens of millions of dollars in refined
Industries (RIL) had promised last year that it     Refined Petroleum Sanctions Act.                   products to Iran.
would stop gasoline exports to Iran, fearing        Representatives of the two chambers must              Any new sanctions would also affect
US sanctions.                                       now meet to agree on a compromise version          Petroleos de Venezuela and state-owned
   Ambassador Seyed Mehdi Nabizadeh's               that will be sent to the White House for           Chinese firms that are said to now provide
remark was claimed to have put Indian and           President Barack Obama's signature.                Iran with up to one-third of its gasoline
foreign companies' trade relations with Iran in        Both the House and Senate versions seek to      imports.
a difficult situation, according to local reports   sanction persons or companies investing $20           The Reliance decision to stop gasoline
put out by news agencies and those appearing        mill or more in Iran's energy sector.              exports to Iran in 2009 came after several US
in the local newspapers.                               If the Iranian Ambassador's assertion of        lawmakers urged the Indian Export-Import
   However, RIL quickly denied the                  direct imports was true, RIL, which owns the       Bank to suspend assistance to RIL, on the
ambassador's assertion. RIL spokesperson            world's largest petroleum refinery complex at      grounds that it was assisting Iran's economy
Tushar Pania told news sources in Mumbai            Jamnagar, could be a primary target of those       with the gas sales.
that the company had ceased exporting               sanctions.                                            India's business relations with Iran were
refined petroleum products to Iran as of last          Iran, which is the world's fourth largest oil   said to be ambiguous. The current Congress-
May. He declined to comment on whether              exporter, is dependent on gasoline imports         led government in New Delhi is a strong US
RIL petroleum products make their way to            because of a lack of refinery capacity to meet     ally, but it has also maintained relations with
Iran after being re-exported from third             domestic demands. Until several years ago,         Iran and at times defied Washington's efforts
countries.                                          Tehran had to import about 40% of its refined      to isolate Tehran. Iran is the second biggest
   In a statement released 9th February, RIL        gasoline from foreign suppliers, but, with         supplier of crude oil to India.
said it’s "….contract with the buyers explicitly    conservation and other measures taken by the          If Reliance is sanctioned, it remains to be
prohibits Iran as a destination for any cargo       government, imports have been cut to about         seen whether it will have any impact on India's
loaded at Jamnagar."                                30%, according to recent reports, a news           own exports of gasoline products to the US, or
   Last December, the US House of                   agency said.                                       on bilateral trade relations more generally.
Representatives passed the Iran Refined                Gasoline sales to Iran are not banned by UN        India doubled its exports of gasoline to the
Petroleum Sanctions Act, which seeks to limit       resolutions, although under the new Senate         US to 5.19 mill barrels last year after RIL's
Iran's ability to import and produce refined        bill these will be subject to US sanctions.        Gujarat refinery started production, according
petroleum products.                                    RIL is one of the many international            to a recent Business Week magazine report.
   On 28th January, the US Senate passed the        companies, including Vitol, Trafigura and          Most Indian oil exports come from RIL as the
Comprehensive Iran Sanctions,                       Glencore, Total, Petronas, Lukoil, Shell and       public-sector companies cater to domestic
Accountability, and Divestment Act, which           British Petroleum, which have in the past          demands.                                       TO

14                                                                                                                 TANKEROperator        April 2010
                                                                       INDUSTRY - MIDDLE EAST GULF REPORT

              Dubai – Shipping
               companies ride
                 the storm
              ubai World, the conglomerate

as Drydocks World and Dubai Ports, being
sold off.
              which owns several household
              names, could be broken up with
              the profitable businesses, such
                                                   The Emirate of Dubai has
                                                   been rocked by financial
                                                   worries, primarily led by
                                                    the property and retail
   However, recently there was gathering
optimism that Dubai World will reach an
amicable arrangement with its creditors. Local
sources said that it had been hinted that an     accepting the conditions.
amicable restructuring would be announced           As for the shipping sector, this area seems
‘very soon’.                                     to have avoided all the fuss and is operating as
   It was stated that Dubai World needs the      before in all sectors and the companies
banks and the contractors just as they need      involved do not appear to have any problems
Dubai World, despite the problems being          in raising money.
faced by creditors. Towards the end of March
it was reported that the Dubai government was                  Topaz in profit
committed to injecting $9.5 bill into Dubai      One example is leading UAE-based marine
World to help pay off $14.2 bill of debt.        and offshore service concern Topaz Energy
   Dubai World said that it proposed to repay    and Marine. This company posted total
creditors in full over periods of five and       revenue for 2009 of $448 mill, EBITDA of
eight years. Support has come from the Abu       $127 mill and a net profit of $65 mill,
Dhabi Government once again. If proved to        equalling year on year growth of 7%, 14%           Topaz CEO Fazel A Fazelbhoy.
be correct, as everything is very vague          and 38% respectively.
concerning money in Dubai, these proposals         Topaz has a regional footprint across the        through two strategic business divisions -
are subject to the 97 creditor banks             Middle East and the Caspian Sea. It operates       Topaz Engineering provides marine and
                                                                                                    energy engineering services to the global oil
                                                                                                    and gas and shipping industries, while Topaz
                                                                                                    Marine is an offshore support vessel (OSV)
                                                                                                    owner and operator with more than 100
                                                                                                    vessels in its fleet serving the oil and gas
                                                                                                    industry exclusively.
                                                                                                       In 2009, Topaz achieved record results for
                                                                                                    the ninth consecutive year and brought its
                                                                                                    total asset base on the balance sheet to $874
                                                                                                    mill while maintaining a comfortable gearing
                                                                                                    ratio of 0.89, confirming the company’s strong
                                                                                                    capital structure.
                                                                                                       Topaz CEO Fazel A Fazelbhoy commented:
                                                                                                    “This is an outstanding achievement in a
                                                                                                    volatile economic climate and reflects the
                                                                                                    inherent strengths of our business. Facing
                                                                                                    great adversity, we have demonstrated our
                                                                                                    business to be one that grows shareholder
                                                                                                    value in a measured and responsible fashion in
                                                                                                    any economic cycle. Topaz’s recession
Fujairah is a leading service centre for vessels entering or leaving the Gulf.                      resilience is a result of a considered blend of
Photo credit – Chemoil.

April 2010      TANKEROperator                                                                                                                 15

long and short-term contracts, exposure to         through the financial crisis” said CFO Pramod    aromatics and oxide and ammonia derivatives
geographies of strategic importance to global      Balakrishnan.                                    by 2015, while various state-owned firms will
energy markets and our refusal to jump on the         “We raised $150 mill in debt financing in     manufacture and export plastics and other
bandwagon of speculative vessel newbuildings       2009 thanks to the support of our global and     petrochemicals from the Ruwais industrial
at the peak of the market.”                        regional bankers. In 2010 we have already        cluster in Al Gharbia.
   Dubai-based Topaz’s market outlook is           exceeded this figure in the first quarter,”         The fleet expansion, which could be worth
cautiously optimistic for 2010 but clearly         he concluded.                                    hundreds of millions of dollars, will occur by
buoyant for the years to come. With global            Topaz is a wholly owned subsidiary of         purchasing and chartering ships, explained
exploration and production (E&P) spend             Renaissance Services SAOG, a publicly traded     Scott Jones, Eships CEO, talking to local
projected to rise by approximately 10% in          company on the Muscat Securities Market.         sources recently.
2010, the company expects this year to             Operating throughout the Middle East and the        “We are expecting them to export large
present a visibly firmer market, but still with    Caspian, with vessel operations in North         quantities in long-haul voyages,” he said. “The
continued weakness in the first six months.        Africa and Southeast Asia, Topaz employs         size of our [chemicals] vessels will not be
   With oil prices having stabilised, Topaz sees   over 5,200 people.                               economical, so we have to upsize our fleet.”
very strong growth prospects for 2011 and             Topaz Marine, the OSV division, comprises        Eships has 13 ships, ranging from 6,500 cu
beyond. This optimism arises from the              Nico Middle East, Doha Marine Services,          m capacity LPGs to 170,000-tonne Capesize
company’s view that major investments will         Topaz Saudi Arabia, BUE Caspian, BUE             bulk carriers for transporting iron ore.
have to be made by international and national      Kazakhstan & BUE Turkmenistan. Topaz                Eships is owned equally by Mubadala
oil companies in offshore E&P and general          Engineering comprises Adyard (Abu Dhabi),        Development and Invest AD, two investment
hydrocarbon infrastructure, not only to replace    Nico Craft and Nico International.               arms of the Abu Dhabi Government. The two
the ageing infrastructure but also to keep pace                                                     Abu Dhabi shareholders last year bought out
with ever growing energy demand driven                          Abu Dhabi boost                     the shares of the Muscat-based Oman and
principally by China and India.                    Another shipping company, Abu Dhabi-based        Emirates Investment Holding, which decided
   Topaz claimed that it was well placed to        Eships, a subsidiary of Emirates Ship            to leave the shipping business. This move
capitalise upon this development and its           Investment, plans to embark on a major           followed the departure in 2005 of the
strategic plan includes significant investments    investment programme to double its fleet in      founding partner, the Klaveness Group of
in modern assets in the growing offshore           three years to more than 25 chemical, product    Norway, a drybulk specialist, when Eships
support vessel sector. Topaz builds new OSVs       and drybulk vessels, as it gears up to serve a   expanded into the chemical tanker business.
exclusively against medium to long-term            raft of new industrial projects in the Gulf.        The fleet acquisitions will be financed
contracts and market-specific niches, which           The Abu Dhabi shipowner and operator said     through a combination of equity and debt,
have significantly contributed to its strong       that it hoped to capitalise on plans for         Jones said, adding that asset values had
2009 results.                                      petrochemicals and basic metals plants as        dropped to attractive rates with the global
   “Certain strategic acquisitions made in the     MEG countries diversify their economies          economic downturn. Eships will - “…optimise
Caspian and the Middle East in recent years,       away from oil and gas revenues.                  the timing of our expansion by taking
and subsequent additions to the offshore              These plans could include more than $40       advantage of market and price volatility”,
support vessel fleet are providing us consistent   bill spent on petrochemical projects in Abu      he said.
returns and cash flows. The strong balance         Dhabi alone. Abu Dhabi National Chemicals           In 2008, the company posted a loss, mainly
sheet together with a splendid operating           Company (Chemaweyaat) will deliver an            from using financial instruments in an attempt
performance saw us navigate comfortably            integrated complex to produce olefins,           to protect itself against volatile interest rates.
                                                                                                    But the company will record a profit for last
                                                                                                    year, as its longterm charter contracts buffered
                                                                                                    it against the industry’s volatility. “In the
                                                                                                    circumstances, it is a healthy profit, but
                                                                                                    shipping had a bad year and most companies
                                                                                                    have had a difficult time,” Jones said.
                                                                                                       One area that the company decided not to
                                                                                                    focus on, however, was crude oil
                                                                                                    transportation. The reason being that the Abu
                                                                                                    Dhabi National Oil Company (ADNOC)
                                                                                                    requires buyer countries to bear the costs of
                                                                                                    transporting the crude, which often results in
                                                                                                    customers hiring shipping companies in their
                                                                                                    home countries, Jones explained.
                                                                                                       Recently, Eships purchased two distressed
                                                                                                    newbuilding MRs from SLS Shipbuilding,
                                                                                                    which were originally ordered by Glenda, a
                                                                                                    subsidiary of Glencore and d’Amico. The
                                                                                                    vessels were thought to have been cancelled,
                                                                                                    due to problems being experienced by the
                                                                                                    shipyard.                                        TO
Wärtsilä has opened a large service centre in Dubai.

16                                                                                                              TANKEROperator          April 2010
                                                                           INDUSTRY - MIDDLE EAST GULF REPORT

  Piracy –‘Be prepared’
The question of piracy in and around the Middle East/East Africa and elsewhere will not
 go away until the world’s governments lend a hand to bring some stability to the area.
                ntil that happens, which we all

U               agree is a long way off, there are
                various measures that an owner,
                or operator, can take to reduce
the risk of becoming yet another hijack
statistic with all the problems that brings.
   TA KEROperator spoke with Hugh Martin,
director of Delta Fox, about some of the
measures that should be taken against being
attacked by pirates.
   Many of the shipping organisations have
come out against arming people on board
ship. However, in some cases carrying armed
security guards could be option.
   Martin said; “There is a place for armed and
unarmed protection; it depends upon the
particular circumstances of a vessel and her
crew. If a security provider is doing its main
job of deterring a piracy attack in the first
place, then this will go a long way to
avoiding a potential attack escalating into a
fire-fight, risking both crews and vessels.
   “Overall, security providers have been
extremely successful to date through the
implementation of measures designed to               One of Fox Delta’s directors with a team on board preparing a ship’s defences.
prevent boarding and hijack. Fox Delta’s team
has successfully deployed deterrents such as            Turning to training, in the wake of some of   “Yes – the best deterrents are invariably those
razor wire, grease, barriers, as well as             the larger shipping companies running their      that combine the expertise of seafarers and
procedures, rehearsals and communications to         own training courses, including post traumatic   experienced maritime security personnel, who
deter piracy attacks. Pirates have learned to        stress style counselling, Martin said that Fox   work closely with crews.”
seek out the unprepared merchant ships,              Delta runs a variety of training courses that
as these are easier to board and capture”,           includes post traumatic stress. “Although our             Prepared and vigilant
he continued.                                        maritime training is aimed for security          Talking of the various devices on offer to
   He also said that Fox Delta supported             personnel, we also offer shipping companies      deter pirates, Martin agreed that the old
industry wide initiatives, such as the OCIMF         bespoke anti-piracy training”, he explained.     fashioned techniques are often the best ones.
and INTERTANKO plus others’ ‘best                       At a recent meeting in Dubai, there was a     “The most effective measures are those
practice’ lists, which include contacting the        call for the authorities to listen to the        designed to make boarding a vessel too risky
relevant authorities when entering and leaving       seafarers, who could possibly better advise as   for the pirates. These include the types of
dedicated convoy zones and other                     to the correct methods needed to ward off        physical barriers mentioned earlier but also
practicalities.                                      attacks. Answering this point, Martin said;      demonstrating to pirates that a potential target
                                                                                                      is both well prepared and vigilant,” he said.

