Front cover:Front cover.

qxd 03/12/2010 17:29 Page 1

TAKEROperator
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
IFC:OBC.qxd 03/12/2010 17:31 Page 1
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Contents
Markets Technology
04  Invest, or not to invest? 35 35 Training systems
 New VLCC orders  ECDIS training vital
 Dutch specialist expands
06 News Profile  In-house training
 Tight labour market  Videotel -working with industry
 Crewing costs rise 45 avaids
 AIS offers business intelligence
08 Operations  UKHO enhances ENCs
Mooring injuries a worry
 INS/IBS launched
 Control centre unveiled

51 Tank Servicing
 APC strengthens operations
 Gas detection enhanced
Ship-to-Ship Transfers  Cargo spec changes
11  New IMO rules imminent 55 Vapour Control
 Simulation for safety  Knutsen markets new technology

Norway Report
17  Oil and gas the lifeblood
 TTS strong in tankers
NEW
Lay-Up Module
now available
 Seatrans stung by taxes
 Knutsen expands on many fronts
'Simplicity is the key to Success'

Bunker Operations
27  Distillate premium a problem
Established in 1991, UK based Marine Software Ltd provide low cost, easy to use
Ship Management Software Solutions tailored for the Worldwide Maritime Industry

 Sampling best practice DNV TYPE APPROVED

 New fuels discussed PLANNED
MAINTENANCE

 Fujairah expansion MINIMAL TRAINING

REQUIREMENT
STOCK
CONTROL
 Credit risks highlighted
SHIP / SHORE
INTEGRATION PURCHASING

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AVAILABLE

DATABASE PROJECT
SETUP SERVICES MANAGEMENT

CONDITION MONITORING ISM DOCUMENT

RCM VIBRATION ANALYSIS LINK MANAGEMENT
SAFETY
MANAGEMENT
Front cover photo SYSTEM
STS operations have increasingly come under the
microscope and will be subject to new IMO rules For further details please contact us on:
Tel: +44 (0)1304 840009 Fax: +44 (0)1304 840075 Email: info@marinesoftware.co.uk
in the ew Year. As usual with new regulations,
there are more questions than answers, but at www.marinesoftware.co.uk
least it will put the operation on the map.
Photo credit – SafeSTS.

