TAKEROperator · New VLCC orders News Profile Tight labour market Crewing costs rise Operations...

NOVEMBER/DECEMBER 2010 www.tankeroperator.com

Features:� A tight labour market� New rules for STS� Oil and gas rules� Distillate price problems � ECDIS training highlighted� Intelligent AIS

TA�KEROperator

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November/December 2010 � TANKEROperator 01

ContentsMarkets � Invest, or not to invest?

� New VLCC orders

News Profile � Tight labour market

� Crewing costs rise

OperationsMooring injuries a worry

Ship-to-Ship Transfers� New IMO rules imminent

� Simulation for safety

Norway Report� Oil and gas the lifeblood

� TTS strong in tankers

� Seatrans stung by taxes

� Knutsen expands on many fronts

Bunker Operations � Distillate premium a problem

� Sampling best practice

� New fuels discussed

� Fujairah expansion

� Credit risks highlighted

04

08

Front cover photo STS operations have increasingly come under themicroscope and will be subject to new IMO rulesin the �ew Year. As usual with new regulations,there are more questions than answers, but atleast it will put the operation on the map. Photo credit – SafeSTS.

35

27

Technology35 Training systems� ECDIS training vital

� Dutch specialist expands

� In-house training

� Videotel -working with industry

45 �avaids� AIS offers business intelligence

� UKHO enhances ENCs

� INS/IBS launched

� Control centre unveiled

51 Tank Servicing� APC strengthens operations

� Gas detection enhanced

� Cargo spec changes

55 Vapour Control� Knutsen markets new technology

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According to a leading shipping practitioner,observer and commentator, the problems that loomlarge in the shipping industry today are thoseconcerning risk management, limitation of liability,insurability and control of the operational lossfactor. Speaking at his annual London lunch, Clay Maitland, North AmericanMarine Environmental Protection Association (NAMEPA) chairman andmanaging partner of International Registries gave his hard hitting take onshipping’s woes, especially in the wake of the Macondo incident.

He said that rather worryingly, he did not know whether thetraditional P&I system would be effective in years to come. In thefuture, regulators such as the European Maritime Safety Agency(EMSA), are going to be of critical importance, he thought.

“The greatest issue that faces our industry is not emissions, notpiracy and not even the global economic crisis. It is liability. In myopinion, we are not equipped to confront it.

“To do so, we need a different approach to the cost factor. P&I coverwill no longer be available at a reasonable price, if the precedent set bythe Deepwater Horizon, Prestige, Erika and COSCO Busan are any sortof benchmark”, he warned. “Are these risks insurable? We need tolearn how to manage risk.”

He continued by saying that the prospect of an extension of liabilityto other forms of charterer, lender and shipper raise cost factors thathave not been fully understood.

Quality is an issue with a specific pricing factor. “If we cannotdeliver quality, we will surely go under. We certainly cannot hope todeliver supply chain services at a price that our customers are willing topay,” he said.

He said that there would be a response to the Deepwater Horizonincident, which will probably take two forms - the regulators and theindustry. “Undoubtedly, the regulators will be tightening oversightmeasures, based on the ISM Code. Limits on liability will be raised, oreven eliminated. Private industry will implement operational riskmanagement practices as never before. Remember: a liability hole ofmuch more than $40 mill has been blown in a major corporation (BP),”he explained.

Maitland stressed that the most critical risk factor that the industrynow faces is liability. On the other hand, the most severe crisis that weface internally is the growing extreme and irrational pressures beingimposed by so called’ managers’ and by governments on the seafarer.

“I believe that the regulators, including IMO, are going to adopt amore muscular risk management oversight programme and a morepunitive one, than that now embodied in Chapter IX of SOLAS- theISM Code. This will involve some form of oversight of safety andquality management systems and of course will impose an additionalbureaucratic burden on ships’ officers,” he said. He warned that qualityis a factor that commands a higher price that many in the industry maynot be willing to pay.

Turning to seafarers, Maitland said that they were increasingly“commoditised”, often recruited in countries with no maritimetraditions; subjected to longer hours of work and poorer quality of life;diminished professional standing; subjected to more time on board andless ashore; treated as presumptive terrorism suspects; whose life andsafety are often disregarded; frequently criminalised for acts caused byothers; required to master an ever-growing regulatory workload.

IMO laudedHe had praise for the IMO’s Efthimios Mitropoulos in confronting theseissues. “In the face of no little resistance, he has pushed through a newconvention on casualty investigations, the mandatory audit of flag statesand a greatly increased emphasis on the rights and safety of seafarers, aswell as amendments to SOLAS,” he said.

Maitland said that we face a future with the supply of labour underthreat, piracy without a visible end in sight, new vessels built ofdoubtful quality, turbulent markets, unilateralism and protectionism,‘beancounteritis’ unlimited liability and, overall, an obvious lack ofleadership.

“For a better future, we must address the recruitment and training ofseafarers. The crew is our first line of quality assurance and thesafeguard of our maritime supply chain. The need to improve theirworking and living conditions, afloat and ashore, is critical to the futureof shipping,” he said.

“Seafarers are the key decision makers, not the shoreside managers,so make sure that they are trained properly,” he said.

He thought that eventually even the Chinese recruit would disappearas the standard of living increases in that country, resulting in a seagoingcareer becoming unattractive due to economic reasons.

He also said that Asia was still a major concern, as many vessels inChina and India plying their trades in coastal waters were not classed.Another concern to be managed was the rush to extract oil and gas fromthe Arctic regions of the US, Russia and Greenland.

COMMENT

Risk and liability - twin threats to our industry

TO

TANKEROperator � November/December 201002

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INDUSTRY - MARKETS


At the current time charterequivalent (TCE) revenue levels inthe tanker sector, the subject ofinvestment attractiveness seemsout of place. However, those familiar with the tankerindustry know that shipping is a cyclicalmarket and high markets follow low ones, justas surely as low markets follow high ones. Asa result, McQuilling Services looked at thesubject of comparative investmentattractiveness recently.

First, the consultants assumed that goingforward, there is a great degree of uncertaintyin terms of what asset prices and TCErevenues will be at any given point in thefuture. Recognising the dangers of using thepast to predict the future, they nonethelesswanted to establish some context for whatfuture market behaviour might look like.

To do this, they wanted to show the rangeof rates of return that could be realised foreach tanker asset class if the market highs andlows for freight rates and asset prices wereexperienced seen during the period 1997through 2008.

McQuilling calculated the average annualTCE revenue for each asset class and found themaximum and minimum experienced between1997 and 2008. Going forward, it was assumedthe vessels were employed 360 trading days peryear on the primary trades for the vessel classat these levels, but did not incorporate anyassumptions for optimised deployment.

Next, the figures were run through anacquisition calculator to determine the rate ofreturn on an equity investment in each specificasset class.

Financing costs were not included – onlycash flows from TCE revenues and cash flowsfrom operating costs to evaluate the overallproject attractiveness. The pre-constructioninterest payments were included, as well asthe proceeds from the sale of the vessel forscrap at the end of 25 years.

A discounted cash flow analysis wasperformed against the initial investment andthe internal rate of return (IRR) was found for

and TCE revenue volatility over the periodin question.

Also noted was that in order to access thepotential of the elevated returns of the VLCCsector, a great deal more capital was required.At average prices of $95.6 mill over the 1997-2008 period, almost three MR tankersaveraging $35.7 million each could bepurchased for the price of one VLCC.

On each wedge, the IRR was plotted as adiamond shape resulting from the combinationof the current asset price for each tanker classand a TCE revenue corresponding to theaverage for the 1997-2008 period. In all casesthe IRR is positive, albeit lacklustre.

The IRR wedges are a way to consider thecomparative investment attractiveness acrossdifferent tanker sectors. Their size and shaperepresent the potential rates of return thatmight be observed going forward, based onthe historical time period 1997-2008.

As mentioned at the beginning of this study,predicting the future based on the past is riskybusiness but results do help to provide aperspective on the possibilities of the market.

Of course, the freight markets must recoverfrom their current cyclical lows before any ofthe foregoing becomes more than just atheoretical exercise.

When they do, the use of IRR wedgeanalysis described herein may provide someinsight to market participants on the tankersectors of choice in the future, McQuillingconcluded

Tankers – A good or bad investment?

each asset class at the minimum andmaximum TCE revenues and asset prices.

The results are most interesting whenviewed graphically. Figure 1 illustrates theIRR wedges corresponding to each tankerclass. Each wedge represents the boundary ofpossible IRRs experienced for each tankertype during the 1997-2008 trading period. Thetop corners of each wedge represent the caseof maximum TCE revenue at the minimumand maximum asset prices. The bottom twocorners represent the minimum TCE revenuesat the minimum and maximum asset prices.

The shapes are theoretical in that a specificasset price/TCE revenue combination withinthe shape may not have been observed duringthe period, but all possible combinations wereincluded in the area described by the wedge.

A comparison of the IRR wedges in Figure1 produced some useful observations. Clearly,the VLCC sector had the most potential forstrongly positive IRR performance, but abouta quarter of the IRR possibilities are negative.Suezmaxes had less IRR upside potential, butalso less probability of negative returns.

For the smaller sectors, the probability ofnegative IRRs diminishes, until only positiveIRR results are recorded for MR tonnage.

However, the best IRR for this wedge isonly about 25%, compared to more than 40%for the VLCC sector.

In evaluating the wedges, the size of theVLCC wedge was quite a bit larger than theother sectors, pointing to greater asset price

Table 1 – Historical TCE Revenues – 1997-2008

TO

Table 2 – Historical Newbuilding Asset Prices 1997-2008

8.6

-20

-10

0

10

20

30

40

50

60 80 100 120 140 160

VLCC

Asset Pric e ( US$ Mi l l i on )

Equity Rate o f Return (%)

10.4

20 40 60 80 100 120

SUEZ

8.5

0 20 40 60 80 100

AFRA

7.2

0 20 40 60 80 100

PAN A

9.3

0 20 40 60 80 100

M R

Figure 1 – Equity Rate of Return Wedges

US$/Day VLCC SUEZ AFRA PA�A MR

Minimum 11,729 15,288 11,363 12,133 12,817 Average 45,664 35,825 27,593 23,640 20,053 Maximum 100,706 59,956 47,770 37,202 28,860

US$ Million VLCC SUEZ AFRA PA�A MR

Minimum 65.6 44.0 34.5 28.8 26.0Average 95.6 60.5 48.5 40.7 35.7Maximum 147.8 89.5 74.4 32.4 50.8

Return boundaries based on extreme values for TCE revenues and newbuilding asset prices during the 1997-2008 timeframe

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INDUSTRY - MARKETS


Although thus far in the fourthquarter of this year, newbuildingorders have almost dried up, thethird quarter of this year saw 21VLCC orders placed - thehighest number since thecorresponding quarter of 2008,shortly before the globaleconomic meltdown. Given the extraordinary size of theorderbook prior to 3Q10 and the recordscheduled delivery profile for 2011, it mayseem a little strange that the newbuildingmarket has seen such a spate of activity, saidGibson Research.

What are the motivations behind thisordering and is such investment as risky as itmay first appear?

Given that Chinese government hasdemanded that half of the country’sdomestic crude imports be carried indomestic hulls by 2015, it is unsurprisingthat Chinese companies account for onethird of the new orders.

With regards to the risk involved, it seemsless dangerous given the directive isgovernmental. In the case of Chinese state oilcompanies, the investment will come directlyfrom Beijing itself.

However, there may be another completelydifferent reason that has encouragedinvestment from others in the VLCC sector.For example, ‘cheap’ asset values have nodoubt encouraged investment from elsewhereamong cash rich owners prepared to take along term view.

VLCC prices averaged around $105 mill(South Korea) in 3Q10. This represents asignificantly low point of entry for tankermarket participants and perhaps a much moresuitable option than secondhand tonnage.While five year old VLCCs may be cheaper at$92 mill in the same period, there are twodisadvantages, Gibson said. First, immediatedelivery into a depressed market and second avessel built to the specifications laid down byanother owner.

The newbuilding option appears a morestrategic acquisition based on price andfuture delivery. Furthermore, continuingdemand for increased fuel efficiency andlarger cargo capacity may ensure thatmodern vessels, built to the mostcontemporary specifications, are morecompetitive.

Notably, despite the current extremely weaksituation, average VLCC earnings are 30%

higher year-on-year to date than 2009 -although this is attributed in part to tonnageused for floating storage. Looking forward,global oil demand is forecast to increase by anaverage of 1.3 mill barrels per day per annumover the coming four years.

Important to note for VLCC owners, themajority of these gains are expected to be metby long haul crude movements.

Thus, it appears recent ordering is driven bya combination of ‘cheap’ asset values,governmental demand and a long term viewon behalf of independent operators whobelieve that there will be greater demand forlarger, modern, more efficient VLCCscompliant with increasingly stringent vettingprocedures, Gibson said.

Given the ‘cheap’ prices achieved in 3Q10,there will be less pressure on these orders thanthose made at much higher prices in 3Q08,Gibson concluded.

A challenging scenarioA major question that remains in the tankermarket for next year is whether the over-investment in buying new tankers will beoffset by a strong demand for crude cargoes,shipbrokers Poten & Partners said in recent areport analysed by Platts.

"There have been modest signs of recoveryreflected in the fourth quarter 2010 as VLCCcargoes of crude oil in the Middle East Gulfhave seen a 20% increase year to date," thereport said.

Vessel supply has long dictated the speedof market recovery, while the agerestrictions at terminals and industrystandards for younger trading vessels may push more tonnage out of the market, it added.

Giving a break up of the global tanker fleet,the report noted that there were 559 VLCCsand 380 Suezmaxes with an average age of7.5 years to 8 years; 897 Aframaxes with anage of 8.5 years; 382 LR1 vessels at 6.5 yearsand 1,350 Handymax and MRs of between 6.5and 7 years.

With the phase out of single hull vesselsalmost complete and no improvements seen in fundamentals, the medium term is shaping up to be a challenging time for shipowners, the shipbrokers said,reported Platts. "While orderbook deliverywill be a key element of market upswingover the medium term, the near termprospects for the tanker industry remainstied to the recovery of international

economies," the report added.Although there were signs of impending

gloom for the tanker market, the globalcrude demand to the Asian countries,especially China and India, offered hope forthe sector.

"Expanding oil demand in these marketswill likely translate into increased tonnemile-demand as rapidly growing nations lookto sources far and wide to fulfill theirdomestic requirements," the Poten reportsaid. "A clear understanding of thesecountries' current role in the petroleumindustry and their roles in transformingglobal tanker trade routes will be paramountin identifying opportunities in theseexpanding markets," the report added.

VLCC ordering – back in vogue

TO

SHIPPING

REGULATIONSand Guidance A PERIODICAL

Your guide to

what’s happening

in the regulatory

world of shipping

NSNS

witherby seamanship

international

For more details visit:

Witherby Seamanship International Ltd4 Dunlop Square, Livingston, Edinburgh, EH54 8SB, Scotland, UK. Tel No: +44(0)1506 463 227 Fax No: +44(0)1506 468 999 Email: [email protected]

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INDUSTRY – NEWS PROFILE

The worldwide supply of seafarersin 2010 is estimated to be 624,000officers and 747,000 ratings, whilethe current worldwide demand for

seafarers is 637,000 officers and 747,000ratings, said the BIMCO and the InternationalShipping Federation (ISF) joint study of theworldwide supply and demand for seafarers.

However, in some specialist cases,including tankers, the gap was wider.

The chairman of the project’s steeringcommittee, Douglas Lang of Anglo Eastern,explained: “Our results suggest a situation ofapproximate balance between demand andsupply for ratings, with a modest overallshortage of officers of about 2%. This doesnot, of course, mean that individual shippingcompanies are not experiencing seriousrecruitment problems, but simply that overallsupply and demand are currently more or lessin balance. This is perhaps not surprisinggiven the sharp contraction in the demand forsea transport in 2009 combined withsignificant growth in total seafarer numbers.”

With regard to certain nationalities, there isan underlying concern about the current andfuture availability of senior officers. Butwhile there is some evidence of continuingrecruitment and retention problems, these arenot as severe as envisaged by the last updateproduced by BIMCO and ISF in 2005.Encouragingly, the data suggests a notableimprovement in supply side numbers over thepast five years, notably in China, India and thePhilippines, but also in several OECDcountries, the study found.

The 2010 update also presented variousglobal supply/demand balance scenarios forthe next decade. The ‘benchmark’ scenariorepresents BIMCO and ISF’s view of the mostlikely trends, based on recent developmentsand the opinions of key players taken from

various surveys conducted for the study.The ‘benchmark’ assumes a modest increase

in the number of vessels in the world’s fleet of2.3% per annum, which is very similar to theaverage growth rates during the past decade.Manning levels are assumed to declineslightly on average and backup ratios arecautiously assumed stable.

On the supply side, it is assumed thatrecruitment rates will continue at roughly thesame level as during the previous decade, butwastage rates (net loss rates from the industry)will be higher by about 1% per annum.

Despite the conservative assumptions, thecurrent moderate officer shortage is expected topersist, unless training is further increased and/or measures are taken to reduce wastage rates.

If general economic conditions continue toimprove – as indicated in the ‘hot’ scenario –there could be quite severe problems. Thisforecast is also sensitive to various otherfactors, which are explored more fully in thepages of the report.

Lang said: “There are many uncertainties,but our results indicate that the industry willmost probably face a tightening labour market,with recurrent shortages for officers, particularlyas shipping markets recover. Unless measuresare taken to ensure a continued rapid growth inqualified seafarer numbers, especially forofficers and/or to reduce wastage from theindustry, existing shortages are likely tointensify over the next decade.

“Supply appears likely to increase in manycountries, but the positive trend that has beenestablished for training and recruitment overthe past few years must continue to bemaintained to ensure a suitable future pool ofqualified seafarers,” he stressed.

The 2010 Update is based on data collectedfrom questionnaires sent to governments,shipping companies and crewing experts. It

also incorporates the views and perceptions ofsenior executives in shipping companies andmaritime administrations and detailedstatistical analysis provided by the WarwickInstitute for Employment Research.

Importantly, for the first time, the study hasbeen assisted by Dalian Maritime University,which has helped obtain input from Asiancountries where it had previously beendifficult to obtain definitive data.

The authors said that it was important tostress that the industry needs well qualifiedand high calibre seafarers capable ofadapting to change and handling the widevariety of tasks now demanded of them. Anytraining programme provided must ensurethat quality is not compromised in the drivefor increasing quantity.

The full report on the BIMCO/ISF 2010Update on the Worldwide Demand Supply ofand Demand for Seafarers is available thismonth from BIMCO and ISF for €140, or £125.

A continuing tightlabour market

forecastThere is a 2% shortage in the supply of officers this year to cope with

the higher demand. However, there is a fine balance between the demand

and supply ratio for ratings, a comprehensive seafarer study has found.

2010 2015 2020

Demand

Demand

Demand

Supply

Supply

Supply

-2%

-2%+2%

-2%

-5%

-1%

-2%

-11%

-9%

+120

100

0

+120

100

0

+120

100

0

Sensitivity to Fleet Growth

Demand and Supply are shown as Indices:Supply in 2010 = 100 with % gap (supply-demand)

Source: BIMCO/ISF estimates

“Cold

” Sce

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Benc

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Demand

Supply

TO

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INDUSTRY – NEWS PROFILE


Crew costs have been identified asthe category most likely toproduce the highest levels ofincrease, according to a survey

by accountant and shipping consultant MooreStephens.

The survey is based on responses from keyplayers in the international shipping industry,predominantly shipowners and managersbased in Europe and Asia. And thoseresponses revealed an overall expectation thatcrew costs would rise by 2.7% in 2010 and by3% in 2011.

“It’s all about crew,” noted one respondent.“With fewer experienced crew available forworldwide fleet expansion, labour costs willrise”. Another commented, “In order to keepthe present pool of seafarers and improveperformance, we will need to look at increasesin wages and other benefits for seafarers sothat they are attracted to work on board, ratherthan take up lucrative jobs ashore.”

Responses to the survey indicated that thecost of lubricants is expected to increase by2.4% and 2.7% in 2010 and 2011 respectively,with repair and maintenance expenditurelikely to rise by 2.6% in each year. Thecategory deemed most likely to produce thelowest level of increases in both 2010 and2011 was management fees, at 1.6% and 1.8% respectively.

Respondents also expressed concern overrising insurance costs. “The dark horse isinsurance costs,” remarked one respondent,“due to the fact that ordinary plannedmaintenance in many cases will be eitherreduced or ignored as vessel income cannotfinance the costs, and banks will not provideor extend credit lines. More incidents will bereported to insurers, with a consequentialincrease in premiums.”

There were also concerns that operatingcosts would increase due to the weakness ofthe dollar. “Operating costs over the nexttwo-to-three years may not show anysubstantial increase as the world economycontinues to stagnate,” said one respondent,“but costs will increase due to the devaluationof the dollar, which inflates overall costs”.

Asked to nominate the three factors mostlikely to influence the level of vessel

operating costs over the next 12 months, 43%of respondents identified crew supply as themost significant, followed closely by financecosts at 39% and then by demand trends, at22%. Crew supply and finance costs were alsothe top two factors in Moore Stephens’ 2009survey, although then finance costs led theway at 26%, with crew supply at 22%. Thethird most significant factor in 2009 wascompetition, at 16%.

