seatrade maritime middle east opens!€¦ · solutions. its current fleet is comprised of vessels...

Seatrade Maritime Middle East 2016 (SMME was officially inaugurated yesterday by H.E. Sultan Ahmed bin Sulayem,

Group Chairman & CEO of DP World and Chairman Dubai Maritime City Authority (DMCA) in the presence of H.E.

Troels Lund Poulsen, Minister of Business and Growth, Royal Danish Consulate General and Chris Hayman, Chairman,

Seatrade and senior government officials and leaders of the regional and international maritime industry.

Continued on page 2

Shortly after the official opening, the first major contract announcement was made with Jawar Al Khaleej Shipping (JAK), a leading specialist services supplier to the offshore oil and gas sector in the Gulf, who signed an agreement with Damen Shipyards Group for the supply of three vessels, one Fast Crew Supplier and two ASD Tugs.

Moderating the opening economic forum session was moderator and broadcast journalist Eithne Treanor. The session featured a high profile panel line-up that effectively set the scene for three days of insightful conference discussion. Panelists included Abdulrahman Essa Al-Mannai, President & CEO, Milaha; Marcus Machin, CEO, Tufton Oceanic Finance Group; H.E. Admiral Mohab Mohamed Mameesh, Chairman & MD, Suez Canal Authority; Tim Power, MD, Drewry and Tim Fox, Head of Research

Seatrade Maritime Middle East opens!

and Chief Economist at Emirates NBD. Another highlight of the three-day event was the opening of

the 61st annual International Ship Suppliers & Services Association (ISSA) Convention, which has partnered with the UAE National Ship Suppliers Association (U.N.S.S.A) to deliver a one-of-a-kind event for maritime industry professionals, opened this morning, with a keynote address from Saeed Al Malik, Chairman UAE National Ship Suppliers Association (U.N.S.S.A) and VP ISSA who commented:

“With global economic growth shifting eastwards, the UAE aims to benefit from its geographical location. The UAE and regional maritime sector should adopt an effective strategy to increase its connectivity with the rest of the maritime world,” he said.

Today (day two of the event - Tuesday 1 November) presents

E D I T I O N O N E

Daily News I Edition One • Seatrade Maritime Middle East2

VISIT US STAND V15

We’ve gotyou covered

Cleaning Surface Preparation Painting Insulation Fluid Transfer Lubrication

an action-packed schedule, opening with the Seatrade Tanker conference at which a number of the industry’s most respected experts led by Katharina Stanzel, managing director, INTERTANKO, will engage in a Middle East-focused discussion on the crude oil tanker market and product tanker trading.

The half-day session will cover supply growth patterns, demand influencers and a prognosis of potential future earnings, taking into consideration factors such as trade and ton-mile configurations and order book volume; as well as an analysis of the factors influencing and driving product tanker demand.

A brace of technical forums will dominate the early afternoon with sessions examining the critical issues facing an ever-changing seascape in terms of shipping and environmental challenges shipping

Continued from page 1 and environmental challenges, followed by a lively discussion on Crewing: The vital interface, both held in association with IMarEST.

Moderated by Nikeel Idnani, Honorary Secretary, Institute of Marine Engineering, Science & Technology (IMarEST) UAE Branch, the panel features a respected group of panelists including Captain Stephen Bligh, Senior Principal Consultant, Head of Section, Maritime

Advisory, Region South East Europe & Middle East, DNV GL and Captain LEE Chee Seong, VP – Network Operations, United Arab Shipping Company (S.A.G).

With demand for technically proficient crew still exceeding supply, the panel will debate the full gamut of contributory factors such as the role of human behaviour in safety at sea and the impact of unmanned ships, the tricky topics of contract ‘sweeteners’ and the possibility of increased funding for industry relevant university and diploma courses.

H.E. Sultan Ahmed bin Sulayem rings the ships bell and declares the 61st ISSA Convention open.

UAE Shipping Association breakfast on Big Data but not ready to feast

The maritime industry is willing but not yet ready to fully embrace smart shipping given the current market downturn.

That was the takeaway from a business breakfast where smart shipping thought leaders shared “Big Data” intel and opportunities with a small gathering of UAE Shipping Association (UAESA) members as the 8th Seatrade Maritime Middle East (SMME) conference and exhibition.

Transas ceo Frank Coles, DNV GL Maritime Advisory senior project manager Prof. Dr. Volker Bertram and Gwynne Lewis, head of digital, data and software at Lloyd’s Register, shared context around key industry buzz words of the day - including what exactly “Big Data” means and indeed how the “smart” in smart shipping could be interpreted in many different ways.

Their audience savoured the insight but seemed unconvinced the time is right to invest in such capex hungry technology in the current economic climate, echoing the sentiments of a larger UAE Maritime Leaders’ Summit which kick-started Dubai Maritime Week on Sunday.

UAESA general secretary, Capt. Gamal Fekry, welcomed the session and agreed the march of ship to shore connectivity and all its applications and implications was inevitable but was maybe more a waltz than a foxtrot at present.

“It [smart shipping] is the only way forward, everybody has to be thinking that way,” said Fekry, who is ceo of Dubai-based Red Sea Marine Management.

“But at the present time with the downturn, it is even more challenging and I can see the initiatives will slow down if not [be] postponed till the recovery.

“We are now talking about cutting cost and that means optimisation and consolidation. So if a smart ship solution will bring cutting down of costs, yes…but as you know any initiative will have to have an initial set up cost and that cost will be [challenging] at the present time.”