November/December 2010  TANKEROperator 01

p2-34:p2-7.qxd 03/12/2010 17:36 Page 2
COMMENT
Risk and liability - twin threats to our industry
According to a leading shipping practitioner,
observer and commentator, the problems that loom
large in the shipping industry today are those
concerning risk management, limitation of liability,
insurability and control of the operational loss
factor.
Speaking at his annual London lunch, Clay Maitland, North American
Marine Environmental Protection Association (NAMEPA) chairman and
managing partner of International Registries gave his hard hitting take on
shipping’s woes, especially in the wake of the Macondo incident.
He said that rather worryingly, he did not know whether the
traditional P&I system would be effective in years to come. In the
future, 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, not
piracy and not even the global economic crisis. It is liability. In my
opinion, we are not equipped to confront it.
“To do so, we need a different approach to the cost factor. P&I cover
will no longer be available at a reasonable price, if the precedent set by
the Deepwater Horizon, Prestige, Erika and COSCO Busan are any sort
of benchmark”, he warned. “Are these risks insurable? We need to
learn how to manage risk.”
He continued by saying that the prospect of an extension of liability
to other forms of charterer, lender and shipper raise cost factors that
have not been fully understood.
Quality is an issue with a specific pricing factor. “If we cannot
deliver quality, we will surely go under. We certainly cannot hope to
deliver supply chain services at a price that our customers are willing to
pay,” he said.
He said that there would be a response to the Deepwater Horizon
incident, which will probably take two forms - the regulators and the
industry. “Undoubtedly, the regulators will be tightening oversight
measures, based on the ISM Code. Limits on liability will be raised, or
even eliminated. Private industry will implement operational risk
management practices as never before. Remember: a liability hole of
much more than $40 mill has been blown in a major corporation (BP),”
he explained.
Maitland stressed that the most critical risk factor that the industry
now faces is liability. On the other hand, the most severe crisis that we
face internally is the growing extreme and irrational pressures being
imposed by so called’ managers’ and by governments on the seafarer.
TANKEROperator
Vol 10 No 2 EDITOR
Tanker Operator Magazine Ian Cochran
Ltd Tel: +44 (0)20 7017 3403
2nd Floor, 8 Baltic Street East cochran@tankeroperator.com
London EC1Y 0UP, UK
www.tankeroperator.com ADVERTISING SALES
Melissa Skinner
PUBLISHER/EVENTS/ Only Media Ltd
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Tel: +44 (0)20 8950 3323
Karl Jeffery
mskinner@tankeroperator.com
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jeffery@thedigitalship.com
02
“I believe that the regulators, including IMO, are going to adopt a
more muscular risk management oversight programme and a more
punitive one, than that now embodied in Chapter IX of SOLAS- the
ISM Code. This will involve some form of oversight of safety and
quality management systems and of course will impose an additional
bureaucratic burden on ships’ officers,” he said. He warned that quality
is a factor that commands a higher price that many in the industry may
not be willing to pay.
Turning to seafarers, Maitland said that they were increasingly
“commoditised”, often recruited in countries with no maritime
traditions; subjected to longer hours of work and poorer quality of life;
diminished professional standing; subjected to more time on board and
less ashore; treated as presumptive terrorism suspects; whose life and
safety are often disregarded; frequently criminalised for acts caused by
others; required to master an ever-growing regulatory workload.
IMO lauded
He had praise for the IMO’s Efthimios Mitropoulos in confronting these
issues. “In the face of no little resistance, he has pushed through a new
convention on casualty investigations, the mandatory audit of flag states
and a greatly increased emphasis on the rights and safety of seafarers, as
well as amendments to SOLAS,” he said.
Maitland said that we face a future with the supply of labour under
threat, piracy without a visible end in sight, new vessels built of
doubtful quality, turbulent markets, unilateralism and protectionism,
‘beancounteritis’ unlimited liability and, overall, an obvious lack of
leadership.
“For a better future, we must address the recruitment and training of
seafarers. The crew is our first line of quality assurance and the
safeguard of our maritime supply chain. The need to improve their
working and living conditions, afloat and ashore, is critical to the future
of 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 disappear
as the standard of living increases in that country, resulting in a seagoing
career becoming unattractive due to economic reasons.
He also said that Asia was still a major concern, as many vessels in
China and India plying their trades in coastal waters were not classed.
Another concern to be managed was the rush to extract oil and gas from
the Arctic regions of the US, Russia and Greenland. TO
SUBSCRIPTION PRODUCTION
1 year (8 issues) Vivian Chee
$220 / €160 / £150 Tel: +44 (0)20 8995 5540
2 years (16 issues) chee@btconnect.com
$330 / €240 / £225 Printed by ALYA SP. z o.o.
Subscription hotline: ul. Bukowa 11
41-700 Ruda Śląska;
Tel: +44 (0)20 7017 3405 Poland
Fax: +44 (0)20 7251 9179
Email:
jeffery@thedigitalship.com
TANKEROperator  November/December 2010
p2-34:p2-7.qxd 03/12/2010 17:36 Page 3

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p2-34:p2-7.qxd 03/12/2010 17:36 Page 4

INDUSTRY - MARKETS

Tankers – A good or bad investment?

At the current time charter Equity Ra te o f Return (%)
50

equivalent (TCE) revenue levels in

40
the tanker sector, the subject of
30
investment attractiveness seems
20
out of place.
However, those familiar with the tanker 10
8.6
10.4
8.5 7.2
9.3

industry know that shipping is a cyclical 0

market and high markets follow low ones, just -1 0

as surely as low markets follow high ones. As -2 0

a result, McQuilling Services looked at the 60

As s et P ri c e
80 100 120 140 160 20 40 60 80 100 120 0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100