Moore Stephens shipping partner RichardGreiner said, “Ship operating costs have beenrunning at increasingly high levels in recentyears, but our OpCost benchmarking toolshows that, in 2009, total annual operatingcosts fell – for the first time in eight years -across all the main ship types by an average of 2%.

“It is no surprise now to find that theindustry is expecting costs to increase thisyear and next, nor to learn that crew costs arelikely to lead the way in this regard. But itdoes seem that some of the volatility ofrecent years has gone out of ship operatingcosts and that is good news for shipping. Anyrepeat of the huge increases recorded inrecent years would be unsustainable in the

current economic climate,” he concluded.At the annual Moore Stephens OpCost

seminar, V Ships’ Capt Bob Bishop gave hisviews on crewing costs. He said thatforecasting was difficult due to various costcomponents being influenced by socio-economic, markets, geographical factors andshipmanagement performance. He agreed thatmanning always received the most attention asit was the highest cost factor, but was oftenthe most volatile.

The super-cycle came to an end in 2008,which also brought a halt to high crew wageinflation, which was running at around 20%year on year. Today, the cost factor wasincreasingly flat with an undersupply ofofficers and an oversupply of ratings beingobserved. However, around a 5% shortfall inofficers will put continuing pressure on wages,Bishop said. Training costs were alsoincreasing, including on board training.

He described crew air travel costs asminimal, despite rising fuel costs and taxes.Victualling costs were rising due to food priceinflation. He also thought that the impendingMaritime Labour Convention (MLC) was anoperational problem, rather than a cost factor.

Bishop outlined his thoughts on the crewcosts for an Aframax of 10 years of age,flying an open registry flag and operatingworldwide. The hypothetical vessel had acrew of 23 – nine officers, 12 ratings andtwo cadets. Their nationalities were Indianand Filipino. TO

Crewing costs tocontinue to rise

Vessel operating costs are

expected to rise by 3.2%

per cent this year and by

3.5% in 2011.

Daily crewing costs Overall for an 150,000 dwt operating

tanker ($) costs*

2010 3,900 8,050

2011 3,978 8,280

2012 4,058 8,535

2013 4,139 8,824

2014 4,221 9,162

2015 4,306 9,548

*Includes stores, spares, lube oils, admin fees, repairs and insurance. Source V Ships. This presents an annual increase of around 2%.

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INDUSTRY – MOORING OPERATIONS

However, there have been incidentsresulting in death and seriousinjury on board the Club’s insuredtankers, monitored since 1987.

In that period, the Club has dealt with 26serious injury claims of over $100,000 each,which have so far cost around $16.5 mill. Theserelate to accidents on board tankers, involvingthe vessels’ own mooring lines, ropes, stoppersand winches, as well as tug ropes.

They have resulted in several fatalities, anumber of broken legs at least one of whichrequired amputation; serious and permanenthead injuries; neck, upper torso, facial anddental damage; fractured pelvis, ruptured spleenand broken wrist; and a range of back injuries.

Examples include:� Mooring line parted, striking a crewman in

the legs; he fell, sustaining an exposed fracture of the tibia and fibula in both legs.

� Spring line broke and seriously injured an able seaman, causing permanent head injuries.

� Struck by mooring rope when using an axe to sever it during adverse weather conditions.

� A winch failed, causing the aft spring line to strike the operator.

� Deck boy sustained a serious injury to his left arm when he caught it between ship’s port side and the assisting tug.

� Seaman suffered crushing injury to his leftleg, which was later amputated, caused by tug line.

The $100,000 plus claims have revealed arange of causes and contributing factors.These have included poor weather conditions,the wash/movement of a third party vessel,seafarers standing in the wrong place duringroutine operations, inadequate andincompatible ropes and stoppers, plus mooringropes affixed to inadequate strong points.

In the past four years, the UK Club’sinspectors, all experienced ex-mariners, haverun their practiced eyes over 164 oil and

chemical tankers. While standards havegenerally been high, comments nearly alwaysemphasise service, maintenance and safety.

The ISM Code aims to ensure safety at sea,preventing injury and loss of life whileavoiding damage to property and to marineand other environments. Shipowners andoperators must implement an effective safetymanagement system to ensure these purposesare met. Essentially, these have to be achievedthrough high standards in equipment,procedures and practices.

However, as UK Club loss preventiondirector Karl Lumbers pointed out, formalcode stipulations can only go so far. “It takesexperienced people and expert seamen to dealsafely with berthing and unberthingoperations. Everyone involved has to bekeenly aware of the risks they run whendealing with such huge physical forces.”

Safety pointersAs it is essential that threats to safety arecontained, the inspectors have set down a seriesof advisory points, most of which apply to cargo

carrying ships in general, as much as to tankers. � All winch greasing points must be free,working correctly, and clearly numbered orhighlighted. Vessels’ split drums must be set upcorrectly with only four or five turns of the ropeon the smaller drum with the rest on the largerone. Annual break tests are particularly important.� Ropes made fast on drum ends are morelikely to jump and cause extensive damage todrum end bearings so drum ends should besmooth and coated with linseed oil or othersynthetic liquid. Poor or damaged ropes shouldbe replaced. All ropes, wires and Tonsberglinks used in moorings should be certificated(and kept in an accessible file for port authorityinspection). Spare mooring ropes, wires and linksshould be stowed clear of the deck, preferablyon a pallet and in a dry ventilated position.� Decks should be fully non-slip, particularlyaround bits and drum ends, perhapssupplemented by sand or a non-slip aggregate.Mooring areas should be clutter free. Snapback zones should be well marked. Rollersshould be free moving and regularly greased.Correct stoppers should be used, appropriateto particular mooring ropes and wires.

The UK Club is particularly concerned aboutthe growing number of incidents involving non-deck crew in mooring operations. According toLumbers: “It is often crew with insufficienttraining who are seriously hurt when things gowrong, particularly in bights, or snap back zones.All crew should be trained and familiar withbights, snap back zones and prospective hazards.

“Correct procedures should be in place withall mooring operations supervised by acompetent person. Training should beincorporated into vessels’ regular schedulesand include all personnel.

“Crews must understand that mooringaccidents tend to have consequences as seriousas any on board ship. When manoeuvring thelargest tankers, this point takes on even greatersignificance,” he concluded.

Avoiding seriousaccidents during

mooring

UK P&I CLUBIS MANAGEDBY THOMASMILLER

Injuries such as this could be easily avoided.

TO

The condition of mooring equipment and the procedures and practices in berthing

and casting off carried out by UK P&I Club entered tankers have been

generally found up to the mark in recent years by the Club’s own inspectors.

p2-34:p2-7.qxd 03/12/2010 17:36 Page 8

P.O.Box 53255, Limassol 3301, Cyprus. Tel: +(357) 99 652586 / 99 607732

MANAGED BY JGS LTD. Reg No. 21162V

p2-34:p2-7.qxd 03/12/2010 17:36 Page 9

IMO rules push Ship-to-Ship transfers back

into the limelight

The driver for these initiatives is theimpending IMO MARPOLChapter 8 Annex 1 amendments,one of which is aimed at

regulating STS. These amendments start tocome into force on 1st January 2011 andinclude a new section to cover STS activitieswhile underway, or at anchor. A leading Ship-to Ship Transfer expert warned; “….thislegislation will comprehensively remove any

ambiguity in the way operations areconducted. The impact of the legislationshould not be underestimated and there willno longer be a place for any sub-standardoperations, even in the remotest backwater”.

This regulation covers both crude oil andproducts cargo transfers on tankers of over150 gt, but does not include bunkeringoperations using barges/tankers, or transfersfrom platforms/FPSOs/FSOs receiving

produced oil. It should be noted that while itdoes not include actual bunkering operations,it does include the filling of bunker tankersalongside a storage tanker and brings eventhese relatively small scale operations underexactly the same regulatory requirements as alarge tanker.

Although STS has been undertaken formany years, mainly as a lightering, or toppingoff exercise, it is only recently that the general

�ews of classification societies, notably Lloyd’s Register (LR), D�V and ABS, issuing

plans and checklists specifically aimed at ship-to-ship (STS) transfers proves just how

much interest there still is today on this type of loading/discharge methodology.

INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS


Fenders are critical to STS operations.

SafeSTS conduct Ship-to-Ship Transfersof Oil and Gas at many

bases around the world.

SafeSTS LtdDiss Business Centre,

Dark Lane,Diss, Norfolk IP21 4HD

UK

For STS Services orfurther information,please contact us at

Email: [email protected] (24 hrs): (+44) 1379 640021

For specific advice on the implementation of Marpol Chapter 8

Please ask for Capt Bob Gilchrist

p2-34:p2-7.qxd 03/12/2010 17:36 Page 11

public has sat up and taken notice of what isgoing on virtually on their doorstep. This isprimarily due to the recent huge increase inoffshore storage in tanker hulls due to thecontango situation, which has arisen duringthe past few years.

A typical offshore operation is normallycarried out while both vessels are underway ataround 5 knots. The approaching vesselparallels and matches the speed of the‘mother’ ship, then closes slowly to comealongside. Captain Robert Gilchrist, a directorof SafeSTS stated “Undertaken correctly, theoperations are not as dramatic as aresometimes made out and there are asignificant number of safeguards in place tominimise the chance of steel-to-steel contactor oil pollution. These measures comprise oftrained and competent personnel, tried andtested procedures, certified and testedequipment, slow approach speeds (less than0.3 knots), pneumatic fendering, double hulledvessels, oil pollution response vessel standingby and a comprehensive Risk Assessment,these together have contributed to giving ourindustry a track record of safe operations to beproud of. ” For this reason, he believed that inmany cases, STS operations are much saferconducted while the vessels were underway indeepwater, rather than bringing vessels intoshallow waters and congested ports.

Taking the UK as an example, STSoperations have switched from the Lyme Bay

area – the favourite of the 1970/1980s - tooff Southwold and in Scapa Flow. STSoperators voluntarily implemented an STSmanagement system alongside the MCA andalready meet nearly all of the Marpolrequirements. A few years ago, a scheme wasintroduced to transfer Russian oil in an STSoperation in the Firth of Forth. However,local opposition was such that this schemedid not get off the ground.

Since then, the ports ofCopenhagen/Malmo and Gothenburg amongothers have set up storage facilities ashorefor Russian oil, which is shipped out of theBaltic ports for transhipment to the US andother destinations in larger vessels. OffDenmark, there are dedicated STS areas nearthe Skaw, Kalundborg and Frederikshaven.Further south, the Port of Rotterdam hasinstalled large buoys in the Caland Canal toload vessels of up to VLCC size fromsmaller tankers lying alongside. Thesemainly tranship fuel oil for Singapore andother Asian destinations.

In the US, there are dedicated areas forlightering operations in the US Gulf, Eastand West Coasts and these could soon beaffected by additional future legislation in thewake of the Macondo well incident. Theseareas are controlled by the US Coast Guardand they work closely with the STS serviceproviders through an organisation called the‘Industry Taskforce on Lightering (ITOL)’.

As in the UK, operators work with theregional authorities and the reality is that thisindirect voluntary regulation has contributedto keeping the industry safe and successful.Additional legislation would likely serve toincrease overall operational cost, but as theUS is reliant on lightering to import crude tothe majority of its domestic refineries, STSwill certainly continue for the foreseeablefuture.

As with any new regulation there are prosand cons and the little matter of interpretationby the flag states.

Vessel specific planIn essence, the new regulations call for thedevelopment of a vessel specific STS plandescribing how the operation must beconducted, which has been approved by thevessel’s flag administration. In addition, therelevant coastal states will have to be notifiedof the intention of carrying out a transfer noless than 48 hours in advance. Somerelaxation of the rules may be allowed incertain very specific cases, the IMO said,

Consequential amendments will need to bemade in the International Oil PollutionPrevention (IOPP) certificate, the IOPP’ssupplement and the Oil Record Book. Theclass societies have said that they will workwith the STS operators to produce manualsand approved customised plans. Indeed, LRhas produced such a draft document that a



It would be ideal tohave two MooringMasters controllingsuch an operation.

p2-34:p2-7.qxd 03/12/2010 17:36 Page 12



shipowner can utilise as a template and can be found free of charge on its web site(www.lr.org).

A significant change is that owners oroperators contemplating an STS must give aminimum of 48 hours notice to the localauthorities if the STS is to be undertaken interritorial, or EEZ waters. It is recognised thatflag states are steadily increasing their level ofrequirements for the vessels undertaking suchoperations, with an implication of additionalcosts and time required for thenotification/permission process. As theapproved vessel specific STS plan,conforming to the guidelines, must be in placebefore the operation starts, flag states couldpotentially withhold permission for non-compliant vessels.

“When considering a ship-to-ship (STS)operation, the parties involved should takeadvice as soon as possible to avoid potentialdelays to operations and understand the extracosts involved through a variety of individualplans being produced to meet the newMARPOL rules,” Capt Gilchrist explained.Charterers will need to look at the plan to seeif there are any potential hidden costs for theiraccount, as the plans drawn up will be unique

to each individual vessel. “The implications ofeach plan will need to be understood priorcommitting to a particular contract, as anypotential amendment to the plan needs to besought through class,” he said.

Capt Gilchrist advised to note the followingin particular;� The Master and owner has a legal

responsibility to meet the exact requirements of the Marpol plan.

� The charterparty clause for STS needs to recognise the significance of the change from ‘recommendation’ under OCIMF to ‘requirement’ under Marpol.

� The individual vessel plans need to be checked to ensure they are compatible and suitable for the planned trade.

� Personnel, support craft and pollution response requirements of the vessel plan should be clearly identified.

� Any met-ocean restrictions will still allow the planned operations to proceed.

He explained that these plans have to beapproved by class and potentially the flagstate controlling the area of each operationand it is unclear how (or if) some flag statescan manage this effectively. He warned thatowner/charterers/traders should also be made

aware on the impending pitfalls of notcomplying with the new regulations.

Under the new Marpol Chapter 8 rules,vessels have to keep a three-year record ofcompliance to these rules, available forinspection. The onus will be placed on themaster and shipowner to prove compliance tothe new rules and if not, he or she could be indanger of a serious non-conformance withinthe vessel ISM system and potentiallyprosecution under Marpol. For example, if thehose testing date was not available and theoperation still went ahead, the owner carriesthe liability and risk of penalty, if identified asa deficiency at a later date following a PortState Control inspection.

Significant changes, like the formalappointment of the Person in Overall AdvisoryControl (POAC), commonly called theMooring Master, before an STS takes placewill become a legal requirement. In the past,standards were in place for equipment to beused, such as fenders and hoses, however thequalifications and experience of the MooringMaster (who may have been one of theMasters of the vessels) was not clearlydefined. The new regulations require theVessel STS Plan to clearly specify the

p2-34:p2-7.qxd 03/12/2010 17:36 Page 13



qualifications, duties and responsibilities ofthe POAC and provide guidance on the levelof competency expected. Capt Gilchrist said“It is unlikely that given the duties &responsibilities, the owners will specifyqualifications below that of Master Marinerwith appropriate Dangerous CargoEndorsement”.

However, Capt Gilchrist warned that whilea POAC would not relieve the masters of thetwo vessels involved of the overallresponsibility for their vessels and cargoes, thelevel of responsibility for the person in therole of POAC is certainly increased andextends across both vessels. In all but veryfew scenarios, it is unlikely that the Mastersof the vessels will meet the qualifications andexperience levels for a POAC and even if theyare qualified and experienced, they physicallycannot be everywhere and adhere to STCW2010 working hours limits.

Questions arise, as to who may beresponsible for an incident such as bursthose, the supplying vessel, the receivingvessel or the service provider supplying thehose? It is still unclear how the insuranceunderwriters consider liability if thisspecifically becomes the responsibility of thePOAC and all this at a time of increasingcriminalisation of the seafarer even for

accidental pollution incidents.To meet the new guidelines, he said that it

was likely two professional Mooring Masterswould become standard due to the increasedlevel of responsibility throughout the wholecargo transfer operation. “By doubling up, itwill be an additional cost at a time of verytight budgetary constraints, but it will increasesupervision levels and be easier to train

Mooring Masters on board ship, soconsequently will be of real benefit to theindustry,” he explained.

OpportunitiesOverall, Capt Gilchrist thought that there werestill many opportunities for STS operationsworldwide, despite the downturn in storagedue to the contango issue all but disappearingtoday.

Trade routes and patterns are continuallychanging. “Our policy is to ask what thecompanies want, rather than tell them whatthey need. It is matter of trust,” Capt Gilchristexplained. With approvals from most of theoil majors falling into place, SafeSTScustomer base is continuing to grow and thecompany said that it was confident of futureprospects.

An additional but significant service offeredby SafeSTS is giving support to governmentsand salvors in cases of tanker emergencies andsalvage, which might involve specific STSoperations to lighten a casualty. Under LloydsOpen Form (LOF), best endeavours areinterpreted as best available expertise and inthe company’s specialist field, it claimed toprovide this. Capt Gilchrist explained thatwhile often, marine casualties are used asreason to restrict the practice of Ship-to-Shiptransfers, little credit is given to the role ofSTS to remove the remaining oil from acasualty. Industry expertise and equipment hasfor many years been critical to the UK andEurope maintaining the capability to respondto such disasters and the provision of anemergency cargo transfer capability bothenhances and forms part of the government’sresponse to any national incident.

TO

SafeSTS – a potted historySafeSTS was formed in late 2009by the current managing directorYvonne Mason, who previouslyfounded Fender Care in 1988before selling the company tothe James Fisher group in 2005,together with fellow DirectorCapt Robert (Bob) Gilchrist MNIFIMarEST. SafeSTS and parentcompany Future Marine Servicesenable the reinvestment ofMason and Gilchrist’s experienceand expertise back into anindustry which they are bothpassionate about. The first company’s transfer wasaccomplished in April of this year.Combining technical and commercial skillsand applying them with integrity will be thecompany’s hallmark, SafeSTS said.

Future Marine Services and SafeSTSregional hubs have been set up in the UK,Mediterranean and Singapore and thecompany now offers STS operations across10 bases. To date, around 60 STS transfers

have been successfully completed by thecompany. Capt Gilchrist believed that it isvitally important that at this point in time,with the introduction of significantlegislation, that clients understand thepotential impact on their operations. Fromthe wealth of experience gained throughmany years in the industry, SafeSTS is ableto offer advice and consultancy services onthe issues affecting ship-to-ship transfer forboth oil and gas.

Prior to starting the new companies,Mason also founded The Mason Trust(www.themasontrust.org) and has spent thepast two years inspiring young peopleacross the region to consider the energy andmarine sectors as a career of choice. Thetrust provides them with global work,community based experiences andknowledge to support their decision makingprocess. Mason said. “Numerous initiativesare underway to continue the work and thecontributions and support from my industrycontacts from the last 20 years have been fantastic”.

Who is responsible if the equipment fails?

p2-34:p2-7.qxd 03/12/2010 17:36 Page 14

Encouraging the maritime industry– and beyond - to pay tribute tothe world’s seafarers and recognisethe risks they shoulder,

automatically focuses attention on the supportthey receive to perform the roles that they aretasked with*.

In his World Maritime Day address inSeptember, Efthimios Mitropoulos, IMOsecretary general, honoured the contributionmade by seafarers to international seabornetrade, the world economy and civil society asa whole. But he also addressed theimplications of shortened training periods andthe premature promotion of those who maylack the necessary experience.

These concerns have been reiterated by avariety of industry sources; DNV, for

example, believed that the basic principles ofshipping safety are being sidelined by theenvironmental agenda. And now the notoriousGulf of Mexico oil disaster has triggeredwidespread debate and discussion around howbest to prevent spills from damaging theenvironment and local economies.

For those companies operating ship-to-shiptransfer (STS), the reflected post-DeepwaterHorizon gaze on STS – augmented by

scrutiny of UK government’s recent decisionto postpone the plan to ban STS in UKwaters and the veto of the pre-booming billin California - is unlikely to diminishanytime soon.

Despite a proven track record of safetycoupled with growing demand, thecontroversy surrounding STS has beenrumbling on for years. And with newrequirements to the IMO’s MARPOL AnnexI, Chapter 8 entering into force on 1stJanuary 2011, tanker owners and operators,as well as the oil majors and authorities, faceescalating pressure to ensure that STSactivity is carried out competently;proactively managing the risks to vessels,equipment, HSE and the environment.

In turn, this has prompted greater emphasis

Safer STS throughsimulation

Approaching the end of the

IMO’s ‘Year of the

Seafarer’ provides an

opportune time for

reflection.



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p2-34:p2-7.qxd 03/12/2010 17:36 Page 15


on training and qualifications. It is no longerenough for Mooring Masters to cite extensiveexperience – the oil majors and authorities(especially European), are becoming muchmore prescriptive about STS activities,increasingly demanding the reassuranceprovided by specialist courses.

Preferred training alternativeWhile previously, all training had to be on thejob – posing safety and environmental risk - itis perhaps of little surprise that simulated and‘man-model’ courses are now a much-preferred alternative.

Man-models are scale replicas of ships,used in water and designed to react and feellike their full-sized counterparts in terms ofmomentum and inertia. However, althoughthey provide an organic training experience,weather conditions are limited to theconditions on that day and therefore, asphysical models, only one or two types ofvessel are available at each training centre.

