About RightShipPort Interaction

May 2013

• 1,886 vessel casualties

• 3,198 detentions

– 300,552 detained hours

– 358 vessels detained more than once

• 2,219 global class withdrawal records

• More than 1 billion tonnes of CO2 emitted from shipping

• Near record volumes of new deliveries

• Backdrop of global economic uncertainty

Good Reasons to Vet - 2011

• Who is RightShip?

• Star Ratings – What do they mean?

• SVIS Explained

• Proposal

• GHG Emissions & Shipping

• Live System Demonstration

Agenda

• Independent company formed in Oct 2001• Melbourne, London & Houston• 200+ Customers globally

• Ship Vetting & Risk Management• Petroleum & Dry Cargo Vetting Service

• Environmental Rating & CO2 Benchmarking

• Worldwide dedicated vetting specialists• Former serving Masters and Chief Engineers

• Award winning proven system• ISO9001 and ISO27001 Certified

About Rightship

RightShip Port & Terminal Customers

Utility

Ports &Terminals

Regulator

Charterer

Insurance

Petroleum

Ship Broker

Ship Owner

Star Ratings – Explained

Star Ratings – What do they mean?

Indicate a detailed review of the vessel is required including a physical inspection of the ship and/or an audit of the vessel and its management systems

Indicates further review of the vessel is requiredby RightShip

Typically UserApproved

Data Sources

IHS Fairplay Data Lloyd’s List Intelligence Clarksons Hatch Load P&I Club information Office of Foreign Asset Control (OFAC) EU & DFAT Banned Vessels Paris MoU Banned Vessels USCG Banned Vessels IACS Class withdrawal information Green Award Environmental Protection Agency Data (AUSMEPA, HELMEPA & NAMEPA)

International Transport Workers' Federation Blue Card Data Global PSC Inspection & Detention data

o Australian Maritime Safety Authorityo US Coast Guardo Black Sea MOUo Caribbean MOUo Indian Ocean MOUo Mediterranean MOUo Paris MOUo Riyadh MOUo Tokyo MOUo Vina Del Mar

Ship Vetting Information System – Section 1: Calculated Risk Profile

For each risk parameter a vessel is assigned (independently) into one of the following risk categories:

• Low Risk (LR – 10 points)• Low Medium Risk (LMR - 8 points)• Medium Risk (MR – 6 points)• Medium High Risk (MHR – 4 points) • High Risk (HR – 2 points).

Once matrixed (instantaneous) the columns are totalled and a base score is generated.

Note: • RightShip Inspection – up to +15 points• Green Award – bonus +15 points• Intercargo Vessel – bonus +5 points

Ship Vetting Information System - Section 2: Rating Adjustments

• Further adjustments are made to a vessel’s score to reflect the differing standards in operational and management control impacting its risk profile.

• The relative performance of outside influences, such as Class Societies and Ship Size, are also used as a measure in refining the vessels overall rating.

• These adjustments are added to the total calculated score (Section One) and may be positive or negative.

Ship Vetting Information System - Section 3: Other Factors

• Other Factors represent a specific set of issues/events related to a vessel’s performance as observed by third parties.

• Typically Other Factors will reduce a vessel’s Star Rating below the automatic approval threshold.

• If more than one factor is applicable, the most severe restriction will be enforced.

Ship Vetting Information System - Section 4: Rating Calculation

• A vessels score is derived by simply summing the totals of the previous sections paying due regard to any limiting factors and adjustments.

• In this case, the overall risk ranking of the vessel would be 2 star but for the recent PSC detentions. To make our vetting recommendation, RightShip would request an inspection be conducted and seek to close out the PSC issues with the Owner/Manager directly (Corrective and Preventative action plans).

Is Poor Performance Predictable?

Is Poor Performance Predictable?

Unsystematic Risk Gap

GHG Emissions & Shipping

Framing the Opportunity

CO2 Emissions

Emissions (Gigatons CO2)Data Source: Second IMO GHG Study (2009)

The Problem with theRelative Efficiency of the Existing Fleet

Basis of Comparison

Let’s Compare

Bulk Carriers 75,000 - 80,000dwt vs Reference Line (1990 – 2012)

Bulk Carriers 75,000 - 80,000dwt vs Reference Line (2007– 2012)

Compliance vs Efficiency2007 – 2012 (Tankers)

Complementary Vision

How charterers use the tool

Part Four

Chartering customers are onboard and supportive

• Developed in response to customer demand

• Ten RightShip customers factor in energy efficiency into chartering selection process when vetting

o together they ship 1 billion+ tonnes of cargo

o represents around 18% of global non-containerised shipments

o around 15,000 vessel movements annually

• Early adopters have significant first mover advantage

• Feedback has been very positive

o reduced shipping costs through reduced bunkers

o enhanced reputation through focus on sustainability

o supports company sustainability objectives

How customers factor it into their selection process

Vessel can be denied:

Vessel warning:

Bypass incumbent barriers to free information flow

Informed Decisions

Vessel A

Vessel B

How Ship Owners use the tool

Part Five

• Financial benefits

o incentive provider to Environmental Ship Index

o Port Metro Vancouver provides a 35% port fee discount to vessels with an EVDI™ of A, B or C

o More likely to be selected by charterers who factor CO₂ efficiency into their vtting process

o potential for lower insurance premiums

o easier access to bank finance

o payback period for retrofits and upgrades can be as little as six months

• Reputational benefits

o Newer is not always better

Ship Owners: Make Money in a Tough Market

Reputation Benefits

Reputation Benefits –Sample Fleet

Benefits

• Systematic risk and sustainability evaluation on 71,000+ vessels (19,500 tankers) & 121,000+ companies;

• Off the shelf access to proven system and experienced vetting personnel;

• Continuously developing web based support tool to facilitate decision process - 24hours a day, 7 days a week;

• A full audit trail to substantiate vessel selection including a detailed feedback mechanism; and

• Customizable interface and suitability calculation with the ability to integrate legacy data and historical vetting decisions

Benefits to Ports

• Identify high risk vessels prior to their arrival,

• Increased shore-side involvement & situation awareness,

• Targeted PSC inspections,

• Allocation of extra tugs / other strategies, or

• Declined permission to enter the shipping channel entirely.

Targeted Intelligence - Operational Reality

Questions

Email: vetting@rightship.com

Take me to SVIS™