Volker Bertram talked of how Big Data was useless to shipping unless the avalanche of information was sliced and diced into something intelligible to the average seafarer. Lewis agreed all the analysis the world was no good if it didn’t offer real time solutions to Masters at sea. Cole, meanwhile, said the costs of transferring data from ship to shore was a current barrier but an increase in global satellite penetration would eventually drive that outlay down. He sees shore based control centres manned by ships masters and chief engineers as the “first practical things that open up once smart technology.”

But Coles also warned of a potential downside to the technological advance, describing the threat of cyber security as a ticking time bomb.

“You know it as AIS but I call it Attack, Infiltrate, Spoof. AIS is the most vulnerable system, it is wide open. I show a video in my presentations of a spoofed vessel being driven around in circles making a word and it was done remotely. The threat is real.”

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31 October - 2 November 2016Dubai International Convention and Exhibition Centre Dubai, UAE

Jawar Al Khaleej Shipping LLC (JAK) used the platform of Day 1 at Seatrade Maritime Middle East to sign a contract with Damen Shipyards Group, for the supply of three vessels; one Fast Crew Supplier (FCS) 5009 and two ASD Tugs 3213.

JAK is a leading provider of specialist services to the offshore oil and gas sector in the Gulf, delivering logistical support including oil

Jawar Al Khaleej Shipping signs order for three Damen vessels at Seatrade Maritime Middle East 2016

terminal support services, towage and salvage, together with other integrated offshore solutions. Its current fleet is comprised of vessels including anchor handling tugs, support vessels jack up barges, emergency oil spill response vessel, crew boats, heavy lift crane vessel and flat top barges. These include existing Damen tugs the Jawar Basra, an ASD 3213, with 8000 HP, delivered in 2015, and the Jawar Dubai, a

Japan’s big three shipping groups, K Line, MOL and NYK, have announced an integration of their container shipping business with the establishment of a joint venture by 1 July 2017 and the commencement of joint service from 1 April 2018.

The three Japanese firms, Kawasaki Kisen Kaisha (K Line), Mitsui OSK Lines (MOL) and Nippon Yusen Kaisha (NYK), said the decision to integrate came on the back of low oil prices, sluggish cargo demand, oversupply of trade capacity, and container freight rates at historic lows.

“Furthermore, the decision to cooperate in the East/West trades made in May 2016 by the creation of THE Alliance was also a factor,” the trio said in a joint statement.

The three Japanese lines are part of the new THE Alliance, including Hapag-Lloyd, Yang Ming and bankrupt member Hanjin Shipping. With Hanjin Shipping shutting down its Europe operations and selling its Asia-US business, the Korean shipowner will find its membership to be of no use to THE Alliance.

UAE’s United Arab Shipping Company (UASC), which has merged with Hapag-Lloyd, will also be part of THE Alliance.

“Container shipping will remain a core activity of all three companies. However the business in this segment will be reshaped through consolidation into a new JV as an equity-method affiliate,” it said.

K Line and MOL will each take 31% stake

in the joint business, and NYK will take the remaining 38% stake.

The combined container vessel fleet capacity will total 1.4m teu, making it the sixth largest carrier in the world with aproximately 7% global share, according to estimates from Alphaliner.

The parent firms will contribute approximately JPY300bn ($2.9bn) in cash and in-kind contribution of vessels and share of terminals into the new JV for it to manage container shipping and container terminal (exclude Japan) business.

The new JV is subject to approvals from the relevant authorities and depending on the progress of the approval process, the three Japanese firms may further review the implementation schedule for establishing the new company.

“Although growing modestly, the container shipping industry has struggled in recent years due to a decline in the container growth rate and the rapid influx of newly built vessels. These two factors have contributed to an imbalance of supply and demand which has destabilised the industry and has created an environment that is adverse to container line profitability,” the joint statement said.

“In order to combat these factors, industry participants have sought to gain scale merit through mergers and acquisitions and consequently the structure of the industry is changing through consolidation."

Both MOL and K Line reported that their container shipping operations were in the red for the first half the financial year ended 31 March 2017.

The bankruptcy of Hanjin Shipping in August this year is the biggest ever in the container shipping sector, underscoring the depressed state of the industry severely weakened by excessive capacity and poor earnings. Global carriers have responded to the crisis by way of mergers and consolidation. France’s CMA CGM completed its acquisition of Singapore’s Neptune Orient Lines (NOL), which owns APL.

The merger of Hapag-Lloyd and UASC is expected to bring about improvements in their profitability and achieve lower transport costs per container.

China’s state-owned giant shipping conglomerates, China Ocean Shipping (Group) Company and China Shipping (Group) Company, had merged to form China Cosco Shipping Corporation (Cosco Shipping), in an attempt to streamline the businesses and better utilise resources.

Stan Tug 2909 purchased in 2009. The 53-metre FCS 5009 built at Damen

Shipyards Antalya in Turkey. To be named the Jawar Abu Dhabi, she is due for delivery in early 2017. The flagship of Damen’s Fast Crew Supplier range, the FCS 5009 has a top speed of 25 knots and can carry up to 80 passengers. 240m² of deck space is available for equipment and other cargo.