Simulators, such as the GAC Training andService Solutions (GTSS) simulator based inCork, Ireland, offer a more flexiblealternative. Although some are stationary, adamper-mounted simulator moves with theprogramme to realistically recreate themovement of the ocean. With the ability tochange the weather in infinite steps, this not

only simulates the challenges of operating invarying weather conditions on 360 degscreens, but can also demonstrate how thosedifferent situations physically impact those onthe bridge.

With various vessel type simulations,companies that frequently train are offeredcustom programmes that simulate their ownreal-world vessels. Additional advantagesinclude linking two bridges, as in the realworld and the capacity to record the entireexercise, enabling a more effective debriefing.

Significantly, our experience tells us that itisn’t just Mooring Masters that areundertaking training. Prudent tanker ownersand operators are increasingly sending seniormasters on a course, given the likelihood thatthey will have to negotiate an STS transfer inthe absence of the Mooring Master.

As well as real qualifications, GTSScourses provide trainees with the confidenceto deal with shiphandling. As the Master’s roleis rationalised, when a vessel leaves port, thepilot disembarks and automatic steeringapplied, logging onto a satellite until thedestination port when the next pilot boards.

Simply put, shiphandling experience iscritical to the successful execution of delicateoperations like STS. So simulator, or man-model training, is the ideal way to increaseexperience without the risks associated with

training on the job.GTSS has launched a week-long intensive

simulator training course at the $100 millNational Maritime College of Ireland in Cork.The interactive course starts by introducingSTS procedures and gradually increases thedifficulty of the situations faced until, towardsthe end of the week, trainees are subjected toworst-case scenarios, such as enginebreakdown and steering failure. This ensuresthat crew members are not only aware of whatcould happen in an STS situation, but actuallyexperience it.

With STS operations increasinglyilluminated by the intensifying greenspotlight, it is essential that all key teammembers are more than adequately trained;from Mooring Masters, senior masters andsuperintendents, to those co-ordinatingoperations from the shore.

Whether afloat or ashore, specialist trainingfor all those involved in STS is fundamentalto realising profitable efficiencies andminimising environmental and financial riskof spills that has been starkly evident in recent months.

*This article was written by ChristerSjodoff, group vice president, GACSolutions & director GAC Training &Service Solutions.

GAC training simulator.

TO


p2-34:p2-7.qxd 03/12/2010 17:36 Page 16

Similar to many places in Norway,Bergen has set up a regionalconcern to promote businessdevelopments in the area. This

particular area is strong in energy – oil, gasand renewables – and the maritime sectorbeing home to shipowners, shipyards andmany service companies.

Opportunities abound as Norway is theworld’s third largest oil and gas exporteremploying some 60,000 people in the sector.The Bergen region is home to both the Stureand Mongstad terminals serving large andsmall tankers and further south towardsStavanger is the gas terminal at Kaarstoe,which as well as handling the storage of gas,exports condensate.

The Bergen region, or Hordaland county, ishome to the world’s largest concentration ofparcel/chemical tanker owners, includingOdfjell, Jo Tankers, Seatrans and others. Mosthave newbuilding programmes to renew their

fleets with more modern tankers. In the huge offshore sector, the region

houses 60% of the vessel operators workingfor Norwegian oil major Statoil. In this sector,there are 19,000 employees in roughly 1,300companies.

Bergen claims 25% of NorwegianShipping’s ‘value creation’ and is the secondlargest Norwegian financial area after Oslowith 5,200 employees in 98 companies.

In 1995, a Maritimt Forum was establishedin Bergen, which now has 130 members,including shipowners, yards, servicecompanies and equipment suppliers. It isbasically a networking organisationconnecting with knowledge centres andnational and local government departments.

Eight Maritimt Forums have been set up inNorway. These are located in Bergen, Oslo,Haugesund, Stavanger, Grimstad, Narvik,Trondheim and Aalesund.

In the Hordaland region, maritime concerns

account for 21,200 employees in 1,471companies, boasting a total turnover ofNOK97.3 bill. Although many companies areinvolved in the offshore sector, as mentionedthe world’s largest chemical/parcel tankerowner resides in Bergen – Odfjell. In totalthere are 40 large shipowning concerns in theregion and in all 661 shipping companiesemploying 6,700 people.

Among the big names in the Hordalandregion are the chemical tanker owners, STXEurope, FRAMO pumps, cargo handlingequipment supplier TTS, Wärtsilä, Rolls-Royce (Bergen Diesel) and others. Therecently formed Bergen Group has repair andbuilding facilities, but mainly concentrates onoffshore, passenger and naval craft.

Maritime services are made up ofinsurance/P&I representatives, class societybranches, a NIS office, a naval academy andthe ports of Bergen, Mongstad and Sture.There are also various research institutions

INDUSTRY - NORWAY REPORT


Strong in energy -oil, gas and renewables

In this feature we have concentrated on activities in the Bergen/Haugesund area,

following a visit to the region. Other areas, including Oslo,

will be featured next year before �or-Shipping.

p2-34:p2-7.qxd 03/12/2010 17:37 Page 17



working with the maritime industry, lookinginto ship designs, propulsion techniques,including LNG as a power source, fuel cells,plus other initiatives.

A major project underway in Norway atpresent is the use of LNG as a fuel. Thus far,a few offshore support vessels and localFjord ferries have been fitted with gasburning engines and a logistics LNG supplychain has been set up using a small LNGC,which trades up and down the west coastdelivering gas supplies.

In the Hordaland area, there are moreowners with vessels flying the NIS/NOR flagsthan overseas flags. Some, like Odfjell, use amix of flag states, as the company has a basein Singapore.

Tonnage taxBy and large, Norwegian shipowners arehappy with the tonnage tax as it stands,having won a case heard by the SupremeCourt of Norway against the government’searlier decision to heavily tax owners on aretroactive basis. The Court upheld theshipowners’ claim against this ‘onerous’ tax,but the Forum warned that the politicians inNorway can change their minds, which is abig question and a ‘headache’ as one sourcesaid, not knowing if and when this willhappen. “We need shipowners in Norway.

Hopefully, the politicians will agree,” theForum said.

Under the old tax regime, many companieswere considering upping sticks and going toforeign parts, which has always been afeature of Norwegian shipping. Norway usedto boast 70,000-100,000 seafarers, so theinclination would be to vote for the party thatsupported the local shipping scene, a memberof the Forum said.

“We need to show the shipping industry’s‘value creation’ to society as well as thepoliticians”, the Forum explained.

In another move, the Russians recentlysigned a demarcation agreement withNorway over a disputed area in the BarentsSea, paving the way for research anddevelopment to proceed. There is a vastpotential seen in oil and gas in the area,which will eventually lead to the use ofspecialist ice class tankers and LNGCs.Norway has put traffic control centres inplace to monitor the tanker traffic currentlysailing past its coastline from Russianloading terminals, such as the FSOtranshipment facility in Murmansk. Anexample is the VTS station installed atVardo, located at the top of Norway wherevessels leaving the Barents Sea have to sailthrough the Norwegian Sea. Oil spillresponse capabilities have also been installed

in strategic areas. There has already been talkof the possibility of ship-to-ship transferstaking place in the northern Norwegianfjords, near Kirkenes.

A 10-year programme has been set upcalled ‘Maritime 21’, which is aimed at layingdown the future maritime strategy. Manycompanies are involved as is the Norwegiangovernment. For example, the Wärtsilä facilityin Bamlo, near Haugesund, is involved in gasengine research.

Haugesund areaIn the Haugesund region (Haugalandet &Sunnhordland), there are 145 companies andsimilar to Bergen, many are involved in theoffshore sector. Included in the total are 14shipping companies responsible for 172vessels of all types. They also belong to theHaugesund Shipowners’ Association, whichwas established in 1910. Down the years, theassociation has included some of the mostfamous names in Norwegian shipping, five ofwhich have chaired the NorwegianShipowners’ Association (NSA) at some point.The latest to serve was Trygve Seglem ofKnutsen OAS.

Knutsen is the largest player with 38% ofthe tonnage entered with the Bergenassociation, which in total includes 21 oil, 29chemical/product tankers and five LNGCs.

A boost for the local economy came withthe opening of the new headquarters of theSjofartsdirektoratet (Norwegian MaritimeDirectorate) in 2006. It was previously housedin Oslo and now employs 200 people inHaugesund. The area also houses a maritimesimulation centre, which is currently beingupgraded with the help of Kongsberg andsupported by the local shipping companies.Although mainly aimed at offshore rigs andsupport vessel training, a shuttle tankersimulation package is also to be included. Thenew simulator centre will be operational on1st August next year.

A company called RESQ has been set upby four companies and the shipowners’association, which looks at all aspects ofcrisis management and is involved with thesimulator project, which will be housed in anacademy, which is already involved intraining, education and research . Knutsen’shead Trygve Seglem is chairman of RESQand also the nautical college and was a pastchairman of the Norwegian Shipowners’Association.

Many Norwegian shipping companies saidthat they would like to be part of the EU to beinvolved in the discussions on maritimeaffairs, being heavily involved at the IMO.

Looking towards the energy sector.

TO

p2-34:p2-7.qxd 03/12/2010 17:37 Page 18



Earlier this year, the group split itsactivities into three operationunits – marine, port and logistics,plus energy. Equipment design,

manufacture and supply for tankers andother types of vessels is handled by themarine division.

Turnover in this division totalledNOK1,249 mill for the first half of 2010, anincrease of 18% compared to the first sixmonths of 2009. The division reported anoperating profit before depreciation ofNOK68.6 mill, compared to NOK59.5 millin the same period last year. The division isinvolved with Chinese joint ventures - TTSHua Hai Ships Equipment, TTS BohaiMachinery and TTS Keyon.

The port and logistics division suppliesproduction lines and systems for cargohandling in shipyards and other industries,and loading and handling systems for ports.The energy division supplies offshore cranesand winches, drilling equipment for offshorerigs and complete drilling rigs for land-based operations.

Typical enquiries for tankers handled by themarine division include the modification ofshipboard cranes to accommodate personneltransfers, ship-to-ship handling equipmentincluding fender davits for shuttle tankers.Winch bollards have also been supplied toVela, among others.

These tend to be tailored to the vessel andoperation, type of crane with the authorisationof the vessel’s flag state and classificationsociety, especially the preparation forpersonnel handling. For personnel handling,the crane’s winch needs to be fitted with adouble brake system and a power pack withbackup for failure and the crane’s SWL willprobably need to be de-rated for personnelhandling, plus other modifications, accordingto flag and class.

For ship-to-ship transfer operations at sea,the crane(s) need to prepared according to flagand class. TTS said that in normalcircumstances, it will not be possible toupgrade the crane(s) to offshore class, but

class would confirm that the upgrade isperformed according to the rules.

Automatic and manual overload protectionsystems need to be installed for differentmodes for both lifting and sea states, as thecrane(s) might need to be de-rated accordingto the load and sea state with the help of loadcharts. Battery backup is also needed.

Genuine spares Spares are another consideration and TTSwarned that an operator should only get sparesfrom a ‘genuine’ supplier. TTS has sparesfrom stocks in various locations worldwide.TTS will also carry out crane documentationand certification, giving the operator acomplete history of the equipment. The

company operates a dedicated after salesdepartment complete with engineers and a24/7 emergency telephone number.

Service is another strong area for thedivision. For example, Teekay recentlysigning a long term agreement with TTS.Maintenance and pre-inspection beforedrydockings and pre-conversions should becarried out. The company offers one and fiveyear davit surveys with a designated surveyco-ordinator worldwide, which is claimed tobe a cost efficient exercise.

Both surveys and training are undertaken inaccordance with MSC.1/Circ.1206/Rev1 andMSC.1/Circ.1277.

Conversions, services, after sales andtraining are undertaken for marine cranes,davits, winch bollards and service platforms.

Examples of shipboard crane conversionsinclude for personnel handling, ship-to-shiptransfer equipment handling, extending thecrane’s reach, increasing its lifting capacity,cabin installation, parking cradle installation,remote control operations, logging and

Shuttle tanker and STStransfer equipmenthigh on the agenda

Bergen houses one of the

world’s leading cargo access

equipment concerns

– the TTS Group.

TTS is involved in the manufacture, suuply and servicing of fender davits.

p2-34:p2-7.qxd 03/12/2010 17:37 Page 19



monitoring equipment, hook stop up anddown and slew limitation equipment.

TTS also offers both operator andmaintenance courses for its equipment, bothgeneral and tailor made courses. The companyalso offers davit surveyor qualification coursesand has a dedicated training department.

Part of the company’s equipmemnt portfolioincludes single point rescue boat davits from1.5 tonnes to 12 tonnes SWL. These are fittedaccording ot SOLAS and DNV is used as thenotifying body. The most common types arethose fitted for a swing-out, tilt-out andtelescopic slide out operation. Davits forfender operations are dual point, ranging froman SWL of 1.5 tonnes to 10 tonnes.

TTS Marine AS is located in Kristiansandand is an amalgamation of the formerHydralift and TTS Marine CranesKristiansand operations.

Financial mattersAs for the TTS Group, last July the companycarried out a private placement with ScanaIndustrier, at a price of NOK6.30 per share,increasing TTS’ equity by NOK42 mill. Thisresulted in Scana Industrier taking a 9.9%shareholding in TTS.

At the middle of this year, net interest-bearing debt was NOK884.5 mill, comparedto NOK1,037.9 mill at the end of the secondquarter of 2009. Efforts to reduce the

binding of capital in the group continue, thecompany said.

For the first six months of 2010, TTS Groupreported an operating profit beforedepreciation (EBITDA) of NOK22.7 mill,compared to a loss of NOK6.3 mill in thesame period last year.

The order intake during the first six monthswas described as brisk, although the marketwas still uncertain going forward, saidJohannes Neteland, president and CEO whenannouncing the first half results.

The TTS group’s total turnover in the firsthalf of this year was NOK1,678 mill, a 17%decrease from the same period last year. Thegroup reported a pre-tax loss of NOK48.4mill, compared to a loss of NOK165.7 mill inthe first six months of 2009.

The net result was a loss of NOK28.9 mill,compared to a loss of NOK146.5 mill theyear before. TTS’ order backlog at the end ofthe first half of 2010 was NOK3,789 mill,compared to NOK4,510 mill at the start ofthis year. The order intake in the first halfyear was NOK1,214 million, which wasNOK300 mill more that at the end of the firsthalf of 2009.

TTS Marine AS +47 38 04 95 00 [email protected] www.ttsgroup.com

MARINE

Shipboard handling excellenceAt TTS we have over 40 years of experience in shipboard crane technology. Our dedicated crane conversion department specialises in the conversion of ship-to-ship and personnel transfer cranes for tankers.

The company offers one and five year davitsurveys with a designated survey co-ordinator

worldwide, which is claimed to be a cost efficient exercise.

“

”

TO

p2-34:p2-7.qxd 03/12/2010 17:37 Page 20



Among the nine vessels are eightchemical tankers, all of which arecurrently with the NorwegianInternational Register (NIS).

Director of human resources Atle Sommerexplained that as a result of the Norwegianand Polish governments agreeing a tax treaty,which means that Polish seafarers serving onboard NIS registered vessels will have to payNorwegian tax from 1st January 2011, theseafarers would look elsewhere for employment.

Rather than loose the Polish expertise,Seatrans has decided to reflag to Malta,necessitating the appointment of arepresentative on the island.

Sommer explained that chemical tankersdemanded a high level of expertise and forthat reason the company was keen to retainthe Polish element. Some 50% of the topofficers in the fleet are Polish, he said.

Seatrans owns 20 vessels in total and uses

the NIS, Bahamian, Singapore and Liberianflags. In all, 181 of the 435 seafarersemployed by the company are Polish and tofoster the relationship, the company also hasan office in Poland.

As well as Poland, Seatrans' seafarers comefrom Norway, Romania, Croatia and thePhilippines.

Another chemical tanker in the fleet fliesthe NIS flag, but is currently in layup and isunlikely to sail next year, the company said.

Sommer said that the company had maderepresentations to the government through theNorwegian Shipowners’ Association (NSA),but the decision was now irreversible.

He was at pains to stress that Seatransregretted the decision as it was a keensupporter of the NIS.

The Bergen Shipowners’ Association alsotold Tanker Operator that more companiescould leave the NIS, due to the tax situation.

The organisation explained that theagreement only affected Polish peopleworking in Norway.

Seatrans Chemical Tankers (STC) wasformed in 2007 as a standalone commercialconcern, operating a type of poolingarrangement for Seatrans and partner vessels,including those timechartered in. STC isresponsible for marketing, chartering,operations and accounting.

The present fleet is split into trading areas –Northern Europe/Mediterranean, intraNorthern Europe and US Gulf/Mediterranean.The cargoes include aggressive acids inindependent Teflon-lined cargo tanks,hydrogen peroxide up to 70% solution,propylene oxides and other semi-gases andoffers transport solutions for combined LPGand chemical cargoes.

The latest vessel to join the fleet was theTrans Adriatic on 30th June. She was delivered

Seatrans overcomesmajor obstacle

Bergen-based chemical tanker and drycargo vessel owner Seatrans is to flag out nine

vessels to the Maltese registry in the face of taxation threats to its Polish seafarers.

Vessel Built Flag Tdw CBM - 98% Tanks Loa Beam Draft IMO no. Segr

Trans Iberia 2000 Norway 19 733 20 332 STST/GAS 151,48 23,5 10,08 9170597 29

Trans Catalonia 2000 Singapore 19 733 20 332 STST/GAS 151,48 23,5 10,08 9176694 29

Trans Adriatic 2002 Bahamas 12 503 13 292 STST 123,19 20,02 8,75 9263928 22

Trans Fjord 1993 Singapore 9 108 9 506 STST+Zinc 113,64 17,5 8,01 9034743 23

Trans Exeter 2004 Norway 8 563 8 902 STST 118 18,8 7,35 9314753 18

Trans Emerald 2005 Norway 8 674 8 956 STST 115 18,8 7,43 9295452 18

Trans Arctic 1991 Norway 6 927 7 552 STST 116,8 20,2 7,5 9000235 13

Trans Scandic 1992 Norway 6 927 7 552 STST 116,8 20,2 7,5 9000247 13

Trans Sea 1992 Norway 6 783 7 191 STST 106,83 17,5 6,9 9039755 14

Multitank Batavia 1998 Liberia 5 846 6 226 STST 99,99 16,50 6,80 9154323 20

Trans Marmara 2003 Norway 5 825 6 301 MarineLine 105,5 16,8 6,2 9268239 11

Trans Holm 1993 NIS 4 399 3 189 TEFLON 96 17,5 6,5 7931193 8

Trans Fjell 2007 NIS 3 600 3 274 STST/TEFLON 88 13,35 6,5 9329306 11

Seatrans chemicals fleet list

p2-34:p2-7.qxd 03/12/2010 17:37 Page 21



in Taichung and had previously been called BowWest, having been on timecharter to Odfjellsince she was built in Japan during 2002.

She is fitted with 22 stainless steel tanksand is of 12,500 dwt. She has entered STC’sMediterranean sphere of operations.

A Seatrans spokesman told Tanker Operator

that the fleet would likely increase during thecoming years, but at present there are nospecific plans to purchase secondhand vessels,or place newbuilding orders.

He explained that STC’s chartering policywas to have a portfolio of medium to longterm COAS, covering a major part of the

company’s capacity. Seafarers undergo an extensive training

programme. These consist of - � External courses - STCW, shiphandling etc.� Internal courses - cargo handling,

shipmanagement, pumpman courses, cooking etc.

� Coaching programmes for preparing possible candidates for promotion.

� Office seminars.� Computer-based training (CBT) with

Seagull.Seatrans has employed two teacher/supervisors who are both experts in chemicalcargo operations. They mainly conduct onboard training when needed, such as for newcrew and/or special cargoes. They also runsome of SCT’s cargo related courses.

Another important part of crew training isthe familiarisation process, which is given toall new employees, crew changing ship typesand/or positions.

Vetting is another important factor for thecompany and the spokesman said that severaltimes, the company has established bestpractice during an oil major’s TMSA audit,or review.

SHARING KNOWLEDGEAND EXPERIENCE

TO

For NIS read Malta.

p2-34:p2-7.qxd 03/12/2010 17:37 Page 22


Today, leading Norwegian tankerand LNGC owner Knutsen OAS issplit into two divisions – offshoreand shipping. Headquartered in

Haugesund with offices in Madrid, Aberdeenand St John’s (NF), the group employs 1,560officers and crew, plus another 95 onshore.

The offshore department looks after theshuttle tankers, FSOs and specialised vessels,while the shipping division is responsible forLNGCs and projects, such as LNG FPSOs,plus other shuttle tanker projects. Thetechnology branch coming under the shippingdepartment covers ship conversions and vesseldesigns, compressed natural gas carriers(CNGs), pressurised gas carriers (PNGs), theKVOC project and the latest venture – aballast water treatment system. Also in thepipeline is a PCO2 carrier, which is a spin-offfrom the PNG project aimed at transportingCO2 for carbon capture projects.

Knutsen claims to be the world’s secondlargest shuttle tanker owner fitted withdynamic positioning systems with 19 vesselsand three newbuildings. The two FSOs arestationed in the North Sea (Auska C) and inthe Philippines respectively. Another projectbeing undertaken by the technology division isthe conversion of two Handysize tankers intosupport vessels for offshore Brazil. They willbe fitted with dynamic positioning (DP)systems and large bunker tanks. Thenavigating seafarers will need specialisttraining in DP operation, the company said.