( US $ M i l l i on ) VLC C SUEZ AF RA PAN A MR

subject of comparative investment
attractiveness recently.
First, the consultants assumed that going
forward, there is a great degree of uncertainty
in terms of what asset prices and TCE
revenues will be at any given point in the
future. Recognising the dangers of using the
past to predict the future, they nonetheless
wanted to establish some context for what
future market behaviour might look like.
To do this, they wanted to show the range
of rates of return that could be realised for
each tanker asset class if the market highs and
lows for freight rates and asset prices were
experienced seen during the period 1997
through 2008.
McQuilling calculated the average annual
TCE revenue for each asset class and found the
maximum and minimum experienced between
1997 and 2008. Going forward, it was assumed
the vessels were employed 360 trading days per
year on the primary trades for the vessel class
at these levels, but did not incorporate any
assumptions for optimised deployment.
Next, the figures were run through an
acquisition calculator to determine the rate of
return on an equity investment in each specific
asset class.
Financing costs were not included – only
cash flows from TCE revenues and cash flows
from operating costs to evaluate the overall
project attractiveness. The pre-construction
interest payments were included, as well as
the proceeds from the sale of the vessel for
scrap at the end of 25 years.
A discounted cash flow analysis was
performed against the initial investment and
the internal rate of return (IRR) was found for
Return boundaries based on extreme values for TCE revenues and newbuilding asset prices during the 1997-2008 timeframe
Figure 1 – Equity Rate of Return Wedges
each asset class at the minimum and and TCE revenue volatility over the period
maximum TCE revenues and asset prices. in question.
The results are most interesting when Also noted was that in order to access the
viewed graphically. Figure 1 illustrates the potential of the elevated returns of the VLCC
IRR wedges corresponding to each tanker sector, a great deal more capital was required.
class. Each wedge represents the boundary of At average prices of $95.6 mill over the 1997-
possible IRRs experienced for each tanker 2008 period, almost three MR tankers
type during the 1997-2008 trading period. The averaging $35.7 million each could be
top corners of each wedge represent the case purchased for the price of one VLCC.
of maximum TCE revenue at the minimum On each wedge, the IRR was plotted as a
and maximum asset prices. The bottom two diamond shape resulting from the combination
corners represent the minimum TCE revenues of the current asset price for each tanker class
at the minimum and maximum asset prices. and a TCE revenue corresponding to the
The shapes are theoretical in that a specific average for the 1997-2008 period. In all cases
asset price/TCE revenue combination within the IRR is positive, albeit lacklustre.
the shape may not have been observed during The IRR wedges are a way to consider the
the period, but all possible combinations were comparative investment attractiveness across
included in the area described by the wedge. different tanker sectors. Their size and shape
A comparison of the IRR wedges in Figure represent the potential rates of return that
1 produced some useful observations. Clearly, might be observed going forward, based on
the VLCC sector had the most potential for the historical time period 1997-2008.
strongly positive IRR performance, but about As mentioned at the beginning of this study,
a quarter of the IRR possibilities are negative. predicting the future based on the past is risky
Suezmaxes had less IRR upside potential, but business but results do help to provide a
also less probability of negative returns. perspective on the possibilities of the market.
For the smaller sectors, the probability of Of course, the freight markets must recover
negative IRRs diminishes, until only positive from their current cyclical lows before any of
IRR results are recorded for MR tonnage. the foregoing becomes more than just a
However, the best IRR for this wedge is theoretical exercise.
only about 25%, compared to more than 40% When they do, the use of IRR wedge
for the VLCC sector. analysis described herein may provide some
In evaluating the wedges, the size of the insight to market participants on the tanker
VLCC wedge was quite a bit larger than the sectors of choice in the future, McQuilling
other sectors, pointing to greater asset price concluded TO

US$/Day VLCC SUEZ AFRA PAA MR US$ Million VLCC SUEZ AFRA PAA MR
Minimum 11,729 15,288 11,363 12,133 12,817 Minimum 65.6 44.0 34.5 28.8 26.0
Average 45,664 35,825 27,593 23,640 20,053 Average 95.6 60.5 48.5 40.7 35.7
Maximum 100,706 59,956 47,770 37,202 28,860 Maximum 147.8 89.5 74.4 32.4 50.8

Table 1 – Historical TCE Revenues – 1997-2008 Table 2 – Historical Newbuilding Asset Prices 1997-2008

