highlights - Bernhard Schulte · PDF filehighlights | Issue 2 | 2015 Welcome O n behalf of the...

Delivering results through heritage and expertise

Gas transport capability

Schulte Marine Concept: Going beyond the basics

Developing the Valemax VLOC

China: Land of opportunity

highlightsIssue 2 | 2015

highlights | Issue 2 | 2015

Contents

Norbert Aschmann – Managing EditorRobin Thuillier – EditorMaria Christodoulou – Deputy Editor

Ideas for stories or features? Contact us at: [email protected]

Editorial Team

1| Welcome

2| Interview: David Furnival

6| Latest News: • First batch of vessels delivered under

joint partnership• BSM Hong Kong reaches 40 fully

managed ships• BSM Cyprus Managing Director

re-elected to the Board of the Cyprus Shipping Chamber

9| Schulte Marine Concept: • Keeping close to the customer• Oaktree Capital takes delivery of

Maersk Tema

12| Developing the Valemax VLOC

14| China: Land of opportunity

16| Gas transport capability: Delivering results through heritage and expertise

18| Audio-visual addition boosts PAL system

20| Operational efficiency and safety: Keeping our promises

22| Mumbai: Advanced training and learning

24| One BSM:• Announcing our first Innov8

winners• BSM inaugurates memorial for

Yolanda victims• A maiden voyage• Study now pay later• Celebrating 10 successful years• BSM supports professional

membership

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12| 14|

bs-shipmanagement.com


WelcomeOn behalf of the editorial team, I would like to extend

a warm welcome to the latest edition of BSM Highlights which I trust our colleagues, customers and business partners will find interesting and informative.

In this issue we feature an interview with BSM’s Chief Operating Officer, David Furnival, who outlines the work being undertaken to further enhance operational efficiency, safety and innovation across the Company. With respect to innovation, we also take the opportunity to announce the first winners of the ‘Innov8’ initiative.

BSM’s experience and breadth of capability in gas carrier management is delivering tangible benefits to customers worldwide. We talk to Chris Clucas, one of our experts in this field and current President of the Society for Gas as a Marine Fuel (SGMF), about these capabilities and the importance of training and development in this demanding sector.

Technical consultancy, newbuilding supervision and project management are also core capabilities of BSM, although perhaps not as well-known as our shipmanagement expertise. Through an interview with Schulte Marine Concept Managing Director, Krzysztof Kozdron, we outline the approach taken to support customers with the optimisation of vessel designs and the effective management of construction projects.

Successful integration of newbuilding and shipmanagement activities is exemplified in our work with Vale to support the development and successful operation of Valemax Very Large Ore Carriers, enabling large quantities of iron ore to be efficiently and safely transported from the mines of Brazil to destination markets in Asia, Europe and the Middle East.

We look at growth potential and the development of BSM’s capability in China, in particular with respect to the selection and training of Chinese crew, through an in-depth interview with BSM China Managing Director, Capt Aaron Ruan.

Within ‘One BSM’, the section dedicated to sharing news of local community support activities around the world, we profile the work of our colleagues in Manila in providing assistance to the victims of Typhoon Yolanda that struck the Philippines in November 2013.

We hope you enjoy reading Highlights and welcome your feedback and comments.

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Robin ThuillierDirector – Marketing and Business Development

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Interview

3


If there is one quality which stands out when speaking with David Furnival, the Chief Operating Officer of

BSM, it is his absolute passion for the job he does, the company he works for and the people he works with.

And his personal credentials for the job are as impressive as his commitment. Serving at sea as a Chief Engineer, notably with John Fredriksen’s Seatankers, before building shore-based experience as a Technical Superintendent, he has contributed significantly to the shipping and shipmanagement industries at senior management level from his home base on the Isle of Man for nearly two decades. His appointment as Vice President of the Society of International Gas Tanker and Terminal Operators (SIGTTO) is indicative of the respect he continues to earn from his peer group.

“I am an ex-seafarer and have a great deal of empathy for the challenges on board. I am always very focused on the safety of our seafarers which has to be our number one priority,” he told me.

“Of course there is the very valid argument that as a business we have to make profit in order to reinvest

in safety, but if we do not have this at the heart of everything we do, right from the start, we risk damaging our reputation and eroding the foundation of our business,” he added.

Putting safety at the forefront of everything that BSM does, whilst recognising that sustainable business growth and profitability are key components of achieving this objective, is important across the company. Indeed, as David outlined, any loss prevention initiative that is introduced must be purpose driven with an underlying business rationale.

“If we recognise potential in an initiative, then we need to believe in it and drive it forward from the top whilst allowing sufficient time to produce results. Equally, when we make a mistake or an incident occurs we admit that this has happened. It is our reaction to these events that defines our reputation; not the incident itself, but how we respond to it,” he said.

This belief in strong ethics, together with effective processes and procedures, enables customers and stakeholders to correctly believe that “when they work with BSM they will get the best service that is

I am always very focused on the safety of our seafarers which has to

be our number one priority“ ”

David FurnivalBy Sean Moloney, Editor – Ship Management International

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available, with a continuous emphasis on performance, improvement and innovation.”

An example of how innovation is being encouraged is the ‘Innov8’ programme which was initiated at BSM’s office in the Isle of Man and has become important in driving new ideas across the business. “We see that the programme has tremendous potential. It can unlock a lot of embedded knowledge and capability and emphasises the message that we want to be an innovative company”, he said

“That is a key part of our growth strategy. We want BSM to be regarded as an innovative, value-adding partner as far as our customers are concerned - whether that’s related to technology, new ship designs or new ways of managing ships. We adapted our vision statement earlier this year to support this objective, emphasising the aim of being both a leading ship manager and a leading maritime solutions provider.