“      “...the best deterrents are invariably those
      that combine the expertise of seafarers and
                                                                                                         Many large tankers try to avoid the area by
                                                                                                      sailing way out into the Indian Ocean while
                                                                                                      say going from the MEG to the US or Europe
                                                                                                      via the Cape. Others coming south through the
                                                                                                      Suez Canal or the Red Sea ports have to pass
       experienced maritime security personnel,                                                       through the Gulf of Aden, close to Yemen.
             who work closely with crews.”                                                               Martin said Yemen was still proving to be a
                                                                                                      daily problem although the pirates reach has

                   Hugh Martin, director, Delta Fox                                         ”         increased to greater distances offshore. “The
                                                                                                      world’s navies, working along with other

April 2010       TANKEROperator                                                                                                                   17

agencies, have provided an element of safety,      wants to pay more than required; however, it
but I recommend that shipping companies            is well known that an analysis of the ships
should address their own safety too, as pirates    captured by Somali pirates last year found
are becoming increasingly savvy and aware of       that most of them had ignored recommended
current anti-piracy techniques and                 security measures, as many ships just took
procedures,” Martin warned.                        their chances.”
   Fox Delta has had experience both in the           As for the cargo owners bearing some of
Malacca straits and the Gulf of Aden where         the costs, Martin said: “It depends on who you
the company provides first hand, senior level      speak to; for example a cargo owner of palm
advice on what works best and is appropriate       oil has more at stake than many and, of
for shipping companies, he explained.              course, it also depends on the extent of
   The problem of pirates spreading out across     insurance cover deployed.”
the Indian Ocean is more of a financial               Despite this situation lasting for many years
concern for shipowners, Martin thought. “We        in various parts of the world, Martin said that
work closely with owners to assess risks, in       there was still a requirement for anti-piracy
order to minimise the financial exposure of an     services a situation, which he didn’t see
owner, consistent with affording the necessary     changing in the foreseeable future.
protection for crews, vessels and their               As for the main advise to shipowners and
cargoes”, he said.                                 operators this was; “Be prepared… is the old
   The need to take action and possibly avoid      saying. If you are well prepared and have a        Delta Fox director Hugh Martin.

the area comes at a price, which includes          plan, then you already have reduced an
escalating insurance premiums and having to        element of risk, and combined with a layered       from $1 bill to $16 bill per year as it is
steam extra miles. In addition, the unions         approach of relevant mitigating measures, it is    considered ‘easy money’. Piracy is currently
have advised seafarers not wishing the             possible to further safeguard your crew and        too attractive, which will only change through
transit the area to disembark. Martin              assets effectively”, Martin said.                  effective deterrents and preventative
countered these claims by saying; “No one             “The current cost of piracy is estimated        measures”, he concluded.                     TO

Incinerators maybe soon out of date warns Carmania
Dubai-based Carmania is now                        whereas the present day requirements are a         slop tank. Not all tankers will be able to do
marketing Deerberg environmental                   maximum combustion temperature of 1,250            this and to ensure no mistakes are made, they
waste management equipment to                      deg C and a minimum of 850 deg C. These            need to refer to the individual ships IOPP
local owners either contemplating                  temperatures allow for the complete burning        certificate. Section 3 of this certificate will
newbuildings, or have new vessels                  of plastic waste.                                  indicate whether or not this is permitted.
on order, of which there are                          Once plastic is burned there is still the          Hall said that the new larger capacity
several within the region.                         problem of plastic ash disposal– a much            incinerators are best fitted at the newbuilding
Carmania’s managing director Chris Hall            reduced volume and weight - but which can          stage in dock. However, with careful planning,
explained that it was a matter of trying to get    be problematic since some ports refuse to take     retrofits are possible using a riding squad. “It
the owners to specify the equipment, rather        what has now become toxic waste with all its       must be carefully planned out and cleared with
than have the shipyards offer a complete           attached disposal restrictions.                    class,” Hall said; “It has been done before.”
package as in the past.                               For many vessels, the incinerator’s major          All class approvals need to be in place and
  Deerberg is perhaps better known as a            use is in the disposal of waste oil and sludge.    the welders must meet the grade requirements.
supplier of waste management equipment to          These incinerators may operate 15 hours per        Since a new upgraded incinerator will have a
the cruise vessel sector, predominantly in         day or more. Although this equipment is            larger footprint than the unit being replaced,
Europe. However, the company has since             supposed to operate automatically and without      drawings have to be done and access will need
opened up in the US and is exploring other         constant supervision, many vessel owners           to be checked. Hall said that normally, part
vessel sectors.                                    insist on full and continuous supervision,         of the bulkhead will need to be cropped for
  One of the main problems is the incinerator.     further reducing the effectiveness of an           unit access and then refitted, once the fitting
Hall said that if vessels of over 12 years old     already small ships compliment.                    has finished.
are being operated, it is highly likely that the                                                         There are still many double hull large
on board incinerator does not meet the                        Increasing problem                      tankers, including VLCCs, built over 12 years
requirements of IMO resolution                     This problem will increase as the quality of       ago. These were fitted with the 750 deg C
MEPC.76(40), which was adopted on 25th             heavy fuel oils continue to decrease –             incinerators. If these vessels continue to
September, 1997, along with amendments in          witnessed in the general increase in the cat       operate incinerators and need to get rid of an
2000 and 2004, regarding the standard              fines being experienced when bunkering.            increasing amount of plastic waste – and not
specifications for shipboard incinerators.            For tankers with excessive waste oil and        accumulate it on board for landing, which is
   Prior to 1997, incinerators were built with     sludge they may be able, under certain             often difficult, then the incinerators will have
an operating temperature of 750 deg C              conditions, to pump some of this to the cargo      to be upgraded, Hall said.

18                                                                                                                TANKEROperator       April 2010
                                                                                      INDUSTRY - MANNING & TRAINING

                     Recruiting and
                    retaining quality
                    officers and crew
  The shipping industry has attempted to forge ahead on a voyage without a contingency
           plan involving the most critical aspects of the operation – the crew.*
             hree main themes have emerged          the current trend continued, there could be a       missing from the average officer’s list of

T            during the last few years when
             talking of a potential seafarer
1) Shipowners and managers are investing in
    training more than ever before in an effort
                                                    shortage of 40,000 officers this year, which is
                                                    frightening. If we say eight officers per vessel,
                                                    that equates to 5,000 ships without officers.
                                                    Taking the Norwegians as an example, they are
                                                    looking for more than 10,000 extra seafarers to
                                                                                                        competencies, so what better way than to take
                                                                                                        advantage of this imbalance.

                                                                                                                 Image and perception
                                                                                                        We are probably attracting enough young
    to bridge the perceived seafarer quality gap.   operate their vessels currently on order.           people into the industry as we tend to have an
2) Recruiting and retaining is getting much            IMEC has said that the scale of the shortage     over-subscription to the V Ships cadet training
    harder as fewer quality seafarers are           was above the level researched by the               programme, which has around 1,000 cadets
    available and wage rises spiral, like some      BIMCO/ ISF report and estimated that there          studying for junior officer positions.
    kind of demented auction.                       would be a 10% annual shortfall in the                 However, the more important question is
3) Improving the situation can only be              number of seafarers needed.                         whether we are attracting a suitable standard
    achieved by forming partnerships, alliances        Now that the industry has recognised the         of young people. The answer is - probably
    or even truces.                                 reality of the situation, initiatives within        not. V Ships has conducted interviews in
Poaching will only exacerbate the situation,        IMEC, Intertanko, InterManager and others           Latvia, Lithuania, Russia, India, Ukraine, UK
resulting in higher wages, high attrition rates,    are being launched, which should ease the           and the Philippines and has been generally
a constantly migrating workforce and                situation. These tend to revolve around cadet       disappointed by the average applicant, apart
seafarers coming ashore earlier in their            recruitment programmes, rating development          from one exception - a modestly run marine
careers, either because they were dissatisfied,     and recognising those centres of learning that      engineering college in Goa.
or are wealthy beyond their dreams.                 have the best chance of making the seafarers           Here, we did not find newly installed state-
   Unfortunately, it is too late for contingency    as good as they can be.                             of-the-art simulators, or sheds housing
planning. We are now in a damage limitation            Both the BIMCO and IMEC statistics also          numerous donations from well-heeled sponsors.
phase of our voyage. A positive result of the       show that there is an abundance of ratings          Instead we found a basic machine shop, class
manpower shortage is that the vast majority of      available. The smart move would surely be to        rooms with schematic diagrams and small
the senior management now understand the            identify those who have the capability to           models demonstrating operating principles with
gravity of the situation and continuing in the      develop into future officers of the watch and       a small team dedicated to making their students
same way is no longer an option.                    develop them. Industry commentators often           as good as they possibly could.
   The BIMCO/ISF research estimated that if         speak about the basics of seamanship being             Apart from a self-effacing spirit and

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April 2010          TANKEROperator                                                                                                                 19

determination, the one thing that made these        companies who provide a substantial proportion      STCW 2010 will not include this and that it
cadets a cut above the average, was the             of world tonnage, in their quest for meagre         will be an opportunity missed that may not get
establishment of a co-operative community           profit or survival. This can be achieved by the     another hearing until 2020.
involving the local iron ore transhipment           rigorous implementation of international              The STCW document is important, but as a
vessels. The cadets spent a significant amount      standards. We believe that Port State Control       vehicle for change and improvement, it holds
of their time serving on board these vessels        inspections targeting vessel conditions and         no real value. For that we must take the lead
getting to know the practicalities of shipboard     compliance with the ILO Maritime Labour             ourselves or follow best industry practices.
life and operations. There is no substitute for     Convention 2006 will enable the weeding out of
on-the-job training.                                sub-standard operators to continue and we must                        Conclusion
   There are initiatives attempting to show         support these initiatives for our mutual benefit.   Shipowners will always look to become more
young people that the industry is one to be            Other problems worrying the industry concern     efficient, reduce costs and widen the profit
proud of. For example, the Marine Society           seafarer criminalisation and medical sign-offs.     margin. It is the nature of economics, but we
website and the webship British Trader, Clyde          From a shipmanagers perspective, when V          know the orderbooks are full, so we suggest
Marine’s local UK TV adverts and by various         Ships considers bringing a vessel into              that all of us begin to treat our seafarers,
Scandinavian organisations.                         management, we will always look at the vessel       superintendents and support staff with a bit
   The Scottish Executive is engaging with          and the shipowner’s track record to determine       more respect and plan for the longer term
business leaders to promote and develop local       what the risk will be to our reputation and if      instead of reacting quarter by financial quarter
economies and school leavers, by organising         we should associate ourselves in a venture,         to the whim of accountants.
field days on board vessels for careers officers    which is anything less than professional.              There is much cause for optimism.
and students.                                          As a shipmanager, our two main assets are        Outstanding issues are now being dealt with
   New sources of manpower are being                our reputation as the best shipmanagers             seriously and not mere rhetoric. BIMCO,
explored in a rather tentative fashion by many      around and our people. If our risk assessment       IMEC, InterManager and others are making
organisations in places, such as Indonesia,         process fails us, we risk our reputation and we     tangible headway with projects.
Vietnam and Mexico. Investment in Chinese           lose the trust of our seafarers. In short,             Organisations waste millions of dollars
seafarers continues, but it has been recognised     bringing sub-standard vessels into                  annually in asking consultants to come and sort
that China does not provide the complete            management will not be considered unless            out their companies when all they need to do is
answer, or even a substantial proportion of the     suitable safeguards can be put in place to          ask middle management, or the people at the
manning equation.                                   ensure rapid improvements.                          sharp end – what do we need to do more of?
   In the medium term, the Philippines, India          The introduction of TMSA is already a            What do we need to do less of? What should
and the FSU countries will continue to be the       success in that the company who operates the        we stop doing right away? If we actually took
major suppliers.                                    safety management system is being forcibly          their advice, companies would go from strength
                                                    guided in the right direction. Can the              to strength with a contented workforce.
                Staff retention                     impending revision of STCW do much to                  The main drivers for the crew are:-
A high retention, or low attrition, rate is         improve the skills gap that exists? We don’t            Provide sufficient crew to operate the ship
relatively easy to achieve providing the            think that it will as the working group is              efficiently without infringing the hours of
circumstances are favourable. A few years ago       concentrating on technical skills and not               work regulations over the full duration of
when there was a surfeit of officers and even the   giving enough attention to the difficult skills         the voyage.
2nd Mate had a Master’s ticket, retention was       of management, leadership and the subject we            Provide a balanced work/leave ratio.
not even included in the marine HR dictionary.      call the – human factor.                                Provide a safe working environment.
   There appear to be three types of companies         Despite working groups, such as those of             Be proactive to suggested changes from the
as described in Shiptalk’s e-magazine – good,       the MCA and Intertanko discussing the human             on board management team and demonstrate
bad and average.                                    element and leadership, which have a higher             at every opportunity that their input is valued.
   Good have a high profile, have big budgets       profile than they used to have, there are no            Take time to explain the reasons why
with which to advertise and they have a             indications that STW and the forthcoming                important decisions have been made.
reputation for looking after their sea staff and    incarnation of STCW will take this in.                  Acknowledge good work.
are still able to attract and retain seafarers.        The Code of Safe Working Practices in its            Provide training where it is needed and in
   Bad always tend to cope but care little about    previous and present form has advocated                 good time.
the standard of people they get. It is a sad fact   training for shipboard safety officers to enable        Develop and grow people so they can be
that these companies are still able to get poorly   them to do a competent job. As a matter of              ready for promotion.
trained and educated people through ruthless,       course, oil majors and most shipping                Contented employment is not only about
dodgy manning companies dealing with the            companies have been sending officers to             money. Motivation to perform the job to be best
lowest common denominators.                         attend training courses for many years. Yet it      of our ability also comes from being valued by
   The average companies are the ones that are      seems that the STW working group will not           the company and our peers. Constructive
hard pressed to get the right people. They may      be addressing this critical requirement.            advice, a pat on the back for a job well done
not have the profile, the shiny ships or               What is the purpose of STCW if not to set        and showing genuine interest in the individual
glamorous trades of the good, but they need to      firm foundations to ensure that the vessel          can be priceless acts and absolutely free.
tap into the same high quality labour force. At     operations are conducted in an environment             Be generous, do the right thing and your
present, good seafarers are able to look            where safety culture can be created and             company will benefit.
beyond the average companies.                       developed? Is this not the most fundamental         *Taken from a paper written by V Ships last
   The industry needs to help these average         objective of the ISM Code? We fear that             year but still very relevant today.

20                                                                                                                   TANKEROperator         April 2010
                                                                                     INDUSTRY - MANNING & TRAINING

         ILO’s Maritime
        Labour Convention
           Perhaps one of the most significant pieces of legislation aimed at the seafarer
          is coming onto the statute books, once the required number of flag states with
             the relevant tonnage has ratified it - International Labour Organisation’s
                         Maritime Labour Convention 2006 (MLC, 2006).
        n a note issued by Lloyd’s Register         estimated 1.2 mill seafarers.                      changed or modified to accommodate the

I       (LR), the class society said that MLC,
        2006 is extensive both in its application
        and scope in addressing maritime labour
related issues with the objective of improving
the standard, safety and status of shipping.
                                                       The industry needs to be ready for MLC,
                                                    2006 with owners and managers needing to be
                                                    proactive in addressing the requirements of
                                                    the convention. It represents a major cultural
                                                    change for the shipping industry.
                                                                                                       requirements of the MLC, 2006.
                                                                                                         However, time is now very short as owners
                                                                                                       and shipyards need guidance now to be able to
                                                                                                       design and build and prepare ships to meet the
                                                                                                       minimum requirements of the convention and
   The convention has been drafted to help             Five member states representing an estimated    any prevailing national flag state
ensure that all seafarers, regardless of their      43% of the world gross tonnage have already        requirements, LR warned.
nationality and the flag of the ship, receive       ratified the convention - full international
acceptable working and living conditions.           implementation is just round the corner.                           Shipbuilders
   LR believed that the MLC, 2006 will have a                                                          The accommodation construction and
direct and positive impact on both crew                           Administrations                      equipment requirements of the convention
recruitment and retention, and most                 There is still much work for the industry to do    provide guidance on it. Such requirements
importantly maritime.                               to be better prepared for this convention. Flag    enhance, modify and update existing ILO
   It sets minimum standards on issues such as      states need to be ready to point in the right      convention requirements and as such owners
conditions of employment, accommodation             direction the MLC, 2006 requirements and           and shipyards need to be conversant with the
provisions, recreational facilities, food and       implementation, as much as shipowners need         minimum requirements set and importantly
catering, health and safety protection, medical     to implement its requirements.                     the flag state implementation of such
care, welfare and social security protection.          Less than a handful of flag states have         requirements through national regulations,
   Detailed requirements of the convention          already indicated their position with regards to   substantial equivalences and exemptions.
aim to tackle issues associated with the            the preparation of their required Declaration         Unfortunately, we may see some variations
causes of fatigue, occupational accidents,          of Maritime Labour Compliance document. To         in the interpretation and implementation of
recruitment, employment opportunities and           some extent this is understandable as in many      these accommodation construction and
working and living conditions for an                cases national laws and regulations have to be     equipment requirements, which will pose a