The company operates its vessels under longterm contracts to oil and energy concerns. Forexample, Knutsen recently won a five-yearcontract with Statoil for a newbuilding 156,000dwt shuttle tanker to be delivered early nextyear. Options exist to extend the charter by afurther three periods of one year each.

Bodil Knutsen will be fully winterisedclassed by DNV to Ice Class 1A. She will bethe world’s largest shuttle tanker whenoperational with a cargo capacity of 178,900cu m. All of her cargo tanks will be coated.

They will be fitted with one deepwell pumpeach and all the pumps and pipelines will beprotected by an enclosed shelter to preventpollution. The vessel was launched at Daewooon 9th October and is due to be deliveredduring the first quarter of next year.

She will also be fitted with a redundantdynamic positioning system to DP2 standardsand have the latest version of the bow loadingsystem fitted. The vessel will also be preparedfor an easy conversion to an FSO if necessary.

When the Bodil Knutsen and two 105.000dwt shuttle tankers currently underconstruction at Nantong shipyard in Shanghaiare delivered, the Knutsen fleet will have 24shuttle tankers (including two tankersconverted to FSUs) in operation.

The shuttle tankers and FSU´s, plus the twooffshore support vessels, are managed byKnutsen Offshore Tankers (KOT) and areoperated by Knutsen OAS Shipping (KOAS).KOAS also operates 13 product/chemicaltankers and eight LNGCs. Another gas carrieris under construction at DSME and will bedelivered later this year.

Another addition to the fleet is a recentacquisition from Sovcomflot, which will beconverted to a bow loading configurationunder a charter to BG for operation offshoreBrazil. A further conversion is also to becarried out. Looking at KOT’s shuttle tankerfleet, 14 tankers operate in and around theNorth Sea, three in Canada, three in Brazil(including two newbuildings/conversions),one in Venezuela and one in the Philippines.

The concept of a shuttle tanker was firstseen in the mid-1970s, alongside pipelines.Knutsen said that they are cost efficient asthey have low up front costs, compared withpipeline systems. They can be flexible tochanging field production profiles andreliable, as 80% reliability was originallyprojected for this type of vessel, but nearly100% has been achieved, Knutsen said. Theyalso provide safe platforms for both personneland the environment.

Offshore oil field operators are dependenton these type of tankers for their cash flow asthey deliver the product from the wells to theend user/refiner. Many are adapted to operatein a specific field and are thus chartered forlong periods. Knutsen said that there is a veryhigh safety focus with shuttle tankeroperations driven by the oil companies and theauthorities. Personnel are vetted as are thevessels on a routine basis and there are strictreporting and documentation standards inplace. The navigators also need DPqualifications to serve on board a shuttletanker. “It is difficult to enter the marketwithout prior experience,” Knutsen said.

As for Knutsen main clients/charterers,these include BP, Repsol,Petrobras/Transpetro, Petro-Canada, NidoPetroleum, Statoil, Shell, Husky Energy, Total,DONG Energy, BG and PDVSA.

Knutsen operates in close co-operation withTeekay having previously fixed the vessels ontimecharter with Statoil/Navion. Coas are


Knutsen expandstechnology base

Haugesund-based Knutsen OAS is at the forefront of new technology both in the tanker

and gas carrier fields. Although tracing its history back for decades, the company really

came to the fore with the development of �orth Sea shuttle tankers in the mid-1970s.

Knutsen's technical expert Per Lothe.

p2-34:p2-7.qxd 03/12/2010 17:37 Page 23

being optimised with Teekay, as both are nowmajor players in the North Sea shuttle market.

In the LNGC sector, KOAS took delivery ofthe 173,400 cu m Valencia Knutsen inSeptember. She has been delivered foroperation on a 20-year charter to Spanishenergy concern Repsol, part operator of Streamwith Gas Natural. Like her sisters, she willserve the newly completed Peru LNG terminal.She is the third in the series, following theBarcelona Knutsen and Seville Knutsen. Thelast in this series will be delivered by the end ofthis year. The company also manages threeearlier built 138,000 cu m LNGCs.

LNG feedersKnutsen also pioneered the concept of LNGfeeder vessels with the delivery of the 1,100cu m Pioneer Knutsen which operates oncharter to Gasnor along the Norwegian

coastline taking LNG to distribution points tofuel the many ferries and offshore supportvessels now running on LNG. Knutsen hasalso unveiled an LNG FPSO design on whichthe pre-FEED work was completed last year.

Valencia Knutsen is the company’s first IceClass 1A LNGC, as she has been prepared forArctic and winter operations in the NorthAtlantic. She is of a twin-skeg design and hasa capacity of 173,400 cu m. Knutsen claimedthat her fuel consumption had been reducedby around 20% by fitting a dual-fuel diesel-electric propulsion system, which runs onheavy fuel oil as well as LNG. The hull hasalso been coated with fluoropolymer, which isclaimed to add to the vessel's efficiency.

KOAS also manages eight 16,500 dwtproduct/chemical tankers, two 17,000 dwtparcel tankers, one 19,000 dwt parcel tankersand two 22,000 dwt parcel tankers. All the

eight chemical/product tankers are classed toIce Class 1A and the parcel tankers’ cargotanks are of stainless steel construction. Inaddition the parcel tankers have between 24and 34 segregations and two are classed to IceClass 1A.

The shipmanagement department takes careof all technical and commercial aspects of thefleet, including chartering, newbuildingsupervision and project development. Thenewbuilding department has looked after 38vessel constructions, plus has another sixnewbuilding projects underway.

Knutsen’s main claim to fame has been itsNorth Sea operations, including offshore buoyloading and DP systems. It was the firstcompany to use an STL type operation onshuttle tankers and tandem offloading. It hasalso provided a support vessel for extendedwell testing and has undertaken chemical



Valencia

Knutsen hasbeen built toIce Class andis the third outof a series offour LNGCs tobe delivered.

NYK takes 50% of KOTAt the end of November, it wasannounced that NYK hadinvested 50% in KOT. Followingthis investment, KOT’s name willchange to Knutsen NYKOffshore Tankers AS.As mentioned in the body of this article,KOT is the world's second-largest ownerand operator of crude-oil shuttle tankers.NYK said in a statement that it consideredthe offshore shuttle tanker business to beprimed for growth following the expansionof offshore operations related to oilproduction in deepsea areas, includinglocations off Brazil.

Knutsen NYK Offshore Tankers willbegin operations with 24 of the world’s 82shuttle tankers - both existing and underconstruction..

Through this investment, the NYK group

will be able to expand its services inupstream areas of the supply chain, inaddition to the group’s existing crude oiltransportation service, the Japaneseconglomerate said.

The new business fits well with NYK’sexpertise in the handling of specialisedcargo, such as crude oil, in addition to thecompany’s experience with dynamicpositioning systems, such as that developedby a group company with the deepwaterdrilling vessel Chikyu.

Together with NYK’s financial strengthand one of the world’s largest pool of highlytrained seafarers and KOT’s pioneeringtechnologies, Knutsen NYK Offshore Tankerswill be able to further expand its marketpresence, while continuing to offer services of the highest quality to its customers whodemand these services, NYK said. �

PNGCharacteristics:� Operating pressure - 250

barg.

� Heel pressure - 20-30 barg.

� Cylinder height 13 – 38 m.

� Diameter - about 1 m.

� Steel quality - high strength (X-80).

� Wall thickness - 33.5 mm.

� Operating temperature - 25 to 50 deg C.

� 40 year vessel lifetime.

p2-34:p2-7.qxd 03/12/2010 17:37 Page 24



injection in platform production risers. Thecompany operated the first diesel-electricpowered shuttle tanker on the NorwegianShelf and undertook FSO loading from twoindependent production platformssimultaneously.

Thus far, Knutsen has been involved inNorth Sea shuttle operations for 23 years andshipped more than 5,000 cargoes. Offshoretandem loading has been undertaken for 18years and the company has been involved inthe FSO market for 10 years. Nineteen vesselshave been equipped with bow loading systemsand six with STLs. In addition, 50 LNGCship-to-ship transfer operations have beensuccessfully completed and the company wasthe first to fit a VOC recovery unit on ashuttle tanker.

Ballast water Following several years of research and designappraisal, Knutsen has unveiled a newproprietary ballast water treatment system,called KBAL. The system was tested at NIVAunder the watchful eye of DNV and thecompany is hopeful of receiving IMO approvalnext year as it is being qualification tested and

will be commercially available shortly after. KBAL has a large capacity as, for example,

on a 173,400 cu m Knutsen LNGC, the ballastpump capacity is 2 x 3,400 cu m per hour withthe ballast tanks volume being 58,000 cu m,while the 138,000 cu m LNGCs have two2,500 cu m per hour ballast pumps, with aballast volume of 50,000 cu m. Each vessel isalso fitted with a spare pump.

Retrofits have been made easier by placingthe equipment on deck rather than in themachinery space, Knutsen said. Oneadvantage claimed was that it will not benecessary to drydock a vessel to fit theequipment, which can be done alongside a quay.

No filters are required as an ultra-violetsystem has been chosen for the system, whichis claimed to be smaller in size thanconventional systems. The substances used arepassive and the operation is claimed to besimple and cost competitive. It can becombined with any other active substance tomeet the more strict proposed US standards,Knutsen said.

Knutsen’s testing facility at Haugesund hasa capacity of 50 cu m per hour, while the test

rig at NIVA Solbergstrand has a capacity of200 cu m per hour.

The company said that the industry as awhole will be challenged to provide new andefficient technology to meet the new ballastwater regulations. It is estimated that around30 systems will have IMO approval by theend of 2012 – the majority of which are basedon existing land technology. Knutsencalculated that there will be a need for about25,000 retrofits by 2016 while under the newrules, all newly built vessels dating from 2012will have to be fitted with a system.

Stricter requirements will be proposed andmay also be imposed by some countriesbefore IMO has ratified the proposed BWMsystem convention. Knutsen explained that ithad decided to be prepared for the future andwas undertaking qualification testing to beready to retrofit its own fleet with a KBAL.

Returning to the gas sector, Knutsen alsohas a proprietary pressurised natural gasvessel design - PNG ®.

This has been developed by a consortium,involving KOAS, Europipe and DNV and isintended for marine compressed natural gastransportation. Europipe is a leading pipeline

When you go for ENC, go for the best ENC serviceJeppesen OnBoard means that you have a global chart database installed inside your ECDIS and you can license and use your ENCs in a matter of minutes. Easy “pay-as-you-go” licensing makes ordering and cost control simple. Online updating gives navigators the latest chart editions and corrections onboard. The result: confidence and safety on the vessel and in the ship owner’s office.

ENCs from Jeppesen fulfill the chart requirements for mandatory ECDIS. With years of experience supplying navigational services to customers worldwide, we ensure that your ships are up-to-date, without error or delay.

CHARTS & PUBLICATIONS

Jeppesen, Tel. + 47 51 46 47 00, www.jeppesen.com/marine

Jeppesen OnBoard offers users ease and flexibility when it comes to the licensing and updating of ENCs

e-Navigation, so simple

p2-34:p2-7.qxd 03/12/2010 17:37 Page 25



manufacturer who will be responsible for thefabrication of the ship containment system.

DNV was the first class society to issuerules and regulations for marine CNGtransportation and also has expertise inoffshore piping.

As for the gas characteristics, both lean andrich gas can be transported in KOAS’ PNGcarrier. The water dew point has to be controlled

(as in pipeline systems), while CO2 and H2Swill also be treated as in pipeline systems.

The CNG concept has been ready for themarket since 2002. However, Knutsenconceded that the technology needed a ‘first’project to demonstrate its benefits. Thecompany said that PNG will be a reality in thenear future, as the next generation of offshorefields will be smaller and further away from

any infrastructure. Also to be considered arefuture gas prices, energy demand andenvironmental challenges, including flaringrestrictions. In addition, there are deepwaterchallenges with associated gas, Knutsen said.

As a spin-off from PNG, KOAS has alsodeveloped PCO2, which is pressurised CO2proprietary technology for marine compressedCO2 transportation.

Finally, Knutsen has developed a volatileorganic compound unit – KVOC, which it isnow marketing to third parties (see VOCfeature on page 55).

Several systems have been fitted on KOT’sshuttle tankers due to the NorwegianGovernment’s rigid stance on air pollution inand around its coastline.

In essence, a KVOC unit fitted on board atanker will reduce VOC emissions into the airduring loading and transit.

Knutsen said that around 30 tankers haveand will be fitted with a system, most ofwhich are operating in the North Sea.

A VOC unit is not only applicable for crudeoil tankers, but also for product carriers andvessels carrying volatile chemicals, thecompany said.

Knutsen was one of the pioneers of bow loading technology.

TO

p2-34:p2-7.qxd 03/12/2010 17:37 Page 26

INDUSTRY - BUNKER OPERATIONS


In order to significantly reduce SOx

emissions, there are only two alternatives:

1) Eliminate, or greatly reduce the

sulphur content of fuel.

2) If high(er) sulphur fuels are consumed,

remove the SOx from the engine exhaust gases.

This article looks at the second of these

alternatives and more specifically the cost

implications of such a change, which in fact is

‘the distillate premium’ (DP).

Refiners and most other experts agree that if

fuel sulphur is reduced to ≤0.5% as required in

the proposed specification, sulphur limits would

require the use of MGO quality fuel. Therefore,

the cost to the ship operator would be directly

related to the distillate premium (DP) which is

the price delta between MGO and IFO, which

can be simply expressed as – MGO – IFO in

$/tonne =DP = 3.19 crude price ($/bbl).

Product pricing may seem to be a black art,

which indeed it is. There are no textbook

formulas for determining IFO, MGO or any

other petroleum product price. However,

DNVPS has been a keen observer of the

history of marine fuels and this extends to

price, as well as its better known monitoring

of fuel quality.

For at least 25 years, residual fuel (bunker

C) price has been in the 65 – 75% of crude

cost range, ie - this by-product fuel has sold at

a significant discount to crude cost. Likewise

MGO has been about 1.65 plus/minus 0.15

IFO price. These ratios are largely based on

periodic evaluations made from time to time

during DNVPS’ almost 30 years’ involvement

in marine fuels.

Following are the assumptions behind the

above simple equation:

1) IFO = 0.65 crude (units $/tonne).

2) MGO = 1.65 (IFO) (units $/tonne).

3) Crude $/tonne = crude $/bbl X 7.55 (based on

38 API for light sweet crude, 7.55 bbl/tonne).

Given these assumptions simple algebraic

manipulation leads to the simple relationship -

DP = 3.19 X $/BBl light sweet crude.

We have chosen this approach, ie, linking

DP to crude cost, because we felt the crude

price was a more familiar and potentially

more available figure.

The table below examines three crude price

scenario’s ($70, $100, $150/bbl) and three

MGO premium cases (MGO factor = 1.65,

1.80 and 2 times IFO price). We believe that

distillate fuel, which has been the fastest

growing grade and is in the most precarious

supply/demand balance will exceed historic

ratios, hence the higher MGO factors.

As a further insight into the DP, the table

below considers the high IF 380 price

scenario, - 0.75 times crude cost - with the

same MGO factors as above:

Based on these estimates the distillate

premium is likely to be in the 525 +/- 300

$/tonne range. Even under the most optimistic

scenario the DP will be at least $225/tonne.

We believe it will be substantially higher,

up to $850/tonne, if crude increases to its

historic high of 2008, a not entirely far-

fetched possibility and MGO is 2.0 IFO price,

and IFO is 0.75 crude.

The bottom line in these estimates is that

the economic incentive for a scrubber solution

to SOx emissions will be enormous. This

incentive has not been lost on all those avidly

researching scrubber solutions and the several

operators that are conducting shipboard trials.

DNVPS continues to follow these

developments with keen interest, especially the

actions taken insofar as an adoption of scrubber

technology by VLCC and large containership

operators. These types of vessels are among the

largest fuel consumers and would likely see the

greatest incentive to adopt a scrubber solution

and therefore the ones leading the charge to

installing scrubbers.

*This article was taken from a paperwritten by Dr Rudolph Kassinger ofD�V Petroleum Services (D�VPS).Email: [email protected] Phone: +1 201 512 8948.

Vessel operatorsfaced with the

‘distillate premium’ At D�V Petroleum Services (D�VPS), we believe it is now widely accepted that SOx

emissions from marine transport must be significantly reduced. The proposed ECA and

global fuel sulphur limits now explicitly acknowledge this requirement.*

Crude* 1.65 1.80 2.00 IFO 380

70 224 275 343 344

100 319 393 491 491

150 479 589 736 736

$/BBl MGO factor

* Light sweet crude, 38 API, 7.55 BBl/MeT.

Crude* 1.65 1.80 2.00 IFO 380

70 258 318 397 397

100 368 454 567 567

150 553 680 850 850

$/BBl MGO factor

* Light sweet crude, 38 API, 7.55 BBl/MeT.

DNVPS’ Dr Rudolph Kassinger.

TO

p2-34:p2-7.qxd 03/12/2010 17:42 Page 27



In this article, Matthias Winkler,

managing director of Kittiwake GmbH,

outlines sampling procedures and best

practice, as the debate over bunker

sampling has remained high on the agenda for

the tanker industry in recent months.

The requirement for ships to carry a

MARPOL sample, the operational downsides

of using low quality fuel and the commercial

consequences of a bunker dispute have all

placed renewed emphasis on the need for

best practice.

The North P&I Club and the Standard P&I

Club have highlighted the importance of

sampling. In its October 2010 Safety

Bulletin, Standard noted the number of

claims that has arisen as a result of lower

quality bunkers and the difficulty of

defending claims without sampling. North

has also pointed to disputes where the only

available sample was the mandatory IMO

MARPOL sample. If illustration were

needed, this makes clear the need to draw

sufficient samples.

The main reason for taking fuel samples is

to prove to port state control authorities that

the sulphur content does not exceed the limits

set by the revised MARPOL Annex VI. A

trustworthy sample is also central to reliable

lab and on board testing. The costs of lower-

quality fuel can be very severe, including the

risk of serious engine damage. It is of little

wonder that many operators undertake on

board testing for operational, as well as

regulatory, reasons.

There are varying sets of guidelines that

offer differing advice on how to draw a

sample, leaving the correct procedure open to

interpretation, but the IMO’s revised

guidelines on how to collect the MARPOL

sample are the best starting point. These state

that a sample "should be obtained at the

receiving ship's inlet bunker manifold and

should be drawn continuously throughout the

bunker delivery period."

As the point of custody transfer is where

the fuel effectively leaves the bunker

supplier’s domain and enters that of the

bunker buyer, this makes a lot of sense. This

is supported by DNV Petroleum Services

(DNVPS), which reports a strong correlation

between samples obtained during delivery

and samples drawn after delivery. Indeed,

many in the bunker industry do provide

commercial and MARPOL samples that are

taken at the barge manifold.

The problem with this is that although both

parties sign for the sealed sample, in most

cases no one from the ship has physically

witnessed it being drawn. Thus, vessels’

personnel may be accepting a sample of

unproven origin, potentially drawn at the

wrong location. This has led proactive ship

Best practicesampling vital as

scrutiny heightensBunker sampling is not only essential for monitoring the quality of fuels

and protecting critical equipment and machinery, it is also imperative

for regulatory compliance and dispute resolution.

P&I clubs have recently highlighted the need for sampling under MARPOL rules to defend claims.

p2-34:p2-7.qxd 03/12/2010 17:42 Page 28



operators to take matters in hand by taking the

sample themselves.

Guidelines availableThere are several sets of guidelines offering

advice on how to physically draw a sample,

which are open to interpretation. To avoid

mistakes, suppliers of sampling equipment,

such as Kittiwake’s Bunker Sampling Storage

Systems, provide abridged versions with

instructions and advice, making it much easier

for the crew to sample correctly.

In order to ensure a good sample that is

representative of the whole delivery, the fuel

needs to be sampled directly from the fuel line

during the full course of the delivery. A good

sample amount is around one part per million

of the fuel being delivered. The sampling

device chosen will be influenced by the

number of samples required, the technical

level of staff and the budget.

With manual drip-type samplers, the sample

is taken into a large ‘cubitainer’, which is

attached to the sampler in the presence of the

supplier (where possible), locked onto the

sampler and sealed with a serial numbered,

tamper evident seal.

When delivery is complete, the cubitainer is

shaken to thoroughly mix the sample. A

portion is poured into a sample bottle, then

sealed with serial numbered, tamper evident

caps and labelled with compliant labels. The

remaining sample is divided between three

commercial sample bottles: one for the

supplier, one to remain on board and one for

lab testing.

It is important that this process takes place

in the presence of both supplier and customer,

if possible. Both parties can then sign the

delivery note to accept that the sample is

representative. If a dispute occurs, this audit

trail is vital.

Annex VI stipulates that the MARPOL

sample must be retained “under the ship’s

control” for a minimum of 12 months, but

again there is a question of interpretation. The

US Coast Guard interprets this as keeping the

samples physically on board, whereas other

agencies accept that samples may need to be

sent ashore, as long as they can be produced

on request. For international vessels, it is

advisable to follow the strictest interpretation

of the regulation.

It is also critical that only one MARPOL

sample is kept per bunker delivery. If a PSC

inspector found more than one, he or she

would probably conclude that the ship’s crew

did not understand the regulations and might

detain the ship for further investigations.