The twin ASD Tugs 3213 are to be named the Jawar Faw and Jawar Um Qasr respectively and are being constructed at Damen Shipyards Song Cam in Vietnam. A respected and highly capable design, the ASD 3213 is 32 metres in length, has 8000 HP and with 85 tonnes of bollard pull it is dedicated to handle VLCC tankers at offshore terminals. Both ASD 3213 are under construction and ready to be delivered after commissioning.

“The acquisition of these new vessels reaffirms Jawar Al Khaleej Shipping LLC’s fullest commitment, confidence and determination to continue supporting the offshore oil and gas industry in the forthcoming years,” stated Eng. Baydaq Al Jazaeri, Chairman of Jawar Al Khaleej, “Damen produces some of the best vessels in the world for these kinds of operations. They are technically sophisticated and the quality is very good. The reliability is also excellent, with the servicing and maintenance ensuring that everything goes smoothly.”

Japan’s K Line, MOL, NYK to merge container shipping business

(from left to right):Mr. Bram Langeveld - Sales Director Middle East at Damen Shipyards Gorinchem; Mr. René H. Berkvens - Chief Executive Officer at Damen Shipyards Group; Mr. Pascal Slingerland - Sales Manager Middle East at Damen Shipyards Gorinchem; Mr. Mazin Yousif - Managing Director at Jawar Al Khaleej Shipping L.L.C.; Mr. Lionel Ferreira - Commercial & Chartering Manager at Jawar Al Khaleej Shipping L.L.C.

4 Daily News I Edition One • Seatrade Maritime Middle East

Unmanned vessels will be a reality within five years and stand by for a low-cost “Uber of the Seas” trading model to infiltrate commercial shipping soon. But are legacy operators really ready to adapt to the inevitable digital disruption brought about by the “Smart

'Uber of the Sea' is near but is the industry ready for the sea change?

By Middle East correspondent, Kent Gray

Shipping” evolution and, perhaps more pertinently, are they willing to invest in the necessary technology?

Those surprising revelations ensured a fascinating opening to Dubai Maritime Week on Sunday – and plenty of lively debate from the floor as legacy operators presented the difficult commercial realities of the day as a counter argument to the wider adoption of technology across the merchant fleet.

Of all the insights shared by a five-strong panel charged with selling the benefits of smart shipping to an audience of Middle

East industry leaders assembled for the Dubai Maritime City Authority’s “UAE Maritime Leaders Summit”, the one offered by Transas ceo Frank Coles was the most startling.

Asked what concrete changes the new era of ship to shore connectivity would bring to the industry within five years, he said: “We’ll see unmanned ships within five years time in the Baltic Sea, absolutely”.

Volker Bertram, senior project manager for DNV GL Maritime Advisory, says IMO regulations would prevent wider use of automated vessels in the immediate future but he anticipates “prototype demonstrators” within five years and like Coles, greater management of vessels from shore control rooms.

Oskar Levander, vp of Innovation for Rolls Royce, set the scene for an “Uber of the Seas”, saying shipping could learn from the aerospace industry and the business model of low cost air carriers in particular. Where those airlines operated fleets of standardised aircraft and targeted regional markets, “today pretty much every ship built is a prototype” and the jury remains firmly out on the economy of scale experiment of ever larger vessels.

“Take low cost airlines. They came in about 15-20 years ago and they disrupted the market. They cut out the travel agent, the middle man. They used standard aeroplanes throughout the whole fleet and they skipped the big airport hubs and went more point to point, and they utilised their fleet very efficiently.

“It doesn’t mean we don’t have the legacy airlines but they’re maintaining in a different market. Can we see something in the future with smart shipping, something similar?

“That’s actually my prediction…we will see a new generation on the back of a low cost market and the technology is going to enable us to do this. We are going to have smarter ships, standardised ships that are very fuel efficient, we are going to have low crewing costs [with less seaborne crew supplemented

A new generation of seafarers is being held back by an industry which is “extremely conservative” when it comes to embracing technology and slow to adapt its training methods even when it does.

That was one of the key takeaways from the UAE Maritime Leaders’ Summit on the opening day of Dubai Maritime Week Sunday which explored the definition, challenges and opportunities of smart shipping.

Asked from the floor if commercial shipping was doing enough to train tech savvy newcomers to make the most of new technologies, Capt. Michael P Elwert, the session moderator, admitted the industry was letting itself down.

“A pure, pure answer to your question is no, we are not doing it well…I think it is something we [the industry] have to recognise

we don’t do very well,” said Elwert, group ceo of Elektrans Group.

“Yes, there are some front runners in the industry who do this extremely well but in general it’s not the case. We are utterly reactive and we are not proactive on the training of our crew.

“When you visit a lot of the maritime training organisations worldwide and you see what they are training in and how they train, you’ll be surprised that it is actually, predominantly old ship technology. It’s the old history. We should embrace technology more.

“We definitely have a challenge there, of making sure as we continue putting new technology aboard the ships we have and to understand we need to invest in the people side so they actually know how to use it to its full potential.”

Dr Volker Bertram, senior project manager for DNV GL Maritime Advisory, said the outdated training curriculum could be quickly adapted.

“As one colleague of mine said, they don’t need to be computer whiz kids. Is learning to drive an automatic car more difficult to learn to drive than a stick shift? I think not,” Bertram said.

“So in some sense all we will probably evolve to is to having almost a level with a stronger understanding of cyber systems, basic understanding of that and a wider spread of systems that they have to handle. On the other hand, the systems themselves help them handle it.”

While some forms of shipping lent themselves to unmanned vessels – containerships for example – others like oil tankers, LNG carriers and cruise ships would need human intervention for the foreseeable future, Oskar Levander, vp innovation for Rolls Royce, admitted.