That won’t happen unless there is a conscious effort and innovation is at the heart of this,” he stressed.

To see the extent of innovation that exists within the Company, one needs only to look at the ground breaking work being undertaken within the gas supply sector and, specifically, the partnership established with Babcock International to design and build one of the world’s first LNG-powered gas fuel supply vessels.

From a quality and safety enhancement perspective, ‘Project Pilot’, an aviation industry derived programme that promotes user-friendly procedures and checklists on board ship is another good example. “This initiative is set to radically streamline the way onboard teams manage day-to-day work and functions,” explained David. “It aims to negate the possibility of an accident or incident occurring by prioritising and simplifying the number of crucial tasks that need to be done every day. The key objectives are to improve understanding,

‘Project Pilot’, an aviation industry derived programme that promotes user-

friendly procedures and checklists on board ship is set to radically streamline

the way teams manage day-to-day work and functions

“”

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consistency and compliance with safety and loss-prevention focused procedures.”

In addition to maintaining a focus on safety, cost-efficient operation and innovation, David recognises that ensuring vessels under management are available to trade and earn profit for their owners is a critical aspect of a well-managed fleet.

“It is about having systems and procedures in place, such as planned maintenance, which allow us to ensure that reliability and asset preservation of the entire ship is planned to avoid machinery breakdowns or structural failures. Some ships now go beyond this, with condition-based monitoring systems in place which enable us to detect an impending failure and take corrective action before this occurs. We also have a number of comprehensive inspection regimes in place to ensure proper diligence and quality control.

“These validation programmes are conducted through the audit process of the ISM Code which focuses on the safety aspects of the ship. Checks to see whether the vessel is following our operational procedures are carried out independently of the Superintendent through our Loss Prevention, Safety and Quality department (LPSQ).

“LPSQ is the friendly policeman. It is all about fast tracking implementation of best practice and making sure that we stick to this without deviation or diminishing our quality. The LPSQ function provides that quality control process to make sure everybody is adhering to Company policy.

“Of course we can’t have a ‘vanilla’ type of operation because we have many different customers with different ways of operating and we tailor our services to meet their requirements. However, we will never go below certain standards when it comes to safety, ethics, quality control or adherence to our policies and procedures.”

Latest newsFirst batch of vessels delivered

under joint partnership

Schulte Marine Concept (SMC) welcomed spring with a naming ceremony for Max Schulte, Melchior

Schulte and Mia Schulte.

Each of the three 2,400teu container vessels, measuring 189 metres in length and 30.4 metres in breadth, are part of a 12 x 2,400teu container newbuilding programme. The programme is a joint venture between Schulte Group and J.P. Morgan’s Global Marine Investment Fund, supervised by SMC.

With four vessels named to date, two of which have already been delivered, a further four are scheduled to be delivered within the year.

Held at the Yangfan Shipyard in Zhou Shan, one of the leading shipbuilders in East China, representatives from the Schulte Group, J.P. Morgan, ABM AMRO and the Export-Import Bank of China (CEXIM) attended the ceremony. Representing the Schulte Group were Tobias Pinker, Stefan Glaebe, Alvin Wang and Dongqing He.

Speaking at the naming ceremony lunch held at the Sheraton Hotel on Zhou Shan Island, the Schulte Group CFO, Tobias Pinker, expressed appreciation to the management and staff of the various organisations and individuals who were involved in the project, without whom the successes achieved to date would not have been possible.


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BSM Hong Kong reaches 40

fully managed ships

BSM Hong Kong recently welcomed the 40th fully managed vessel to its fleet. Owned by Raven

Capital Management based in the US, Soho Trader, is a 64,000dwt Ultramax bulk carrier delivered from Jiangsu Yangzijiang Shipbuilding.

Fitted with four grabs that can be controlled by its in-built gear, the vessel is designed to efficiently manage loading and discharging of the bulk cargo being carried. She is also fitted with a ballast water treatment system from Ocean Guard.

Captain Firoze Mirza, Managing Director of BSM Hong Kong, credited his staff for the milestone: “The smooth and sustained expansion of our fleet management portfolio is a well-earned recognition for our commitment to efficient operations and safety.” he said.

“The dedication of the seafarers on board has been an equally important factor in this growth,” he explained. “Without their support, all the work by our shore based personnel would be futile. This joint effort involving our shore and sea-based personnel working together towards a common goal is an illustration of the importance of teamworking – a concept that is in line with our ‘One BSM’ culture.”

At this important juncture Capt Mirza reiterated BSM’s promise to ship owners - to enable its business partners to achieve higher income, at the lowest possible operating cost.

Over the past four years, BSM Hong Kong has quadrupled its fleet from 10 fully managed vessels to the current 40 and plans to increase to 50 ships by the end of 2015.


Latest News

7

BSM Cyprus Managing Director

re-elected to the Board of the

Cyprus Shipping Chamber

BSM Cyprus Managing Director, Arthur McWhinnie, was recently

re-elected as a Member of the Board of Directors of the Cyprus Shipping Chamber.

Speaking after his election, Arthur said: “The Chamber is a very influential body and policy decisions concerning shipping matters are rarely taken by the Government without consulting it. Contributing to such a highly influential body, makes me feel very honoured.”

The Cyprus Shipping Chamber is the honorary trade association of the shipping industry in the island. Established in 1989, originally with 17 founding members, the Chamber today includes members from all of the major ship owning, shipmanagement, chartering and shipping related companies based in Cyprus.

Officer appointments are held for two years and the elected Board of Directors oversee the management of the Chamber and the protection of its interests.

Latest News

8



Schulte Marine Concept:

Keeping close to the

customer

With 100 supervisors based at shipbuilding sites in Japan, Korea, China, the Philippines, Poland,

Norway and Spain, more than 300 projects completed and over 100 underway across a wide range of vessel types – the global and technical reach of Schulte Marine Concept (SMC) is clear.