April 2010       TANKEROperator                                                                                                                  21

change to designers, planners, shipbuilders           In addition, LR can provide consultancy         will require across the industry. It is important
and onsite surveyors, LR said.                     services, including certification of recruitment   that adequate standards for seafarers’ terms of
                                                   and placement services, to support shipowners      employment - their accommodation, their
                  Operators                        and other authoritative organisations to fully     recreation, catering, health and medical care,
A number of shipowners and operators have          meet their obligations under the MLC, 2006.        their welfare and social conditions - are all
boldly ‘grasped the nettle’ and undertaken a          LR has undertaken a number of initiatives,      protected by convention.
number of internal studies to see to what          including -                                           “We want to be able to demonstrate that we
degree they are compliant with the MLC,                40 open and 100+ client specific seminars      are leading the way in preparing for this
2006 requirements.                                     worldwide.                                     convention and how seriously we take the
   Awareness among shipowners of the new               40 on board ship trial inspections and a       safeguarding of seafarers’ working conditions.
convention’s detail is increasing rapidly and          number of gap analysis of vessels plus 20      If we look after our people we know that they
LR said that it saw increased demand for their         gap analysis at company level.                 will look after our ships,” he concluded.
training services and ‘On board Voluntary              Training of LR maritime labour inspectors          LR was approached by V Ships’ ship
Assessment programme inspection and gap                worldwide ready to cope with demand.           management division to complete an ILO gap
analysis services’.                                    Training, awareness and advisory services      analysis, identifying any areas for development,
   This is a highly positive position from the         are available to the industry worldwide.       as well as training and certification services for
shipowner sector of the industry but needs to          Have gained a considerable understanding       all shipmanagement entities, providing a
be matched by the commitment from other                of the main issues that will need to be        unified and global approach to managing MLC,
sectors to ensure untroubled implementation.           addressed.                                     2006 compliance.
   As the industry becomes more aware and              Understanding the issues with recruitment          LR had worked closely with V Ships on a
conversant with the requirements and                   and placement agencies (manning agents).       global basis, providing classification and
implementation of the MLC, 2006, the                   Working closely with flag administrations.     ISM/ISPS services to many of its managed
industry will be able to meet and resolve such         Dialogue with various shipbuilders on a        ships and, more recently, increasing number of
issues in a uniform manner and thus achieve            number of issues.                              consultancy services.
the core objective of the MLC, 2006, which is          LR has produced a CD guide.                       A significant recent project was an
to improve the safety and status of shipping.      This convention is good for the shipping           environmental culture evaluation report
                                                   industry. It is complicated and presents a         (MARPOL I) project where, over a year, LR
             LR’s involvement                      number of challenges for administrations,          identified and reported on systemic issues that
The various services provided by LR in             owners and builders. Those acting in good          may threaten V Ships' environmental
addressing this new convention encompass           faith – particularly shipowners, with the long     performance.
awareness training courses and seminars and        term interests of their seafarers in mind –
inspection training courses tailored to specific   should have little trouble with compliance.                 ABS training package
client needs as well as GAP Analysis and           Compliance is coming up fast. Owners will          For the forthcoming Maritime Labour
Voluntary Assessment programme aimed at            need to act soon, LR said.                         Convention (MLC 2006), several other
helping the owner to prepare for inspection           LR has signed a contract with V Ships to        concerns are offering training packages to
and certification of his ships against the MLC,    provide services to help ensure that the company   shipowners/operators.
2006 requirements.                                 is able to secure certification for MLC.              These include the ABS Academy, which
   LR has in place a comprehensive internal            Matt Dunlop, COO shipmanagement, V             together with specialist publications, is
training programme for its own inspectors          Ships, explained why preparing for the new         offering practical information about improving
enabling the class society to provide a global     ILO convention is so important: “We are            a seafarer’s lot in line with the convention.
network of maritime labour inspectors              committed to the continued wellbeing of the           Among the issues contained in MLC 2006
supporting its obligation as a recognised          seafarers that sail in all our ships. We welcome   are the minimum requirements for seafarers
organisation (RO) for flag states.                 the MLC, 2006 and the minimum standards it         tasks on a vessel, conditions of employment,

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22                                                                                                                TANKEROperator         April 2010
                                                                                     INDUSTRY - MANNING & TRAINING

accommodation, recreational facilities, food      “We use a practical approach that gives                  offered in Houston, New York, Dubai,
and catering, health protection, medical care,    participants clear explanation of the five titles        Singapore and Piraeus.
welfare and social security protection, along     in the convention using exercises and                       ABS also said that customised courses can
with compliance and enforcement.                  examples,” said training manager Pavan Lall.             also be undertaken for owners, operators and
   Speaking in ABS’ Activities magazine,          “In our face-to-face training courses, owners            shipbuilders alike.
Graham Marshall, ABS Academy’s director           and operators have a change to get specific
external training said: “Our course is based on   answers to their questions and establish a                                 IRS stance
the knowledge we gained through the               relationship with the ABS staff for future               Said Nassif, managing director, International
interaction with ILO members and flag             implementation of MLC 2006,” he continued.               Register of Shipping (IRS), said:
administrations that took part in the                ABS offers three distinct MLC 2006                       “The Maritime Labor Convention MLC
development of the new convention.                courses: -                                               2006 has been developed through six years of
   “We have also issued two publications              ILO MLC 2006 Awareness and                           intensive international tripartite consultation
based on that knowledge, the ‘ABS Guidance            Implementation is a one-day course geared            (shipowners, seafarers and government
Notes on the ILO Maritime Labour                      for executives and managers to gain a                representatives) involving more than 100 ILO
Convention 2006’ and Guidance for                     quick understanding and awareness of the             members.
Compliance with the ILO Maritime Labour               convention and its implementation                       International Register Training Institute
Convention, 2006 Title 3 Requirements’,”              requirements.                                        department of International Register of
he added.                                             Compliance is a two-day course that deals            Shipping is in the process of setting up
   The guidance notes explain each structure          with the practicalities of implementation            training courses to help our clients ensure that
of the convention and how to comply with it           and provides practical guidance to a                 they will be compliant by the time it is
in simplistic terminology, while the Guide for        shipowner’s technical staff. The guide and           implemented.
Title 3 Requirements provides the assessment          guidance notes are used extensively in this             IRTI already runs a wide variety of training
criteria and measurement methodology for              course.                                              courses so that we can share the experience
obtaining an ABS MLC accommodation                    For ILO MLC Inspectors is a five-day                 and expertise of our very knowledgeable staff
notation (MLC-ACCOM).                                 course offered on request for shipowners’            with our clients.
   The guide focuses on design criteria               inspectors.                                             We want to encourage our clients to protect
categories addressed in Title 3 –                 Compliance courses are being offered in New              their staff by giving them the necessary
accommodation design, whole body vibration,       York and Houston in April and September this             training for the benefit of their ship operation
noise, indoor climatic variables and lighting.    year respectively. Public courses are being              and their crew.”                                TO

                                                                                        WARSASH MARITIME ACADEMY
     MLC convention                                                                     TANKER TRAINING
                                                                                                 LICOS - LIQUID CARGO OPERATIONS SIMULATOR
    LR has observed that irrespective of ship                                                    Class A simulator approved by DNV to develop
    type, ship size, number of crew etc, there                                                   professional skills for officers handling bulk
                                                                                                 liquid cargoes. Shipyard to shipyard cycle
    seems to be a number of areas of                                                             of operations training for LNG (Spherical &
    particular ‘challenge’ to the industry in                                                    Membrane), LPG and oil tankers
    meeting the MLC, 2006 requirements.                                                          SIGTTO LNG TRAINING
    Some such key ‘challenges’ are:                                                              LNG Training in accordance with the SIGTTO
      Accuracy, validity and completeness of seafarer medical                                    Competence Standard, approved by DNV and
                                                                                                 conducted in LICOS
      Meeting the requirements of the convention regarding                                       LNG CARRIER STEAM PLANT SIMULATOR
      Seafarer’s Agreements.                                                                     This simulator introduces students to the op-
      Having a satisfactory on board complaints procedure.                                       eration of an LNG carrier dual fuelled Steam
                                                                                                 Propulsion Plant
      Meeting the requirements with respect to the hours of
                                                                                                 SPECIALISED TANKER TRAINING
      work or rest.
                                                                                                 Liquefied Gas, Oil and Chemical Tanker
      Incorrect payment of wages in relation to that specified                                   Endorsement Training MCA (UK) approved to
      in the Seafarer’s Agreement.                                                               STCW’95 standards
                                                                                                 INERT GAS & CRUDE OIL WASHING
      Lack of evidence on board of continuous improvement                                        TRANSPORT OF DANGEROUS GOODS BY SEA
      and/or of a risk assessment management programme.                                          LNG FAMILIARISATION
      Non application of the maritime labour related
      requirements of the convention to non STCW                                Contact: Warsash Maritime Academy, Newtown Road, Warsash,
                                                                                Southampton, SO31 9ZL
      seafarers.                                                                Visit:
                                                                                Call: +44 (0)1489 576161
                                                                                Fax: +44 (0) 1489 573988

April 2010      TANKEROperator                                                                                                                          23

Escort team training
  initiative launched
           ast year, one of the leading           Pacific northwest training                        technical expertise and clear direction

L          maritime training schools in the
           US - Pacific Maritime Institute
           (PMI) - teamed up with QSE
Solutions to provide what it calls the
‘Ultimate Learning Opportunity’ for vessel
                                                  initiative gives escort tug
                                                   masters and insight into
                                                       tanker handling.
                                                                                                    provided to encourage a change in the thought
                                                                                                    process, habits, and behaviours of the
                                                                                                    participants in training.
                                                                                                       It is vital that the instructor communicates
                                                                                                    information in advance of every training
escort team training.                                                                               scenario and the facilitator extracts key
   A grouping of Puget Sound pilots, Alaska          Communication skills.                          information for continual improvement at the
Tanker Company masters, and Crowley escort           Technical knowledge.                           end of each scenario, Trunnell said.
vessel captains was taken through 14                 Shiphandling.                                     In between, there is a weaving and
simulation scenarios using two Transas full          Regulatory oversight.                          integration of high-end communication
mission simulators to learn critical thinking    SBT also included extensive scenario               techniques, technical information of the
and resource management skills.                  briefings that cover departure points, arrival     equipment and shiphandling skills, regulatory
   PMI explained that the basic philosophy for   points, vessel type, vessel characteristics,       requirements and clearly defined roles and
this course was scenario based training (SBT).   the role of each bridge team member,               responsibilities.
For SBT to be effective there must be a          immediate traffic conditions, immediate               The PMI escort team training course
purpose for the passage and consequences if it   environmental conditions and expected              provides an opportunity to practice critical
is not completed as planned.                     learning objectives.                               skills in a realistic situation, such as moving a
   How does escort team training really work?       At the completion of each simulation            fully laden oil tanker with a pilot on board and
Director Gregg Trunnell explained that the       exercise, the participant assesses his/her         an escort tug attached to the stern, heading
fundamental goal of escort team training was     performance and addresses specific areas that      northbound approaching Rosario Strait and
to reduce human error and accidents by           influenced decision-making throughout the          Lawson Reef, when… something happens!!!!!
improving individual decision-making skills.     training session, in particular consider and say      Recently, PMI hosted its third of several
The key to this philosophy is SBT, which         what influenced their decisions.                   scheduled two and a half day tanker escort
comprised of the following subject areas:           Discussion is encourage and supported with      training programmes.

                                                                                                                                 The training is
                                                                                                                                 aimed at
                                                                                                                                 escorting large
                                                                                                                                 vessels through
                                                                                                                                 narrow channels.

24                                                                                                              TANKEROperator        April 2010
                                                                                    INDUSTRY - MANNING & TRAINING

   The programme included members of the
British Columbia coast pilots and tug captains
from Seaspan International and SMIT Marine
   This training programme marks the
culmination of a multi-year project initially
begun by the BCC Pilots and the Vancouver
Port Authority (VPA), which carefully
evaluated their escort system for its Second
Narrows Waterway and its two bridges.
   The study identified several procedural
changes that they could make as well as some
improved navigational aids to allow for ships
to be escorted with a greater degree of safety
and with a deeper draft. On 22nd-24th
February, Captain Greg Brooks, a 42 year
veteran of the tugboat industry and principal
of Towing Solutions of Florida, served as lead
facilitator for the programme.
    The Vancouver Port Authority and BCC
Pilots working with Towing Solutions initially
designed a multi-phase research project that
used fast time simulation, manned simulation
and two live tanker trials (one fully
instrumented) to identify and fine tune the
new escort procedures.
                                                   Escort duties are different to shiphandling duties.
   During this process, when the initial
simulations looked promising, Seaspan and
SMIT were brought on board as active               Coast Guard, and other interested parties         manoeuvres are properly trained.
partners and participated in the live trials and   participating in the review.                        To conduct this training the BCC Pilots
second phase of manned simulations.                   The revised Second Narrows escort              selected PMI’s training facility in Seattle,
   In this second set of simulations, the tug      regulations are scheduled to be implemented       which includes state-of-the-art Transas ship
captains manned three separate tug simulators      in May, 2010.                                     and tug simulators. The training course itself
and worked interactively with the pilots who          As part of the implementation process it       was developed in collaboration between
manned a fourth. As a final step in this           was decided to train all of the BCC Pilots and    Towing Solutions, the BCC Pilots and PMI.
process, the findings were subjected to the        the tug captains from Seaspan and SMIT who           Active since the early 1970s, PMI is a non-
Canadian pilotage risk management                  will conduct the escorts, to ensure that all of   profit maritime education centre for
methodology with shippers, the Canadian            the mariners charged with carrying out these      professional mariners.                       TO

          visit us at

         The Seagull Training System is the most effective and widely used seafarer training system
         available today with over 7,000 ships and shore installations worldwide.

April 2010       TANKEROperator                                                                                                                 25

MTC gains TOTS simulator courses certificate
Hamburg-based Marine Training                      The standards applied are:                        piracy from international, national and
Centre (MTC) has received                              TOTS-INTERTANKO 2008 - Modules                industry bodies has changed frequently,
accreditation from Germanischer                        4A – 4F.                                      particularly as the situation has escalated off
Lloyd (GL) to run TOTS simulator                       GL standard for the approval of training      the Horn of Africa,” he said.
courses.                                               programmes and training systems - edition        “More and more agencies have added
Launched by INTERTANKO with partner                    2009, Rev 05.                                 circulars and instructions advising or directing
Seagull, TOTS (Tanker Officer Training                The seminar was organised together with        the seafarer. Seagull has monitored all of these
Standards) offers training and verification of     Seagull, a producer of computer based             and the new module consolidates the latest
core competency, providing the industry with       training (CBT) systems and the only               measures and recommendations, delivering
a standard that ensures tanker officer             INTERTANKO-licensed provider of e-TOTS.           applicable training in a consistent and
competence through on board and shore                 Seagull is providing TOTS modules 1 – 3.       consolidated form,” Frette concluded.
training, evaluating knowledge gained as a         MTC and Seagull have signed a co-operation           IMO circular MSC.1/Circ.1334 provides
result of time in rank and time with company.      agreement in order to offer to shipowners the     guidance to shipowners and operators, masters
   Simulator work is a crucial part of this        complete package of TOTS modules 1                and crews on preventing and suppressing acts
training, enabling officers to train more          through 4.                                        of piracy and armed robbery against ships.
effectively during their time ashore.                                                                   It recommends the carriage of additional
   INTERTANKO's marine director Capt                    Anti-piracy training package                 crew members when a ship is scheduled to
Howard Snaith said that the organisation is        Meanwhile, Seagull has launched a new             operate in waters at high risk of piratical
pleased that MTC has achieved accreditation        training package to assist seafarers in their     attack and increased emphasis on security
to run the TOTS simulator courses - the first      continuing battle against piracy.                 training and drills.
training academy to achieve such certification.       The training specialist has developed a           Frette said that Seagull’s new counter piracy
   “Many more marine academies will now            computer-based training (CBT) module, plus        training package had drawn on the IMO
push forward to complete their own TOTS            accompanying workbook, giving procedural          recommendations, but also on advice from
simulator training accreditation, in view of the   advice to assist crew preparedness for attacks    INTERTANKO, the IMB, the Maritime
current growing demand by tanker owners for        by pirates.                                       Security Centre and P&I Clubs. While there
centres to run TOTS simulator courses for             The International Maritime Bureau (IMB)        are no mandatory requirements covering
their officers,” he said at a seminar organised    reported 406 incidents of piracy and armed        seafarer training in the skills required to
in Hamburg by MTC to mark the event.               robbery in 2009. Worldwide, 153 vessels were      prepare for attacks by pirates, he said that
   MTC’s managing director Heinz Kuhlmann          boarded last year, 49 vessels were hijacked,      such steps would become inevitable.
said MTC’s intention is to establish a first       and 120 vessels fired upon. Some 1,052 crew          He said; “This new program offers seafarers
class service for worldwide tanker operators       members were taken hostage.                       training on attack techniques, on procedures
by providing all the required tanker training         Somali pirates were responsible for 217        and special equipment that can be used to
courses for their crews in Europe.                 attacks, with 47 vessels hijacked and 867 crew    prevent pirates boarding ship, on managing a
   TOTS is a main component in the MTC             members taken hostage. Escalating levels of       situation where pirates or armed robbers gain
course portfolio, he explained.                    violence have led to a rise in the number of      access to or take control of a ship, and on
   MTC is approved to operate the following        crew injuries.                                    what to do in a hostage situation.
TOTS training courses:                                Designed to cultivate best practice in a          “In compiling this course, we paid
    Module 4A, chemical tanker simulator           piracy situation, the new Seagull CBT             particular attention to developing new and
    training.                                      package offers guidance on how to reduce the      additional questions for the workbook to
    Module 4B, chemical tanker simulator           possibility of pirates or armed robbers getting   enhance seafarer knowledge, and how and
    verification.                                  on board the vessel, how to manage a              what they should do in such a dangerous a
    Module 4C, product tanker simulator            situation where pirates or armed robbers gain     situation. A prerequisite of the training course
    training.                                      access to a vessel, and provides an               has been that trainees understand their roles
    Module 4D, product tanker simulator            understanding of how to react should pirates      and responsibilities if a dangerous situation
    verification.                                  actually seize control of a ship.                 develops.”
    Module 4E, crude oil tanker simulator             Erik Frette, Seagull manager course               The course is principally aimed at support
    training.                                      department, highlighted the critical role         and operation level personnel, although Frette
    Module 4F, crude oil tanker simulator          played by being well prepared in addressing       said that management should be thoroughly
    verification.                                  piracy. “Advice and guidance on counter           familiar with the topic.
                                                                                                        Candidates taking the course must complete