04 TANKEROperator  November/December 2010

p2-34:p2-7.qxd 03/12/2010 17:36 Page 5
VLCC ordering – back in vogue
Although thus far in the fourth
quarter of this year, newbuilding
orders have almost dried up, the
third quarter of this year saw 21
VLCC orders placed - the
highest number since the
corresponding quarter of 2008,
shortly before the global
economic meltdown.
Given the extraordinary size of the
orderbook prior to 3Q10 and the record
scheduled delivery profile for 2011, it may
seem a little strange that the newbuilding
market has seen such a spate of activity, said
Gibson Research.
What are the motivations behind this
ordering and is such investment as risky as it
may first appear?
Given that Chinese government has
demanded that half of the country’s
domestic crude imports be carried in
domestic hulls by 2015, it is unsurprising
that Chinese companies account for one
third of the new orders.
With regards to the risk involved, it seems
less dangerous given the directive is
governmental. In the case of Chinese state oil
companies, the investment will come directly
from Beijing itself.
However, there may be another completely
different reason that has encouraged
investment from others in the VLCC sector.
For example, ‘cheap’ asset values have no
doubt encouraged investment from elsewhere
among cash rich owners prepared to take a
long term view.
VLCC prices averaged around $105 mill
(South Korea) in 3Q10. This represents a
significantly low point of entry for tanker
market participants and perhaps a much more
suitable option than secondhand tonnage.
While five year old VLCCs may be cheaper at
$92 mill in the same period, there are two
disadvantages, Gibson said. First, immediate
delivery into a depressed market and second a
vessel built to the specifications laid down by
another owner.
The newbuilding option appears a more
strategic acquisition based on price and
future delivery. Furthermore, continuing
demand for increased fuel efficiency and
larger cargo capacity may ensure that
modern vessels, built to the most
contemporary specifications, are more
competitive.
Notably, despite the current extremely weak
situation, average VLCC earnings are 30%
November/December 2010  TANKEROperator
INDUSTRY - MARKETS
higher year-on-year to date than 2009 - economies," the report added.
although this is attributed in part to tonnage Although there were signs of impending
used for floating storage. Looking forward, gloom for the tanker market, the global
global oil demand is forecast to increase by an crude demand to the Asian countries,
average of 1.3 mill barrels per day per annum especially China and India, offered hope for
over the coming four years. the sector.
Important to note for VLCC owners, the "Expanding oil demand in these markets
majority of these gains are expected to be met will likely translate into increased tonne
by long haul crude movements. mile-demand as rapidly growing nations look
Thus, it appears recent ordering is driven by to sources far and wide to fulfill their
a combination of ‘cheap’ asset values, domestic requirements," the Poten report
governmental demand and a long term view said. "A clear understanding of these
on behalf of independent operators who countries' current role in the petroleum
believe that there will be greater demand for industry and their roles in transforming
larger, modern, more efficient VLCCs global tanker trade routes will be paramount
compliant with increasingly stringent vetting in identifying opportunities in these
procedures, Gibson said. expanding markets," the report added. TO
Given the ‘cheap’ prices achieved in 3Q10,
there will be less pressure on these orders than
those made at much higher prices in 3Q08, witherby seamanship
international
Gibson concluded.
A challenging scenario
SHIPPING
A major question that remains in the tanker REGULATIONS
NS
market for next year is whether the over- and Guidance A PERIODICAL
investment in buying new tankers will be Your guide to
offset by a strong demand for crude cargoes, what’s happening
shipbrokers Poten & Partners said in recent a in the regulatory
world of shipping
report analysed by Platts.
"There have been modest signs of recovery
reflected in the fourth quarter 2010 as VLCC
cargoes of crude oil in the Middle East Gulf
have seen a 20% increase year to date," the
report said.
Vessel supply has long dictated the speed
of market recovery, while the age
restrictions at terminals and industry
standards 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 VLCCs
and 380 Suezmaxes with an average age of
7.5 years to 8 years; 897 Aframaxes with an
age of 8.5 years; 382 LR1 vessels at 6.5 years
and 1,350 Handymax and MRs of between 6.5
and 7 years.
With the phase out of single hull vessels
almost complete and no improvements
seen in fundamentals, the medium term
:,7+(5%<
is shaping up to be a challenging time Witherby Seamanship International Ltd
for shipowners, the shipbrokers said, 4 Dunlop Square, Livingston, Edinburgh,
EH54 8SB, Scotland, UK.
reported Platts. "While orderbook delivery Tel No: +44(0)1506 463 227
Fax No: +44(0)1506 468 999
will be a key element of market upswing Email: info@emailws.com
over the medium term, the near term
For more details visit:
prospects for the tanker industry remains
ZZZZLWKHUE\VHDPDQVKLSFRP
tied to the recovery of international
05
p2-34:p2-7.qxd 03/12/2010 17:36 Page 6