BSM’s newbuilding business provides a comprehensive range of technical and project management services for newbuilding, conversion and retrofit projects. SMC’s expertise is invaluable in optimising vessel designs, ensuring that owners take delivery of a vessel with maximum cargo carrying capacity and the highest levels of operational safety, reliability and efficiency.

Providing value-added solutions tailored to each specific project has always been at the heart of its

success and that remains the case. But there are changes, not only in terms of SMC’s steady growth, but also in the customer base that it serves.

“Over the years we have shifted from being an in-house provider of services to support our own fleet development to becoming a partner for third party customers,” said SMC Managing Director, Krzysztof Kozdron. “Today, projects for Bernhard Schulte account for some 30% of our business, while 70% is represented by third party activities.”

Whilst SMC has developed and implemented a number of high-performance and quality related processes, including the ISO 9001:2008 Quality Management System, Krzysztof is in no doubt about the secret of SMC’s success.

Through Schulte Marine Concept, BSM offers customers a distinctive combination – decades of experience in shipbuilding projects and a deep understanding of the priorities, pressures and concerns faced by shipowners, investors and shipmanagers.

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“We are a technical consultancy with extensive experience of shipbuilding, shipowning and shipmanagement,” he says. “We can channel all of this into the projects that we undertake. Customers value that because they know we understand their concerns as shipowners and shipmanagers. We speak the same language.

“We go far beyond the basics. We are capable of developing and executing projects from onset, from the ‘moving cargo from A to B’ concept right through to delivery of the vessel. This results in a vessel solution that is ideally matched to the owner’s technical and /or operational requirements. And when the ship goes to sea, there are obvious benefits of BSM continuing to provide full management having been involved in the project from the start.”

SMC’s current reference list of 65 customers covers every continent, with the head office in Shanghai complemented by a smaller office in Hong Kong and site offices in Asia and Europe.

“Our customers expect us to be close so we can be at the shipyard quickly to support our site office and deal with any matters arising,” he said. “We have very experienced project managers visiting the site offices on a regular basis to ensure compliance with our performance requirements and that we are keeping our promises.”

SMC has also seen a shift in the type of customers that it works with. “Over the past ten years we have seen an increase in investor and equity house customers,” said Krzysztof. “Their approach is different to that of traditional shipowners, being primarily focused on shipbuilding as an investment opportunity.

“They have particular requirements but sometimes limited knowledge or experience with ships and shipbuilding. This means that our responsibilities become far higher as we need to lead such customers through each aspect of a project and identify potential problems that would be familiar to experienced shipowners.”

This new type of customer tends to be more focused on the commercial and legal aspects of the project rather than the technical components, he points out. If they think that the whole process will be like ‘shaking hands’ with SMC, then they would be right. “They can sleep well, knowing that we will keep the project on the right track, dealing promptly and effectively with problems as they arise. We will add value through the distinctive combination of our Group’s experience in shipbuilding, shipping and shipmanagement.”

SMC’s portfolio of newbuilding projects ranges from container vessels through heavy lift vessels, bulk carriers, iron ore carriers, crude/product/chemical

We are far beyond the basics. We are capable of developing projects

from scratch, from the ‘moving cargo from A to B’ concept right through to delivery of the vessel“Krzysztof Kozdron, Managing Director, SMC

”

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Oaktree Capital takes delivery of Maersk Tema

tankers, LNG/LPG/LEG carriers to offshore vessels and special projects including pipe laying barges, offshore transhipping platforms and floating docks.

Amongst the current projects that Krzysztof highlighted are the construction of two innovative wind energy Service Operation Vessels being built in Ulstein, Norway and Crist, Poland for WINDEA Offshore - a joint venture formed between Bernhard Schulte, EMS Maritime Offshore and SSC Wind.

Additionally, work has just started in China on the first of a series of fourteen 20,000dwt chemical tankers with duplex stainless steel cargo tanks, a project requiring

advanced material handling technology and strict compliance with stringent production procedures.

“We are expanding and diversifying our portfolio of projects and this year signed contracts to manage the construction of a floating dry dock in China, two Flotels in Spain as well as a number of more conventional container vessels and bulk carriers.

“We are also working with an increasing number of Chinese customers who are seeking higher value technical consultancy as they become exposed to tougher international operational competition and economic pressures.”

A tangible example of the synergy that exists between BSM and Schulte Marine Concept is

the Maersk Tema, which was handed over to her new owners, Oaktree Capital, during May at a delivery ceremony held at the Janjin Subic yard in the Philippines.

Plan approval and supervision of the vessel was carried out by Schulte Marine Concept (SMC), and in a seamless transition, vessel management will be the responsibility of BSM.

Attending the event, Ashoke Dey, Deputy Managing Director of SMC said that the delivery of the Maersk Tema was a milestone event in one of the most challenging and rewarding newbuilding projects

undertaken by SMC: “After a long and demanding project it is always a welcome sight to see a vessel delivered,” he said, “especially as we know that Maersk has been very happy with the performance of this series and that the management of the Maersk Tema is in the safe hands of BSM Deutschland.”

The vessel is the last in a series of fifteen 5,400teu container vessels, the first five of which are owned by Bernhard Schulte and the remainder by Oaktree Capital.

Simon Wade from Starboard Ventures represented Oaktree Capital at the delivery ceremony, with Victor Tauchius, Senior Technical Superintendent, representing BSM Deutschland.

Developing the Valemax:

A genuine partnership

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Global mining company Vale’s operations are on a staggering scale. Headquartered in Brazil, Vale

produces 320 million tonnes of iron ore annually, is present in more than 30 countries and employs more than 80,000 people.