“      “Many more marine academies will now
      push forward to complete their won TOTS
                                                                                                     the CBT module and the exercises in the
                                                                                                     workbook. When all prescribed training has
                                                                                                     been undertaken, the candidate sends a
                                                                                                     completed test paper to a Seagull instructor
          simulator training accreditation.”
                    Capt Howard Snaith, INTERTANKO.
                                                                                           ”         for evaluation.
                                                                                                        Successful candidates need to achieve marks
                                                                                                     of at least 75% in the CBT and workbook to
                                                                                                     receive a Seagull certificate of competence. O

26                                                                                                               TANKEROperator       April 2010
                                                                                        TECHNOLOGY – CLASS SOCIETIES

Russian Register uses
experience to promote
   Arctic shipping
       Offshore transport infrastructure will be needed to complete the development of
       promising offshore oil and gas fields’ on the Arctic shelf and in ice covered seas.

             herefore, there will be a need for     conditions. The particular method of transit

T            icebreakers, tankers, support and
             supply vessels and gas carriers,
             which are capable of operating in
harsh climate conditions and are able to
comply with the highest standards of safety
                                                    chosen is dependant on the actual ice
                                                    conditions, the hull shape and general ship
                                                    design, its dimensions, displacement and
                                                    propulsion features.
                                                       The hydrodynamic model of the hull-to-ice
and pollution prevention.                           interaction, used for the certificate is a unique
   During 100 years of classification and           RS tool, developed in collaboration with
survey of icebreakers and icegoing ships, the       research institutes.
Maritime Register of Russia (RS) has                   RS said that the certificate will be most
accumulated significant experience in               useful for new types of vessels - for example,
ensuring the safety of shipping in ice              Arctic LNGCs intended for operation in
conditions. This experience enables the             severe conditions. The development of the gas
register to be in the forefront of the              production sector requires an increase in the
development of the regulatory requirements          volume of gas transportation capacity. Long
for icebreakers and ice vessels, RS claimed.        distances and particular shelf area natural
   RS has had the opportunity to analyse            features preclude gas transportation through
operational experience, data related to Arctic      pipelines, therefore specialised gas carriers
vessel damages and statistical data on the ice      will have to be used, RS said.
thickness and strength along the Northern Sea          Climatic conditions found in the gas fields
Route, to gain valuable information on the          require the application of innovative
actual ultimate limits of ice strengthening         technologies. Large-capacity LNGCs are high-        RS director general Nikolay Reshetov.
contained in the RS rules.                          tech ships and their design and construction
   The key factor in ensuring high safety           require a multi-criteria strength assessment of     defining the design temperature of the Arctic
standards is continuous research aimed at           their hulls’ ice strength.                          gas carriers.
development of new requirements and the                                                                    As a consequence of the increase in the
implementation of the results into vessel                             Research                          volumes of oil and gas extraction and
design. The new requirements are currently          RS has carried out research on the essential        transportation, the Arctic environment
being scrutinised by scientific institutions,       features of large-capacity LNGC operations in       protection issues have become more urgent.
leading shipyards and shipowners. This co-          Arctic conditions. Recently, RS developed a         RS said that it paid particular attention to the
operation is an important element for the           new method to calculate ice load capacity           environmental safety issues that are of the
development of standards aimed at achieving         taking into consideration the large capacity        critical importance, due to the area’s greater
a high level of safety, RS said.                    ships’ features including bulbous bows and the      vulnerability.
                                                    requirements to conduct finite element                 “The RS efforts are aimed at development
               Ice certificate                      analysis of their hull structures.                  of the requirements promoting implementation
RS’ has developed the Ice Ship Safety                  Special attention was paid to the                of environmentally sound technologies and
Certificate, which is claimed to be a unique        development of additional requirements for          reduction of technological environmental
multi-purpose document that incorporates            the Arctic LNGC’s hull cold resistance. The         impact. To provide the safety of navigation in
many years’ experience in surveying icegoing        decreasing temperature correction is                the harsh Arctic conditions and to protect the
vessels. This certificate enables the operator to   dependent on the containment tank types. The        environment, it is necessary to join the efforts
choose between icebreaker assistance, or            alteration of the ambient temperature impact        of all the members of the international
transiting through the ice independently for        throughout the height of the ship’s side was        maritime community”, explained RS director
the safest modes of operation in ice                defined in the research, as was the method of       general Nikolay Reshetov.                      TO

April 2010       TANKEROperator                                                                                                                      27

LR’s ClassDirect LIVE
- an easy to use system
       Oil tanker operator Eletson has been using Lloyd’s Register’s ClassDirect LIVE
               extensively including requesting surveys on line for many years.
              CEO ikos Makris describes how the company uses the system*.
               akris explained; “We have         simple. “We saw the new functionality added         the company, shore and ship side.

M              started using ClassDirect Live
               as an information platform
               since its inauguration, at the
end of the 1990’s. After familiarising
ourselves with the system we started to
                                                 and being progressive, we tried it and soon
                                                 appreciated that it was a very useful feature”,
                                                 he said.
                                                    He also said that he felt that there was a
                                                 more direct 'contact' with the classification
                                                                                                     Direct 'contact' with LR and immediate
                                                                                                     feedback that the survey request has been
                                                                                                     registered and is being processed.
                                                                                                     Clear view of which items each survey
                                                                                                     request includes.
request surveys. After a period of testing and   society on this matter and a clear understanding    Usage of the standard survey request form
ensuring it worked for this important            of what the request for surveys contained and       prevents crucial data omission and
operation, we were able to gain trust in         the pertinent details.                              facilitates the user in filing in the request.
the system”.                                        As for the benefits, Makris said; “We were       It is very easy to use!
  Explaining the reasoning for requesting        surprised at the benefits this functionality gave   It is really a tool that makes requesting
surveys on line he said that the company         to us”.                                             surveys more efficient that in turn helps
wanted to use a system for requesting               He went on to list the benefits as -             us to ensure that we are in full compliance
surveys that was consistent, reliable and           A consistent way to request surveys across       with national and international regulations.

28                                                                                                            TANKEROperator         April 2010
                                                                                     TECHNOLOGY – CLASS SOCIETIES

   Makris said that he reviewed the user             One of a number of enhancements was
manual and on line training LR produced           requesting surveys online. Superintendents
aimed at helping make the software even           and managers should be making informed
easier to use and said; “They are easy to use     decisions, not spending time looking for
and navigate through. It gives the user clear     information.
insight on the functionality of the system and       The software’s functionality follows a
how to use the system to the best advantage.”     simple traffic light system with three basic
   He also said he found that as a whole, the     steps -review, plan and request. Each step
system offers many benefits with easy to use      delivers information under the following
functionality. Some of the functionality, apart   headings:
from requesting surveys on line includes:         Review:
   The manager and class ‘share’ and view             Fleet survey status.
   the same records.                                  Vessel summary.
   For large fleets, immediate view of the            Survey history.
   general status, with drilldown ability as          Conditions of class.
   required.                                          Quarterly listing.
   Information and associated records on          Plan:
   recently carried out surveys is promptly           Survey planner.
   available in the system.                           Checklists.
   Records of surveys, periodical lists etc can       Approved service suppliers.
   be obtained ‘on the spot’, as required.            Enhanced survey planning (ESP).
   All contained information is accessible        Request:                                          Eletson CEO Nikos Makris. Photo credit – LR.
   from anywhere Internet is available.               Request a survey online,
                                                  In addition to allowing clients to request            fleet on one page.
         Design enhancements                      surveys, the software also offers online:             Detailed survey histories with complete
Subsequent to feedback from clients and               Fleet particulars irrespective of class           survey reports for at least 12 years.
further research, LR carried out a number of          society.                                          Incident summaries which link to details of
developments designed to enhance                      Up-to-date survey status and five year            hull and machinery defects.
ClassDirect LIVE’s functionality, said David          planner for all LR-classed vessels.               Details of hull and machinery ‘as built’
Barrow, LR’s country manager for Turkey.              Downloadable survey status for working            configuration.
   The maritime information service software          offline, suitable for faxing or e-mailing         Survey checklist as used by LR surveyors.
for operators with LR classed vessels is              to ships.                                         ISM Code certification status for all ships,
designed to deliver direct, live access to            Ability to order surveys on-line.                 irrespective of class.
information held on the LR’s databases                Hull and machinery master lists.                  Access to rules, regulations, classification
through a simple web interface, the service is        Up-to-date status of condition of class and       news, approved suppliers lists and
available anytime of the day, anywhere in the         memoranda items.                                  technical services.
world, Barrow explained.                              Six month fleet survey planning - entire      Together these functions will provide a
                                                                                                    consistent approach to requesting surveys
                                                                                                    from ashore and on board, Barrow claimed.
                                                                                                    They also maximise vessel performance by
                                                                                                    enabling improved survey planning and better
                                                                                                    decision making, reducing unnecessary
                                                                                                    intervention and surveys costs by optimising
                                                                                                    the survey schedule and reducing the risk of
                                                                                                    port state detentions by helping clients
                                                                                                    maintain their vessels to a degree where they
                                                                                                    are fully compliant with classification and
                                                                                                    statutory requirements.
                                                                                                       Information contained in the software will
                                                                                                    continue to be secure and confidential, and
                                                                                                    accessed by the use of a password with data
                                                                                                    encryption during transmission.
                                                                                                       A comprehensive online tutorial coving the
                                                                                                    three major processes is now available on line
                                                                                                    on the ClassDirect LIVE web site, and an easy
                                                                                                    to follow user manual is also available to
                                                                                                    users once registration has been completed. TO

                                                                                                    *This article first appeared in LR’s house
                                                                                                    magazine Horizons.
Eletson’s LPG carrier Anafi was delivered last year. Photo credit – LR.

April 2010       TANKEROperator                                                                                                                  29

LR celebrates 250 years
At the start of this year, LR                         known as ‘Green Passport’.                        of the guide provides further independent and
kicked off its 250th anniversary                         “These ships are the realisation of the        impartial information on commercially
celebrations by classing a newly                      strategic plans for fleet growth we drew up       available and developing technologies for
delivered Aframax.                                    five years ago; they will add commercial          ballast water treatment (BWT).
Pichincha, a 105,000 dwt Aframax was also the         flexibility and expand our area of operations.       The global requirement for ballast water
first vessel to be delivered to LR class this year.   We chose LR for their expert guidance in          treatment arises from the International
She was a product of Hyundai Heavy Industries         fields that were new to us: bigger ships and      Convention for The Control of Ships' Ballast
and was the second of two sisterships ordered         CSR rules. And, as an environmentally             Water and Sediments. This requires certain ship
by Ecuadorian oil concern FLOPEC.                     conscious company, one of our priorities was      types to use treatment systems, which makes
   “Completing 250 years under the same brand         to ensure compliance with the environmental       the treatment of ballast water one of the most
is a rare and admirable achievement. But, for         requirements of our traditional trading areas,    significant environmental and operational
LR, this year will not be about celebrating           California and US Gulf & East coasts,” said       challenges facing the marine industry today.
history. It will be about celebrating our ability     Rear Admiral Aland Molestina, president of           According to Dr Gillian Reynolds, LR’s
to consistently support the development of the        the FLOPEC board and Commander in Chief           principal environment and sustainability
technical innovation and expertise that the           of the Ecuadorian Navy.                           advisor, to meet this legislation, ship operators
market requires, often before the market                 “We began building vessels at HHI more         are now being confronted with having to select
requires it,” said Luis Benito, country & marine      than 20 years ago, some of which are still        the BWT solution which will work for them.
manager, South Korea, for LR Asia.                    sailing the world without any drawbacks. The         Dr Reynolds, who is responsible for
   “Market insight and technical expertise have       availability of this design and timely building   developing the guide, said: “The intention of
proven to be two of our most enduring                 slots gave us confidence we would reach           the guide is to help shipyards, owners,
products, and we expect that to continue.             today’s milestone, while assuring both quality    operators, regulators and other stakeholders
Because quality clients such as HHI and               and safety,” he explained.                        understand the availability and approval status
FLOPEC not only count on our unrivalled                  HHI has been building ships to LR class        of commercial solutions and provide an insight
experience, they also expect us to provide            since 1972. Pichincha is the 484th ship           into the different technologies involved.
solutions for the technical and regulatory            delivered by the shipbuilder to LR class. HHI        “This revision provides updated information
challenges they will face in the future,” he said.    currently has 44 more ships contracted to LR      on suppliers and the solutions that they
   Pichincha, named after a legendary                 class on its books.                               provide, and demonstrates the increasing
volcano near the Ecuadorean capital Quito                                                               commercial availability of approved ballast
where local troops secured the country’s                         BWT guide updated                      water treatment systems.”
independence from Spain in 1822, was built            In another move, LR has published its third          The updated publication has been produced
to IACS’s Common Structural Rules and to              guide to Ballast Water Treatment Technology.      by LR in conjunction with the Institute for the
the IMO’s new guidelines for ship recycling              First launched in 2007, this latest version    Environment, Brunel University, UK.             TO

                                                                                                                                       Pichincha seen
                                                                                                                                       on trials. Photo
                                                                                                                                       credit – LR.

30                                                                                                                  TANKEROperator         April 2010
                                                                                      TECHNOLOGY – CLASS SOCIETIES

     Tanker shaft
alignments and bearing
 problems assessed by
    D V consultancy
        D V Technical Consultancy said that it had found that especially for tankers,
      shaft alignment and bearing performance/investigations projects have highlighted
                        the need for advisory services beyond class.
       ncreased focus has been seen on the         removed again for re-babbitting.                   acceptable tolerances. The final repairs were

I      performance and reliability of stern tube
       bearings. For example, FLEX R&D
       (DNV’s JIP dealing with hull
deflections influence on shaft alignments) for
VLCCs, as well as recent incidents, have
                                                      However, following the second post
                                                   docking sea trials, the same problem occurred.
                                                   Since it was thought that the bearing was
                                                   damaged, a meeting was arranged the same
                                                   day between the owner, class society
                                                                                                      completed within a few days, followed by
                                                                                                      successful sea trials, during which the bearing
                                                                                                      was tested in all relevant operating conditions
                                                                                                      and the vessel finally returned to normal
highlighted the need for increased knowledge       representatives and machinery experts from            DNV said that this case demonstrated the
and improved analysis methodology in order         DNV Technical Consultancy.                         importance of shaft alignment and of
to reduce the risk of shaft and bearing               A senior engineer from the consultancy was      appropriate investigations and procedures
damage.                                            immediately sent from Norway to Asia in            being implemented during drydocking and
   Shaft bearing failure can have a severe         order to carry out a damage survey and help        conversions, especially if bearing damage is
impact on manoeuvring and safety. In               the owner’s on site personnel to determine the     found.
addition, bearing trouble can result in oil        correct repair work needed.                           The class society also said that the
leakage with serious consequences.                    At the same time, the shaft alignment and       knowledge accrued from cases such as this is
   DNV highlighted a recent case where the         bearing performance were evaluated by the          regularly used as input for updating DNV’s
class society, consultancy and other resources     consultancy ‘experts’. This evaluation took        rules as part of its continuous improvement
co-operated to prevent offhire affecting an        into account the hydrodynamic propeller            process.
owner experiencing shaft bearing problems.         forces and the oil film formation in order to         DNV Technical Consultancy said that it had
   The vessel concerned was a shuttle tanker       achieve a satisfactory slope bore design in the    seen an increase in demand for services, such
fitted with a low speed diesel engine directly     aft bearing.                                       as shaft alignment and bearing issues, on-site
driving a single CP propeller. A vessel                                                               shaft measurements and inspection services,
conversion, together with the shafting, had                       Plan executed                       as well as traditional and advanced shaft
been undertaken a few years ago.                   Based on the on-site findings and                  alignment analysis, including bearing
   She was scheduled for a routine drydocking      measurements, plus the calculation results, a      performance analysis.
and was manoeuvring in the shipyard when a         repair and verification plan was executed.
high temperature alarm was triggered for the       DNV claimed that there was very close co-                DNV highlights competence
aft stern tube bearing. Upon inspection of the     operation between the consultancy’s engineer,      Still in the grip of an economic downturn, the
bearing after the propeller shaft had been         local class representatives and the Oslo head      shipping industry is struggling to manage the
withdrawn, it was found that the aft stern tube    office to resolve all the issues quickly to the    gap between shrinking budgets and the costs
bearing was wiped.                                 satisfaction of all those concerned.               of maintaining quality safety and
                                                      An additional challenge was the                 environmental performance through
           Second drydocking                       deformation of the existing bearing shell due      competence.
This was a standard white metal bearing,           to the repeated re-babbitting procedures,             But according to DNV, the issue is widely
DNV explained. The shipyard removed the            resulting in too much ovality. A new bearing       misunderstood.
bearing and sent it to a sub-contractor to be      would not have been available for at least four       Total’s Group Head of Shipping, Luc Gillet,
re-babbitted. After the sea trials following the   weeks, which would have resulted in a very         indicated to the press early in 2009 that Total
docking, a high temperature in the aft stern       expensive delay for the owner.                     will pay special attention to its relationships
tube bearing was again recorded, resulting in         The solution was to undertake the final         with owners in the current period of economic
the vessel returning to the shipyard. It was       boring of the aft bearing in-situ, such that the   downturn. “In the context of this economic
found that the bearing was damaged and was         final slope and geometry would be within the       crisis, you must be able to find owners who

