takeroperator · new vlcc orders news profile tight labour market crewing costs rise operations...
TRANSCRIPT
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
TANKEROperator � November/December 201004
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
November/December 2010 � TANKEROperator 05
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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TANKEROperator � November/December 201006
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
nario
Benc
hmar
k“H
ot” S
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Demand
Supply
TO
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INDUSTRY – NEWS PROFILE
November/December 2010 � TANKEROperator 07
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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TANKEROperator � November/December 201008
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
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p2-34:p2-7.qxd 03/12/2010 17:36 Page 10
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
November/December 2010 � TANKEROperator 11
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
INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
TANKEROperator � November/December 201012
It would be ideal tohave two MooringMasters controllingsuch an operation.
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INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
November/December 2010 � TANKEROperator 13
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
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INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
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.
November/December 2010 � TANKEROperator 15
INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
WEATHER SERVICES & ROUTING
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p2-34:p2-7.qxd 03/12/2010 17:36 Page 15
INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
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
TANKEROperator � November/December 201016
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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
November/December 2010 � TANKEROperator 17
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.
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TANKEROperator � November/December 201018
INDUSTRY - NORWAY REPORT
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
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INDUSTRY - NORWAY REPORT
November/December 2010 � TANKEROperator 19
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
TANKEROperator � November/December 201020
INDUSTRY - NORWAY REPORT
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
INDUSTRY - NORWAY REPORT
November/December 2010 � TANKEROperator 21
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
TANKEROperator � November/December 201022
INDUSTRY - NORWAY REPORT
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
INDUSTRY - NORWAY REPORT
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
November/December 2010 � TANKEROperator 23
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
INDUSTRY - NORWAY REPORT
TANKEROperator � November/December 201024
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
INDUSTRY - NORWAY REPORT
November/December 2010 � TANKEROperator 25
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
TANKEROperator � November/December 201026
INDUSTRY - NORWAY REPORT
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
November/December 2010 � TANKEROperator 27
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
TANKEROperator � November/December 201028
INDUSTRY - BUNKER OPERATIONS
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
INDUSTRY - BUNKER OPERATIONS
November/December 2010 � TANKEROperator 29
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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The costs of lower-quality fuel can be
very severe, including the risk of
serious engine damage.
“”
TO
p2-34:p2-7.qxd 03/12/2010 17:42 Page 29
TANKEROperator � November/December 201030
INDUSTRY - BUNKER OPERATIONS
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
“
”
p2-34:p2-7.qxd 03/12/2010 17:42 Page 30
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TANKEROperator � November/December 201032
INDUSTRY - BUNKER OPERATIONS
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
INDUSTRY - BUNKER OPERATIONS
November/December 2010 � TANKEROperator 33
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
TANKEROperator � November/December 201034
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
November/December 2010 � TANKEROperator 35
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
TECHNOLOGY - TRAINING SYSTEMS
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
TANKEROperator � November/December 201036
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
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TECHNOLOGY - TRAINING SYSTEMS
November/December 2010 � TANKEROperator 37
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
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TECHNOLOGY - TRAINING SYSTEMS
TANKEROperator � November/December 201038
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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TECHNOLOGY - TRAINING SYSTEMS
November/December 2010 � TANKEROperator 39
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.
TECHNOLOGY - TRAINING SYSTEMS
TANKEROperator � November/December 201040
RescueSim - a firefighting and emergency management tool.
TO
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TECHNOLOGY - TRAINING SYSTEMS
There is more than one way to ECDIS training
November/December 2010 � TANKEROperator 41
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
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“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
TANKEROperator � November/December 201042
TECHNOLOGY - TRAINING SYSTEMS
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.
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TECHNOLOGY - TRAINING SYSTEMS
November/December 2010 � TANKEROperator 43
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
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TO
p35-60:p2-7.qxd 03/12/2010 18:00 Page 9
p35-60:p2-7.qxd 03/12/2010 18:00 Page 10
TECHNOLOGY - NAVAIDS
November/December 2010 � TANKEROperator 45
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
TANKEROperator � November/December 201046
TECHNOLOGY - NAVAIDS
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.
TECHNOLOGY - NAVAIDS
November/December 2010 � TANKEROperator 47
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
TANKEROperator � November/December 201048
TECHNOLOGY - NAVAIDS
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
WATLEV Always underwater submerged
QUASOU Least depth unknown
EXPSOU Shoaler then range of depth of surrounding depth area
VALSOU 8.5
3. WRECKS CATWRK Dangerous Wreck 10 STANDARD
WATLEV Always underwater submerged
4. WRECKS CATWRK Wreck showing any 20 STANDARDportion of hull orsuperstructure
WATLEV Covers and Uncovers
5. OBSTRN CATOBS Foul Area 10 STANDARD
WATLEV Always underwater submerged
VALSOU
QUASOU Depth Unknown
6. OBSTRN WATLEV Always underwater 20 STANDARDsubmerged
VALSOU
CATOBS Fish haven
QUASOU Depth unknown
7. OBSTRN WATLEV Always underwater 10 STANDARDsubmerged
VALSOU
QUASOU Depth unknown
8. OBSTRN WATLEV Always underwater STANDARDsubmerged
VALSOU
9. OBSTRN CATOBS Fish haven STANDARD
VALSOU
WATLEV Always underwater submerged
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
November/December 2010 � TANKEROperator 49
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
November/December 2010 � TANKEROperator 51
for Chemical/Product Tankers
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
Advanced Polymer Coatings
Avon, Ohio 44011 U.S.A.
Rely on MarineLine® 784 tank coating to handle a
wide range of cargoes carried by chemical and product tankers. MarineLine® 784 offers enhanced corrosion resistance compared to phenolic epoxies or zinc silicates, at a similar cost. It is faster and easier to clean, with higher cargo purity.
p35-60:p2-7.qxd 03/12/2010 18:01 Page 17
TANKEROperator � November/December 2010
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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TO
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.
November/December 2010 � TANKEROperator 53
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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and one alarm for each tank or dry/void spaces.
� Power supply - 115/230 V ac.
� LCD display: indication in ppm, or %LEL.
� 8 x 4-20 mA inputs.
Special features � Modbus RTU communication protocol.
� One digital RS485 communication port.
� Remote control unit (optional).
Approval certificates� MED pending.
TO
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TANKEROperator � November/December 201054
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
November/December 2010 � TANKEROperator 55
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
TANKEROperator � November/December 201056
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
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