The company’s highly sophisticated logistics network integrating mines, railroads, ports and ships is vital in its role as the world’s largest producer of iron ore.

Given the distance from Brazil’s mines to Vale’s key customers in Asia and the highly competitive nature of the industry; keeping transportation costs down is a vital part of Vale’s strategy. In 2008, as part of that quest, Vale embarked on a unique project to build the largest iron ore carriers developed to date, the 400,000dwt ‘Valemax’ class.

Designed to carry high quantities of iron ore from Brazil to Asian, Middle East and European ports, the Valemax Very Large Ore Carriers (VLOC) are not just high capacity bulk carriers; safety, efficiency and minimising environmental impact were equal priorities from the earliest design stages.

“The Valemax vessels were designed to be highly stable, with minimal cargo movement compared to traditional bulk carriers, and to consume 35% less fuel per tonne of ore transported,” said Gurinder Singh, Vale’s Director of Shipping & Distribution. “Carbon emissions are down by 35%, while SOx and NOx emissions are also greatly reduced. The ships were also designed with a layout that doubles the unloading speed compared to earlier generation vessels, significantly reducing time spent in port.”

Twelve Valemax carriers are managed from BSM’s offices in Mumbai but, as BSM India Managing Director Sanjeev Sharma pointed out, the relationship between Vale and BSM is ‘multi-dimensional’, going far beyond traditional shipmanagement.

“Through our Newbuilding Consultancy & Supervision business, Schulte Marine Concept (SMC), we were involved in the Valemax project from the very start – assisting in the design and optimisation, supervising the construction, and exchanging ideas,” he said.

Ashoke Dey, Deputy Managing Director of SMC, was project manager for the construction of the 12 carriers at

Jiangsu Rongsheng Heavy Industries, in China.

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He explained: “This was a fantastic, stressful, but deeply satisfying project. No yard in the world had experience in building vessels of this size or design and, naturally, there were a number of things that evolved and needed to be changed during the construction process.

“Construction of the first vessel started in October 2009 and we were involved in the supervision activities from the onset. At one point we had a team of 30 people involved in overseeing the different vessels at varying stages of construction – some at the block stage, some at the keel laying stage, some in the dock. Our team was accommodated in a village 10 kilometres from the yard and, in addition to spending long periods away from home, were available to carry out inspections in the middle of the night as needed.

“Much of the equipment and machinery was initially procured in Korea but later sourced in China, with each component inspected and checked by our people visiting the production facilities. There were unexpected challenges as well - for example, the huge hatch covers each weighing up to 170 tonnes that could not fit into the paint shop requiring a new one to be built.”

In parallel with construction oversight, which concluded with delivery of the twelfth and final vessel in February 2015, BSM worked meticulously in partnership with Vale to prepare for taking over the management of each vessel.

“Only a few ports can accommodate ships of this size so, with the help of Vale, our trainers and seafarers visited these ports to work with the pilots and familiarise themselves with the conditions and learn

how to effectively operate and handle these ships in those areas,” said Sanjeev. “These are ships with a unique structure – we had to prepare in great detail for operating them. We developed training modules on our simulator in Mumbai and we continue to train our Masters on this. We also had to prepare and train for mooring operations, cargo loading and unloading, and operating the hatch covers and machinery.

“The Valemax vessels are fitted with the new generation of engines, and we train our engineers for these on our Wartsila RT Flex simulator.”

Nothing stood still of course. As each Valemax vessel was built and entered service, so the design was modified to further enhance the next one. “From the first ship to the last, there were many improvements made as a result of our experience in operating them,” said Sanjeev. “So ours is not just a shipmanagement role, but active participation in further development.

“We share the Vale philosophy on safety and we continue to conduct customised training every quarter, during which our seafarers can share their experiences with Vale representatives and Vale are able to convey their own thoughts to the crew.

“Our work with Vale is based on the premise that you don’t just do whatever you think is best, but you work in partnership with your customer to fully understand their specific requirements and then deliver against these.”

China: Land of

opportunity14


With a population touching 1.3 billion and an economy growing around 10% per year, China

represents a significant growth opportunity for third party shipmanagement.

Indeed, a recent report from the Shanghai International Shipping Institute forecasts that container throughput at Chinese ports will reach 505 million teu by 2030, based on an average annual growth rate of circa 6%, including 116 million teu of coastal container traffic.

And while this creates a platform for international operators to capitalise on Chinese domestic growth, a parallel expansion is seeing more and more Chinese ship owners growing their own international trade ambitions.

As Captain Aaron Ruan, Managing Director of BSM China commented, this expansion of the Chinese economy over a short period of time has resulted in a “sharp surge in the number of wealthy individuals who have turned to ship owning and then found they need

the expertise that a global shipmanagement company such as BSM can provide.”

“There are many opportunities for BSM in the Chinese market and while we are growing steadily, our growth has not been too rapid as we want to maintain a focus on the need for safety and quality across the vessels we manage,” he stressed.

Established in January 2008, BSM China is a wholly-owned shipmanagement and crew service centre employing 60 shore-based personnel and 1,200 seafarers. The shipmanagement centre manages 40 vessels across a variety of sectors and, with demand increasing for Chinese seafarers both domestically and internationally, crew recruitment is becoming more of a focal point for the company in the region.

Co-located in Shanghai with Schulte Marine Concept (SMC) and Bernhard Schulte’s investment partnering capability in China, BSM is able to offer a fully

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integrated service encompassing newbuilding design and construction oversight through to full management of the vessel once delivered.

“As far as Chinese ship owners are concerned, it is vital that a shipmanagement company is seen as ‘local’ and close to the crewing market which is why BSM’s Shanghai office has been busy recruiting and growing its talent pool. A lack of mature international companies in the region means that high quality personnel are developed through strong in-house training and nurturing.