As environmental scrutiny intensifies and

regulations tighten, it makes good

commercial sense to follow sampling

guidelines that are designed to achieve

compliance and avoid mistakes. After all,

getting it right makes the difference between

complying with the regulations and simply

wasting time and money.

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very severe, including the risk of

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“”

TO

p2-34:p2-7.qxd 03/12/2010 17:42 Page 29



Fuel choicesconsidered at annual

seminarWilhelmsen Ships Service (WSS) has highlighted the need for

the international shipping industry to evaluate new propulsion fuels,

driven by new regulations and emission controlled areas.

The company used its annual

Bunker Oil and Energy seminar,

held at the end of October and

hosted by Wilhelmsen Premier

Marine Fuels, to address these topics in front

of shipping companies from all market

segments.

Wilh Wilhelmsen vice president Per

Brinchmann painted a bleak picture for

shipowners who were not already planning

ahead for what is to come, as he pointed out

that in 2015, sulphur limits in ECAs

(emission control areas), will be reduced

to 0.1%.

As it is technically almost impossible to

produce heavy fuel oil with less than 0.1%

sulphur, vessels will have to operate on

alternative fuels, such as marine gasoil or

LNG. Another option would be to install

scrubbers, or other abatement technologies to

reduce sulphur emissions. Whatever option is

chosen, the result will be higher costs.

Availability of compliant fuel worldwide

could also be an issue.

One option, which is clean and quite

inexpensive, is LNG. Aksel Skjervheim, head

of fuel markets at GASNOR, a Norwegian

energy concern, stated the case for LNG.

“LNG is commonly used in electricity

production and is now accessible all over

Europe for vessels who want to use this

option as fuel,” he said.

Although LNG is still primarily used as

fuel on ferries and offshore vessels, global

engine manufacturers, such as Wärtsilä,

MAN, Rolls-Royce and Mitsubishi are all

developing duel-fuel engines that can run

on LNG.

A major challenge, however, is the price of

conversion for older engines, as well as the

storage of LNG on board. Due to higher

volumes, LNG tanks need to be four times as

large as normal fuel oil tanks. On a positive

note, the use of LNG will also remove NOx.

Government incentives, such as the

Norwegian NOx tax, will also help the move

to LNG as a fuel.

MGO use to increaseHeavy fuel oil (HFO) is the predominant

fuel for deepsea commercial vessels.

With the introduction of ECAs, MGO

shipping demand will increase. The cost

implication of this very much depends on

the oil price development.

Commodity strategist Sabine Schels from

Bank of America Merrill Lynch gave the

company’s global energy outlook at the

seminar. For 2011, the bank expected a

second round of quantitative easing coupled

with limited supply increases from OPEC to

reflate oil prices, even if US demand

remained week.

The bank saw 2011 Brent crude oil average

$85 per barrel. A combination of negative real

interest rates, record capital flows to

emerging markets and extremely high

utilisation rates across the commodity sector

would support prices.

The main point that the analyst made was

that negative real interest rates, a direct

consequence of US money printing,

encouraged immediate consumption and

discouraged future production of scarce

commodities. The impact was already

visible today: Brent crude oil prices were up

12% year-on-year, while oil demand growth

was exceptionally strong, driven by

emerging markets.

However, while the bank forecast oil prices

rising to $100 per barrel in 2011, it only saw

a limited risk of a substantial increase in

prices well above that level. OPEC had more

spare capacity than it did in 2008 and refining

capacity had increased considerably. It was

also hard to see how developed countries

could cope with very high oil prices in 2011

given their weak economic recovery.

Looking beyond 2011, the analysts saw

oil prices moving towards previous highs

again. “The commodity super-cycle is not

over, it is just pausing,” said the Merrill

Lynch analyst. TO

“LNG is commonly used in electricity

production and is now accessible

all over Europe for vessels who

want to use this option as fuel”

Aksel Skjervheim, head of fuel markets, GASNOR

“

”

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GPSChemoil phasefour fuel terminalproject on trackThe Middle East has traditionally been an area for bunker supply,

especially offshore Fujairah. Today, the port area is seeing greater storage capacity

being installed together with receiving and loading jetties.

One of the largest terminal

projects in the Middle East

recently received the go ahead

following the successful

arrangement of the finance.

This concerns GPSChemoil’s plan to

construct phase four of its Fujairah terminal.

GPSChemoil is a joint venture between Gulf

Petrol Supplies, a subsidiary of the Fujairah

National Group and Chemoil, now one of the

world’s leading suppliers of marine fuel.

GPSChemoil finalised the finance for the

project amounting to a $90 mill loan from a

consortium of banks in Abu Dhabi, Dubai and

Singapore. The multi-currency loan was

structured through a combination of Islamic

and conventional loan tranches, with HSBC

Bank Middle East acting as the lead arranger.

The storage terminal will increase

Fujairah’s capacity from its existing 95,000 cu

m to about 675,000 cu m.

Phase four of the facility is expected to cost

$130 mill when completed in 2012 and will be

one of the largest bunker terminals in the Middle

East. Once completed, it will also constitute

Chemoil’s largest storage facility, exceeding the

current 482,000 cu m capacity available at its

flagship Helios Terminal in Singapore.

Chemoil Asia & Global Logistics managing

director and GPSChemoil director, Sanjay

Anand, said: “The GPSChemoil terminal,

which is part of our extensive global supply

infrastructure, will substantially increase our

strategic presence in the Middle East. It will

ensure our shipping customers highly reliable

supply, speedy service and competitive pricing.

“The Fujairah facility will also significantly

expand our worldwide fuel terminal business,

helping to provide stable recurrent income

amid current market volatility,” he added.

The construction of the terminal is part of

Chemoil’s strategy to expand its global

integrated marine fuel supply chain, further

developing capabilities and services enabling

customers to benefit from Chemoil’s position

as one of the largest physical marine fuel

suppliers worldwide, the company claimed.

Saif Al Salami, managing director of Fujairah

National Group and GPSChemoil director,

concluded, “Gulf Petrol Supplies’ ongoing

investments in Fujairah, including GPSChemoil

storage terminal expansion, are reflective of our

confidence and commitment to the Emirate’s

growth and strategic importance to the region.”

Construction contractAt the same time, Topaz Engineering, a

division of Topaz Energy and Marine was

awarded a $100 mill EPC contract for the

construction of the terminal expansion project.

Through its subsidiary - Nico International

Hydrospace - Topaz Engineering has won one

of the major tank terminal repeat contracts in

Fujairah. The 580,000 cu m terminal

expansion is one of the largest EPC tank

terminal projects awarded to Topaz

Engineering in the recent past in terms of

project value and terminal size.

The fully automated storage terminal will

be equipped with a facility for loading and

receiving middle distillates, gas and fuel oil

from berths OT1 and OT2, via eight loading

and receiving pipelines running from the

jetties to the terminal.

Bill Bayliss, Topaz Engineering COO

commented on the project award, “With major

ongoing projects in the region, Topaz

Engineering has emerged as one of the leaders

in the oil and gas industry on the eastern coast

of the Emirates, particularly for onshore plant

construction works on an EPC basis.”

The scope of work, which is expected to

take almost two years to complete, includes

complete engineering, procurement of all

materials, tanks and critical equipment, and

the construction of the entire tank farm. Work

will also extend to commissioning and hook

up to the existing facilities of the Port of

Fujairah and the GPS terminal.

Profitable third quarterMeanwhile last month, Singapore-listed

Chemoil announced a net profit attributable to

equity holders of $2.6 mill for the third

quarter of this year. Chemoil is ramping up its Fujairah storage capacity.

p2-34:p2-7.qxd 03/12/2010 17:42 Page 32



The Group said that it continued to improve

operating performance including its gross

contribution per tonne (GCMT), reaching $5.6

per tonne for 3Q10, up from $5 per tonne for

2Q10 and $1.7 per tonne in 1Q10.

Chemoil’s 3Q10 sales volumes were 3.8

mill tonnes, up 2.7% from 3Q09. This added

up to an increase of 3.6% to 11.5 mill tonnes

for the first nine months of this year.

Sales volumes were again positively

impacted by the stronger performance of retail

fuel sales in the shipping segment, up 4.5% to

2.3 mill tonnes during 3Q10 and by 9.1% to

7.2 mill tonnes for the first nine months

of 2010.

Chemoil’s chairman and CEO, Mike Bandy,

said: "It was an improved net profitability

performance this third quarter following a

difficult start to 2010, however our business

continues to be exposed to weak wholesale-

retail margin spreads caused by oversupply

and weak demand in some of our port

locations.

"While Chemoil continues to perform better

despite challenging economic conditions, we

are starting to capture some of the benefits of

recovering demand in specific sectors, namely

our core shipping market. Our retail and ex-

wharf marine fuel sales in Asia continue to

increase in the third quarter. Overall, we are

on the right path as our strategies position us

to grow profitably and as markets continue to

improve," he said.

Chemoil’s CFO, Jerome Lorenzo, said:

“The effectiveness of our strategy to improve

operational efficiency is becoming more

evident in our net profitability and remains an

important component of our ongoing process.

We also remain focused on measures that have

enabled us to lower overheads, with the

benefits now becoming more visible in

operational areas like storage and barging.”

Bandy concluded: "As wholesale-retail

spreads remain challenging, we will continue

to drive our business towards improved

profitability, higher sales volumes and reduced

operational costs. These operational

improvements increase our readiness to

maximise growth opportunities as we move

towards more favourable market conditions.

“We have seen in the past two months there

have been a number of positive developments

for Chemoil, including the establishment of a

new regional operations office in New York;

proceeded with the fourth phase of

construction of what would be Chemoil’s

largest global storage facility in Fujairah

through our joint venture with Gulf Petrol

Supplies LLC; and the launch of our expanded

offering to include risk management products

and services to our shipping customers as a

fitting complement to our core physical fuel

delivery,” he said.

Topaz Engineering COO Bill Bayliss.

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p2-34:p2-7.qxd 03/12/2010 17:43 Page 33


INDUSTRY - BUNKER OPERATIONS - BOOK REVIEW

Presenting a complex subject in a

simply-written and highly-effective

format, this book also provides a

comprehensive foundation for

anyone involved in any aspect of credit

management, the publisher Petrospot said.

The book is written by Adam Dupré, the

head of Ocean Intelligence, one of the four

main marine credit reporting companies, who

is intimately involved in the day to day

business of credit risk within the maritime

environment.

It takes the reader through the crucial

distinction between nominal ownership and

actual control and the question of who is the

actual credit party. The book outlines the

‘whats’ and ‘hows’ regarding the essential

need to understand both the micro side – the

company being offered credit – and the macro

side – the market context such as the sub-

sector’s tonnage position; hence the

company’s earnings situation, its worth and its

debt position.

Chapters cover the factors affecting risk,

making credit decisions, using credit as a

positive business tool, securitising credit and –

importantly– what to do when the deal goes

wrong. It also contains some detailed analysis

of shipping markets.

The book’s appendices are particularly

useful, especially to newcomers, or those not

overly familiar with the unique nature of the

marine credit industry. They include examples

of the credit scorecards used by major oil

companies and independent traders to assess a

customer’s credit risk, and provide two in-

depth ‘real life’ credit reports on large

shipping companies as helpful illustrations.

Additional material is provided by John

Phillips, global credit manager of Chemoil

Energy and visiting research fellow for the

University of Plymouth.

Author Dupré said; “Shipping markets are

opaque and unique, but bunker suppliers have

to understand them if they are to survive. This

book is an attempt to provide the reader with

an understanding of the marine fuel market

and of the shipping markets it supports.

“Anyone selling fuel to ships almost always

does so on credit. The amounts of money

involved can be substantial. There is no

security of payment and margins can be thin,

so customer default is always a danger and

can be very serious for the supplier. For

anyone involved in the business, it is essential

to understand the dynamics of credit risk,” he

explained.

Writer of the forward -Stuart Kenner, MRC

Business Information Group founder said;

“The global bunker market is worth many,

many billions of dollars and it is constantly

changing. Individual suppliers are heavily

exposed financially and physically. One bad

debt wipes out the profit on numerous other

stems. Any fool can succeed in a rising market

but it takes good management to steer through

a falling one and both bunkers and shipping

are cyclical businesses.”

The author has over 25 years experience in

company research, analysis and investigation

for the maritime sector. He was one of the

founders and later managing director of MRC

Business Information Group (later Lloyd’s

MIU and now Lloyd’s List Intelligence) and,

in 2005, he co-founded Ocean Intelligence.

He has written and lectured extensively on

counterparty credit risk assessment in the

maritime sector and is a specialist on

gathering commercial information on Chinese

companies.

*An ‘Introduction to Bunker CreditRisk’ by Adam Dupré, first edition –2010, published by Petrospot Limited,Oxford, 113 pages, plus 22preliminaries. Price: £45/€50/$80, pluspostage and packing.www.petrospot.com/books Also availableas an eBook via Witherby Seamanshipwww.witherbyseamanship.com

An Introduction toBunker Credit Risk’

Author Adam Dupré.

‘An Introduction to Bunker Credit Risk’* is claimed to be both a very timely

and highly useful tool for those responsible for making credit decisions

and assessing counterparty risk when buying or selling marine fuels.

“Any fool can succeed in a rising market but

it takes good management to steer through a

falling one and both bunkers and shipping

are cyclical businesses.”

Stuart Kenner, MRC Business Information Group

“

”

TO

p2-34:p2-7.qxd 03/12/2010 17:43 Page 34

TECHNOLOGY - TRAINING SYSTEMS


The so called STCW Manila

Amendments were ratified in June

of this year. They call for added

generic ECDIS training as a

requirement for seafarers serving on an

ECDIS fitted vessel – whether that vessel is

operating in a paperless mode, or not.

ISM has a major bearing on ECDIS use,

part of which is type specific training that a

company needs to implement in order to

satisfy audits. SOLAS now includes a rolling

programme from 2012 that requires the

majority of vessels to be ECDIS fitted,

maintained and managed.

To help satisfy the training needs, about a

couple of years ago, a small team of ex UK

Royal Navy (RN) and Royal Fleet Auxiliary

(RFA) navigating officers set themselves up as

ECDIS training consultants. Since then, the

newly formed company – ECDIS Ltd – has

joined together in a partnership arrangement

with four of the leading navaids’ OEMs to

offer training using their hardware and

software.

There is increasing evidence that navigators

are becoming over-reliant on their ECDIS as

statistics have shown that there are an equal

number of ECDIS-related groundings, as

those involving paper charts.

“It’s all a matter of training,” Malcolm

Instone, director of operations & standards,

ECDIS Ltd and retired RN Lieutenant

Commander and RN navigation expert said.

He said that the systems were not as user

friendly as they could be and that they must

be managed with written procedures for the

seafarers who use them. “They were designed

by engineers, who have provided functionality

that is not required,” he explained.

He also explained how the RN’s specialist

navigator’s course (SPEC N) can be adapted

for commercial shipping, as it was designed to

test a student’s mental maths, quick thinking,

initiative and raw navigational ability under

intense pressure and was seen as the ultimate

test for any navigator.

What makes the SPEC N course so

challenging is the requirement to accurately

fix the position of the ship and predict future

position at high speed without the use of

modern fixing aids such as radar and GPS.

Instead, the student is forced to harness all

available navigation techniques, in particular

those contained within the Admiralty Manual

of Navigation.

These include fixing by a line of soundings,

running fixes, sextant angles, doubling the

angle on the bow and use of bearing pairs to

calculate distance off an object. On the course,

it is quite common for students to conduct an

anchorage with a sextant in either hand, taking

a vertical sextant angle with one and a

horizontal angle with the other.

“Now, imagine plotting fixes in this manner

on a paper chart. Would you know how to do

it? When was the last time you picked up a

sextant or station pointer? Now imagine

planning and executing it with ECDIS as your

primary means of navigation. Again, would

you know how to do it and is your ECDIS

capable of processing such information?”

questioned Instone.

Explaining the need to go to such levels,

Instone said that the RN needed to be able to

navigate in a sensor deprived situation

because operational areas could preclude the

use of radar to avoid detection and where GPS

jamming and other sensor denial is prevalent.

Hence the navigators must be trained to

acquire such skills.

This necessitates pushing the ECDIS system

to the limits of its capabilities and is why the

warfare equivalent of ECDIS (WECDIS)

gives access to increased functionality to

facilitate underwater navigation, water space

management and the input of position

information from a variety of traditional

sources.

The ability to perform some of the

techniques mentioned above may be deemed

unnecessary and old fashioned for commercial

operation. However, the skill of manually

fixing independent of radar and GPS and the

With the new STCW training regulations just over six months away from mandation, it

is time owners and operators took serious note of their ECDIS installations and use.

Getting the most outof your equipment

ECDIS Ltd’s training facility.

p35-60:p2-7.qxd 03/12/2010 17:59 Page 1


ability to clearly display where the vessel can

and cannot go on the chart, are techniques

relevant to any seafarer.

First, manual fixing independent of radar

and GPS may be the only means of cross

checking the GPS, or in the extreme, but not

uncommon, navigating in an area of unreliable

datum, or sensor input failure. For example,

Trinity House has conducted major studies to

the ever present danger of GPS jamming and

the importance of being able to identify and

manage such a situation.

Second, calculating the safe water available

when operating to minimal under keel

clearance with a safety depth that falls in

between charted contours is vital to safely

manage today’s commercial pressure

operations. It would therefore be prudent to

develop procedures and practice them in case

of such an outcome.

“I therefore advocate two techniques that

should be utilised in ECDIS as common

practice - manual fixing and the ability to

implement a limiting danger line (LDL). We

at ECDIS Ltd feel so strongly about the

relevance of these techniques that we teach

them as part of our five-day STCW IMO 1.27

course,” Instone said.

It is not enough to rely solely on GPS, or

radar to provide fix information. An ECDIS

does not have to have a radar overlay under

performance standards, but if it does have this

facility, it is prudent to utilise it in its entirety.

This is the subject of another element of

ECDIS Ltd’s course. However, for GPS

denial, a navigator should have a mindset not

to take the case of ‘if you lose GPS’, but very

much a case of ‘when you lose GPS’.

The navigator must therefore utilise the

ECDIS like any other navaid and question the

accuracy of the data in order to quality control

the information. The premise here is twofold -

that manual fixing should be used to cross

reference GPS and that loss of GPS does not

mean loss of ECDIS.

“I therefore recommend that manual fixing is

incorporated by operators to prove the GPS

position correct and good practice in case of

ECDIS failure,” Instone stressed. Plotting a fix

in ECDIS (lines of position) is a requirement

under the performance standards and executing

this function can be very quick. However, it

does depend on the software and just as on

paper, practice, practice, practice. “It can easily

be quicker to plot a fix on an ECDIS than on a

paper chart, so there should be no excuse for

not doing it if needed!” he said.

The importance in being able to perform

this task swiftly is threefold –

1) It should not detract from looking out the

window and driving the ship safely using

all navaids.

2) The task is performed as a quick check at

an appropriate time.

3) Operators should be able to comfortably

manage long periods of relative navigation

for areas of the world that require it and in

case of sudden need.

In event of GPS failure, the operator can utilise

the DR function in ECDIS and revert to

traditional fixing skills in order to provide

accurate positional data - the loss of GPS may

also mean loss of positional information on the

radar. Furthermore, the environment may

preclude, or limit visual fixing to such an extent

that the operator may have to use transferred

position lines, or fix by a line of soundings.

Some systems can perform beyond the

minimum performance standards in this regard

by allowing the operator to plot visual bearings,

radar ranges and other techniques accordingly.

As well as being quick and easy to plot, the

operator also benefits from a system that


An advanced level of knowledgecould be deemed to be requiredin order to ensure the best useof an ECDIS system on anygiven ship. However, what levelof knowledge is required tomanage and quality control afleet of ECDIS systems? Theanswer is that a level ofexpertise and understanding isrequired that goes beyond beingan ECDIS operator at sea. Expert guidance provision on managing a

fleet with ECDIS is available from the

company in the form of the quality

controlling (QC) ECDIS course.

The QC course is designed with two

aims. First, it establishes `best practice` for

the fleet as it makes the transition to digital

navigation. Second, it serves to promote the

highest standards of digital navigation from

lessons learnt.

The first aim is essentially the

opportunity for fleet superintendents and

inspectors to establish a base line for their

fleet transition to digital navigation, if they

do not as yet have one. Furthermore, it

provides a framework with which to

develop policy using the extensive

experience of ECDIS Ltd’s team. The

second aim is to look in depth at how

standards, of electronic navigation can be

quality controlled at sea.

To achieve the aim the course is split into

three parts:

Part One – Fleet digital navigation policy

This considers a company’s fleet training

policy, hull policy, trials period, security,

shoreside support as the transition is made

to digital navigation.

Part Two – Fleet digital navigation

management

This looks at best practice when taking a

trained crew into team training scenarios

with ECDIS, assessment and ultimately

accrediting them to ‘go digital’. Also

considered are post-accreditation risk

assessments, maintenance and logistical

support both during and after the process.

Part Three – Individual ship policy and

management

Concentrates on best practice and advice

on how an individual vessel can manage

electronic navigation, from user privileges

through to bridge managing ECDIS.

Generic digital planning and monitoring

procedures are considered, as well as chart

and digital navigation record management.