Digital technologies, no matter how disruptive, would never replace humans in shipping completely, he said. However, just

Training not keeping pace with technological advances

News from Dubai Maritime Week

5

Smart Shipping was the theme of the UAE Maritime Leaders Summit that took place as the opening event of Dubai Maritime Week.

The summit was described by organiser Dubai Maritime City Authority (DMCA) as a “meeting of minds of the international maritime country” that was the first of its kind to be held in the UAE.

DMCA director of marketing and communications Nawfal Al Jourani introduced the event by reminding how Dubai’s history of involvement with the sea had been one long story of “innovative thinking” as the emirate developed the largest port and drydock in the Middle East.

That innovation contained today, he said, citing as example the team of female crane operators for Jebel Ali’s Terminal 3 who are remotely located in a central control room away from the ship berths.

Or indeed Dubai Maritime City itself, which Al Jourani described as “the world’s first purpose-built maritime cluster”. This was later augmented by establishment of the Dubai

History of innovation continues as Dubai Maritime Week opens

Maritime Authority in 2007, he added, in order to oversee a “competitively sustainable maritime environment for Dubai”.

Just as 100 years ago 90% of Dubai’s workforce had been involved with the sea, he recalled, today that success continues: the maritime sector accounts for some 76,000 jobs and contributes AED 26bn annually, 7% of the emirate’s GDP.

The seminar discussion on Smart Shipping would afford “a look into the future, at what the next 100 years will bring”, the DMCA official concluded.

DMCA director of marketing and communications Nawfal Al Jourani

Mobile satellite air-time needs to come down further in price in order to facilitate the amount of connectivity that ‘smart’ shipping requires for the real-time transfer of large amounts of data from ship to shore for analytical purposes.

That was the view of Transas ceo Frank Coles, addressing a UAE Maritime Leaders Seminar event devoted to the subject of Smart Shipping that kicked off Dubai Maritime Week today.

by crew using technology ashore], we might think of new ways of financing the ships, like leasing like the airlines… we might think about new routes.

”I think the key here will be Internet of Things working in a digital marketplace, so [traditional trading methods] might be disrupted, how we fill the ships, how we sell it. Think about the Uber of the Seas as a picture.”

The crystal ball gazing was greeted with resistance from the audience with one ship owner asking: “We are hearing lots of wonderful theory but what is a ship owner going to gain, where’s the hard cash [evidence]?"

Even conference moderator, Michael P Elwert, group ceo of Elektrans Group, agreed the most technologically advanced ships afloat still had to compete for the same low freight rates and were no more attractive on the second hand market than a “standard” vessel.

Coles agreed, saying only regulation or the prospect of making money would see ship owners invest heavily in technology. But all the panellists agreed change was inevitable and those who didn’t invest ran the risk of being left behind. The new 0.5% sulphur emissions cap announced by the IMO and waste water management regulations could be the catalyst for change.

“How many of you are afraid of being disrupted…do you see it as a threat?” Levander asked the audience.

“If you think of existing shipping, there are a lot of ship owners out there with fairly new fleets, high debt unfortunately, a lot of crew on board….in the new digital marketplace I might not invest in the asset itself, it might be a new way, a disruptive way.

“One of the things we need to think about is who are the new players, will they remain the same? One thing is for sure, shipping is not going to look the same in 10 years time but there are great opportunities out there.”

as training methods had to change, so will traditional seafaring roles be performed in “more exciting and safe and comfortable work environments” thanks to new ship to shore connectivity.

“Imagine today a captain, how much time does he really spend manoeuvring a ship?” Levander asked.

“He has been trained to manoeuvre a ship in difficult situations with all his extensive training and experience but how much does he actually use it to move ships [in port] and how much of his time is used on administration and bureaucracy and paperwork, forms he has to fill out?

“He probably spends less than 5% manoeuvring ships and is that an efficient use of talent? Why not have that captain sit in a much more comfortable operations centre on land and let him operate one ship into port and then he takes the next one…and the next one.

“He’d also have another office to take care of that bureaucracy…and hopefully that is taken care of by ship intelligence and automation too.”

Coles gave the example of how sending data from an Emirates aircraft cost only $2 per 1GB, compared to shipboard costs that could be anything from a minimum $10 up to as high as $80, he said, meaning it was “at least five times more expensive”.

The “good news”, however, is that this price is set to come down in the next few years because of excess capacity caused by growing competition between mobile satellite providers, he continued

Coles cited a Euroconsult study that predicts total mobile satcom capacity of 3,000GB per second by 2020 - three times more than today - compared to anticipated demand of only around 1,000GB per second.

“But if pricing is the good news, the bad news is cyber security,” he added, stressing the need for “smart IT and cyber security practices”. Corrupt USB sticks rather than deliberate sabotage were the real “cyber missiles”, he warned.

Other hurdles to smart shipping include attitude problems, with only those born after 1980 ‘digital natives’, he said, and training also needs to adapt in order to meet today’s shipboard IT realities.

But perhaps the biggest stumbling block came out during the concluding Q&A session of the DMCA (Dubai Maritime City Authority) seminar. Queried further over the industry’s reluctance to embrace smart technologies, Cole conceded that shipowners rarely if ever agree to install expensive new technology unless “either they are obliged to do so by regulation, or they think it will save them money.”