“For this reason, we need to invest the right amount of time and resource needed to complete the job properly. For example, locally recruited superintendents often require intensive training and time to gain experience commensurate with international standards,” said Capt Ruan.

And what are the key qualities of a Chinese crew? According to Capt Ruan, they tend to be dutiful with

a respect for authority; they are quick to learn, clear-headed and disciplined. However, with more than 100,000 cadets graduating from Chinese maritime colleges each year, there is growing concern that cadet training has become something of a business rather than a speciality.

Capt Ruan again: “The spectrum from capable and well trained cadets to those who are poorly trained is so wide in China that finding quality and competency has become something of a challenge. In the past couple of years, the number of training schools has grown from 20 to around 80, with most offering more theoretical training with little or no practical sessions.

“Hence, the selection and recruitment process needs to be stringent and candidates thoroughly screened. Our systematic approach to competence assessment and our enhanced training capabilities enable BSM to meet this challenge.”

Gas transport capability:

Delivering results through

heritage and expertise

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With decades of experience and a proven capability to select and develop the

right people in this exacting sector, BSM offers significant expertise in gas carrier management.

The Schulte Group has been involved in gas transport since the late 1960s and today, with a fleet of 90 vessels, BSM is the largest shipmanager in the sector.

Chris Clucas, Corporate Expert - Liquefied Gas, pointed out that the real benefit for customers is in putting this heritage to work, ensuring that the vessels are operated to the highest standards of quality. “Because we have so many gas carriers under our management, it means we can draw upon a strong pipeline of experienced people and offer good career development prospects,” he said.

It is the combination of Bernhard Schulte and BSM capabilities which makes the service that the Company is able to offer so unique – from plan optimisation and newbuild supervision through the Schulte Marine Concept (SMC) business, to the innovative partnership with Babcock International that is developing one of the world’s first LNG powered gas fuel supply vessels and the Comet Arrow Gas Transport joint venture with Mitsui & Company to build, own and operate a state of the art 174,000m³ LNG carrier.

“The Comet Arrow project is an exciting development for the BSM gas team as it marks the Schulte Group’s entry into LNG ownership with a first class partner and good prospects for future growth as the sector expands and natural gas becomes increasingly more important in the global energy mix,” said Chris. “The vessel will be built at Samsung Heavy Industries and delivered in 2018. It will be time chartered for a minimum of 15 years to Mitsui & Company to carry liquefied natural gas from the Cameron LNG project, located near the Gulf of Mexico, to customers in Japan transiting regularly through the expanded Panama Canal.

Plan approval and construction supervision will be undertaken by SMC, with the carrier then

fully managed by BSM on behalf of Comet Arrow Gas Transport.

“Gas carriers are different from traditional ships where the vessel goes on its way once the cargo is loaded. Aside from fully pressurised ships, liquefied gas carriers are different animals - they are process plants where the crew are operating the cargo plant during the voyage. We regard the cargo handling side as an example of process engineering” said Chris.

So having a complete gas management and service package that you can offer to shipowning principals is what sets you apart from your competitors? Chris Clucas again: “When we discuss projects with customers we can get involved in initial discussions regarding design development, to vessel construction, plan approval, yard supervision, sea trials, delivery and then in-service management. Once the ship is under management, we feed back our experience into training courses and through to the next fleet of ships.”

BSM is naturally very proactive when it comes to crew training. “We have been active participants in the development of international training standards, right back to the original STCW gas course syllabus through to the recent SIGTTO Advanced Competency initiative. We have established our own training courses in accordance with STCW, but further developed these to meet the changing learning needs of today’s seafarers.”

The use of simulators in our Marine Training Centres in Limassol, Gdynia, Manila, Mumbai and Shanghai has proven invaluable in taking cadets and officers through situations they may have to face at sea. Simulators are an ideal, risk-free way to learn how to manage different cargo handling systems.

“We’ve also been proactive in working with Videotel to provide web-based training. Gas detection is one example of a webinar course that has proved to be very successful. For example, we can run a course with participants in Germany, Venezuela, Cyprus, India and the Philippines all at the same time with the resultant saving on travel costs.”

Audio-visual addition

boosts PAL system

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BSM’s unique PAL system has been further improved by the introduction of a new, in-built

audio-visual training application.

Developed by the Technology Solutions Delivery Centre (TDC), PAL supports vessel operations across all areas of BSM’s business and new modules are introduced regularly to cover the diverse functions needed to safely and efficiently manage vessels.

PAL modules include operational aspects of shipmanagement, including insurance and voyage management, as well as modules which support wider maritime solutions such as Seachef PAL which assists onboard chefs with the entire meal planning process.

Since it was launched in May 2014, more than thousands of officers across BSM have been trained using the PAL system, either through classroom sessions organised by the global maritime training centres or via onboard training conducted by planned maintenance system officers.

The new audio-visual version has been developed to support crew training and the work of the planned maintenance officers, whose role involves the installation, implementation, upgrade and maintenance of the vessel planned maintenance system.

The new audio-visual training application is now available both on board and ashore, allowing seafarers and office personnel to access it easily at their

Seachef PAL enables efficient onboard meal planning

Meal planning as well as all administration and accounting in connection with provisions is

now simpler thanks to a newly developed software.

Launched in early 2015, the new version of BSM’s PAL shipmanagement system presently being used on board all BSM managed vessels, includes a Seachef PAL module.

Designed to assist and simplify the meal planning process, the Seachef module is an integrated meal management system. It is a user-friendly and sophisticated food service system which assists vessel chefs with menu preparation, meal planning and ingredient ordering – all within a single platform.