April 2010       TANKEROperator                                                                                                                  31

offer quality service, quality maintenance and     What every maritime CEO should
experienced crews,” he said. “We must be                  know about competence
more vigilant than in previous years.”               1) Competence does not equal training
   Magnar Eide, project manager for DNV’s         To view competence only as an issue related
SeaSkill™, a unit in DNV devoted to               to training is to miss the point. Competence is
maritime competence and training, said:           a strategic resource which is as important as
“Shipowners should consider carefully the         finance. Ensuring that competence is nurtured
long and short term impact of these reductions    and allowed to develop enables companies to
not only on safety and environmental              deal with the good times, the bad times,
performance, but their business.                  diversification and changing strategic goals.
   “Our analysis of this issue over many years       2) Protect and manage competencies
suggests that competence is strategically vital   Human error accounts for over 80% of
to achieving business objectives,” he said.       accidents and incidents at sea. The cost of
   Over the past two years, DNV SeaSkill™         such accidents and incidents can have dire and
has focused on these issues and developed         unpredictable strategic implications for a
services to help companies manage these           company. Identifying critical operational
challenges by identifying cost effective          competences are the necessary pre-requisites
solutions to turn competence development into     to minimising damaging financial outcomes.
sound business policy. However, Eide said            3) Bring competence into the business
that many companies continue to struggle to       model of your company. Make sure your
bridge the gap between senior executives and      organisation values and supports learning. If
competence development personnel, who may         there is a culture with little sharing of
have different views on the role and cost of      knowledge, little involvement from senior
                                                                                                     DNV Maritime’s Tor Svensen is leading the
skills programmes. “Senior shipping               staff in the promotion of learning, or if the      fight against ignoring competency issues.
executives probably realise that competence       organisation is operates in ‘silos’, no amount
vital to attracting and retaining experienced     of investment can ensure a strong learning         organisation on track with competence
seafarers in a tough market,” he said. “But       culture.                                           initiatives? Has it experienced any incidents
few consider the enterprise risk of                  4) Know the cost of ignoring competence         lately? How can we differentiate ourselves
underfunded competence development                Many of the incidents and accidents in recent      from the competition? These are the types of
programmes.”                                      years can be attributed to short-sighted           questions that the CEO must ask HR and
                                                  leadership decisions to reduce costs related to    others in order to keep the company message
                  Open letter                     competence development and training. CEOs          relevant. Competence personnel must not only
In an effort to clarify the issue, DNV has        must consider the risk to the bottom line          report to the CEO, but be engaged in an open
prepared the following ‘Open Letter’ to senior    against short term cost reductions. The loss of    dialogue.
shipping executives.                              brand equity is a huge risk posed by lax              7) Increasing technological complexity
Dear CEO;                                         competence and training practices, one which       demands higher levels of competence. To be
   ‘You probably realise that competence is an    many CEOs need to address. A company’s             able to access new business opportunities such
issue to attract and retain experienced           brand is the bedrock upon which most major         as Arctic voyaging, offshore energy
seafarers to man your ships in a tough market.    enterprises build their business. When that        production and cope with increasingly strict
You may have already mobilised the                bedrock cracks, many businesses have a hard        regulatory environmental requirements,
HR/training manager to develop a                  time recovering.                                   shipping companies must develop competence
comprehensive recruitment and competence             5) E-learning is here to stay. Shipping         beyond compliance requirements. The
programme, or perhaps you’ve asked your           companies increasingly operate as borderless       initiative to raise competence to the levels
HSE personnel to manage STCW issues.              entities. As a result, it is imperative for        required needs to come from the enterprise as
Either way, you probably acknowledge the          company leadership to realise that a business      part of the strategic business plan.
risk companies’ face when a lack of               operating without the advantages of E-                8) Changing attitudes from compliance-
competence, caused by bad performance,            learning is at a comparative disadvantage to       driven mindset to a business centric
makes the evening news.                           those that embrace this new technology. If E-      mindset is vital. The maritime sector has a
   We know now that nearly 80% of accidents       learning becomes a part of a company’s             long history of training been driven by the
and incidents at sea are caused by human error    strategic planning, it can have a direct impact    regulatory demands for minimum safe levels
and like many CEOs, you probably                  on competiveness, employee retention,              of competence. This instills a reactive
acknowledge that your company has room to         recruitment and lowering costs. Avoiding this      approach to training that is driven by
improve. However, you may also be aware           transformation can place organisational            prescriptive models such as the IMO model
that competence personnel and top decision-       readiness at risk. Learn what it can do for you.   courses and traditional classroom training.
makers may not share the same views on the           6) The competence role of the CEO. It is        Beyond compliance might well be a good
impact of competence and training on the          clear that CEOs need to provide leadership by      slogan to place competence as a change agent
business. To help clarify the issue, we have      challenging the organisation to understand         in the organisation and harness new ways to
prepared a list of issues related to competence   risks and requirements, so that the                learn. Social networking and virtual
which have a real impact on the success of        organisation can review and refine its             competence driven methods can be applicable.
your business.                                    approach to competence issues. Is the              Exploit them.’                                TO

32                                                                                                               TANKEROperator       April 2010
                                                                                                       TECHNOLOGY – BUNKERS

Legislative compliance
 – the technical and
operational challenges
                 On 1st January 2010, the first stringent sulphur emissions legislation
                             within EU ports was officially introduced*.

              y 2020, depending on the             operational and environmental perspective,          perspective, there is much to consider. And

B             outcome of feasibility studies,
              every vessel in the commercial
              fleet will have to comply with a
global bunker specification of 0.5% sulphur.
It is a seismic change that will redefine the
                                                   they are failing to cope with the many
                                                   operational challenges of switching from high
                                                   sulphur, to low sulphur fuel oil. Loss of
                                                   propulsion, engine failure, filter blockages,
                                                   damage to auxiliary pumps are just a few of
                                                                                                       while much can be done to mitigate potential
                                                                                                       problems, it requires a change in the
                                                                                                       relationship between the fuel supplier and the
                                                                                                       shipowner/operator. It must change from a
                                                                                                       supplier-based relationship to one of
future of shipping.                                the hazards that come as part of the                partnership, based on a mutual understanding
   Ten years may feel like a distant horizon       ‘compliancy package’.                               of the challenges involved, and a focus on the
and ample time for the industry to debate the         In the current economic times, it is hassle      effective implementation of appropriate,
concerns over the availability of distillates to   they could well do without. And if the              preventative solutions.
meet future demand. But the stark reality is       statistics from California are anything to go          Developing a partnership-based relationship
that many shipowners are already struggling        by on the back of CARB’s (Californian Air           is not something that happens overnight. At
to comply with the latest legislative change,      Resources Board) July 2009 low sulphur              first, it requires a change in mindset, where,
let alone the ‘phased’ approach to 2020,           regulation, then the shipping community is in       from the perspective of the supplier, the
which incorporates a further four pieces of        for a torrid time. Loss of propulsion               customer and the success of their operations is
sulphur related legislation in Emission            incidents skyrocketed in 2009 moving from           put first; ultimately there must be a clear
Control Areas (ECAs), California, as well as       an average of 23.6 incidents per year for the       understanding that their success is directly
the generic global bunker specification. It is     whole of California between 2004 and 2008           influenced by the success of their customers.
a daunting schedule.                               to 67 in 2009.                                      Second, suppliers must have a total
   Despite shipowners and operators being             But incidents can be avoided if a number of      knowledge of their customer’s operations;
under even more pressure from their                critical steps are observed.                        their market and their business, as well as the
customers to increase efficiencies, from a cost,      First, shipowners and operators must view        strategic and day-to-day issues and challenges
                                                   low sulphur legislative compliance with the         that they face.
                                                   same significance, and as part of a holistic
                                                   risk management strategy. There must be an                       Operational value
                                                   understanding of an appropriate fuel                It is about providing knowledge, expertise
                                                   procurement strategy depending on a vessel’s        and counsel that add tangible value to their
                                                   trading routes, as well as the ‘green’ profile of   operations, minimising downtime, improving
                                                   the shipowner’s brand to determine the extent       efficiency and reducing operational costs. It
                                                   they need to go to in terms of compliance.          is not just about supplying the physical
                                                   For instance, whether they always need to           product; a philosophy that we have long
                                                   purchase fuel oil with a quality of 1.5%            since advocated at OW Bunker as a drive
                                                   sulphur and under, or on a less frequent basis      towards embracing a more consultative and
                                                   due to the majority of travel being conducted       collaborative approach to working with
                                                   outside of ECAs and other areas of legislation,     customers.
                                                   or indeed whether they need to utilise a               Once this type of relationship is created, the
                                                   double fuel oil system.                             responsibility that is required from both
                                                      Only once this is established, should            parties to achieve low sulphur compliance is
                                                   shipowners and operators go through the             wholly achievable. It is very easy and
                                                   process of understanding the potential              understandable to take a defensive position
                                                   operational challenges associated with              when there are operational issues; blaming
                                                   switching fuels.                                    quality is easy, but in the majority of cases, it
OW Bunker technical director                          The reality is that from a technical             is not the problem.
Steffen Kortegaard.

April 2010       TANKEROperator                                                                                                                     33

   Switching to low sulphur fuels and               according to ISO 121156-1 standard, which                and low sulphur fuel oils; the potential for a
distillates is a highly complex issue; it is        dictates that the maximum wear scar diameter             low flash point, filter blockages, or damage to
certainly something that should have been           should not exceed 460 mm.                                auxiliary pumps. And similarly, there needs
fully understood, following the instigation of                                                               to be a knowledge of the potential solutions;
appropriate due diligence from a regulatory                     Equipment impact                             never taking on bunkers where the oil cannot
perspective prior to the implementation of          The low viscosity of distillates and low                 be stored with a 15 deg C safety margin;
legislation; a concept which resonates with the     sulphur fuel grades can also impact technical            fitting a flame screen onto the rotary cap
majority of ship owners and industry                equipment such as gearless screw spindle                 burner; fitting a low heat exchange steam
associations. Unfortunately, hindsight is a         pumps, which can suffer serious wear                     injection burner; ordering fuel oil and
luxury that is not afforded in this scenario, and   problems and subsequent damage. This can be              distillates with a high enough flash point;
it is up to the suppliers of fuel oil who have a    a significant safety problem for tankers                 ensuring that the cooler is fitted with
deep technical knowledge of the product to          producing inert gas while operating their                sufficient capacity in the low viscosity line;
work with the shipowners and operators to           cargoes. Auxiliary engines designed for heavy            frequently testing the pumps for internal leaks
manage the ‘switching’ process.                     fuel oil operation might also face problems              by closing the valve on the pressure side and
   Understanding the risk and potential impact      with the fuel equipment due to the                       making sure that the pump provides enough
on the performance of diesel engines and            discrepancy between sulphur content and lube             pressure to open the safety valve; and of
boilers is central to instigating appropriate       oil alkalinity. It is therefore critical that            course ensuring that the crew are
preventative measures.                              shipowners and operators consult their lube oil          appropriately trained to deal with the
   For example, when changing fuels, the fuel       suppliers, as the BN number should                       technical challenges.
delivery pump is capable of a pressure of           correspond to the new fuel conditions.                      When a shipowner’s primary goal is
more than 400 bar, however, the tolerance              There are a number of other possible                  servicing their customers and getting goods
between the barrel and the plunger is very fine     challenges; the engine can stop, or not start,           where they need to be as efficiently as
(1/1000 of a mm), where the maximum                 there could be a fluctuation in the engine               possible, worrying about technical and
change in temperature can be no more than 2         revolutions, damage to the fuel and auxiliary            operational issues associated with legislative
deg C. The engine fuel pump is also designed        pumps, or the filter could be blocked.                   compliance can be a costly distraction. And
for high viscosity, heavy fuel oil for the          Identifying potential problems before they               while the supply and procurement of fuel is
majority of hours that it is in operation.          happen and implementing appropriate                      viewed as a commodity market, it does not
Therefore, the challenge when switching to a        solutions are central to minimising downtime             mean that suppliers should just abandon their
low viscosity fuel oil is the risk of excessive     and saving costs. This includes ensuring that            customers once the product is delivered.
wear, as well as ensuring that the appropriate      the fuel pumps are of a good quality and                    If there is an opportunity to add value
injection pressure is maintained in the fuel        appropriately cooling the gas oil, as well as            based on the knowledge and technical
pump, particularly during low load, starting        implementing the right training procedures               understanding of the product, and to provide
the engine and when running at a low rev/min.       for crews.                                               advice and counsel that enables shipowners
When the pumps are worn, the internal                  It means ensuring that there is a good length         and operators to maintain and improve their
leakage can increase to a level where starting      of time between changing the fuel oil and gas            levels of efficiency, and increase their
the engine is virtually impossible, because the     oil and analysing the filter pressure, as well as        competitive advantage, it must be taken. It
correct pressure cannot be achieved.                only using duplex filters and making sure that           requires a change in the relationship and
   Clearly viscosity and appropriate lubrication    there is compatibility with the blended fuels.           shift in mindset where partnership,
is a critical element of successfully switching     It means fitting a cooler with sufficient                responsibility and collaboration are
to lower sulphur fuel grades. Indeed MAN            capacity in the low viscosity line and                   embraced, and most importantly, where
Diesel recommends that prior to using               frequently testing pumps for leakages, as well           the customer is put first.                     TO

distillate fuels with less than 0.05% SOx, the      as being able to understand and identify
lubricity is tested by an HFRR (high-               unusual noises that might signal a problem.              *This article was written exclusively for
frequency reciprocating rig) test. This can be         The same principals of risk should be                 TA KEROperator by Steffen Kortegaard,
performed by an independent laboratory,             applied to boilers when changing to distillates          technical director, OW Bunker

                                                                                                Custom built and series product
                                                                                                Technically reliable
                                                                                                Well proven designs
                                                                                                Continuous technical development
                                                                                                Dependable partner
                                                                                                Customer oriented approach

                                                                                          DAMEN DOUBLE HULL OIL TANKER MTS ‘SHANNON FISHER’

  STANDARD OF EXCELLENCE                                                                   DAMEN SHIPYARDS BERGUM                       Member of the DAMEN SHIPYARDS GROUP

                                                                                           P.O. Box 7             phone    +31 (0)511 46 72 22
  CUSTOM BUILT IN SERIES PRODUCTION                                                        9250 AA Bergum            fax   +31 (0)511 46 42 59
                                                                                           The Netherlands

34                                                                                                                         TANKEROperator                 April 2010
  Whatever it takes
to keep you moving!