Frank Coles

Transas boss outlines hurdles to Smart Shipping

News from Dubai Maritime Week 31 October - 2 November 2016Dubai International Convention and Exhibition Centre Dubai, UAE

Suez Canal Authority doing everything right to transform Egypt’s ailing economy: Drewry


Talented marine artist, Alistair Houston, is showcasing his latest limited edition prints at Seatrade Maritime Middle East.

Scotsman Alistair, who can be found along with his original paintings on Stand C13 sponsored by UBM EMEA, spent more than a year immersing himself in Dubai’s maritime heritage and culture of the sea and spent his time sailing with local people; visiting the shipyards where they build the dhows and talking to fishermen about their lives.

Alistair said: “I was brought up sailing, so my history of sailing yachts has allowed me to have a thorough understanding of how they work, how the wind affects things and what the sea should look like. I understand why the boat would be leaning over without any wind for instance, it is a second nature

Low bunker prices, the slowdown of global trade and increased competition from the Panama Canal might be impacting the Suez Canal today, but long term the historic waterway is making all the right moves to transform Egypt’s ailing economy.

That’s the forecast from Tim Power, managing director of shipping consultancy Drewry, who told an audience at Seatrade Maritime Middle East (SMME) on Monday that the now dual carriage waterway had the potential to become the epicentre of a new “Dubai” scale maritime hub.

Power was part of the panel, headlined by Suez Canal Authority chairman and managing director H.E. Admiral Mohab Mameesh, who outlined progress a year on from the $8bn expansion of the Canal, exploring New Silk Road (One Belt One Road) opportunities and potential private investment opportunities in the ports with new industrial zones earmarked along the waterway.

The Suez Canal has been the lifeblood of the Egyptian economy for more than 150 years and the potential of the new industrial and logistics zones, combined with Egypt’s untapped oil and gas wealth, are immense, Power said.

“Let us imagine a situation where Egypt has very competitive energy costs, a large pool

to me. I can do a painting from the plans of a boat, before it has even been built as I understand every part of the subject I am painting.”

A painter for over 30 years, Alistair creates watercolour paintings and also produces limited edition prints of each watercolour. He said: “I am one of the first artists in the world to print the limited edition prints on exactly the same paper as the original watercolour. I use quality paper that has been made in France since 1492. Watercolour is more difficult but it is a lovely medium that works well with my subject.”

Alistair will use his time at SMME to showcase his original paintings and is keen to discuss commissions with companies who want a unique print for their own.

of relatively competitively priced labour and an environment where it is able to attract foreign direct investment to set up all the kind of industries that we see [outlined today]”.

“I want to draw a parallel between that general idea and what we see today in Dubai. Why is Jebel Ali the must call port in the Arabian Gulf? It’s because the Free Zone and all the cargo that moves in and out of that Free Zone. It’s the kind of black hole that makes every container shipping line want to come.

“So if you combine the connectivity of the [Suez] Canal with the kind of industrial development, cost competitiveness that perhaps, if we are lucky, this Canal Zone can create, then you could see the Egyptian economy transformed. You have a huge consumer market, a very short distance from Europe in the Mediterranean…it must be an enormous prize and the Canal’s relevance to that is also enormous.”

One aspect of the OBOR project Power isn’t convinced about is the rail networks set to link Europe to Egypt, Egypt to the Middle East and across the “Silk Way” to China and “Spice Way” to India.

“I must confess whenever rail is talked about I am deeply sceptical. A long time ago in England I was actually involved in a rail project and I worked with someone who told me there is no one better to tell you what cannot be done than a railway man,” Power said.

“So if we take that as a basic principal and you think about all the bureaucracy, inter-governmental and regulatory challenges, let alone building the infrastructure…I salute the vision but I am sceptical about delivery and I’m also sceptical about the need.

“I think the shipping services that link Asia to North Europe, and indeed the Eastern Mediterranean to North Europe are extremely reliable and efficient and relatively quick. I think the cost competitiveness of shipping versus rail for that kind of traffic will remain, frankly, pretty unbeatable.”

H.E. Admiral Mameesh told the conference “You will hear of a new payment system in the Suez Canal to attract the ships” as the SCA continued to respond to market forces.

Scotsman brings Dubai marine scenes to life


By Bob Jaques, Editor,Seatrade Maritime Review

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Mark Warner

While there remain a lot of macroeconomic “issues and challenges”, the global economy “is not as bad as feared at the beginning of the year,” said Tim Fox, head of research and chief economist at Emirates NBD bank, addressing the opening Economic Forum conference session at the Seatrade Maritime Middle East.

The oil price has recovered from $30 per barrel to $50, China’s economy has stabilised, and the US is in a stronger position than in Q1, Fox said. Also, the economy of India - the UAE’s main trading partner (ahead of China) - is showing 7% growth and appears ‘resilient’, he added.

Economic Forum in Dubai finds reasons to be cheerful

However, fellow speaker Tim Power, managing director of maritime consultancy Drewry, painted a less upbeat picture, especially for the liner trades. CAGR (compound annual growth rate) in world container traffic for the period 1980-2007 was 10%, he said, while after the 2008 crisis it halved to 5%, and was now “2% or less”.

“The container industry in the past could

Satcoms operator Inmarsat is developing its own cyber security solution that it plans to roll out early next year, executive Mark Warner revealed exclusively to Seatrade in Dubai this week.