Masters standing orders and check-off cards

are also discussed. �

ECDIS Ltd’s Mal Instone.

ECDIS Ltd’s five-day course

p35-60:p2-7.qxd 03/12/2010 17:59 Page 2



automatically calculates DR and EP based upon

last known values, such as set and drift, COG

and SOG, when in ‘DR mode’. Therefore,

manually entered positional information can

very quickly establish where you are and where

you will be to a high degree of accuracy.

GPS failure need not be an emergency,

although to maintain safety of navigation, the

system may be pushed further than it has been

ever done before. Therefore, the prudent

operator should make it his or her business to

know the capabilities and limitations of the

system, how to prove positional information

correct and what to do when GPS is unreliable.

Limiting danger lineThe ability of an ECDIS system to highlight

a given safety contour based on a set safety

depth is one of the great advantages of the

system. In essence, the system displays clearly

in bold the contour beyond which a navigator

does not wish to proceed. Furthermore, if the

anti-grounding cone (AGC - also called safety

frame or guard zone) has been activated, the

system will alarm when in contact with the

safety contour, thereby giving prior warning

of the proximity of danger.

However, the lack of contour data currently

available within ENCs means that the operator

is not able to fully harmonise the safety

contour with the safety depth. For example, if

the safety depth is set to the value to 6.5 m,

the system will automatically highlight the

next available contour, which is normally the

10 m line. It can be seen therefore, that if the

vessel by necessity has to proceed over

soundings of less than 10 m but greater than

6.5 m, safe areas cannot be defined and it is

therefore dangerous. Furthermore, the system

will continuously alarm causing alarm fatigue.

This shortfall essentially means that

vessels that need to reduce the safety contour

in accordance with their safety depth in order

to get into harbour safely will be faced with

two options:

1) Turn the AGC off.

2) Reduce the safety contour value to 5 m.

It must be seen that both the above options are

inherently dangerous. Turning the AGC off

means that the system will only alarm when

the ship symbol encounters them, which in

most cases will be too late. Reducing the

safety contour value below the value of safety

depth is possible in many systems, although it

is not recommended, as the majority of

systems only alarm crossing the safety contour

– not the safety depth!

A solution to this problem is the drawing of

a limiting danger line (LDL). This is a tried

and tested technique that works on RNCs, as

well as ENCs. Essentially, it is a manually

inserted danger line that will alarm when the

safety frame touches it, replacing the safety

contour in extremis. The value of the LDL is

calculated as follows:

Draught + safety + squat – HoT (time dependent)

When the safety depth value is inserted, all

soundings equal to or less than this value are

highlighted in bold. Using the relevant

function on the ECDIS, draw a danger line

around the soundings to produce the LDL.

The safety value is a prime consideration and

must be large enough to take into account the

quality of data.

Because the contour is being drawn

manually the inaccuracy of the data in use

must be taken into consideration. It is of note

that some systems can draw an LDL

automatically. It must be remembered that

p35-60:p2-7.qxd 03/12/2010 17:59 Page 3



LDL is time dependant because it is based

upon the tide’s height and when no longer

required, it must be ensured that the safety

contour is reverted back to a value greater

than safety depth.

If the LDL is drawn and the available

channel is deemed too narrow to facilitate use

of the AGC (for example, if used it would

cause alarm fatigue) then it is strongly

recommended that clearing bearings be used

to define the area of water in which it is safe

to navigate. “It goes without saying that you

really must know what you are doing before

attempting this technique,” Instone said.

He stressed that the principles of navigation

had not changed, although the medium

through which navigation is performed had

changed. ECDIS is simply a navigational aid,

albeit a complex one. The fact that there is a

human interface means that data must still be

questioned, understood and acted upon.

Therefore, everything learnt and the

experience gained is still relevant in the digital

navigation era.

If used correctly, ECDIS systems will

provide the operator with spare capacity, so

there is no excuse for not looking out of the

window and making sound judgements based

on the practice of good seamanship.

“We at ECDIS Ltd passionately believe that

traditional navigational methods are still

relevant. We are not teaching people to

navigate, rather we are teaching people to use

ECDIS in order to navigate safely. We

therefore train our customers to use ECDIS

systems by utilising existing navigational

knowledge and developing the use of

traditional navigational methods as

redundancy when GPS is not available.

“Ignore the basic principles of navigation at

your peril. Instead, strive to utilise the system to

its full capabilities by understanding it fully and

pushing its capabilities to the limits. Know your

system strengths, weaknesses and shortfalls and

use it to prove GPS correct!” he said.

No doubt the debate about how much

information to include and how to use it will

continue, as there is an IMO working group

trying to find a solution. At present, member

flag states have not come out with standards,

hence there are as many as 32 different

ECDIS on the market with more to come.

“ECDIS is embryonic. In 10 years’ time

they will probably be totally different,”

Instone thought.

Next year, the company expects a vast

increase in demand as the flag states start to

regulate their training requirements under the

amendments to STCW 95, following the

recent Manila meeting.

Todd joins ECDIS LtdNorthern Ireland-based marine navigation data

and service provider Todd (formerly Todd

Chart Agency) is working with ECDIS Ltd to

offer a flag-state approved ECDIS training

course to all of its customers, either at the

company’s training facility in the UK, or at

any location globally to suit individual vessel

requirements.

As well as the five day course, Todd and

ECDIS Ltd can also provide a full range of

ECDIS training, including one day

introductions and bespoke packages for

marine inspectors and port authorities who

require ‘pocket cribs’ for use when quality

controlling ECDIS on board ship.

Capt William Todd said: “Our partnership

with ECDIS Ltd allows us to offer our current

and new customers an industry-approved

ECDIS training course to complement the

extensive range of electronic charting products

we offer.”

“At Todd, we have a team of navigational

data specialists and ECDIS experts, all of

whom work closely with each customer to

ensure that they understand the requirements

of ECDIS carriage and that they are fully

prepared ahead of the ECDIS mandate,” he

explained.

Todd’s product range includes ECDIS

hardware from a number of manufacturers,

including Maris and PC Maritime and a global

portfolio of electronic charts and digital

publications including the full range of

Admiralty digital and paper products. TO

ECDIS Ltd was founded in September 2008.

In November the following year, the company’s first mobile

course was held on board a Ceres-managed LNGC.

Static training was introduced in January of this year and in

April, the company moved to new larger premises near

Fareham in Hampshire.

Today, ECDIS Ltd has six permanent staff, including one

person based in Singapore. Thus far, four companies have

installed hardware and software in the training room, resulting

in the company having 17 terminals.

These are Transas (six), which provided a simulator; Kelvin

Hughes (three); Offshore Systems International (OSI) (seven)

and PC Maritime (one).

The company said that it remained in talks with other ECDIS

manufacturers with a view to hosting more terminals, allowing

customers the opportunity to "try before they buy" and receive

training on multiple systems.

ECDIS Ltd offers IMO and MCA approved five-day courses

and type specific one to two day courses. The company was

also audited and certificated by DNV.

A maximum of 12 people can be accommodated in the

training centre at any one time, restricted to two per console for

ease of training. �

ECDIS Ltd - A profile

1) To get the most out of your ECDIS you need to know your

equipment. Ask questions of your equipment such as does it

alarm for safety depth?

2) Effective use of ECDIS hinges on setting the system up

correctly. There is a lot to remember, so use check-off cards to

aid this process.

3) Always navigate on the best scale chart as this is the only way

you will see all the charted data while not being affected by

SCAMIN (scale minimum).

4) Always navigate on the correct display setting. Base is not

adequate for navigation and standard may require customising.

5) Do not rely solely on the radar or GPS - prove ECDIS correct

at every opportunity by visual and all available means.

6) Remember that after setting a safety contour value, it may

vary depending on the scale of chart in use (system dependant).

7) When route planning, where possible use clearing bearings,

clearing ranges and parallel index lines to enhance safety when

executing a route. Many systems now offer such tools.

8) ECDIS is a navaid so treat as such and question what it is

telling you - if you put rubbish into the system, you get

rubbish out! �

ECDIS Ltd’s top eightpoints to remember

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Using interactive 3D technology,

VSTEP creates training

applications that are claimed to

allow trainees to build up their

skills in a practical and cost effective way.

Since its founding in 2002, VSTEP has

delivered a number of simulator solutions for

various industry clients and governmental

organisations worldwide. The company is a

strong advocate for more effective training

through enhanced virtual reality.

Chief technical officer Pjotr van Schothorst

explained; “Right now the company is

focusing on the development of Nautis, a

generic shiphandling and manoeuvring

simulator, which will be certified by DNV for

general IMO STCW training.”

Another training product, RescueSim,

focuses on firefighting and emergency

management training. In addition, an on-board

firefighting (AFF) variant of this product will

soon be unveiled, van Schothorst said.

Both Nautis and RescueSim have been

specifically designed to allow clients to

customise the systems to their own needs. He

explained: “We may well see specific tanker

and gas carrier versions of both Nautis and

RescueSim in 2011.”

With the upcoming IMO mandate for

ECDIS systems and ECDIS training, van

Schothorst said that there is a lot of interest in

this area. He claimed that Nautis can interface

to any commercial ECDIS system based on

the International NMEA 0183 standard.

“Adding Nautis to an ECDIS training

certainly has benefits: people will learn to

interpret the marks on the chart as buoys in

the outside view window offered by Nautis,

and they will match the vessels they see

sailing around them as AIS icons on the

ECDIS,” he said.

VSTEP said that the Nautis range of

maritime training simulators offers an

affordable and effective alternative for training

maritime professionals, officers and crew.

With a full range of simulators, from desktop

trainer to full mission bridge simulator, the

company offers a cost-effective training

solution for nautical colleges, naval

academies, maritime training centres and

individual shipowners.

Turning to the subject of CBT-based

training, today this usually consists of text,

images, videoclips, with educational material,

followed by questions and answers to test

if the learning points have been taken in by

the trainee.

van Schothorst said that it this training

method is a cost-effective way for a mass of

information to be made available to students.

They can learn anywhere, anytime, at their

own pace and their progress can be tracked.

By adding a desktop simulator to a CBT

system will ensure that the lessons learned are

immediately practised in realistic life-like

scenarios. The students apply the knowledge

they obtained from the CBT.

“That’s a much more challenging and

compelling way to learn and the retention

value is much higher. The beauty of our

Nautis simulation product is that it can run

on a laptop and also scale up to a full

mission bridge simulator (FMBS). So you

could prepare for a big FMBS exercise on a

laptop, possibly on board during an

Rotterdam-based VSTEP has grown considerably in the past few years with the result

that the company now describes itself as a leading European developer

of simulators and virtual training software.

Dutch trainingspecialist expands on

all fronts

p35-60:p2-7.qxd 03/12/2010 17:59 Page 5

internship,“ van Schothorst said.

“The learning value you get out of the

expensive FMBS exercise becomes much

higher this way. So you will see mixes of

CBT, laptop simulation training, and FMBS

training throughout the career of a modern

sailor,” he concluded.

The first maritime and riverine research and

training centre to construct a full mission

bridge simulator running Nautis software is

Buenos Aires-based Servicio Integral de

Prácticos S.A. (SIPSA).

SIPSA has built a realistic bridge with 270

deg field of view using nine LCD TV screens.

The centre will apply for DNV Class A

certification of the simulator.

The simulator integrates Nautis and was

built to train maritime students and

professionals in shiphandling and navigation

in any scenario. It also carries out maritime

and consulting tasks, such as new ports and

terminals’ operating conditions. This is takes

into account not only the installations and

structures, but also the operation of new ships,

safety conditions and IMO rulings.

Having used traditional simulation

technology for about 10 years SIPSA selected

Nautis software for its new simulation centre,

because of the cost effectiveness of the

solution and the ease with which the software

can be integrated into the centre’s custom-

built bridge.

Another important advantage claimed is that

SIPSA staff can build their own vessels and

3D exercise environments and add them to the

simulator.

SIPSA project manager, Alberto Secchi

explained “Nautis was our first choice for

maritime simulation training. It allows for

realistic simulation of sailing manoeuvres,

docking, mooring to buoys, use of ropes and

tugs, all sorts of failures and events, and

different hydro meteorological and visibility

conditions, daytime with good and bad

visibility and night time. It allows for

recording of manoeuvres that are carried out

so we can extract the respective technical

conclusions through a very detailed analysis.”

SIPSA started its activities in 1994, offering

its pilot services to shipping agencies and/or

shipowners. At the same time, it added new

tools for modern pilot training and for

maritime and riverine investigation, including

bridge and manoeuvring simulators. The

centre has since advised international

companies on training and simulation.

It has also held advanced training courses

for Argentine and international shipping’s

higher ranking personnel.

US presenceOnly a few months following the opening of

its UK office, VSTEP has opened its first US

office in New York.

The past year has seen a rapid growth

for VSTEP’s maritime and emergency

response simulator products, resulting in a

need to build a network of own offices and

dedicated agents in different parts of the

world to serve customers.

VSTEP’s North American office is headed

by Capt Mark Woolley, US Navy (Ret). Capt

Woolley joins VSTEP following over 30

years’ service in the US Navy, most recently

as commanding officer of largest Naval

Reserve Officers Training Corps (NROTC) in

San Diego.

Here he was responsible for training

future naval officers in navigation,

operations, engineering and leadership,

making extensive use of simulation

programs. San Diego was the first NROTC

unit to incorporate VSTEP ship simulation

products in the curriculum.



RescueSim - a firefighting and emergency management tool.

TO

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There is more than one way to ECDIS training


The maritime industry will face ahuge challenge when the STCW2010 comes into force. The need for training will explode and the

current training capacity worldwide might not

be enough to meet the demand. No matter

whether the decision of the shipowners to start

their process of switching to ECDIS based

navigation now or at the last minute, the

maritime training industry will face a tough

challenge in the years to come, according to

leading navigation equipment supplier Furuno.

Fortunately, the shipowners are already

working towards the mandatory ECDIS

carriage requirement by making retrofit plans

for existing ships, as well as plans for ECDIS

employment in future newbuildings.

Consequently, the interest for ECDIS training

among crew managers is growing day by day.

With the new STCW regulations,

manufacturers are facing a challenge, which is

out of the ordinary. This is because

familiarisation training will have a significant

role to play. To cope with this, manufacturers

are forced to consider new ways of spreading

the word and apply familiarisation training to

the many navigators worldwide.

Most shipowners have a fleet of vessels

fitted with different navigation/communication

equipment brands on board and with the

strong requirement in the STCW 2010 for the

crew to be familiarised with the equipment on

board the vessel they operate, this could create

problems when a crew is switched between

vessels - logistics in crew management will be

quite a challenge.

Furuno said that it chose a new way to

provide type specific ECDIS training by

establishing a training facility - the Furuno INS

Training Centre – INSTC - in Copenhagen with

the long term goal to establish high quality

training products for Furuno’s customers and to

provide training solutions (NavSkillsTM) to

shipowners and training centres around the

world to enable them to have the capability of

conducting the training themselves.

Shipowners have different options when it

comes to familiarisation training and

certification of their crews. They can use the

training facilities provided by Furuno for the

familiarisation training and certification of their

crew, or they can establish their own training

centres in co-operation with Furuno. This will

provide the necessary equipment (DNV Class A

full mission simulator with a full bridge and

planning stations), training materials and tools

to perform the training and also take care of

the education of the instructors to allow the

shipowners to conduct certified training on

behalf of Furuno covered by the certification that

the company received from DNV SeaSkillTM

for the IMO ECDIS Model Course 1.27 and

the IMO IBS/INS Operator Model Course 1.32.

This allows the shipowners to combine

familiarisation training with generic training,

which will both be required under the STCW

code. This solution would allow the shipowners

to save time, because they do not have to send

the crew to one training centre to obtain the

certified generic training and afterwards to the

manufacturer to obtain the familiarisation

training. Now everything can be done inside

the shipowners’ own facility at once.

Inspection and acceptance by DNV

SeaSkillTM is part of the package to ensure

that the quality and performance of the

training facility complies with the standards

set by IMO and the quality standard of

Furuno’s own training centre.

INSTC offers:

� IMO ECDIS Model Course 1.27 (certified

by DNV SeaSkillTM).

� IMO IBS/INS Operator Model Course 1.32

(certified by DNV SeaSkillTM).

� Bridge Resource Management.

� Bridge Team Management training courses.

� Equipment familiarisation training - for

example type specific ECDIS and Radar

training.

The certified training includes assessment

of the trainees at the end of the training

course. The trainees have to pass a written and

a practical test to receive the certificate. The

assessment method and content has been

reviewed and approved by DNV SeaSkillTM.

During the training course the navigators

receive information on how to incorporate INS

or ECDIS in the bridge procedures and how to

utilise the functions made available by

INS/ECDIS that can ease the operation of the

vessel and provide more efficient use of the

equipment that the shipowners have invested in.

One important aspect of the training includes the

ability to validate the information provided by

ECDIS/INS and its performance with knowledge

of what counter measures to be taken in case

the ECDIS/INS fails, or provides corrupt data.

By offering these possibilities, Furuno said

that it had created a training environment that

allows for the best possible familiarisation and

certification.

Furuno’s in-house training facility.

TO

p35-60:p2-7.qxd 03/12/2010 17:59 Page 7

“We are not just a video

company, we also

provide trainers,”

managing director

Stephen Bond told Tanker Operator.For the shipping industry as a whole, the

company produces over 300 CBT programs

and over 400 DVDs. Over 20 courses are also

held per year, both standard and advanced.

To keep abreast of rules, regulations,

industry concerns etc, Videotel personnel sit

down with industry leaders around twice per

year. These include IMAREST, the IMO and

OCIMF, plus the CDI and SIGTTO and the

company is audited by various organisations,

including the MCA and by flag states, such as

Panama and Liberia.

A user group has also been formed, which

advises the company of the latest industry

concerns as does the UK’s MAIB and MCA.

As a result, the management is continuously

working on new material, such as the STCW

‘Manila’ amendments and OPA 90 updates.

Videotel attended the Manila meeting on

STCW.

A steering group has also been formed

based on the Open University model. These

include course teams, educational groups,

maritime schools and for example tanker

operators, among others. The company

employs its own media people to produce

the training films, which in the case of one

of the latest videos – Powered Watertight

Doors – which was produced in about six to

seven weeks.

Currently, Videotel is running at around 20

productions per year, which can contain

subtitles, voiceovers, or specifically produced

in most languages to suit the customer. If the

training medium is not produced in the

English language, the voiceovers will be

undertaken slowly enabling the student to be

thoroughly aware of the message being

conveyed and the regulations attached to the

particular training clip.

A major source of material comes from

the P&I clubs. Videotel has joined forces

with the Standard Club to produce a set of

10 short video clips - Hazards Series 1.

Made with the assistance of Inmarsat, the

MCA and numerous shipping companies,

each clip shows in graphic and sometimes

shocking detail what can happen when the

correct procedures and working techniques

are ignored when carrying out a task. The

same task is then shown being undertaken in

the approved manner and with the right

equipment.

Aimed primarily at cadets, deck and engine

crew, students at maritime colleges and

training officers, the clips are eye catching to

grab the viewer’s attention and depict the

potential severity of the results of some easily

avoidable mistakes. Shot using real crew

doing real work, these films generate highly

targeted training points and pull no punches in

delivering them to the audience.

Bond explained that the set of video clips

tackles head on the key issues of personal

awareness and responsibility: “In all walks of

life, we see individuals knowingly taking

unnecessary risks and seafarers are no

exception. Take the daily event of driving a

car: when we are behind the wheel, we can all

knowingly take risks even with our children or

grandchildren on board.

“If with this project we can reduce

accidents in the same way that governments

have done through the use of shock

commercials on television, then it will have

been a very worthwhile exercise,” he said.

MLC addressed Earlier this year, Videotel hosted a seminar in

Athens discussing the repercussions regarding

the forthcoming Maritime Labour Convention

(MLC). It was attended by representatives

from more than 60 Greek shipowners.

They were told in no uncertain terms that

while their flag states may not have ratified

the MLC once it comes into force, their ships

will be subject to inspection by port state

control inspectors as if they had.

David Dearsley, past Secretary General of

employers association IMEC and a consultant

to Videotel, warned that seemingly small

issues such as not having all the necessary



Videotel – workingwith industry to rampup safety awareness

Stephen Bond

Leading training systems producer Videotel now offers a raft of solutions to suit the

individual custmers. These include CBT type training, videos and conventional

workbooks, or courses, which are often mandated by flag states.

p35-60:p2-7.qxd 03/12/2010 17:59 Page 8



documentation in correct order for your crew's

contracts could get a shipowner and his vessel

into serious problems with PSC inspectors.

"The inspector will know there are 15

things he should be looking for in your

shipboard employment contracts. And he will

come on board to see them. If the master does

not have them all together in the way the

convention wants them, then the ship could

have problems. And that is just one example,"

he warned.

Dearsley added: "So where do owners and

managers go for help? Your flag state is the

first point of contact but many of them still

haven't worked out where they are going.

Class? Yes, they are commercialising the

regulation beyond what would be normally

reasonable because class can't give you a

Certificate of Compliance until the flag states

have stated what their regulations are."

Videotel has produced a DVD, as well as a

comprehensive CBT programme on the MLC.

It sets out to fully train those responsible in an

owners', managers', flag state's, or on board

operation as to what is expected of them.