INDUSTRY – NEWS PROFILE

A continuing tight
labour market
forecast
There 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.

he worldwide supply of seafarers various surveys conducted for the study. Demand and Supply are shown as Indices:

T in 2010 is estimated to be 624,000

officers and 747,000 ratings, while
the current worldwide demand for
The ‘benchmark’ assumes a modest increase
in the number of vessels in the world’s fleet of
2.3% per annum, which is very similar to the
Supply in 2010 = 100
with % gap (supply-demand)

Benchmark “Cold” Scenario

seafarers is 637,000 officers and 747,000 average growth rates during the past decade. Demand
-2%
+2%
+120
ratings, said the BIMCO and the International Manning levels are assumed to decline -2%
Demand
Supply
100
Shipping Federation (ISF) joint study of the slightly on average and backup ratios are
0
worldwide supply and demand for seafarers. cautiously assumed stable. -1% Supply
Demand

However, in some specialist cases, On the supply side, it is assumed that -5%

+120 Supply
including tankers, the gap was wider. recruitment rates will continue at roughly the -2%

100
The chairman of the project’s steering same level as during the previous decade, but 0 -9%
Demand
committee, Douglas Lang of Anglo Eastern, wastage rates (net loss rates from the industry) -11%
“Hot” Scenario

explained: “Our results suggest a situation of will be higher by about 1% per annum. +120 Supply
-2%
approximate balance between demand and Despite the conservative assumptions, the 100

supply for ratings, with a modest overall current moderate officer shortage is expected to 0

shortage of officers of about 2%. This does persist, unless training is further increased and/ 2010 2015 2020

not, of course, mean that individual shipping
companies are not experiencing serious
recruitment problems, but simply that overall
supply and demand are currently more or less
in balance. This is perhaps not surprising
given the sharp contraction in the demand for
sea transport in 2009 combined with
significant growth in total seafarer numbers.”
With regard to certain nationalities, there is
an underlying concern about the current and
future availability of senior officers. But
while there is some evidence of continuing
recruitment and retention problems, these are
not as severe as envisaged by the last update
produced by BIMCO and ISF in 2005.
Encouragingly, the data suggests a notable
improvement in supply side numbers over the
past five years, notably in China, India and the
Philippines, but also in several OECD
countries, the study found.
The 2010 update also presented various
global supply/demand balance scenarios for
the next decade. The ‘benchmark’ scenario
represents BIMCO and ISF’s view of the most
likely trends, based on recent developments
and the opinions of key players taken from
or measures are taken to reduce wastage rates.
If general economic conditions continue to
improve – as indicated in the ‘hot’ scenario –
there could be quite severe problems. This
forecast is also sensitive to various other
factors, which are explored more fully in the
pages of the report.
Lang said: “There are many uncertainties,
but our results indicate that the industry will
most probably face a tightening labour market,
with recurrent shortages for officers, particularly
as shipping markets recover. Unless measures
are taken to ensure a continued rapid growth in
qualified seafarer numbers, especially for
officers and/or to reduce wastage from the
industry, existing shortages are likely to
intensify over the next decade.
“Supply appears likely to increase in many
countries, but the positive trend that has been
established for training and recruitment over
the past few years must continue to be
maintained to ensure a suitable future pool of
qualified seafarers,” he stressed.
The 2010 Update is based on data collected
from questionnaires sent to governments,
shipping companies and crewing experts. It
Source: BIMCO/ISF estimates
Sensitivity to Fleet Growth
also incorporates the views and perceptions of
senior executives in shipping companies and
maritime administrations and detailed
statistical analysis provided by the Warwick
Institute for Employment Research.
Importantly, for the first time, the study has
been assisted by Dalian Maritime University,
which has helped obtain input from Asian
countries where it had previously been
difficult to obtain definitive data.
The authors said that it was important to
stress that the industry needs well qualified
and high calibre seafarers capable of
adapting to change and handling the wide
variety of tasks now demanded of them. Any
training programme provided must ensure
that quality is not compromised in the drive
for increasing quantity.
The full report on the BIMCO/ISF 2010
Update on the Worldwide Demand Supply of
and Demand for Seafarers is available this
month from BIMCO and ISF for €140,
or £125. TO