                            Physical presence
                            Worldwide coverage
                            420 employees
                            50 barges
                            Technical expertise
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                            19 million MTS / year

Physical Supply · Global Trading · Risk Management

   ISO 8217 fuel
specification update
             he process of revising the existing                                                    also included more details in the standard’s

                                                     The ISO 8217 final draft
             ISO 8217:2005 standard involved                                                        informational appendix on alternative ignition
             representatives from all sectors of      international standard                        and combustion quality test methods.
             the bunker industry.                      (FDIS) on marine fuel                           One such alternative method is IP 541
   DNV Petroleum Services (DNVPS)                                                                   utilising the fuel combustion analyser. Clause
participated in the technical expert working         specification was recently                     6.3 of the FDIS points out that; ...“where the
group in co-operation with national                          published.                             ignition quality is known to be particularly
standardisation bodies worldwide and                                                                critical, Annex F provides a basis for suppliers
commented on progress.                             to 60 mg/kg for the highest grades. This         and purchasers of residual fuels to agree on
   Since the completion of the balloting for the   revision should reduce the risk of too-high      tighter ignition quality characteristics”.
ISO 8217 draft international standard (DIS) in     levels of abrasive particles reaching the           Minimum viscosity limit of 2cSt for Gas
December last year, two follow-up meetings,        engine’s inlet.                                  Oils at Engine Inlet - the FDIS introduces
in Dubai and London respectively, have                Ash, Vanadium and Sodium - similarly,         DMZ, a new distillate grade with a 3cSt at 40
contributed to the development of the FDIS.        the vanadium and ash limits specified in the     deg C minimum limit.
   This document is now subject to a two-          FDIS for most residual grades are now               Catering for engines that require a higher
month balloting period where further technical     reduced. Maximum levels for sodium are also      minimum viscosity limit for distillates, DMZ
changes are not expected.                          added as a new parameter. Traditionally,         is essentially DMA with a higher minimum
   According to the schedule, the FDIS will        sodium is associated with sea water              viscosity limit. A too-low injection viscosity is
graduate into the official ISO 8217 standard       contamination, but this element may also         a safety issue because marine diesel engines –
by 1st July, 2010.                                 originate from the pre-treatment of crude oils   especially the larger ones – may not be able to
   DNVPS said that initiatives taken by its        at the refineries.                               pick up full load and in the worst cases,
clients and business associates have led to a         Experience has shown sodium from this         propulsion engines may fail to start during
number of changes in the DIS. The final ISO        source may not be removed from the fuels by      manoeuvring in congested waters and port areas.
8217 revised specification will be an              on board treatment and could contribute to          Removal of DMC grade - the DMC grade
improvement over the current (2005) edition,       post-combustion deposits.                        has been removed and this blended distillate is
DNVPS claimed.                                        Calculated Carbon Aromaticity Index           now in the table for residual fuels as RMA10.
   The following changes are especially            (CCAI) - CCAI is now included in the                Amendment to Clause 5 of ISO 8217 - the
important.                                         specification for all residual grades. The       general requirements in Clause 5 have been
   Aluminium and Silicon (Al+Si) -                 revised limit is 870, but according to DNVPS     expanded to include more reference to
compared to ISO 8217: 2005, the level of           statistics, as little as 0.02% of IFO 380        materials that render marine fuels
aluminium and silicon in the FDIS has been         delivered to ships globally exceeded a CCAI      unacceptable for use in diesel engines.
reduced and the new maximum limits range           level of 870.                                       Both ISO and CIMAC have initiated
from 25 mg/kg for the lowest residual grades          The ISO 8217 working group has therefore      research on the analysis and interpretation of

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36                                                                                                              TANKEROperator        April 2010
                                                                                                      TECHNOLOGY - BUNKERS

“     DNVPS supports the ongoing revision of
      ISO 8217 and said that it is committed to
                                                                                                      safety limit on board a ship.
                                                                                                        Training and safety routines concerning
                                                                                                      H2S should therefore continue to be important
                                                                                                      for shipboard personnel.

     the continual improvement of this standard.                                                                    DNVPS’ position

the chemical composition of waste materials,
as well as the levels at which these materials
                                                    flammable gas. DNVPS will be among those
                                                    conducting further R&D to understand and
                                                                                             ”        DNVPS supports the ongoing revision of ISO
                                                                                                      8217 and said that it is committed to the
                                                                                                      continual improvement of this standard.
                                                                                                         To assist clients with the adoption of the
may start to cause engine problems.                 refine the limits and test methods for H2S        official ISO 8217 standard, scheduled for
   FAME and oxidation stability test for            such that the eventual specification for this     release before 1st July 2010, DNVPS will be
marine distillates - marine distillates should      parameter can be embraced with confidence         organising round-table meetings to discuss in
be free from bio-derived materials other than       in 2012.                                          detail the changes to this standard.
‘de minimis levels’ of FAME (fatty acid                As it stands now, the 2ppm (in liquid) limit      When purchasing fuel or arranging
methyl ester).                                      for H2S is still being questioned for possibly    charterparties, ship operators are at liberty to
   The definition of ‘de minimis levels’ has        giving a ‘false sense of security’, since 2ppm    customise the fuel quality requirements
been moved to Annex A of the FDIS.                  H2S in liquid can result in a vapour level        according to what is operationally most
   The presence of FAME in clear and bright         exceeding the 10ppm limit commonly used a         suitable for their ships and their needs.
distillates is mentioned in the FDIS due to
increasing marine use of biodiesel as a fuel
product or blend component. In addition, there
are concerns about greater cross-
contamination risks in the delivery chain.
   FAME in marine distillates could cause
problems with oxidation stability, particularly
during long-term storage. If, however, FAME
                                                                              for Product Tankers
                                                       THE tank coating system for carrying easy
is not present in marine distillates, DNVPS is
of the opinion that oxidation stability testing
may not be relevant or required.
   More research will be carried out to                chemicals, CPPs, and edible & vegetable oils.
ascertain that this recommendation does not
impact ships’ safe operation; given that
distillate products may be stored on board for                Rely on the new
longer periods before use.
   Lubricity test - lubricity testing is required             MarineLine® X tank
only for marine fuels with Sulphur levels               coating to handle the wide
lower than 0.050% mass (500 mg/kg). If the
fuel lubricity is too low, fuel pumps in diesel         range of easy chemicals and
engines may experience wear from prolonged              CPPs carried by product
operation on such fuel.
   Strong acid number (SA ) - SAN,
                                                        tankers. MarineLine® X offers
originally included in the ISO 8217 DIS as a            greater corrosion resistance
test parameter, has been removed from Tables
1 and 2 in the ISO 8217 FDIS.
                                                        than phenolic epoxies or zinc
   In general, ISO 8217 stipulates that marine          silicates, with more versatility.
fuels shall be free from inorganic acids.
   ISO 4259 - compared to the ISO 8217 DIS,
Annex L of the ISO 8217 FDIS on
interpretation of results now contains a more                                                                Advanced Polymer Coatings
thorough and balanced reference to ISO 4259                                                                  Avon, Ohio 44011 U.S.A.
procedures and its applications.
   Hydrogen sulphide - while DNVPS’
recommendation was to exclude the 2ppm (in
liquid) limit for the time being and to focus on
a vapour limit, the former remains but will
only be effective from July 2012.
   In the meantime, the 2ppm (in liquid) limit
should be taken as a guideline to increase the
awareness of H2S as a potentially fatal and          +01 440-937-6218 Phone              +01 440-937-5046 Fax 

April 2010       TANKEROperator                                                                                                                     37

 Çiçek delivers second
    bunker tanker
        Italian shipowner Ciane Spa has purchased a second double-hull bunker tanker
                        from the Turkish shipbuilder Çiçek Shipyard.
             he vessel was handed over to the

T            Italians at the beginning of
             February and immediately
             commenced bunkering operations.
   In May 2009, Çiçek delivered Chem Flower
to Ciane. This was the first of a series of four
3,100 dwt IMO II chemical tankers that the
yard was constructing for its associated
shipowning company White Tulip Shipping.
   The first vessel has since been operating
successfully as Frecciamare out of Genoa and
neighbouring ports including Savona, Vado
Ligure, La Spezia and Marina di Carrara,
providing bunker fuel to vessels calling at        Frecciamare was the first vessel taken by Ciane for bunker operations.
these ports.
   Recently, the Italian owner decided to          east/west trade route through the                 from the same series, which are waiting for
purchase the second vessel in the series,          Mediterranean.                                    their new owners.
which was to have been named Chem Rose,               Although Ciane intended using Brezzamare          “We were not surprised by the interest
but was named Brezzamare.                          for bunkering duties, operating alongside         shown in these ships by the Novella group.
   Based in Augusta, on the east coast of          Frecciamare, the two ships are extremely          We had identified the bunker trades as a
Sicily, Ciane is part of the Novella Group,        flexible, being capable of worldwide trading,     strong potential market since many bunker
headed by Marco Novella and his family and         transporting oil products, chemicals (IMO         tankers are still single-hull and quite elderly.
specialises in coastal tanker and bunker           type II) and vegetable, animal and fish oils.     There is a replacement market and there is
operations. Augusta is one of Italy’s largest                                                        also a requirement for larger vessels like ours
ports, a major centre for oil refining and a                  MarineLine coatings                    since average ship sizes continue to grow.
popular bunkering centre, being on the main        MarineLine coatings were selected by Çiçek        Large containerships, for example, take on
                                                   to give the ability to carry a wide range of      board substantial amounts of bunkers and they
                                                   cargoes while high manoeuvrability was            also expect a fast rate of delivery,” he
 Frecciamare and                                   specified, resulting in the choice of twin        explained.
                                                   azimuthing propellers and a bow thruster.            Speaking on behalf of the owner, Luca
 Brezzamare:                                       They are classed by Bureau Veritas and            Stegagnini, Ciane technical manager and
 Principal Particulars                             constructed to meet Ice Class B standards.        board member, said: “Frecciamare is proving
                                                      According to Berke Çiçek, vice president of    to be an excellent vessel. Being an IMO II
 Length (oa)                          84.91 m      Cicek Shipyard, interest from European            chemical tanker, she might be considered to
 Length (bp)                          77.97 m      owners for such vessels is strong, despite the    be ‘over qualified’ as a bunker tanker but we
 Breadth                              12.60 m      overall weak state of the shipping market. He     are sure she will prove to be a good longterm
 Depth                                 6.40 m      explained:                                        investment.
 Design draft                          5.30 m         “New double-hulled vessels like these are         “With her twin azimuthing propellers and a
 Scantling draft                       5.40 m      still in demand to replace older tonnage and      powerful bow thruster, she is already very
 Deadweight                            3,087 t     because we took the initiative to start           popular with our masters who find her
                             (at 5.30 m draft)     construction of the four ships to our own         excellent manoeuvrability helps considerably
 Gross tonnage                          1,980      account, new owners benefit from extremely        when coming alongside vessels awaiting
                                                   short delivery periods.                           bunkers in crowded or otherwise restricted
 Main engines       2 x 6-cylinder Mitsubishi
                                                      “We are talking to a number of other           areas. More than this though, we see that her
                    S12R-MPTK diesels,
                                                   potential owners and charterers and are           qualities and up to date features will give
                    each generating 940 kW
                                                   confident of finding buyers who can secure        added value and wider opportunities in actual
                    @ 600 rev/min
                                                   immediate and profitable employment for           and future market conditions.
 Service speed           11 knots at 85% mcr
                                                   these vessels. We still have two sister vessels      “For example, while a deep well pumping

38                                                                                                               TANKEROperator        April 2010
                                                                                                   TECHNOLOGY – BUNKERS

system may be unusual on a bunker tanker, it                       Shipbuilder                     that it had taken delivery of the Lefkas, a
offers us the possibility of varying the tank     Çiçek Shipyard is located on Tuzla Bay, near     6,200 dwt double-hull bunkering tanker
capacities we allocate to different grades of     Istanbul and in addition to the small tankers,   newbuild built by Qingdao Hyundai Shipyard
bunker fuel. New regulations on marine            its current orderbook includes 58,000 dwt and    in China. This vessel is earmarked for
sulphur content are expected to see ships         25,000 dwt drybulk carriers.                     bunkering operations in Singapore.
bunkering with different grades of fuel at the       The yard has a track record of constructing      E Nikolas Tavlarios, Aegean Marine
same time to meet the changing legal              chemical tankers from 8,000 dwt up to 40,000     president, commented, "With the delivery of
requirements as they pass from one emission       dwt in size.                                     the Andros and the Lefkas, Aegean Marine has
zone to another. This is a real challenge for        The largest vessels are constructed in a 37   once again strengthened its leading
operators of older, more traditional bunker       m wide building dock while ships of up to        competitive position for the global supply of
tankers,” he said.                                25,000 dwt can be built on an adjacent           marine fuel. We intend to deploy these
                                                  slipway. The 3,100 dwt tanker series are         double-hull newbuilds to the United Arab
                     Owner                        being constructed on a second slipway,           Emirates and Singapore, two of the largest
Ciane Anapo Spa was formed in 1967 by the         capable of building ships of up to 3,500 dwt.    bunkering markets in the world, as we seek to
merger of two shipping companies, Ciane and                                                        further expand our industry leadership and
Anapo, named after two small rivers in the                                                         drive future sales volume growth."
Syracuse area. Its full name, Ciane-Anapo,                  Two more for Aegean                       Aegean Marine Petroleum Network
Compagnia di Navigazione e Bunkeraggi Spa,        Meanwhile, major bunker supply concern           procures product from various sources (such
reflects its two lines of business - bunkering    Aegean Marine Petroleum Network has taken        as refineries, oil producers, and traders) and
and mainstream shipping, principally coastal.     delivery of yet another bunker tanker –          resells it to a diverse group of customers
   Anapo was set up in 1958 in Augusta, just      Andros.                                          across all major commercial shipping sectors.
north of Syracuse, and Ciane in 1959. The           This vessel is a 4,600 dwt double-hull            Currently, Aegean has a global presence in
merged company has had a branch office in         bunkering tanker newbuild, a product of          14 markets, including Vancouver, Montreal,
Genoa since 1967. It carries out bunkering in     Fujian Southeast Shipyard in China. The          Mexico, Jamaica, Trinidad and Tobago, West
these two ports under special licenses, which     vessel is expected to be deployed in Aegean’s    Africa, Gibraltar, UK, Northern Europe,
require the use of small tankers that load from   operation in the United Arab Emirates.           Piraeus, Patras, the United Arab Emirates,
coastal installations.                              At the same time, the company announced        Singapore and Morocco.                         TO

Brezzamare was the second of four sisters originally on offer
from Çiçek

April 2010      TANKEROperator                                                                                                                  39