Jointly developed with Singtel and that telecom body’s cyber security arm Trustwave, the Unified Threat Management (UTM) solution, as yet unnamed, will be marketed both to Inmarsat’s partner satellite service

always grow its way out of trouble” in terms of boxship oversupply, he added, but now “those days are gone.”

Power therefore welcomed this week’s announcement by Japan’s NYK, MOL and K Line to consolidate their liner interests, calling it potentially a “key moment” in attempts to rebalance supply and demand in the liner sector.

Inmarsat to roll out cyber security solutionproviders and directly to ship operators and managers.

“What this product does will be unique,” says Warner, head of marketing communications – Maritime. “Inmarsat will not only control the pipe (delivering satcoms aboard) but also ring-fence the ship so that if there’s any breach in cyber security and someone puts an infected USB stick into the port, it will stop the virus spreading any further.

“Most importantly,” he adds, “it will also send out an alert ashore and to whoever’s responsible on board that there’s a breach and where that breach is.” In this way it protects the shore-based office from becoming infected as well, he explains.

“Unique to Inmarsat is the fact that our FX (Fleet Xpress) service is a global service, meaning the pipe is continuously protected,” he continues, unlike other services which use multiple satellite inputs. “There’s also a back-up capability to protect Fleet Broadband as well,” he adds, and the solution has in-built firewalls and white-listing.

The UTM will be priced in a way that is attractive to customers, Warner concludes, and a “great level of interest” has already been expressed among Inmarsat clients and partners, as well as shipping companies.


Lankhorst’s ‘Through Life, For Life’ rope support is the theme of Lankhorst Ropes’ booth at this year's SMME show, booth U9. Lankhorst Ropes’ Through Life, For Life service gives operators a portfolio of rope service life support and sustainability benefits unmatched in the industry.

From development of a mooring plan to rope selection and management through predictive service-life rope testing and training, Lankhorst provides complete ‘Through Life’ rope service. Lankhorst’s expertise on a variety of applications and knowledge of worldwide conditions offers operators longer rope service-life, easier handling and safe operation.

‘For Life’, Lankhorst is committed to Green manufacture which combined with a longer lasting rope service-life, and ultimately rope recycling, translates into levels of sustainability

Sustainable, Service Life Enhancing Rope Support with Lankhorst Ropes

that make a significant contribution to operator’s environmental policies.

“Lankhorst Ropes’ ‘Through Life, For Life’ service combines sustainability and good business sense to offer our customers longer lasting, environmentally friendly high performance ropes,” says Hans Pieter Baaij, commercial director, Lankhorst Ropes.

ROPE RECYCLING

Part of Lankhorst’s drive for greater rope sustainability, ropes returned to Lankhorst under the conditions of rope recycling scheme may undergo testing, contributing to Lankhorst’s continuing rope innovation, and can be used to make plastic moulded products including plastic deck covers.

Visit Lankhorst Ropes at SMME, booth U9.

As the number of connected systems available onboard ships expands, the safety and security of these systems is becoming increasingly important.

Until recently, many ships and offshore platforms operated their entire working lives using only the safety features that were installed during construction. Their mechanical systems performed certain sets of functions that could be regulated and monitored by crews who possessed complete knowledge of the systems and their interactions.

But times have changed. As the shipping industry moves towards deployment of highly instrumented, automated and connected ‘smart ships’, cyber risks have emerged and increased.

As a leading provider of classification and technical services, ABS has responded to this challenge by unveiling the first comprehensive cybersecurity certification and optional notations for marine and offshore assets and facilities.

First announced in early 2016, the ABS CyberSafety™ series is the industry’s first risk-

ABS breaks new ground on CyberSafety™

By John M. Jorgensen, Director, IT Security, ABS

based management program for asset owners to apply best practice approaches to cybersecurity, automated systems safety, data integrity and software verification.

Owners can use the ABS Guides to obtain optional certification and Classification Notations which can be used to verify cybersecurity plans and programs for assets and facilities as well as integrated and non-integrated control systems, including factors for software quality management, product design assessment and unit software systems.

In developing the CyberSafety™ series, ABS has moved beyond the ‘step-by-step’ approach to deliver an integrated, holistic view of systems, assets and facilities that give owners and operators confidence that a multi-dimensional safety component is well-engineered and operated competently.

Earlier this year ABS established an ABS CyberSafety™ laboratory and staffed it with a team of global cyber experts to expand the safety scope and verify cyber systems that look beyond physical asset safety.

Visit at SMME, booth V1.

9


Global shipping company United Arab Shipping Company (UASC) has installed XChange Media, Marlink’s news, entertainment and television solution on 44 of its vessels to provide on-demand multi-lingual content for crew via their personal devices.

UASC’s fleet is already equipped with Sealink, Marlink’s global high quality VSAT service, which provides seamless IP connectivity to optimise fleet management and electronic document handling systems, whilst providing significant bandwidth for crew communications. Deployment of XChange Media across the UASC fleet was carried out remotely and completed in less than a week.

UASC increases crew satisfaction in a cost-efficient way through the provision of daily updated content on XChange Media. The

XChange Media connects UASC crews

day, the masters and on-shore managers can be fully confident of the continued availability of bandwidth for business and operational communication facilities.

“XChange Media boosts the already high-end crew welfare facilities possible via our Sealink VSAT service,” said Tore Morten Olsen, President Maritime, Marlink. “We are extremely pleased XChange Media has been selected by UASC to deliver content to their crew. By delivering high quality, multi-lingual news, sport and also TV, UASC can provide a more relaxing environment for their hardworking crew members, in turn, increasing job satisfaction and employee retention.”