Bond explained: "The CBT has five

modules: a general introduction; a module for

shipmanagers; one for masters, one for

manning agents and one for those responsible

for the MLC in member states.

“There is a short test at the end of each

module and another test once the entire

course has been completed. The CBT

contains the full text of the convention and

gives guidance as to what flag and port

state control inspectors should and will be

looking for."

Enclosed space deathsAnother problem highlighted recently was the

constantly high number of deaths resulting

from entry into enclosed spaces on board

vessels. Despite much effort being put into

formulating training programmes and

initiating legislation, experienced seafarers

continue to die as a result of forgetting, or

ignoring the most basic of rules.

Accident Files: Entry into Enclosed Spacesis another relatively new Videotel programme,

available on DVD or VHS format, that sets

out to explore the main reasons why so many

seafarers lose their lives in such tragic

circumstances.

Based on real case studies, the programme

shows how five highly experienced seafarers

lost their lives and how another almost

suffered the same fate because of that natural

human instinct, to help as quickly as possible

a person in trouble. Videotel said that it hoped

that by distributing this programme, it will

make seafarers think much more seriously

before entering enclosed spaces.

Captain Timothy Crowch, a former

commercial airline pilot who now works with

organisations around the world in the

development of safety management systems,

presents the programme. In so doing, he

points out that the airline industry has for

many years endeavoured to understand the

factors that lead to human error; simply to

attribute a death or injury to human error and

leave it at that is no longer acceptable, if it

ever was.

Videotel highlights the need to comply with

legislation, such as the code for the Carriage

of Bulk Cargoes, the IMDG Code, and the

Merchant Shipping Act. The need for an

effective safety management system on board

- a requirement under the ISM Code - is also

underlined.

Anti-piracy trainingIn the wake of piracy escalation, especially in

the Indian Ocean, Videotel has launched a

revised version of its Piracy & ArmedRobbery training package.

A great deal has been learned in recent

months about the tactics employed by pirates

operating in high-speed RIBs and armed with

high-powered automatic weapons and even

rocket-propelled grenades (RPGs). In the light

of experience gained in repelling these

attacks, not always successfully, Videotel said

that it had been able to put together a package

that shows what preventative measures should

be deployed.

Videotel invited experts to comment on

many other controversial subjects now being

widely discussed, such as whether to arm

crews or carry trained guards, often former

military personnel.

Those who participated in the making of

the film, which is available in both video

(VHS) and DVD format, or as an interactive

CD-ROM, include leading maritime

organisations, EU NAVFOR (Somalia), the

US Navy and a number of major shipping

companies. Among the owners are some

with direct experience of actual or attempted

hijackings.

In another move, Videotel recently signed

an agreement with Mitsui OSK Lines (MOL)

to upgrade its existing video and DVD library

to the fully loaded Videotel on Demand

(VOD) training systems.

The agreement, which began last month,

means that crew members will have 24-hour

access to a wide range of relevant training

DVDs, interactive CBT and/or training

courses to be used for individual, or group

training at a time which suits them.

The VOD system comprises more than 300

titles that address STCW and, for tanker fleets

such as MOL, is tailored to include training

titles that support all 12 elements of the

TMSA framework.

Videotel is also revising its tanker courses

this year including chemical, oil and gas

training offerings in CBT software.

VIDEO | BOOK | CBT | ONLINE

Training solutions & services for

IMO, ISM & STCW standards

[email protected] | www.videotel.co.uk

Are you ready for MLC 2006? We can help

: ww

w.m

lc20

06.com

TO

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p35-60:p2-7.qxd 03/12/2010 18:00 Page 10

TECHNOLOGY - NAVAIDS


Real-time vessel movement data is

now regularly being incorporated

into marine terminal operations to

validate ETAs, optimise resource

usage and even improve market intelligence.

Every commercial vessel that calls at a US

port and most international destinations has

been required to transmit its ship identifier

and location through standard AIS

transponders since 2005. The mandate applies

to commercial self-propelled vessels of 65 feet

or longer in the US, and 300 gt, or more for

international voyages. In designated

navigational areas, this mandate also applies

to selected other vessels and those 65 feet or

longer, regardless of tonnage.

Today, tens of thousands of merchant ships

carry AIS Class ‘A’ equipment and the system

transmits more than 50 mill vessel location

reports per day, worldwide.

While AIS was originally intended to be

used primarily for collision avoidance, it also

has emerged as a powerful maritime business

intelligence tool. The information derived

from AIS data is used by a growing range of

organizations, including vessel traffic service

(VTS) operators, major oil companies, vessel

owners and operators, port and marine

terminal management and other maritime

professionals.

AIS transponders broadcast a variety of

information on a fixed schedule, some every

two to 10 seconds and others in up-to-six-

minute intervals. This information includes

static data, such as the ship’s name and call

sign, its unique IMO or maritime mobile

service identity (MMSI) number, its length

and beam, the ship type and its antenna

location.

The system also broadcasts a variety of

voyage-related data, including the ship’s draft,

cargo information and destination, plus

estimated time of arrival. Additionally, the

system broadcasts dynamic data, including the

time and the ship’s current position, course

and speed over ground, gyro heading and rate

of turn and navigational status.

Deriving business intelligenceAIS data transmitted from commercial vessels

can be used to generate extremely valuable

business intelligence, from the competitive

analysis of offshore fleets to marketing

information related to marine fueling

companies. The availability of extensive

vessel transit details can also provide better

contract accountability related to tanker speed,

fuel consumption and transit routes.

AIS information becomes most compelling

when it is compiled and provided as a web-

based resource that can provide years of

analytical history around a specific vessel,

fleet, terminal, or platform.

Additional information can be attached or

linked to these vessels, allowing users to

associate the vessel with a cargo manifest or

photographs of the loaded cargo. Small

satellite tracking units can similarly be used to

track information about buoys and other high-

value assets. These combined details can

provide a new level of visibility.

One example of this approach is the

AIS data providesvaluable maritime

business intelligenceRecent changes in US Coast Guard (USCG) and IMO regulations have made it possible to

track tanker and workboat activity in real time, generating valuable opportunities to

improve supply chain efficiency and interact more effectively with vendors and partners*.

Real-time ship movement data can now be disseminated.

p35-60:p2-7.qxd 03/12/2010 18:01 Page 11



PortVision service, which leverages a

comprehensive database of real-time and

historical vessel-tracking data covering most

major US ports and regions and over 200

international ports -- the largest commercial

AIS infrastructure in the US.

The company’s data centre processes more

than 40 mill AIS-based ship location reports

every day, and maintains a data warehouse of

15 bill historical vessel arrival, departure,

passing and movement records. This data

provides detailed visibility into commercial

vessel activity, from port arrivals and

departures to ship movements on the open sea,

plus real-time weather radar overlays, voyage

distance calculations and vessel arrival

estimations – all in a single display screen.

(see Figure 1).

Such a system can deliver information

about vessel port arrivals and departures,

which is especially convenient when these

events occur after regular office hours, or

during holidays. Maritime executives and

staff previously had to call the agent or wait

until offices re-opened in order to receive the

desired information. This is no longer

necessary.

For example, PortVision users can arrange

for an alert to be automatically sent out via

cell phone or e-mail when a vessel arrives,

departs, or passes a designated point of

interest (ie, terminal, berth, landmark, etc).

Additionally, PortVision allows users to

monitor various agent, ship, berth and

terminal activities and share this information

instantly with marketing and operations teams

at company headquarters and other offices and

locations, worldwide, along with remarks,

documents and reports for use in assessing

ship and berth efficiencies.

With these capabilities, it becomes possible

for tanker operators to know, at any given

moment, where each ship is located, at any

given time and how long each ship remained

at each location. Operators can also monitor

selected berths and know, almost immediately,

whether there are opportunities to improve

fleet-wide efficiency.

Reviewing historical vessel movements can

be just as valuable as monitoring real-time

activities - if not more. Many companies have

incorporated historical vessel-movement data

directly into the supply chain model. For

instance, by tapping into data about not only

where a vessel is now but also where it has

been in the past, these companies have been

able to analyse demurrage charges and

automate, or validate demurrage billing.

Leveraging AIS in this manner can

significantly reduce the labour associated with

demurrage calculations. AIS data

encompasses all of the information required to

track, validate and report demurrage

information related to each route and berth

call across an entire tanker fleet.

Historical AIS data also can be used to

generate operational best practices, or during

litigation to refute, or validate claims in

federal courts. In recent years, AIS vessel-

tracking intelligence has become widely used

as legal evidentiary proof.

AIS best practicesWhen deploying an AIS system, tanker

operators can improve efficiency by defining

customised fleets of chartered vessels,

workboats, tugs and barges that they wish to

monitor and configuring the system so that

email and text-message alerts about fleet

movements can be shared with other team

members. Look for systems that

automatically timestamp and capture data

about arrivals, departures and other vessel

events and that enable documents and

information about dockside events to be added

for each vessel call.

Ideally, an AIS-based vessel-monitoring

system should have command-and-control

display capabilities to streamline tasks while

optimising operational efficiency for such

day-to-day activities as scheduling labour

and other resources. This enables just-in-

time deployment based on current vessel

locations, dock availability and in-transit

traffic conditions.

Finally, AIS systems should be easy to

integrate into existing business systems,

including satellite tracking systems that may

already be in use by the operator. By

incorporating AIS data into an existing

satellite-based fleet management system, the

operator can add near real-time visibility to

the fleet when vessels are near port (where

logistics activities are most prevalent), while

relying on their proprietary satellite tracking

on a less frequent basis while vessels are

at sea.

Marine industry professionals face an

increasingly challenging business

environment. To remain competitive,

organisations must maximise the efficiency of

all contracted vessels supporting their

operations.

Today’s AIS-based vessel-tracking services

give users a real-time view of vessel traffic in

a single, convenient command-and-control

display environment. At the same time, they

deliver access to every aspect of activities in

user-defined monitoring zones and facilitate

the sharing of real-time information and

reporting with remote participants plus other

operation centres to drive compliance and

create reports.

By combining real-time visualisation and

historical information with comprehensive

management tools, the latest AIS-based

vessel-tracking systems deliver extensive

waterway mapping, alerting, reporting and

analysis capabilities, which leads to increased

efficiency, reduced costs and better safety

and security.

*This article was written by DeanRosenberg, chief executive officer,PortVision (http://www.portvision.com)

TO

Figure 1

p35-60:p2-7.qxd 03/12/2010 18:01 Page 12

This overlay is displayed as a single

layer on top of a basic ENC. It

will be available free of charge as

part of the Admiralty Vector Chart

Service (AVCS) and within Admiralty Value

Added Resellers’ services.

UKHO has developed the new overlay to

give seafarers an easy way to view the

information they need, in addition to the

standard chart, to navigate safely and

compliantly, the organisation said.

It will make passage planning simpler and

safer by clearly showing where important

temporary or preliminary changes may

impact a voyage. It will also give seafarers

the same consistent picture of the maritime

environment on their ECDIS as they have

always had with the Admiralty paper chart,

the UKHO claimed.

As a result, shipping companies will be able

to comply more easily with port state control

requirements by providing T&P NMs where

they do not currently exist in ENC coverage

today. It will also help simplify their transition

to digital navigation.

UKHO is working with major ECDIS

manufacturers to ensure the overlay can be

displayed on their systems. Transas was the

first to announce compatibility with others

expected to follow soon. Customers will also

be able to view the new overlay for planning

purposes in Admiralty e-Navigator, which will

start its roll out to vessels in the first half of

next year.

Soren Andersen, marine superintendent,

SQE at Nordic Tankers Marine said; “We are

using the Admiralty Information Overlay as

an integral element of our ECDIS-based

navigation within the Transas Navi-Sailor

ECDIS. Used as a navigational and planning

aid as part of the company’s wider move to

adopt ECDIS navigation, the overlay is

making passage planning and the task of

keeping track of the latest ENC updates

much easier.

“It will also make it easier for our crews to

demonstrate compliance during PSC

inspections. Overall, it has proved to be

another important element in our efforts to

continually improve the safety and efficiency

of navigation,” he concluded.



UKHO unveilsAdmiralty

Information OverlayThe UKHO has launched the Admiralty Information Overlay, which includes all

temporary and preliminary �otices to Mariners (T&P �Ms) and also provides additional

navigational information from UKHO’s E�C validation programme.

Transas claims to have dealt with underwater hazard problems.

NORDEN tankers opt for TransasDanish drybulk and tanker groupNORDEN has selected TransasMultifunction 4000 displayseries for a number of tankers.The reason for this is that NORDEN’s

technical management has decided to start a

transition towards paperless navigation on

its tankers, Transas said.

The orders include fully integrated bridge

set-ups, consisting of Transas Navi-Sailor

4000 MFD Dual ECDIS and Transas Navi-

Radar 4000 X- and S-band radars.

All the systems are to be fitted with 27

inch monitors in deck mount consoles.

In the past, a number of Transas’ single

ECDIS units and radars have been

delivered and installed on board

NORDEN’s bulk carriers and these

installations have paved the way for the

new orders, the company said.

The first installation of Dual ECDIS and

radars took place on board the 38,554 dwt

products tanker �ord Princess during her

docking in Europe in October 2010. �

p35-60:p2-7.qxd 03/12/2010 18:01 Page 13



Michael Cauter, deputy CEO with

responsibility for developing new Admiralty

products and services, said “The marine

environment is constantly changing. The

Admiralty Information Overlay is needed

because many nations don’t yet include

important temporary or preliminary

notifications of those changes in their

weekly updates. Even when they are

included, they can be difficult to identify

within the ENC.

“The Admiralty Information Overlay

provides this information on top of the ENC

and displays it clearly and consistently so the

mariner can instantly see the impact of

changes on a route and can take appropriate

action,” he said.

Alongside AVCS and Admiralty e-

Navigator, the UKHO said that the overlay is

a further step in its programme to support the

transition to digital navigation and ensure

vessels continue to sail safely, compliantly

and increasingly more efficiently.

Transas explained that it would be available

with the Transas Admiralty Data Service

(TADS) license, through the Transas Navi-

Sailor ECDIS.

Underwater hazardsThe company also gave additional information

on the UKHO ‘NAVAREA I Warning 317/10’,

issued on 29th October 2010.

The UK Maritime and Coastguard Agency

(MCA) and UKHO have performed tests to

ascertain different ECDIS behaviour.

As a result of the testing, the UKHO

identified that in some ECDIS, underwater

hazards were not displayed and did not

activate alarms in route checking and route

monitoring modes.

Transas Marine has carried out a test of its

Navi-Sailor 4000 ECDIS MFD and Navi-

Sailor 3000 ECDIS-I based on the description

of the ENC objects and attributes provided by

UKHO. The test results show that there are

no errors in Transas ECDIS with displaying

underwater hazards, which was also

confirmed by UKHO.

In particular, the following objects were

tested by UKHO. Each object was checked in

Transas Navi-Sailor 4000 ECDIS MFD and

all objects were displayed correctly in

standard mode and generate anti-grounding

alarms. The table opposite shows symbols

displayed in Transas ECDIS.

In order to ensure that all safety related

information from ENC data is always

correctly presented on ECDIS display, Transas

Marine said that it will continue to investigate

in close co-operation with the UKHO.

Test S-57 Attributes Attribute DRVAL1 RequiredObject value (minimum display

depth of modesurrounded area)

1. UWTROC NATSUR Rock 10 STANDARD

WATLEV Always underwater submerged

VALSOU

QUASOU Depth unknown

2. WRECKS CATWRK Dangerous Wreck 10 STANDARD


QUASOU Least depth unknown

EXPSOU Shoaler then range of depth of surrounding depth area

VALSOU 8.5

3. WRECKS CATWRK Dangerous Wreck 10 STANDARD


4. WRECKS CATWRK Wreck showing any 20 STANDARDportion of hull orsuperstructure

WATLEV Covers and Uncovers

5. OBSTRN CATOBS Foul Area 10 STANDARD


VALSOU

QUASOU Depth Unknown

6. OBSTRN WATLEV Always underwater 20 STANDARDsubmerged

VALSOU

CATOBS Fish haven


7. OBSTRN WATLEV Always underwater 10 STANDARDsubmerged

VALSOU


8. OBSTRN WATLEV Always underwater STANDARDsubmerged

VALSOU

9. OBSTRN CATOBS Fish haven STANDARD

VALSOU


TO

p35-60:p2-7.qxd 09/12/2010 09:16 Page 14

At the opening day of SMM theGerman navigation systemsupplier Raytheon Anschützlaunched its recently announcedIntelligent Bridge System (IBS). The INS, called Synapsis Bridge Control,

features new wide-screen, task-orientated

multi-functional workstations. Using standard

hardware and software, the workstations allow

for full scalability and future expandability,

the company said.

Possible configurations range from a stand-

alone ECDIS workplace to a full integrated

workstation that provides access to all tasks,

such as route monitoring, collision avoidance,

navigation control, status and data display or

alarm monitoring. A change of display colour

schemes, as well as central dimming can be

processed from any workstation within the INS.

The configurations and tasks of the

workstations are controlled by a newly

developed ‘bridge integration platform’. The

platform provides common interfaces to other

ship systems to enable the integration of

additional applications such as automation,

DP system or CCTV from various suppliers

on the workstations.

Within the INS, all data is distributed by a

new dual Ethernet bus to be stored

independently at any workstation. Having all

information consistently available throughout

the whole navigation network also allows the

creation of new display pages with respect to

individual requirements.

For example, regarding the forthcoming e-

navigation Raytheon Anschütz included a new

voyage efficiency monitor. The joint display

of navigation data with engine automation

data and loadmaster computer data is designed

to enhance bridge operations and support the

navigator in the correct decision making,

particularly with regard to the rudder steering,

which can help to optimise voyage planning

and fuel consumption.

To integrate the operator interfaces of the

alert management and the new Consistent

Common Reference System (CCRS),

Raytheon Anschütz has also enhanced its

NautoConning display. Within the INS, the

CCRS continuously observes the availability,

validity and integrity of all sensor data and

calculates a quality indicator for each sensor.

The conning displays the quality indicators

and provides a system wide sensor and source

selection menu, including a choice between

manual and automatic sensor selection. Within

the automatic sensor selection mode, a set of the

best sensor data is compiled automatically and

distributed throughout the entire navigation

system. Apart from increasing the ship’s safety

through intelligent use of on board sensor

information, this is expected to reduce work load

of duty officers and pilots, the company said.

As an essential part of Synapsis Bridge

Control, Raytheon Anschütz has also

introduced the new adaptive NautoPilot 5000

with its colour TFT and touch screen

operation, as well as the latest generation of

Nautosteer AS steering control system.

Based on CAN-bus, NautoSteer was

developed with regard to fail-to-safe

principles. All the components are fitted with

take-over function and include wire break and

steering failure monitoring.

The Synapsis IBS

New Integrated Navigation System (INS) launchedTECHNOLOGY - NAVAIDS


Also at SMM, Wärtsilä launchedthe Wärtsilä Communication andControl Centre (Wärtsilä 3C)solution. The navigationtechnology used in the centre wassupplied by Raytheon Anschütz.Wärtsilä 3C is claimed to be a new way of

thinking and it will be the first system to

integrate the entire vessel’s control into one

solution. Wärtsilä has integrated its own

products and systems, such as automation,

propulsion and engines, with other operationally

relevant equipment and systems to obtain a truly

fully integrated solution, the company said.

In this case, all the necessary ship’s controls

and alarms are integrated with a common

interface for the highest efficiency and best

possible situational awareness.

The Wärtsilä 3C system is also claimed to

be a key enabler for the leveraging of energy

management and integrated navigation

solutions, offering efficiency optimisation and

emissions reduction benefits. Route planning,

optimal engine configuration and decision

support will increase the vessel’s fuel economy

and reduce the maintenance requirements of

the ship’s systems, Wärtsilä said.

With the Wärtsilä 3C, operators can

remotely optimise their vessels and achieve

real-time fleet management. The system is

supported by Wärtsilä’s global service

capabilities to maximise the availability and

efficiency of a ship’s crucial operating

equipment throughout its lifecycle.

This global network is enhanced by the

Wärtsilä Land and Sea Academy’s training

facilities, to provide comprehensive

instruction on all ship operating systems.

The Wärtsilä 3C complies with all major

classification societies and notations and is

designed to meet the highest standards – even

when being used in the most difficult

operating environments.

Its modularised components and customised

design make the Wärtsilä 3C suitable for all

types of vessels. Furthermore, regardless of

the ship’s level of redundancy, it will maintain

the same high system design and component

quality.

By being able to offer a totally integrated

solution, Wärtsilä claims to offer cost saving

benefits to both shipyards and owners and is

seen as being an important step in the

company’s strategy of providing a full range

of efficient and environmentally sustainable

ship power systems from a single source. It

will hasten the development of future

solutions, such as economical autopilots and

other innovations, the company said.

“With Wärtsilä 3C, Wärtsilä can now

provide, manage and guarantee maintenance

for the full scope of all ship operating systems,

which further strengthens our position as the

industry’s leading systems integrator and

solution provider,” said Aaron Bresnahan, vice

president, special vessels, Wärtsilä Ship Power.

“It is important to note that we are not

merely the integrator for the ship’s controls,

but we also have the most innovative

technological knowhow on the market together

with a wide range of services. The Wärtsilä 3C

is the nerve centre for the vessel and will

definitely simplify operations. It also adds

features, maximises the ship’s power efficiency

and extends its lifecycle,” he concluded.