Seachef PAL users are able to generate a requisition by completing an online order form. Once the details are filled in, the module automatically calculates and updates the vessel’s inventory stock, allowing the chef to prepare meal reports and deliver meals based on the provision inventory on board.

This system helps to eliminate food wastage and allows chefs to plan healthy and palatable meals for their crew. The new module also has a monthly report feature which allows vessel owners to access meal costs and associated information.

Sharing his satisfaction with the new Seachef module, Captain Taha Shamsher of the MSC Antigua, said: “Prior to the new Seachef PAL, meal planning documentation had to be prepared in an Excel spreadsheet, scanned and then sent back to the office after which the inventory orders were placed. This was both time-consuming and tedious. However, with the new Seachef PAL we are able to cut the processing time and simplify the entire process of meal management on board. This has certainly boosted productivity and improved turn-around time.”

respective locations and have at hand an interactive system that aids them in their roles. This audio-visual option is also available across all modules presently available within the PAL system.

Speaking about the introduction, Managing Director of the Technology Solutions Delivery Centre, Sankar Ragavan, said: “The PAL system has been developed to keep BSM at the peak of productivity, allowing us to efficiently handle vessel operations with the aid of smart technology.”

He added: “While we have always offered a range of training options both in classroom setting and on board vessels, this new training module will allow BSM staff to utilise the system at their own time and pace in an intuitive and interactive manner.”


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Operational efficiency

and safety: Keeping

our promises

20


Delivering on the promise to operate vessels at the lowest possible operating cost is a crucial element

in the relationship between a shipmanager and its owning principal.

A recent independent study conducted by the global management and business strategy company, Boston Consulting Group (BCG), highlighted BSM’s strong industry-wide performance in this area.

A total of 1,846 vessels under full management across six sectors (container vessels, product tankers, crude oil tankers, chemical tankers, LPG / LNG carriers, bulk carriers) were included within the survey, with BSM providing data on 226 ships.

BSM’s operational expenditure (OPEX) costs were demonstrated to be 10% lower than the sample average on a weighted basis, with performance across containers and product tankers being even stronger at 17% and 21% respectively.

“This proved to be a valuable benchmarking exercise because there were a lot of participating companies and the results show that we are very cost-competitive when compared with the owners who took part.” said David Furnival, BSM Chief Operating Officer.

OPEX studies and analyses are carried out regularly by a number of different agencies but as Mr Furnival emphasised, the BCG process was “robust as it had

mechanisms in place for taking out erroneous or excessive data and consequently providing a more reflective benchmarking result.”

Balancing cost-efficient management with maintenance of the highest safety standards is key to BSM’s reputation and standing within the industry.

One of the major initiatives underpinning this commitment is the behaviour-based safety programme which analyses the performance of individual crew members and identifies opportunities for continuous improvement.

BSM’s operational expenditure (OPEX) costs were demonstrated to be 10% lower

than the sample average“ ”

21


Commenting on the programme and results achieved to date, David said “The measures we have chosen to show that behaviour-based safety is working on board ship are lost time injury frequency statistics which are an internationally recognised benchmark and comparable externally.

“With the behaviour-based safety programme now implemented on more than 80% of our ships, we are achieving our objectives and have halved the frequency of lost time injuries since 2011. Whilst we continue

to remain focused on further improvement, we are performing much better than the INTERTANKO or Cyprus Shipping Council benchmark averages.”

“Total recordable case frequency is following the same trend, but this also includes the frequency of medical cases where we have a more robust strategy for reducing Protection & Indemnity claims. We are seeing fewer claims as a result of enhanced pre-employment medical examinations, better screening and the use of fewer, well selected medical centres,” he added.

Mumbai: Advanced

training and learning

22


Customers are sending their officers over and over again to BSM’s Maritime Training Centre for

Advanced Learning, in Mumbai, much to the satisfaction of Brijendra Srivastava, Director of the Centre.

While most of the training carried out at the centre is meeting in-house requirements, selected customers, including Shell and BW Maritime, are also benefiting from the specialist courses on offer.

BSM has been organising maritime training at the centre in Mumbai since March 2000, but with a very different emphasis. “We are not like so many training institutions that offer the mandatory Standards of Training, Certification and Watchkeeping (STCW) course, which is basically the competence certificate, we are offering value-added training here,” said

Brijendra. “We are going well above the mandatory and regulatory requirements. The centre is well recognised for its various competences.”

As he pointed out, any successful training centre relies on its people – “and we have excellent people”.

He himself has 33 years’ experience in the industry. He spent 11 years at sea, becoming a Chief Engineer, and then worked for 15 years with Lloyd’s Register, and he holds a diploma in business management.

“Our least experienced trainer has 25 years of industry experience. We only have Chief Engineers and Master Mariners, including one with Port Captain and Pilot experience,” he said.


The Mumbai centre is ISO 9001:2008 approved by Lloyd’s Register, and many of its courses are recognised by organisations such as DNV GL, and flag states such as the Marshall Islands and Liberia. Its Maritime Resource Management (MRM) is approved by The Swedish Club.

The centre itself is equipped with spacious classrooms and state-of-the-art ship manoeuvring, engine room, LNG, RT Flex and AB steering test simulators. That, said Brijendra, is crucial. “Simulators are becoming more and more important, with officers able to gain experience of managing situations that arise at sea in a land-based environment.

“The RT Flex simulator is being used to train officers for the new generation of engines being produced. Before they go on board, we train them for three days here – so they will already be familiar with working with the new generation engines. We started using the RT Flex simulator in 2011 and have already completed 45 courses.

“The Mumbai centre is one of very few places equipped with the latest LNG simulator and more than 60 courses have already been offered on this, with a total of 300 officers trained. Shell, BW and K Line are amongst the customers sending officers for this training, which is DNV GL approved to SIGTTO standards in association with the Warsash Maritime Acadamy in the UK.”.