Built on the XChange communications management system, XChange Media is an ideal alternative to satellite TV on board as it requires no extra hardware or installation costs. It can be activated online via Marlink’s Portal360 with just a few clicks and because content is delivered over Marlink’s global network infrastructure, crews can enjoy the XChange Media service worldwide.

solution comes with cost-efficient program packages, as content can be shared with all crew members at no extra cost to them. Crew can simply use their own smartphones, tablets, and laptops via Wi-Fi either in their cabins or with friends and colleagues in communal areas on television whenever their shifts allow.

Using XChange Media, UASC does not face extra airtime cost as the Sealink VSAT bandwidth will not be affected. Whilst XChange Media delivers new content every

Less than 12 months after construction started in October 2015, Austal has announced the on-time, on-specification and on-budget delivery of the Incat-Crowther designed ‘Offshore Express 70’ Large Crew Transfer Vessel (LCTV), Rashid Behbudov, to Caspian Marine Services Limited (CMS) of Azerbaijan.

Austal has delivered yet another technically advanced vessel for export from the proven West Australian shipbuilding facilities and

experienced construction team.The impressive 70 metre catamaran,

featuring DP2 (DYNPOS-AUTR) dynamic positioning and an Ampelmann ‘walk to work’ gangway, was officially handed over to CMS at a ceremony on 14 September at the Western Australian Maritime Museum in Fremantle, attended by Ms Aydan Rzaeva, the Honorary Consul of the Republic of Azerbaijan and Board Members of CMS. Austal Chairman John

Austal Delivers Third-Party-Designed 70 Metre Vessel To Azerbaijan

Rothwell AO congratulated CMS Chairman, Carl Rolaston, on taking delivery of the company’s newest maritime asset.

“This project successfully demonstrates Austal’s ability to successfully collaborate with our valued client and their designer to deliver a customised vessel, efficiently and cost effectively. We are justifiably proud of our shipbuilding teams to deliver this impressive vessel in less than 12 months and congratulate CMS on their latest addition to the fleet.”

Austal worked closely with CMS and their designer, Incat Crowther to integrate Marine Link, Austal’s proven Control and Monitoring system and Austal’s proprietary Ride Control technology with T-foils and interceptors that improve the vessel’s seakeeping characteristics and crew comfort.

The Austal ‘Offshore Express 70’ is an effective transport and logistics solution, featuring more than 400 square metre of cargo deck area and the ability to carry 150 passengers (plus 16 crew) 400 nautical miles at 30 knots. The vessel offers oil and gas industry operators greater safety, reliability and economy than alternative offshore transportation modes, such as helicopters.

Austal won the A$44.5million contract to build the sister ship to CMS’ Muslim Magomayev in June 2015.

Austal are exhibiting at stand X-10


Wilhelmsen Ships Service (WSS) has established a dedicated local transit team to help its customers negotiate not just the Suez Canal, but also the complex rebate system designed to boost traffic through the recently expanded waterway. The new office, based in Alexandria, is staffed 24/7 by local agents who intimately understand both customer requirements and the workings of the Suez Canal Authority (SCA).

The canal expansion opened in August last year, cutting vessel waiting time from 11 to 3 hours and potentially doubling the number of daily transits. In an effort to incentivise shippers to choose its route over alternatives, SCA has created a rebate system capable of greatly reducing vessel toll fees - if all application criteria are satisfied.

“This is a great scheme, with huge potential benefits,” comments Steffen Langlete, Product Manager, Ships Agency WSS, “but it can be complex, time-consuming and confusing to understand. SCA has strict deadlines with regard to submitting applications and the confirmation of rebates, while the documentation required is extensive.

“If shippers forget to apply at the right time, or fail to submit the correct papers, their rebates may not be forthcoming and, in an era of tight margins and pressure on costs, this can be a heavy price to pay.”

The SCA system is stringent, yet generous. Dependant on an array of route and cargo variables, toll reductions typically range between 5 and 35%. However, the biggest savings come for container vessels trading between ports south of Norfolk, Virginia and ports lying to the east of Port Kelang, Malaysia obtaining rebates of up to 65%. Rebates are calculated on a case-by-case basis and are also subject to factors such as freight rates, hire rates and bunker prices.

For example, amongst the numerous rebates WSS has secured for its customers since

WSS Suez Canal transit team to cut customer costs, workloads and confusion

the expanded canal opened, a 38,000 DWT General Cargo Ship recently received a 50,000 USD discount on its original 180,000 USD transit fee. Loading in Huelva, Spain and discharging in Fangscheng, China, this considerable rebate could have, and often does go, unclaimed by customers unable or unaware of the paperwork and timings required by the SCA.

Applications must be received by SCA 48 hours prior to a vessel’s departure from its most recent port of origin before entering the canal, while a range of original documents are required post-transit.

“For many shipowners and operators keeping track of requirements and relevant documentation is a real headache,” Langlete states. “In fact, in some cases, owners and operators simply forget to apply in time. In addition, any submission outside the SCA’s parameters renders an application null and void, while operators have to confirm an acceptance of the rebate within just 72 hours of it being granted. It can be difficult to stay on top of everything at once.

“That’s why we’ve created this expert team,” he continues. “It means that shipping businesses can focus on what’s important to them – getting cargoes from A to B in the quickest, safest and most efficient manner – while we can take the strain of all the paperwork, interaction with authorities, and transactions. We’re simplifying the process, while also providing additional local services, such as delay updates, advice on new regulations, canal maintenance news, and more.