H2S analyser meets the challenges of marine fuel safety
specs, claims manufacturer
Leading industry groups are                       wet chemistry test is complex and requires a
concerned that traditional H2S                    trained chemist to obtain a result. This
tests are not fit for purpose. The                duration, or availability of trained chemists,
ISO invited the IMO to consider                   means results may only be available after a
measures to mitigate the risk of                  vessel has put to sea; consequently high
incidents resulting from H2S gas                  demurrage costs may be incurred while ships
evolving from marine fuels.                       are quarantined on the terminal berth waiting
Lloyd's Register's Fuel Oil and Bunker            for test reports.
Analysis Service (FOBAS) has been a primary          IP 399 is currently under review and the
campaigner for the development of the new         marine fuels industry has decided to adopt new
H2S analyser. The new instrument and Energy       improved analytical technology (IP 570), which
Institute test method (IP 570) support            is suitable for field analysis, for inclusion in the
improved product safety standards, reduced        revised fuel specifications ISO 8217.
risk and insurance liabilities.                      FOBAS provides independent verification of
                                                  fuel quality against international standards and       SetaAnalytics H2S analyser.
                 Background                       environmental legislation and has been a
Hydrogen Sulfide (H2S) has long been              primary campaigner for the development of a            much improved means of assessing required
acknowledged as a potential safety issue in the   new H2S analyser. This industry group reviews          remediation treatment of feedstock components
marine industry and regulations call for all      best practice requirements for the bunker              and off-spec fuel products.
marine fuels to be screened for H2S prior to      industry, including improved product safety               In operation, a weighed 5 ml sample of fuel
loading. However traditional tests may not        standards, reduced risk and insurance liabilities.     is mixed with a proprietary dilutent while
detect low levels of H2S or fully evaluate                                                               being heated at 60 deg C to maximise
whether entrained H2S might be released from                       Test method                           solubility and optimise release of the entrained
the fuel during onboard storage and handling.     A new IP industry round robin has been                 H2S. The sample is purged with air at a fixed
  As a result, ISO invited the IMO to consider    completed and IP 570 method ‘Determination             flow rate and the liberated H2S passes over a
possible operational and technical measures to    of Hydrogen Sulfide in Fuel Oil – Rapid Liquid         proprietary H2S selective sensor. The sensor
mitigate the risk of incidents resulting from     Phase Extraction Method’ is now available              output is integrated and the amount of H2S in
H2S gas evolving from marine fuels.               with an ASTM method planned for this year. IP          the fuel calculated in mg/kg. The instrument
                                                  570 is the only H2S method to be included              can measure over the range 0 to 250 mg/kg
            Why measure H2S?                      within ISO DIS 8217 marine fuel specification.         (ppm) and total test duration from sample
H2S gas is highly toxic to humans, animals           A new advanced technology, H2S analyser             introduction to result is 15 minutes.
and aquatic life; it also has potential to        has been developed by SetaAnalytics to                    A leading global oil company refiner said
corrode pipelines, storage tanks and other ship   determine the potential amount of entrained            after using the analyser; “We are now able to
components, which may cause operability           Hydrogen Sulfide (H2S) that could be                   run H2S determination tests in our laboratory
problems, including engine breakdown. Some        released by a fuel. The analyser fully complies        and no longer need to outsource IP 399 tests
marine residual fuel cargoes may be               with the IP 570 method and has also been               and wait for results. This means
innocuous when initially loaded but can           designed for use with fuels and associated             improved/shorted tank turnover time and
evolve and produce dangerous levels of H2S        feedstocks.                                            product release.
in the vapour space during transit.                  It will also analyse heating oil, gas oil,             “In addition, we now have better control of
   The key issue is to measure the potential      diesel, distillate marine fuels and kerosene,          production operations, for example being
that a fuel could have to release H2S over a      including aviation fuels.                              more easily able to identify bad actors in our
period of time under suitable conditions when        This new analyser is claimed to be unique           blending streams. Also better control of our
that fuel is transferred, heated or agitated by   in that it measures the H2S in the fuel and            H2S ‘scavenging’ by being able to test
the rolling action of the ship. Significant       hence is a much better indicator of the                multiple samples in a short test time which
concentrations of H2S are known to                potential release of H2S in a specific fuel.           allows us to fine tune the use of additives in
accumulate in the headspaces of storage tanks     Alternative vapour space measurements do not           our products. This ability represents
and marine fuel bunker cargoes and pose a         quantify the risk, SetaAnalytics said.                 significant potential cost savings for us and a
serious and potentially lethal hazard.               The analyser uses integrated analytical             more stable product for our customers,“ the
                                                  sensor technology, which removes operator              refiner said.
                Challenges                        subjectivity and gives reliable, rapid and                SetaAnalytics is a business division of
The marine industry currently uses a number       precise measurements, the company claimed.             Stanhope-Seta and has long experience of
of lengthy analytical techniques, such as test    The instrument offers a cost effective solution        testing petroleum products with the latest in
method IP 399 for the determination of H2S        for H2S measurement involving no expensive             measurement technologies to bring enhanced
in marine fuel and refinery feedstock for         chemicals, or the need for analytical test             analytical solutions for hydrocarbon
marine blends.                                    preparations by a trained laboratory technician.       exploration, refining, distribution and
   However, this traditional two to three hour    Its fast repeat measurement capability offers a        marketing operations.                          TO

40                                                                                                                   TANKEROperator        April 2010
                                                    TECHNOLOGY PROFILE – HAMWORTHY KRYSTALLON

Exhaust gas scrubbing
  fits the bill for EU
 short range tankers
  Hamworthy Krystallon’s new Managing Director Sigurd Jenssen suggests that recent
 enquiries to the company substantiate that for EU-based tankers regulatory drivers are
          beginning to align with commercial drivers for scrubbing technology*
      t seems as if we have been discussing the     recession and the day to day chores of fleet            Tanker operators have already faced a sharp

I     environment in the context of shipping
      for many years. The Exxon Valdez, the
      Prestige and the Erika all resonate with
seasoned shipping aficionados as defining
moments in addressing oil spill pollution, but in
                                                    operation have taken precedent. However,
                                                    from January 1 2010, for many smaller tanker
                                                    vessel owners operating in European waters
                                                    the impact of ‘SOx regulations’ was felt
                                                    directly at the bunker fuel pump.
                                                                                                         decline in freight rates and the prospect of
                                                                                                         paying for substantially more expensive
                                                                                                         distillate is not an enviable one. Yet, as recent
                                                                                                         enquiries to Hamworthy Krystallon would
                                                                                                         suggest, vessel owners and operators are
terms of dealing with ship emissions – so              Many vessel owners will this year see a           becoming increasingly aware that there is an
harmful, yet imperceptible – 2010 should be         significant rise in the costs of their bunker fuel   opportunity to bring down their bunker fuel
recognised as a significant year.                   bills as European Commission 2005/33 rules           bills considerably through the application of
   For so long the impact of regulations to         are enforced. This requires all vessels entering     exhaust gas cleaning systems, or scrubbers.
reduce Sulphur Oxide (SOx) has been deemed          EU ports to burn low-sulphur fuel with a                For many vessel owners that operate in
‘one for the future’, as the significance of the    maximum sulphur content of 0.1%.                     European or soon-to-be instigated North
                                                                                                         American ECAs, the temptation to take the
                                                                                                         easy path to cleaner, distillate marine fuels is
                                                                                                         obvious; after all your competitors will be
                                                                                                         taking the same path. Won’t they? The
                                                                                                         enquiries suggest, however that when
                                                                                                         regulatory drivers marry with commercial
                                                                                                         drivers, owners and operators will not always
                                                                                                         seek the short and easy route, especially when
                                                                                                         millions of dollars per year of savings are
                                                                                                         there for the taking.
                                                                                                            Feedback from coastal tanker companies
                                                                                                         operating under the EC2005/33 rule - that
                                                                                                         effectively dictates the use of distillate fuels,
                                                                                                         or exhaust gas cleaning for auxiliary engines
                                                                                                         while in European Union port waters – have
                                                                                                         been driven by the considerable financial
                                                                                                         benefits of fitting a scrubber, but have been
                                                                                                         further prompted by concerns over health and
                                                                                                         safety in bunker fuel segregation and
                                                                                                         handling. Many coastal tankers in particular
                                                                                                         have only two bunker tanks, some without
                                                                                                         double bottoms, for example.
                                                                                                            A similar picture has emerged for tankers
                                                                                                         on short delivery runs in the North Sea with
                                                                                                         one discharge on an average of every six days.
                                                                                                         The payback on the boilers and auxiliaries (of
                                                                                                         which boilers are the larger part) for these
                                                                                                         vessels at current distillate bunker fuel prices
                                                                                                         is less than two years.
                                                                                                            A Hamworthy Krystallon case study for a
                                                                                                         shuttle tanker operating in a North Sea ECA
Clean it up! Scrubbers could be the answer.

April 2010       TANKEROperator                                                                                                                       41

reveals that the vessel’s 15MW main engines
burns 54 tonnes of bunker fuel per day and four
tonnes per day through its auxiliary engines.
   Assuming the vessel is running a cycle of
two days at load port (in the EU, so EC
2005/33 0.1% SOx limits apply), one day at
the discharge port, two days each way as a
shuttle voyage, then the vessel will rack-up
additional bunker fuel costs in 2010 of $1.3
mill per annum at current bunker fuel prices;
rising to $3.5 mill by 2015 and the
requirement for 0.1% SOx in all ECA waters.
   Payback on fuel premiums is the key driver
for the widespread take-up of scrubber
technology and initial signs suggest take-up
for scrubber technology will be significant.
With Hamworthy’s acquisition of Krystallon,
we now have the global scale and reach to fit
scrubbers at retrofit and newbuild shipyards,
adding Sulphur Oxide and particulate matter
emissions control to Hamworthy’s existing
environmental compliance compliment of
ballast water management and grey and black
water treatment.
   The cost case for scrubbing has been well-
documented, but always with a view to fuel
cost premiums that lie ahead. With the advent
of the EC2005/33 rule, for the first time large
bunker fuel savings are available to vessel
owners and operators operating in European
coastal waters.

               Cost effective
Scrubbing is already a cost-effective choice
for many sub classes of vessel, while many
more vessel type owners and operators would
be well-advised to begin preparations for          By joining Hamworthy, Krystallon has plugged into a huge worldwide network.
2015; assured in the meantime by the savings
produced in European ECAs from July 1,             identifying how environmental legislation       vessels in North America to reduce PM under
2010 when emissions of no more than 1.0%           affects its customers. The focus for the        CFR (Code of the Federal Register) rules.
sulphur will see bunker fuel costs rise to as      company in 2010 is to continue to develop its   While vessel owners and operators can either
much as $50 to $80 per tonne versus typical        systems; ensuring that they are as cost-        upgrade to the latest specification to meet Tier
IFO380 bunker fuel.                                efficient, effective, and as compact as         II or III emissions targets or re-engine,
   Planning for the installation of a retrofit     possible, which is a key criteria for marine    scrubbing is an alternative that EPA wants to
scrubber should start now. Compliance to new       units, as well as utilising Hamworthy’s         investigate as a more cost effective and
ECAs, particularly in North America, will be       reputation, contacts and existing customers     quicker option to implement.
strictly monitored while owners and operators      within the shipping industry to support            For tanker owners and operators in Europe
will be exposed to unpredictable price             scrubbing technology in its commercial phase    facing significantly increased fuel bills, PM
fluctuations as refiners and bunker suppliers      of development.                                 compliance remains a hurdle to be negotiated
strive to manage an additional demand for an          The impact of the acquisition is already     another day. More pressingly, current
estimated 12 to 18 mill tonnes of distillate       proving successful after Hamworthy              spiralling bunker fuel bills need to be
bunker fuel that will be thrust upon them. Oil     Krystallon became in January 2010 the first     addressed. But it does provide some sense of
major Shell, for example, has highlighted the      non North American-based company to be          comfort that exhaust gas scrubbing not only
anomaly that the shipping industry will face in    awarded accreditation by the US EPA as a        fits the bill today, but also provides a degree
2015; that a refinery upgrade cycle of 10-16       manufacturer of an ‘emerging technology’        of future proofing for owners and operators
years means shipping will be vying with land-      that has the capability to reduce marine        for the succession of emissions regulations
based sectors and other modes of                   particulate matter (PM) emissions, the new      to come.                                       TO

transportation for scarce and, inevitably costly   target of regulators.
marine fuel.                                          The EPA accreditation reflects a             *Article written by Sigurd Jenssen,
   Hamworthy understands the importance of         forthcoming regulation that requires smaller    managing director, Hamworthy Krystallon

42                                                                                                             TANKEROperator        April 2010
                                                                              TECHNOLOGY - US SHUTTLE TANKERS

First Gulf of Mexico shuttle tanker due this June
Due to come on stream in June
2010, the Petrobras America’s
Cascade ultra-deepwater field in
the Walker Ridge sector of the
Gulf of Mexico (GoM) will
establish two area firsts, writes
Brian Warshaw.
It will be the first production field in the GoM
to use a floating production, storage and
offloading vessel (FPSO) and the first to
transfer oil using US flagged Jones Act shuttle
tankers. The FPSO BW Pioneer will also
produce oil and gas from the nearby Chinook
field in which Petrobras is the majority partner
with Total.
   Located at around 300 km south of
Louisiana, the oil will be transported to shore
by two 45,800 dwt shuttle tankers on a
minimum eight-year charter from Overseas
Shipholding Group (OSG). The Handysize
product carriers, classed by ABS as A-1,
Oil/Chemical Carriers, were purchased as
newbuilds from Aker Philadelphia Shipyard,         Overseas Cascade bow loading system and thruster           Photo: OSG Ship Management
for a price of about $115 mill each. Named
the Overseas Cascade, and the Overseas             to the land-based storage terminal.                 production (STP) buoy from Norway’s APL,
Chinook, the first vessel is currently being                                                           which incorporates Ballgrab connectors
converted for shuttle service, and will be                          Conversion                         manufactured by the UK’s First Subsea.
delivered in time for first crude oil loading in   The FPSO, originally an Aframax built in               Once the STP buoy with its pre-installed
July. The Overseas Chinook will be delivered       1992, was converted by Keppel Shipyard in           subsea connectors has been positioned in the
some 12 months later.                              Singapore. It has been supplied by and will         field, the mooring line connections are
   The identical shuttle tankers will have 12      be operated by BW Offshore. It has a storage        completed by a remotely operated underwater
cargo tanks each, capable of holding a total       capacity of 600,000 barrels of oil, while           vehicle, eliminating the need for intervention
of 52,650 cu m of oil at 100% capacity; two        processing oil at a daily rate of 80,000 barrels.   by divers. The Ballgrab connectors on the
slops tanks and 22,500 cu m storage for            It also has the capability to export 450 mill cu    mooring lines are set to a minimum breaking
ballast. The oil discharge rate will be 3,600      m of natural gas to a pipeline.                     load of 6,600 kilonewtons, and in the event of
cu m per hour. In common with the FPSO,               Under the Phase I development, Petrobras         hurricane conditions, allows the FPSO to
no facilities have been included to recover        will produce from two wells on Cascade, and         break away and seek a sheltered haven under
or reduce the volatile organic compound            one on Chinook field.                               its own propulsion.
(VOC) vapour emissions generated during                The loading and mooring system is equipped         The total cost of the installed FPSO is
the loading process, or during the transfer        with an internal detachable submerged turret        reported to be in the order of $740 mill.    TO

                                                                                                                           FPSO BW Pioneer
                                                                                                                           Illustration: BW

April 2010       TANKEROperator                                                                                                                   43

          Inert gas problems
                      MARS, the autical Institute’s alerting and reporting scheme,
                        has warned of problems caused by an inert gas failure.
            ollowing the arrival of an                Subsequently, the vessel’s crew prepared an         Improper motivation caused by

F           unidentified vessel at a discharge
            terminal, a pre-discharge inspection
            consisting of the ISGOTT ship-
shore checklist and a pre-discharge conference
were undertaken prior to commencing line
                                                   acceptable and revised discharge and IGS
                                                   operation plan and completed a risk
                                                   assessment that satisfied the receiving
                                                   terminal and its vetting/screening department.
                                                                                                        complacency, inadequate supervision,
                                                                                                        operating without authority and defective
                                                                                                        equipment, also contributed to the error chain,
                                                                                                        the report said.
                                                                                                          Among the lessons to be learned were –
clearance and the discharge of a cargo of                       What went wrong                         1) Advanced planning for cargo operations
gasoline feedstock.                                First -An unsafe decision was made to                   should ensure compliance with company
   The inspection and conference recorded that     partially discharge the cargo for line clearance        procedures, industry best practice and
the equipment was functional and that the vessel   without an operational IGS and without the              statutory requirements.
was operationally ready for discharge. Line        master’s knowledge.                                  2) Pre-discharge meetings must be held and
clearance was undertaken for 45 mins, during          Second - During the PSC inspection, no               information must be freely circulated to the
which the inert gas system (IGS) was not run.      satisfactory records of the controls, alarms,           terminal and all crew members involved.
   Shortly after the completion of the line        trips and interlocks tests were available to         3) The master and chief engineer must be
clearance, the terminal indicated that it was      demonstrate the completion of the pre-                  consulted promptly when failures occur
ready for the discharge. The chief officer then    discharge checks.                                       that affect the safety of the vessel. They
started the IGS and the main discharge cargo          Third - No proper change and risk assessment         can then consider and assess the impact
pump in sequence. However, the IGS’ high           management were conducted following a                   and provide guidance on proper remedial
scrubber water level alarm (HSWL) failed,          temporary modification to the IGS to trip the           steps to be taken to safeguard the safety of
causing the scrubber water pump to trip.           scrubber pump at the lower water level.                 those on board and ashore.
   While attempting to trouble shoot, the             Fourth - The discharge plan did not provide       4) Every component of the cargo system and
officer informed the terminal of the unsafe        any guidance on IGS use during discharge and            items in the ship-shore checklist must be
situation. At the same time, port state control    had not been signed by the master to indicate           checked to be in proper order and results
(PSC) officers boarded the vessel to confirm       his approval.                                           correctly documented.
the oxygen level in the tank’s atmosphere. On         MARS said that a lack of planning led to
establishing that the cargo tanks were under       the non-compliance with company procedures,                       Large IGS order
partial vacuum and that oxygen levels in the       industry best practice and statutory requirements.   Hamworthy Moss recently signed contracts to
cargo tanks were greater than the allowed 8%,      This allowed an unsafe atmosphere to develop         deliver 10 shipboard IGS. These are to be
PSC ordered that the discharge be stopped,         within the ullage spaces with an explosive           installed on a series of 316,000 dwt crude oil
detained the vessel and ordered it to wait at      potential that could have seriously damaged          and product tankers being built by Waigaoqiao
anchor temporarily.                                life, property and the environment.                  Shipyard, China.
                                                                                                          Specifically, the company has won orders
                                                                                                        for Moss flue gas systems for four 316,000
   VOC management plan guidelines issued                                                                dwt VLCCs due delivery between June 2010
                                                                                                        and August 2011 to Nanjing Changjiang Oil
  Amendments to MARPOL Annex                       aimed at assisting owners to develop plans           Transportation Corp (NCOTC).
  VI (Air Pollution from Ships) will               for their crude oil tankers.                           The orders meant that, since 1997,
  enter into force on 1st July                        The document consists of two parts: Part          Hamworthy’s IGS have been fitted on board
  2010.                                            A in which INTERTANKO and DNV                        23 tankers delivered to NCOTC.
  Among the new mandatory requirements,            provide guidance and clarifications on what            In a separate deal, Hamworthy has secured
  crude oil carriers will be required to           should be the content of the VOC                     contracts to supply Moss Mult-Inert™
  develop a Volatile Organic Compound              Management Plan and Part B which will                systems for six 316,000 dwt VLCCs and
  (VOC) management plan, which will need           actually need to be filled in by each                product tankers to be delivered by
  to be approved by a recognised organisation      member company and then submitted to                 Waigaoqiao Shipyard to Singaporean
  (RO). The plan will have to follow the IMO       class for approval.                                  shipowner Ocean Tankers between June 2010
  guidelines.                                         An Appendix to Part B includes a                  and October 2011.
     INTERTANKO and Det Norske Veritas             suggested voyage NMVOC (non methane                    These ships will feature IGS offering a
  (DNV) have issued a joint guide, which is        VOC) emissions calculation standard form.            capacity of 18,750 cu m per hour each, 100%
                                                                                                        inert gas blowers, deck water seals, and P/V