Ultimately, the main purpose of training should be loss prevention and safety, said Brijendra. And that aim goes beyond simply completing the specified course. “Each candidate has to undergo an examination after the training course to demonstrate that he has grasped the training, and we ask for feedback from both internal and external customers. We also ask the Master and Chief

Engineer to assess whether the seafarer has benefited from the training or not following their return to the ship. We are getting excellent, very positive feedback.”

Although the Mumbai centre does not directly offer STCW training, it has taken proactive steps to support deck and engine cadet training through a unique partnership established with the Vishwakarma Maritime Institute (VMI) over five years ago.

Located in Pune, India, the Institute was established in 2009 and provides certificate and graduate courses in Marine Engineering and Nautical Science disciplines.

“We realised that a number of training institutions had opened in the market but there was more quantity than quality,” he said. “We set up a partnering agreement where every VMI candidate is interviewed and selected by BSM before starting training. We only select about 10% of those applying after a rigorous process of written tests followed by initial screening, final interview, medical and psychometric testing.

“The Mumbai Training Centre is also increasing its focus on behaviour-based training. Just as MRM deals with various modules and management skills, the attitude and behaviour of the seafarer needs to be developed so that they become more proactive,” said Brijendra.

“We have also developed a three-day course on safety, security and pollution for ratings and are considering Maritime Resource Management training. While managerial skills may not be applicable, many of the modules are relevant to all – for example, communication.

“Effective training is increasingly important as technology is changing so quickly, but the attitude and behaviour of the individual is equally crucial.”

23

A novel way of using BSM’s PAL shipmanagement software to extract highly important risk and loss

data needed by the world’s insurers and reinsurers, and an idea to speed up and improve the handling of cash on board ship have been named as the first winners of the recently launched ‘Innov8’ initiative.

‘Innov8’ was launched to encourage those on board and ashore to submit ideas that can make a real difference in helping ship owners reduce operating costs, while ensuring that BSM managed vessels continue to be operated to the highest standards, in the safest way possible and with no damage to the environment.

And the contributions were outstanding. The First Prize was awarded to Stewart Bankier (pictured), Loss Prevention Safety Quality Manager based in the UK, for his idea to extract data from PAL for the insurance industry’s Bordereaux report. This, he said, will save considerable

effort, streamline submissions, and reduce potential errors – thereby improving overall efficiency. Bordereaux is a report providing premium or loss data with respect to identified specific risks. It is periodically furnished to a reinsurer by the ceding insurers or reinsurers.

Sunil Ashar, Team Leader of Global Shared Services Centre, based in Mumbai, India, was awarded the Second Prize for his idea to incorporate Cash To Masters (CTM) accounts into the PAL vessel module. The idea will improve management of the CTM and reduce potential errors.

As Sunil said, a cash balance is available on board all vessels and the Master has to maintain this balance and report it to office on regular basis. Currently, all cash reports are maintained in an Excel file, but by having a PAL module available onboard to maintain this record, the Master will not only save time but reduce the potential for calculation mismatch.

One BSM

Announcing our first

Innov8 winners


24

One BSM


In May, a memorial site for the victims of the Yolanda typhoon that struck the Philippines in

November 2013 was officially inaugurated and blessed by the San Joaquin Parish Church in Palo, Leyte. Initiated by BSM, the memorial monument took more than a year of planning and five months of construction, and is a tangible expression of support by the Company to remember those who lost their lives in the province of Leyte.

BSM has been at the forefront of the efforts to provide assistance to the typhoon victims, including

the establishment of a relief fund which was supported by generous donations from employees, customers and suppliers.

Sharing details of their work, Chito Duran, President of BSM Crew Service Centre Philippines, said: “Initially we sent essential goods to devastated areas through our offices in Manila, Cebu and Iloilo. As an extension of these efforts financial assistance was provided to the families of our seafarers who were badly affected by the typhoon. The funds were used by the families to repair and, in more extreme cases, rebuild their destroyed homes.”

BSM inaugurates memorial

for Yolanda victims

25

One BSM

Twenty year-old Christina Kropp, an office administrator trainee at BSM Germany, was

delighted to be given the opportunity to be the first office trainee to journey on board a container vessel as part of a new drive from BSM to increase awareness of life on board a vessel for all staff.

The 4,300teu Schubert travelled from Rotterdam to Bremerhaven over the course of three days, captained by Oleg Nesterenko. During the course of the voyage Christina was invited onto the bridge to watch the departure of the vessel from port, participated in vessel inspections and experienced first-hand the mechanics of a fire drill.

Christina acknowledges that this was indeed a unique experience and feels very privileged to have had the opportunity to get a glimpse into the life of a seafarer. She said: “My time on board has been a real eye-opener, helping me to learn about vessel operations, the day-to-day challenges on board and most importantly understand the importance of high quality and well trained seafarers.

“I have been able to take what I have learned back into the office and am surprised at how my few days at sea have affected my approach to the job and my understanding of the role I play within BSM” she said.

A maiden voyage

26


One BSM


Over a thousand graduates, along with their proud families and friends, gathered at the

University of Cebu Maritime Education and Training Center this March, for the first graduation ceremony of the “Study Now Pay Later” (SNPL) programme sponsored by BSM.

The SNPL programme aims to help capable young people realise their potential without the financial burden that can deter those from financially challenged backgrounds. Whilst the programme receives thousands of applications yearly, a stringent selection process ensures that only the most promising candidates gain acceptance.

The selected applicants undergo a comprehensive curriculum which covers not only job related training, but

is also structured to develop the cadets as confident, capable seafarers who are excellent team players and resilient to situations which can arise at sea.