“It’s a service that meets a genuine market need and will greatly assist all our customers passing through this fundamentally important trading channel.”

Daniel Wikstroem, Ships Agency Sales Manager AMB will be at the WSS stand at Seatrade, stand Y1, Hall 6.

MFE Center’s double firstChinese exhibitor MFE (Maritime and

Finance Excellence) Center, arrives in Dubai fresh from a double success in its home city of Shanghai last month.

Its newly constructed HQ building in Pudong’s Expo B area - where it will house a cluster of Chinese and overseas maritime companies - was officially inaugurated in mid-September, coinciding with the first ever Shanghai International Shipping Week organised by Ben Zhang, its chairman.

Guest of Honour at the MFE Center opening was Lord Mountevans, Lord Mayor of the City of London and chairman of UK professional services body Maritime London, while Baltic Exchange CEO Jeremy Penn was also in attendance.

The MFE Centre concept is based on close ties with the UK capital because of the latter’s wealth of shipping services expertise. Indeed, the new building contains a shared lounge area which is modelled on one of London’s 17th century Coffee Houses that gave birth to the modern Lloyd’s marine insurance and Baltic shipbroking markets.

The idea is proving a great success, with the 23-floor building fast filling up, explains MFE Center CEO Jackie Woo, who is attending SMME along with client service manager Rocky Chen. Some 15 to 20 Chinese shipping companies and establishment have already signed up, he says, as well as international clients comprising the likes of the Baltic Exchange, Braemar ACM, Graig Shipping and the Institute of Chartered Shipbrokers.

In all some 28 corporate office blocks have been built on Expo Area B, he adds, making it Shanghai’s latest industrial zone with a pronounced maritime and transport theme.

Meanwhile, the first Shanghai International Shipping Week (SISW), organised around anchor event the International Shipping Strategic Development Forum (ISSDF), included more than 20 different functions which assembled 50-plus speakers from over 10 different countries, attracting in excess of 1,00 delegates. A second SISW is planned for 2017.

To find out more visit MFE Center’s stand number K9, where a video of different events that took place during the inaugural SISW is playing.

11


Individuals, organisations and companies from across the shipping industry were honoured at the annual Seatrade Maritime Awards Middle East, Indian Subcontinent & Africa at Atlantis, The Palm, Dubai last night (Monday 31st October 2016).

Held under the patronage of His Excellency Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World and Chairman of Dubai Maritime City Authority (DMCA) and as part of Dubai Maritime Week, the Seatrade Maritime Awards reward excellence during an evening attended by some of the most high profile and senior industry professionals in the shipping and maritime industry.

The evening featured a surprise guest, English former football player and manager, Kevin Keegan, OBE, who entertained the audience with amusing football anecdotes. Also taking his share of the evening’s spotlight was prominent TV presenter, Nouraldin Al Yousuf, who acted as Emcee for the evening.

According to Chris Hayman, Chairman of Seatrade: “The Seatrade Maritime Awards were established to offer a platform to promote significant contribution and pioneering advancements across the maritime and shipping world and along with the Seatrade Awards in London and the Seatrade Maritime Awards in Asia, are now widely regarded as the maritime premier awards globally.”

Please find below the list of winners of the Seatrade Maritime Awards 2016. Full coverage in edition 2.

Safety and Quality Award: Drydocks World Dubai

Education and Training Award: Krishnapatnam Port Company Limited

Corporate Social Responsibility Award: ASRY (Arab Shipbuilding & Repair Yard)Highly commended: Krishnapatnam Port Company Limited

Technical Innovation Award: WärtsiläHighly commended: Hubert Palfinger Technologies GmbH

Green Shipping Award: United Arab Shipping Company S.A.G

Seatrade Maritime Awards Middle East winners announced!

Offshore Marine Award for Owners & Operators: Halul Offshore Services Company W.L.L.Highly commended: Topaz Energy and Marine

Ship Repair Innovation Award: Hubert Palfinger Technologies GmbHHighly commended: Abu Dhabi Ship Building PJSC

Port Authority Award: Abu Dhabi Ports

Ship Agent Award: GAC GroupHighly commended: Inchcape Shipping Services and Sharaf Shipping Agency

Port Terminal Operator: Gulftainer

Contribution to Development of the Regional Maritime Cluster Award: Basra Gateway Terminal

Shipping Company of the Year: Oman Shipping Company S.A.O.C

Maritime Logistics Award: Abu Dhabi TerminalsHighly commended: International Ports Services Co. Ltd.

Deal of the Year: Tristar Transport LLCHighly commended: Topaz Energy and Marine

Offshore Marine Development – Africa: CS Offshore DMCC

Seatrade Maritime News Readers' Choice Award: Ship Supplier of the Year: Middle East Fuji, LLC

Seatrade Lifetime Achievement Award 2016: Sharaf Group

Seatrade Personality of the Year Award 2016: Dr Khaled Al Mazrouei, Chief Executive Officer, Abu Dhabi Ship Building (ADSB)

Seatrade Young Person of the Year Award 2016: Mr Paul Katsouris, Senior Associate - Head of Greece Desk, Fichte Legal Consultants

Seatrade Outstanding Achievement Award 2016: Eng. Ibrahim Abdulrahman Al-Omar, Chief Executive Officer, Bahri


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