44                                                                                                                 TANKEROperator        April 2010
MIRACLE Tank Cleaning Guide
                                                                                                                                                                      Hubertuskamp 8
provides tank cleaning guidance and detailed information for about
                                                                                                                                                                D - 21521 Dassendorf
7000 Annex I and II cargoes.
                                                                                                                                                          phone +49 4135 - 808630
                                                                                                                                                             fax +49 4135 - 808631
MIRACLE contains physical/chemical properties, adjacent
cargo coating and FOSFA-compatibility check, IBC requirements,
emergency response info and compatible Draeger tubes.
Some 200 customers, having MIRACLE in use on more than 1000 ships
report less tank rejections, decreased cleaning time and
cost reduction as a benefit.
MIRACLE is available as
                       • Book with annual updates (DIN A4 1000 pages)
                       • CD with annual updates (local installation)
                       • Online continuously updated (web-based access)
                         For more informations please visit or contact

                                                                                                              no installation necessary
anytime and anywhere

                                                    runs without internet

                                                                                                              MIRACLE Online
                                                    MIRACLE as CD

                                                Vetting and HSE Monitoring Tool
                                                Repository for all shipboard inspections and events. Integrated follow up system.
                       CDI                                                                                                                            Fleet Reports
                                                                  Automatic import of vetting inspection reports.
                       SIRE                                                                                                                       Near Miss Reports
                       Terminal Inspections                                                                                                     Management Reports

                                                                                                              D demo
                                                                                                    ur free 3
                                                                                              Test o
                       Port State Control                                                                                                       Repetitive Questions
                       Flag State Inspections                                                                                             Most Frequent Deficiencies
                       Class Inspections                                                                                                  Marine Injury Report acc OCIMF

                       Ship Visit Reports                                                                                                       Overdue Items Report
                       Internal Audits                                                                                                              Oil Major Reports
                       Navi Audits                                                                                                                       Ship Reports

                       Marine Injury Reports
                       Vessel/Cargo Damages                                                                                                      Vetting Status Report
                       Machinery Damages                                                Hubertuskamp 8
                                                                                  D - 21521 Dassendorf
                       Environmental Incidents                               phone +49 4135 - 808630

                       Near Misses                                              fax +49 4135 - 808631
                       Non Conformities                           

                                                                                                    Hamworthy Moss, pointed out that the Ocean
                                                                                                    Tankers’ Mult-Inert™ flue gas systems would
                                                                                                    be distinguished by their flexibility. “These
                                                                                                    sophisticated systems have been designed to
                                                                                                    enable Ocean Tankers the choice to handle or
                                                                                                    store surplus product, in line with the
                                                                                                    demanding trading patterns of the ships.
                                                                                                        “We continue to build on our long term
                                                                                                    relationship with Waigaoqiao Shipyard. Now,
                                                                                                    altogether 48 product carriers built at this yard
                                                                                                    have featured Hamworthy IGS.”
                                                                                                       Hellum said that Hamworthy’s new, full-
                                                                                                    size test inert gas generator, installed at the
                                                                                                    Moss testing facility late last year, represented
                                                                                                    a vital piece of equipment in speeding up
                                                                                                    innovation in the company’s design process.
                                                                                                       “This facility means that we can test new
                                                                                                    designs and components in a short period,
Geir Hellum (left), managing director of Hamworthy Moss, shakes hands with Qian Yonglin,            dramatically improving the delivery for
director assistant, purchasing department, machinery and electric equipment division,
                                                                                                    customer contracts. This has proved a critical
CSSC (China State Shipbuilding Corporation).
                                                                                                    factor in ensuring that we can meet the tight
breakers. The deliveries will bring the number    Ocean Tankers’ vessels to 45.                     delivery schedule envisaged in these orders,”
of IGS delivered by Hamworthy Moss to               Geir Hellum, managing director of               he said.                                        TO

Resolve Marine deals with Port Arthur                                                                 Corrections
collision                                                                                             In TANKEROperator’s Annual
On 23rd January, an emergency                        In the preliminary casualty surveys, Resolve     Review in the top 30 tanker
response team from Resolve                        Marine’s air monitoring and fire safety team        companies listing, Hin Leong
Salvage and Fire (Americas),                      detected high levels of H2S and flammable           Trading has pointed out that
responded to a call from an OPA                   vapours on and around the ship. During              the company’s total dwt should
90-client following a collision                   pumping operations firefighting foam was            have read 6.4 mill.
between the Aframax Eagle                         applied in the breached tanks and intrinsically     “We refer to your ranking of the Top 30
Otome and a barge at Port Arthur                  safe air fans were used to disperse toxic           owners and operators in the March 2010
in the Sabine-Neches Waterway.                    vapours and reduce explosive gas                    Issue of TA KEROperator. Our current
The barge had penetrated two of the tanker’s      concentrations.                                     capacity is 6.4 mill dwt, instead of 5.4 mill
forward cargo tanks. Locked together and             Crude oil cargo and flood water were             dwt as published", the company said.
grounded across the narrow channel, the           carefully pumped from the tanker’s heavily             Also within the Ballast Water Treatment
vessels blocked supply shipments to local         damaged No 1 starboard water ballast tank           feature, we said that Coldharbour was a
refineries. Several nearby communities had        and the No 1 centre cargo oil tank while            division of Transvac and was offering
begun an evacuation.                              dozens of response contractors worked to            MHS technology.
   The fully laden 95,663-dwt tanker’s owner      contain oil that had spilled into the waterway.        Coldharbour CEO Andrew Marshall
–AET - activated Resolve Marine according to         After the tanker was moved out of the            explained that the company has no links
its US Coast Guard approved vessel response       channel, Resolve Marine escorted the vessel         with MHS and does not make use of its
plan. Resolve Marine immediately mobilised        to a nearby terminal and continued to monitor       BWT technology.
emergency response crews from bases in            safety conditions as the remaining cargo was           He also said that Coldharbour was now
Texas, Alabama and Florida equipped with          discharged. Operations were conducted               a separate company having severed its
transfer pumps, portable fire pumps,              without incident or danger to the Port Arthur       links with Transvac.
intrinsically safe power packs and confined       waterfront, the company claimed.                       “Coldharbour is growing rapidly, having
space entry packages.                                In another move, international marine            secured significant investment from
   Working closely with the USCG and the          salvage contractors Five Oceans Salvage             Rothschilds Investments and has recently
incident command system’s Unified                 (FOS) and Resolve Marine have announced a           appointed agents for both its BWT and IGG
Command, Resolve Marine’s salvage master          co-operative relationship.                          technologies in the key Chinese and South
Francis Leckey developed a methodical                The new agreement lays down the basis for        Korean markets,” Marshall explained.
salvage plan to safely employ portable transfer   exchanging specialised resources and                   TA KEROperator will publish a profile
pumps and the tanker’s internal pumping           technical support in emergency responses on         of Coldharbour’s involvement in the marine
systems to lower cargo levels within the          behalf of the two companies' mutual clients         industry in the May issue as Marshall said
breached tanks.                                   worldwide.                                          that a lot had happened recently.

46                                                                                                              TANKEROperator         April 2010
                                                                                                         TECHNOLOGY – NEWS

EnSolve launches the compact PetroLiminator® OWS
EnSolve Biosystems has
successfully completed and
passed the MEPC 107(49)
certification tests for the new
compact PetroLiminator 200M (PL
200M) oil water separator (OWS)
“We are very excited about this new
product for many reasons,” explained
Jason Caplan, EnSolve president. “First, it
has an attractive price point that allows us
to compete with almost every OWS product
on the market. Second, it has a very small
footprint, thus permitting installation on
any class of vessel. And third, the effluent
quality and process throughput are
   EnSolve claimed that its patented
PetroLiminator system is the first and only
marine OWS that uses a combination of
physical and biological means to treat oily
bilge water.
   Like its predecessor - PL 630M, the PL
200M OWS system incorporates safe micro-
organisms to consume hydrocarbon wastes in
the ship’s bilge water, so treated bilge water
can be safely and legally discharged
   It treats both pure and emulsified oil, as
well as detergents, degreasers and other
chemicals in the water. This green technology
generates minimal hazmats and produces no        A compact oily water separator for small to medium size vessels.
harmful by-products.
   No flocculant or coagulant chemicals are      24/7. A built-in fail-safe oil content monitor      Customers using the PetroLiminator
used, substantially reducing sludge              ensures that no accidental discharge can occur,   include owners of most types of vessels,
accumulation. It works totally unattended        the company said.                                 including tankers.

Hamworthy secures sewage plant approval
Hamworthy has become the first                   MEPC 159 (55) standard for its enhanced           environmental & engineering centre
non-domestic sewage plant                        ST-C series.                                      commented positively on Hamworthy’s
supplier to achieve Chinese CCS                     Hamworthy said that it had received a          product performance and build quality while
type approval, strengthening its                 significant number of orders for sewage plants    visiting the facility.”
position in the world’s largest                  that conform to newly introduced international       Hamworthy has also developed a range of
shipbuilding nation.                             standards and its operations in China have        advanced MBR (membrane bioreactor)
This approval comes at a pivotal point in        already received multiple orders for CCS type     treatment plants to enable ships to continue
marine environmental legislation as new IMO      approved plants.                                  discharging black and grey water in especially
Marpol Annex IV guidelines come into force          Eric Li, engineering manager at                sensitive waters, where regulations demand
requiring all vessels to be fitted with          Hamworthy’s test and assembly plant in            tighter controls.
compliant sewage treatment plant.                Suzhou said: “Achieving CCS type approval            Originally type-approved by Lloyd’s
  In anticipation of the regulatory              is a significant acknowledgement of the team      Register, the ST-C plant has also received EC
enforcement, in 2008 Hamworthy became            work and co-operation between Hamworthy’s         Marine Equipment Directive (‘Wheelmark’)
one of the first companies to receive type       operations in the UK, Shanghai and Suzhou.        certification from the UK Maritime &
approval in accordance with the IMO              The CCS surveyor and the director of the 704      Coastguard Agency.

April 2010      TANKEROperator                                                                                                                47

RWO secures sewage treatment plant type approval
To fulfil the new guidelines for
sewage treatment plants set by the
IMO, Resolution MEPC 159(55), for
all systems installed on or after 1st
January 2010, Bremen based RWO
has enhanced its WWT system.
Based on experienced technology, together with
enhanced improvements, the recently introduced
WWT-LC is a reliable, easy to operate and
compact plug & play unit, the company said.
   Approved and certified by the German
authority Seeberufsgenossenschaft (SeeBG), the
three-chamber systems operates with a mixed
bed biofilm reactor (MBBR) providing process
stability and excellent effluent results. It is able
to treat black and grey water, or black water
only. Vacuum systems, as well as grease traps,
are available as options.
   A special post-treatment operation prevents
pH adjustment challenges, which can occur on
board a vessel, due to difficult and varying
hardness of the sewage.
   RWO said that the WWT-LC is easy to install
and maintain, operates fully automatically and
has low running costs.
   A number of the new systems have already
been manufactured and delivered from RWO’s
Bremen warehouse.

MAN consolidates                                       RWO gains type approval for its sewage treatment plant.

in South Korea
On 10th March, MAN Diesel Korea
held an inauguration ceremony to
                                                       Tamrotor is awarded Samsung-Q Mark
celebrate the opening of its
premises at the Noksan Industrial
                                                       Gold certificate
Complex, Busan.                                        At an award ceremony in South                   installation on board, and claims during
The new location brings all of MAN Diesel’s            Korea the 12th March 2010,                      installation.
Korean interests under one roof.                       Tamrotor Marine Compressors                        “We are extremely proud to be one of only
   MAN Diesel Korea has diversified its business       (TMC) received the Samsung-Q                    two European suppliers to be awarded the
portfolio since its original founding as a technical   Mark Gold award.                                Samsung-Q Mark Gold this year”, said Odd-
liaison office in 1983. After launching local group       Nominated as a result of Samsung’s           Ståle Ness, TMC managing director. “We
purchasing and PrimeServ Busan in 2007 and 2008        stringent quality audit and being one of only   believe this confirms that our continuous work
respectively, the move to Noksan consolidates          two European suppliers to be awarded the        with product development, documentation and
all functions in one location, providing a total       Samsung-Q Mark Gold this year, TMC said         quality assurance is important to and
service encompassing sales, purchasing,                that it was proud to be ranked as one of        appreciated by our customers.”
education, technical service and production.           Samsung’s highest-quality suppliers.               “Samsung Heavy Industries is the second
   The new premises are especially geared                 In 2008, TMC was awarded the Samsung-Q       largest shipbuilder in the world. Their quality
towards MAN Diesel PrimeServ activities and            Mark Silver quality gong. With continued        systems are really stringent, and being able to
includes a PrimeServ academy, which is                 high-quality deliveries in accordance with      meet these requirements and be awarded their
equipped with a 7L23/30 engine donated by              Samsung’s stringent quality policies, TMC has   highest quality award means that we are
Doosan Engine, while a two-stroke 7S35MC               now received the highest level quality award    succeeding in providing high-quality products
type is also currently in transit from Denmark         presented by the shipbuilder.                   and services to our customers,” Ness
and will be used as a teaching aid.                       The award is based on Samsung’s Q Mark       continued.
   Other facilities in the new complex include a       quality evaluation system. Candidates were         Samsung has installed TMC marine screw
workshop, repair shop, office building and             selected based on their accomplishments         compressors for various applications on board
employee centre.                                       during 2009 in design, manufacturing,           a number of the yard’s newbuilding

48                                                                                                                TANKEROperator        April 2010
                        KEY PLAYERS IN THE                    COMMERCIAL TANKER
                        TANKER INDUSTRY                       OPERATIONS
                        will be profiled giving their         including shipbroking, legal matters
                        views on current legislation,         and financing
                        recommendations and trends.
                        These will include chief              IN DEPTH INFORMATION
                        executives from all sectors of        on the latest newbuilds, sale and
                        the industry from equipment           purchase, freight rates and
                        manufacturers to the top              derivatives markets, using industry
                        shipowners                            known commentators

                        INFORMATION                           A STRONG FOCUS
                        about meeting oil major               on shipbuilding and repair
                        (TMSA / vetting)

                        DEVELOPMENTS in management/
                        safety/ environmental best practice

                        NEW TECHNOLOGIES
                        and commercial industry
Photo credit – Hempel

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