Wärtsilä launches the Wärtsilä 3C control centreTO

TO

p35-60:p2-7.qxd 03/12/2010 18:01 Page 15

THE ULTIMATE PROTECTIONSuperior tank coatings for the widest possible range of liquid cargoes

“Our phenolic epoxy HEMPADUR 15500 has more than fifteen years track record with excellent global performance and is rated the best phenolic epoxy tank coating in the market today. In Korea we have coated the tanks of more than 100 vessels with this product without a single claim.’’

Michael Aamodt, Group Marine Product Manager

For more information please visit: www.hempel.dk

p35-60:p2-7.qxd 03/12/2010 18:01 Page 16

APC manufactures and supplies

MarineLine coatings for oil,

chemical and product carrier

cargo tanks.

Slooter has had experience in operating

chemical tankers coated with MarineLine

when he was general manager of the Dutch-

based Clearwater group.

During his time with the company he

oversaw its expansion from just one vessel to

eight by 2008. Many of the vessels were coated

with MarineLine as the company’s vessels

carry a wide variety of chemical cargoes.

Prior to joining the Clearwater Group,

Slooter worked with the Breko Shipyard in

the Netherlands from 1992-1995. Previous

positions also included being employed by

the Cummins Engine Co where he became

service manager.

He started his working career in engine

research with DAF Trucks in Eindhoven.

During this period, he became a qualified

mechanical engineer.

MarineLine competes with stainless steel

tanks and is claimed to outperform this type of

tank construction. It has exceptional resistance

to thousands of chemical cargoes, has the ability

to maintain high purity cargoes and ensures

easy tank cleaning operations, APC said.

At the recent SMM exhibition, the company

said that its MarineLine 784 cargo tank

system was becoming an important factor in

new transport markets.

“There is a growing market need for

product tankers to carry the expanding group

of cargoes such as clean petroleum products

(CPP), bio-fuels, vegetable oils, and

methanol,” said Donald Keehan, APC

chairman. “In addition, new regulations for

coating tankers, carrying oil and dirty

petroleum products (DPPs) has also increased

interest in MarineLine for these uses.”

By September, MarineLine 784 had been

used on more than 300 chemical tankers

worldwide handling a wide range of

aggressive chemical cargoes. The coatings

system uses forced hot air heat to cure its

coating. This creates a nearly-impermeable

coating barrier, thus ensuring product purity

from port to port. An added bonus, according

to APC was that the vessel is able to carry any

cargo immediately after leaving the shipyard.

APC developsorganisation and cuts

product costsAdvanced Polymer Coatings (APC) has ramped up its European sales business by

appointing Jan Slooter to the position of director, business development, Europe.

TECHNOLOGY – TANK SERVICING


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THE tank coating system for carrying CPPs, PFADs, Methanol, and Bio-Fuels.

+01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com

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Rely on MarineLine® 784 tank coating to handle a

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p35-60:p2-7.qxd 03/12/2010 18:01 Page 17


TECHNOLOGY - TANK SERVICING

A key benefit of MarineLine and its extremely smooth and hard

surface is that the tank cleaning process goes faster. Because the

coating is virtually absorbent-free with low surface energy, less

cleaning chemicals are needed, thus less slops are created. There are

also fewer limitations than conventional coatings and stainless steel

tanks.

This gives the shipowner the opportunity to carry a wide range of

profitable cargoes without worrying about the previous cargo residue

contaminating the next cargo.

Keehan claimed that since its inception, MarineLine has never had

an insurance claim made regarding purity, a testimony to the ease of

tank cleaning and non-absorbtion of the cargoes carried.

MarineLine 784 offers much better performance and versatility than

conventional phenolic epoxy or zinc silicate linings, and is now cost

comparable to conventional coatings.

“The reason we have been able to lower our costs to customers is

that within the past year, APC has revised and streamlined its patented

polymer manufacturing operation,” said Keehan.

“Previously we employed outside chemical companies to toll-

manufacture certain elements of the polymer that serve as a mainstay

in the manufacturing of the MarineLine coating. Now these various

tasks are done in-house, thus reducing our cost exposure. This will

now enable more shipowners and shipyards to specify MarineLine as

the product of choice. We have taken a very competitive pricing

stance versus other coatings, while providing a superior product,”

he concluded.

MarineLine 784 has been traditionally offered in grey topcoat colour.

However, from September of this this year, the company now offers

an optional ivory colour topcoat in a gloss finish.

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p35-60:p2-7.qxd 03/12/2010 18:01 Page 18

TECHNOLOGY – TANK SERVICING

Hydrocarbon gas detection inballast tanks, dry and void spacesand pump rooms has been furtherenhanced by Honeywell.Five years after the introduction of Honeywell

Marine’s GASBAL system dedicated to

detecting and analysing hydrocarbon gas

concentration in closed space, such as ballast

tanks and void, or dry spaces, the company

has unveiled a new generation GASBAL

DA400 system.

The new GASBAL has two main units:

A typical GASBAL installation.


Hydrocarbon gas detection hits new heights� The digital analyser DA400 to detect and

measure the concentration of hydrocarbon

gas designed to be installed even in

hazardous areas classified as zone 1.

� The GASBAL cabinet including 24 V dc

power supply for DA400 transmitters, an

LCD display and a keyboard used to set

up, operate, check and maintain the

complete system (integrated or external)

and up to 8 x 4-20 mA inputs (option) for

additional external transmitters.

By installing one digital RS485 port

(MODBUS protocol), this allows the control

and communication with any host computers.

The sensor is positioned just above the

ballast tank top, or in the void/dry space and

receives the gas that diffuses around an

enclosed space. Thanks to the gas diffusion

principle, the system will pick up even the

heaviest concentrations of gas, Honeywell

claimed.

The GASBAL DA400 system is delivered

with factory calibration and is covered by a

Honeywell Marine Certificate.

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Approval certificates� MED pending.

TO

p35-60:p2-7.qxd 03/12/2010 18:01 Page 19


TECHNOLOGY - TANK SERVICING

Among the points of interest was that

carriage requirements were agreed

in respect of 10 new products for

inclusion in the IBC Code.

These products will be included in List 1 of

MEPC.2/Circ.16 (to be issued this month),

pending the issuing of the next edition of the

IBC Code in 2013.

The carriage requirements of Alkanes (C10-

C26), linear and branched (the Neste product

commonly known as Renewable Diesel) have

been altered slightly to reflect new information

provided. The changes affect columns i

(electrical equipment) and k (vapour detection)

and will be reflected in MEPC.2/Circ.16.

Seven trade named products were evaluated

for inclusion in List 3 of MEPC.2/Circ.16.

The text of the guidelines for the carriage of

blends of petroleum oil with biofuels was

completed, incorporating the elements agreed at

the BL sub-committee earlier this year, such as

the raising of the limit of the percentage of

biofuel in a blend carried in accordance with

Annex I to 25% and the generic carriage

requirements for blends containing more than

25% of biofuel.

IPTA said; “We would also draw attention to

the reference to certification in Paragraph 10,

which means that if a vessel is loading the

components of a blend in different ports it must

be certified for the first component loaded as

well as the finished product.”

This would effectively mean that an oil

tanker would not be able to load a FAME

component and then sail to a different port to

load diesel on top.

The draft guidelines will be considered by

the BLG sub-committee in February 2011 and

will then have to be approved by the MSC in

May and the MEPC in July before being

formally issued.

In the meantime, IPTA warned that the initial

guidance agreed by BLG 10 in 2006 had been

extended to July 2011 and until then blends can

only be carried under the provisions of Annex I

if the percentage of biofuel in the blend is no

more than 15%.

The group agreed to text for a regulation to

be included in Chapter VI of SOLAS in respect

of blending on board. The agreed text was as

follows:

"The physical blending on board of

MARPOL regulated cargoes during the sea

voyage to create new products is prohibited.

Physical blending refers to the process whereby

the ship's cargo pumps and pipelines are used

to internally circulate two or more different

cargoes with the intent to achieve a cargo with

a new product designation.

“This prohibition does not preclude the

Master from undertaking cargo transfers for the

safety of the ship or protection of the marine

environment. The prohibition does not apply to

the blending of products for use in the search

and exploitation of sea-bed mineral resources

on board vessels used to facilitate such

operations."

IPTA urged its members to encourage the

manufacturers of their ODME equipment to

carry out the tests necessary to secure approval

(as per resolution MEPC.108(49)) for use of

their equipment with biofuel blends.

In addition, some 64 cleaning additives were

evaluated and found the meet the criteria

outlined in MARPOL Annex II. These products

will be included in Annex 10 of

MEPC.2/Circ.16.

“It should be noted that this edition of the

MEPC.2/Circ. will no longer list products

evaluated only according to the criteria in

MEPC/Circ.363, since from 1st January 2011

only cleaning additives evaluated according to

the new criteria in MEPC/Circ 590 can used on

board ships”, IPTA said.

Progress on IMO’scarriage

requirementsThe International Parcel Tankers’ Association (IPTA) has outlined

the results of the IMO’s ESPH group meeting held last October.

www.krohne-skarpenord.com

Monitoring of liquid cargo is in safe handsCARGOMASTER® is the complete solution for tank monitoring and alarm. Combined with our high precision cargo tank level radar OPTIWAVE 8300 C, CARGOMASTER® offers unique benefits for tanker operators.

Peace of mind

TO

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TECHNOLOGY - VAPOUR CONTROL SYSTEMS


The first of Knutsen’s KVOC

capture tanks was installed on the

shuttle tanker Elisabeth Knutsen in

2007 and has since been fitted on

board 10 vessels operating in the North Sea.

Following the equipment’s success on some

of the Knutsen shuttle tankers, the company

recently decided to offer the technology to

third parties with the result that Teekay

purchased the KVOC equipment to fit on

board six vessels, including the new Amundsenclass shuttle tankers now being delivered.

In addition, the South Korean shipyard

Samsung is discussing the possibility of fitting

at least four more and possibly up to another

12 systems, as KVOCs are deemed suitable

for other types of tankers, apart from North

Sea shuttles.

For example, product tankers are also

considered suitable for the fitting of KVOCs,

Knutsen said, as are LNGCs, although the

fitting of the latter will probably come later.

The Knutsen newbuilding shuttles will have

a KVOC system fitted in each tank and the

company claimed that its equipment will last

for the lifetime of the vessel.

The breakthrough for the KVOC technology

developed by Knutsen is now starting to have

an effect on VOC emissions from offshore

offloading operations. By 2012, 24 shuttle

tankers will have installed KVOCs. This

spares the environment annual emissions of

oil vapour equivalent to 444,000 barrels of oil

at a value of NOK200 mill, Knutsen claimed.

The tanks of a standard shuttle tanker

contain about 135,000 cu m of oil. On

average, a shuttle tanker carries 30 cargoes

annually. For each cubic meter of cargo, the

KVOC technology prevents 0.8 kilos of oil

from disappearing into the atmosphere as

pollution. This is the equivalent of more than

100 tonnes of oil from every cargo.

With a KVOC plant installed on 24 ships,

each carrying 30 cargoes per year, a saving of

77,000 tonnes, or more than 440,000 barrels

of oil will be possible. The 100 tonnes of oil

saved on each loading operation also has an

impact on CO2 emissions, as when the use of

KVOC cuts emissions by roughly 100 tonnes

per cargo, this corresponds to about 520

tonnes of CO2, Knutsen explained.

A crude oil tanker with today's loading

arrangement will emit between 0.5 to 1.5 kg

VOC for each cu m of cargo loaded. This is

equivalent to 2.5 to 7 kg CO2.

A Suezmax loading one million barrels of

oil can emit VOC, representing between 850

to 2,500 barrels of oil for each cargo - a loss

of between $40,000 and $125,000 per cargo in

today’s market.

Knutsen estimated that 30 KVOCs will be

eventually installed on tankers, representing a

VOC reduction of about one shuttle tanker each

year, or the equivalent of 375,000 tonnes CO2.

The use of Knutsen’s KVOC really took off

when, in 2006, a contract was signed between

the company and the VOC Industry Co-

operation (VOCIC) to use the KVOC system

in the North Sea. VOCIC is a co-operative

agreement signed by all the companies

involved in crude offshore loading on the

Norwegian Continental Shelf in the North Sea.

Under the agreement, the first VOC was

installed on board the Tordis Knutsen in June

of that year, followed by the Vigdis Knutsen inSeptember. In addition, the agreement meant

that the Sallie Knutsen, fitted with a VOCIC

system in April 2005, could switch to

Knutsen’s system.

The first prototype VOC system was

installed on board the Ragnhild Knutsen in2002, while the first commercial fitting on

behalf of a charterer was on board the SiriKnutsen a year later. She is operated by

DONG, which operates the Siri Field in the

Danish sector of the North Sea.

Another charterer, Petro-Canada, later

decided to fit a system on board the GijonKnutsen, which operates from the De Ruyter

Field in the Dutch sector.

Basically, oil flows at the cylinder wall and

the gas is separated in the middle and the

hydrostatic pressure is eliminated. The

reduced pressure in piping oil gas at deck

level is avoided and a negligible amount of

VOC is generated in the KVOC system,

Knutsen said.

Knutsen offers itsVOC technology to

the market About three years ago, Knutsen OAS unveiled its own volatile organic compound (VOC)

capture equipment (KVOC), which had been under development

for 10 years with D�V among others.

Positional sources for VOC generation FPSOs

TO

Metering(trottling)

Hoseconnection(trottling)

Dropline

FPSOdroplines

p35-60:p2-7.qxd 03/12/2010 18:01 Page 21


TECHNOLOGY - NEWS

MAN Diesel & Turbo and WärtsiläCorp have agreed to pursue theHERCULES-C project, as acontinuation of the successfulprogrammes for the research anddevelopment of marine enginetechnology. The overall mission of the research

programme is for sustainable and safe energy

production from marine power plants.

The technological themes of the

HERCULES initiative have, since its inception

in 2002, been higher efficiency, reduced

emissions and increased reliability for marine

engines. However, for taking marine engine

technology a step further towards improved

sustainability in energy production and total

energy economy, an extensive integration of

the multitude of identified new technologies is

required, the manufacturers said.

HERCULES-C, expected to run for three

years from 2012 to 2015, will address this

challenge by adopting a combined approach

for engine thermal processes, system

integration and optimisation, as well as engine

reliability and lifetime.

The main aim is to produce marine engines

that are able to produce the required power

cost-effectively for vessel propulsion

throughout its lifecycle, with responsible use

of natural resources and also respect for the

environment.

HERCULES-C follows two earlier

projects. In HERCULES-A, from 2004 to

2007 (www.ip-hercules.com) large scale

research platforms were established, with the

main objective being to screen the potential of

a broad range of emission reduction

technologies. Significant improvements were

achieved as a result of this work.

In HERCULES-B (2008-2011)

(www.hercules-b.com) the quest for reducing

emissions was retained, focusing on several

specific novel technologies. At the same time,

however, more importance was placed on

improved efficiency and as a result, reduced

fuel consumption and fewer CO2 emissions.

The HERCULES-C project is planned to

run over a three-year period and has a targeted

budget of €19 mill, bringing the total

combined budget of the three programmes

(2004-2015) to € 79 mill. The project is

expected to be put up for funding within the

Framework Program 7 (FP7, Theme

Transport), of the European Commission.

The specific objectives of HERCULES-C

are to achieve further substantial reductions in

fuel consumption, while optimising power

production and usage.

This will be achieved through advanced

engine developments in combustion and fuel

injection, as well as through the optimisation

of ship energy management and engine

technologies supporting transport mission

management.

Green products Furthermore, green product lifecycle

technologies will be introduced to maintain the

technical performance of engines throughout

their operational lifetime. These include

advanced materials and tribology developments

to improve safety and reliability, as well as

sensors, plus monitoring and measurement

technologies to improve the controllability and

availability of marine power plants.

The third specific objective of the latest

project is to achieve near-zero emissions by

integrating the various technologies

developed from the previous collaborative

research efforts.

Wärtsilä and MAN to continue HERCULES’ research project

Transas Marine has launched itsECDIS computer based training(CBT) course certified byGermanischer Lloyd. Transas ECDIS CBT is based on IMO Model

Course 1.27, regarding the requirements for

ECDIS training in accordance with the Manila

amendments to STCW.

The course provides the knowledge and

skills necessary to utilise all-important ECDIS

features. Completing the course gives an

understanding of both the benefits and

limitations of ECDIS, together with an

understanding of how it can be used for

navigation, route planning and monitoring,

display of navigation data, performing updates

etc, Transas said.

The course consists of 17 chapters and tests

split by themes - ECDIS theory, basic

functions, operational use, errors and

malfunctions.

The combination of theoretical and practical

sections enables trainees to gain the necessary

knowledge about the system they operate. A

trainee will receive a certificate once he or she

has successfully completed the CBT in order

to prove equipment specific familiarisation.

With this certificate the trainee may join a

time reduced (two-day) course in a Transas

approved training centre to gain a full GL

approved IMO Model Course 1.27 certificate

in accordance with the Manila amendments.

The CBT is supplied together with free

ECDIS demo software developed to

demonstrate the main functionality and for

training purposes. It includes simulation of

navigational data (own ship and target motion,

radar pictures and ENCs) and pre-set scenarios

that display full-scale navigation situation.

Anders Rydlinger, Transas Marine’s product

manager for navigation, said: “Fulfilling

training standards is a very demanding task

for shipping companies. Course, cost and

actual time involved become very significant

items. The introduction of the new Transas

ECDIS CBT and ECDIS demo makes it

possible to train anytime anywhere. It has a

potential invaluable use ensuring that seafarers

can get familiar with the actual system they

will be using on board before or on actually

joining the vessel”.

The course is available in English on DVD,

or online via Transas partner ShipGaz

Training (Sweden). The course is designed for

shipboard personnel who need to gain or

refresh their knowledge on ECDIS operation

and route planning. The course can be

undertaken on board a vessel, or ashore and is

for individual self-study.

Transas Marine launches ECDIS CBT

TANKEROperator

The Latest News is now available on TANKEROperator’swebsite at www.tankeroperator.com and is updated weeklyP

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p35-60:p2-7.qxd 03/12/2010 18:01 Page 22

Hear From International Maritime Experts Including:

• NITC Tankers• APL Co Pte Ltd • U.S. Department of State • ReCAPP• US Navy• Hong Kong Shipowners

Association • Industrial Shipping

Enterprises• BIMCO• INTERTANKO• IMB• Smit Nederland B.V.• Holman Fenwick Willan• London P&I• United Nations Office on

Drugs and Crime• Information Fusion Centre• ISS• Anglo Eastern Ship

Management, Singapore

Marseq’s 6th Official Piracy Update Meeting

Featuring Real Life Hijacking Experiences From Industry Experts Including:

James Christodoulou, Former Chief Executive, Industrial Shipping Enterprises

Nicolas Teo, Deputy Director, ReCAPP ISC

Sageed M.Kunhiraman, General Manager SHEQ, Smit Nederland B.V

Mohammad Souri, Chairman and Managing Director, NITC Tankers

Tim Wilkins, Environment Manager, INTERTANKO

Capt. George Solomon, Director Global Security & Env. APL

Capt. Pottengal Mukundan, Director, IMB

Kurt Amend, Principal Deputy Assistant Secretary of State for Political Military Affairs, U.S. Department of State

Giles Noakes, Chief Maritime Security Officer, BIMCO

Masterclassses and Site Visit to Information Fusion Centre: 25th January 2011 • Conference: 26th & 27th January 2011The Grand Copthorne Hotel, Singapore

Latest Critical Industry Advice To Protect Assets & Significantly Reduce Attacks On Ships

“An extremely valuable conference,

highlighting common problems with

credible solutions”David Fletcher, Quality, Safety and Security Manager,

CMA Ships

Media Partners:

To register: www.piracy-asia.com • Email: [email protected]: + 65 6338 9272 • Priority booking code: TANK

Arthur Bowring, Managing Director, Hong Kong Shipowners Association

Capt. Chris Chambers, Combined Maritime Forces Chief of Staff, Vice Director, US Navy

Capt. Laxmi Salvady, Operations Superintendent & CSO, Anglo Eastern Ship Management, Singapore

The VERY Latest Intelligence To Keep Your Anti-Piracy Procedures Updated Hijackings Uncovered: Which critical factors must be taken into consideration when captured, in captivity, on release and when managing the crew? How to plan for a quick release. Essential updates from Government and Military on what current and planned international action is in place to address the growth of piracy. Vital information on the growth of global piracy. Analyse latest attacks and vulnerable hot spots. Latest updates on safety, training and BMP3. Stress test your anti piracy techniques.

Interactive Masterclasses and Site Visit: 25th January 2011A) A Practical Guide To Effective Preparation And Training Prior To Transiting High

Risk Areas Facilitated by: Adrian Sutcliffe, CEO, ISS

B) Addressing The Latest Principles Of Piracy Prevention And Crisis Management Facilitated by: Bill Kerr, Partner, Holman Fenwick Willan

C) Site Visit To Information Fusion Centre At Changi C2 Naval Base Facilitated by: LTC Nicholas Lim, Head of Information Fusion Centre

Singapore

IBC:OBC.qxd 03/12/2010 17:33 Page 1

OBC:OBC.qxd 03/12/2010 17:34 Page 1

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