Addressing the graduates and conferring special recognition awards was Captain Armando Santosidad, Tanker Fleet Director at BSM Crew Service Centre Philippines, who himself had progressed through the ranks.

Following the ceremonial pin attachment, the top five nautical and engine cadets were conferred special recognition awards for their outstanding performance during the training. The ceremony concluded with the formal service hand-over which saw the current batch of SNPL programme officers pass the baton to their juniors.

Study now pay later

27

28

One BSM


BSM Singapore demonstrated its commitment to supporting the professional development of its staff

earlier this year by assisting a number of employees to join the Institute of Marine Engineering, Science and Technology (IMarEST).

With a programme aimed at supporting the professionalism, dedication, enthusiasm and responsiveness of global marine professionals, BSM Singapore is looking forward to the benefits that professional membership of IMarEST will bring to the team.

Bob Maxwell, Managing Director of BSM Singapore said: “Supporting the professional development of our

staff is a key driver for this partnership, and we were delighted to be able to sign up a number of employees to become members of the IMarEST. We are keen to see our staff develop and giving them access to professional qualifications, including becoming Chartered, which is good for the company, for them as individuals and for our customers.”

IMarEST has over 16,000 members and brings together marine engineers, marine scientists and marine technologists in over 128 countries. It facilitates the exchange of ideas and practises and aims to enhance the status, standards and expertise of marine professionals worldwide.

BSM supports professional

membership

Over 100 guests including customers, business partners and associates attended a celebratory

reception held at the Dreams Reception Hall, in Glyfada, to commemorate the 10th anniversary of BSM Greece Shipmanagement Centre.

Representing BSM were Chief Executive Officer Captain Norbert Aschmann, Chief Operating Officer David Furnival, Director HR Shore Elena Pantazidou and Director Product Development / Strategy Yiannis Sykas.

Capt Aschmann, during his short speech, welcomed all guests and congratulated Managing Director of BSM Greece, Theophanis Theophanous and his team for the 10 successful years and wished them many more good years ahead.

Selected for its importance as a major shipping centre, BSM Greece Shipmanagement Centre was originally chosen as the location to facilitate the crewing needs of local ship owners. In only ten years, BSM Greece has evolved to a fully integrated service centre encompassing technical and crew management services, managing over 30 vessels including Dry, Tanker, Gas and LNG.

Celebrating 10 successful years

BSM Ship Management Centres

ChinaBernhard Schulte Shipmanagement (China) Company Limited,1-3F Block No.7, 1690 Cai Lun Road, Zhang Jiang, Pu Dong,Shanghai 201203Tel: +86-21-61061333 Fax: +86-21-61061300Email: [email protected]

Isle of ManBernhard Schulte Shipmanagement (Isle of Man) Ltd.Dorchester House, Belmont Hill, Douglas, Isle of Man, IM1 4RE,British IslesTel: +44-1624-631800 Fax: +44-1624-626-020 Email: [email protected]

GermanyBernhard Schulte Shipmanagement (Deutschland) GmbH & Co. KG,Vorsetzen 54, 20459 Hamburg, GermanyTel: +49-40-822265-0 Fax: +49-40-822265-650 Email: [email protected]

Eurasia Travel NetworkP. O. Box 50127, CY-3601 Limassol, CyprusTel: +357-25-846470 Fax: +357-25-344675 Email: [email protected]

Hong KongBernhard Schulte Shipmanagement (Hong Kong) Limited Partnership,2602, K Wah Centre, 191 Java Road, North Point, Hong KongTel: +852-2561-8838 Fax: +852-2561-8803 Email: [email protected]

Seachef - Maritime Hospitality Services401, Olympia, Hiranandani Gardens, Powai, Mumbai - 400076, IndiaTel: +91-22-40017300 Fax: +91-22-40017333 Email: [email protected]

SingaporeBernhard Schulte Shipmanagement Centre (Singapore) Pte. Ltd.152 Beach Road, #32-00 Gateway East, Singapore 189721Tel: +65-6309-5000 Email: [email protected]

Technology Solutions Delivery Centre (TDC)Leela Info Park, Phase 1, Second Floor, Kusumagiri PO, Kakkanad, Kochi – 682030, Kerala, IndiaTel: +91-95678-50779, +91-90207-50779 Email: [email protected]

CyprusBernhard Schulte Shipmanagement (Cyprus) Ltd.Hanseatic House, 111 Spyrou Araouzou Street,P.O. Box 50127, CY 3601 Limassol, CyprusTel: +357-25846400 Fax: +357-25745245 Email: [email protected]

GreeceBernhard Schulte Shipmanagement (Hellas) SPLLC.Kifisias Avenue 6-8, 15125 Marousi, Athens, GreeceTel: +30-210-6930-330 Fax: +30-210-6930-333 Email: [email protected]

Hanseatic Chartering Ltd.Hanseatic House, P.O. Box 50127, CY 3601 Limassol, CyprusTel: +357-25846400 Fax: +357-25745245 Email: [email protected]

IndiaBernhard Schulte Shipmanagement (India) Pvt. Limited401 Olympia, Hiranandani Gardens, Powai, Mumbai 400 076, IndiaTel: +91-22-400173-00 Fax: +91-22-400173-33 Email: [email protected]

Schulte Marine Concept3F Block No.7 1690, Cai Lun Road Zhang Jiang, Pu Dong Shanghai,201203 ChinaTel: +86-21-5027-6077 Fax: +86-21-5027-7055 Email: [email protected]

United KingdomBernhard Schulte Shipmanagement (UK) Ltd.3 Hedley Court, Orion Way, Orion Business Park,Newcastle-upon-Tyne, NE29 7ST, United KingdomTel: +44-191-29318-20 Fax: +44-191-29318-21Email: [email protected]




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www.bs-shipmanagement.com

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