06 TANKEROperator  November/December 2010

p2-34:p2-7.qxd 03/12/2010 17:36 Page 7
Crewing costs to
continue to rise
rew costs have been identified as
C
Stephens.
the category most likely to
produce the highest levels of
increase, according to a survey
by accountant and shipping consultant Moore
The survey is based on responses from key
players in the international shipping industry,
predominantly shipowners and managers
based in Europe and Asia. And those
responses revealed an overall expectation that
crew costs would rise by 2.7% in 2010 and by
3% in 2011.
“It’s all about crew,” noted one respondent.
“With fewer experienced crew available for
worldwide fleet expansion, labour costs will
rise”. Another commented, “In order to keep
the present pool of seafarers and improve
performance, we will need to look at increases
in wages and other benefits for seafarers so
that they are attracted to work on board, rather
than take up lucrative jobs ashore.”
Responses to the survey indicated that the
cost of lubricants is expected to increase by
2.4% and 2.7% in 2010 and 2011 respectively,
with repair and maintenance expenditure
likely to rise by 2.6% in each year. The
category deemed most likely to produce the
lowest level of increases in both 2010 and
2011 was management fees, at 1.6% and
1.8% respectively.
Respondents also expressed concern over
rising insurance costs. “The dark horse is
insurance costs,” remarked one respondent,
“due to the fact that ordinary planned
maintenance in many cases will be either
reduced or ignored as vessel income cannot
finance the costs, and banks will not provide
or extend credit lines. More incidents will be
reported to insurers, with a consequential
increase in premiums.”
There were also concerns that operating
costs would increase due to the weakness of
the dollar. “Operating costs over the next
two-to-three years may not show any
substantial increase as the world economy
continues to stagnate,” said one respondent,
“but costs will increase due to the devaluation
of the dollar, which inflates overall costs”.
Asked to nominate the three factors most
likely to influence the level of vessel
November/December 2010  TANKEROperator
INDUSTRY – NEWS PROFILE
Vessel operating costs are
expected to rise by 3.2%
per cent this year and by
3.5% in 2011.
operating costs over the next 12 months, 43%
of respondents identified crew supply as the
most significant, followed closely by finance
costs at 39% and then by demand trends, at
22%. Crew supply and finance costs were also
the top two factors in Moore Stephens’ 2009
survey, although then finance costs led the
way at 26%, with crew supply at 22%. The
third most significant factor in 2009 was
competition, at 16%.
Moore Stephens shipping partner Richard
Greiner said, “Ship operating costs have been
running at increasingly high levels in recent
years, but our OpCost benchmarking tool
shows that, in 2009, total annual operating
costs 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 the
industry is expecting costs to increase this
year and next, nor to learn that crew costs are
likely to lead the way in this regard. But it
does seem that some of the volatility of
recent years has gone out of ship operating
costs and that is good news for shipping. Any
repeat of the huge increases recorded in
recent years would be unsustainable in the
Daily crewing costs
for an 150,000 dwt
tanker ($)
2010 3,900
2011 3,978
2012 4,058
2013 4,139
2014 4,221
2015 4,306
*Includes stores, spares, lube oils, admin fees, repairs and insurance. Source V Ships.
This presents an annual increase of around 2%.
current economic climate,” he concluded.
At the annual Moore Stephens OpCost
seminar, V Ships’ Capt Bob Bishop gave his
views on crewing costs. He said that
forecasting was difficult due to various cost
components being influenced by socio-
economic, markets, geographical factors and
shipmanagement performance. He agreed that
manning always received the most attention as
it was the highest cost factor, but was often
the most volatile.
The super-cycle came to an end in 2008,
which also brought a halt to high crew wage
inflation, which was running at around 20%
year on year. Today, the cost factor was
increasingly flat with an undersupply of
officers and an oversupply of ratings being
observed. However, around a 5% shortfall in
officers will put continuing pressure on wages,
Bishop said. Training costs were also
increasing, including on board training.
He described crew air travel costs as
minimal, despite rising fuel costs and taxes.
Victualling costs were rising due to food price
inflation. He also thought that the impending
Maritime Labour Convention (MLC) was an
operational problem, rather than a cost factor.
Bishop outlined his thoughts on the crew
costs for an Aframax of 10 years of age,
flying an open registry flag and operating
worldwide. The hypothetical vessel had a
crew of 23 – nine officers, 12 ratings and
two cadets. Their nationalities were Indian
and Filipino. TO
Overall
operating
costs*
8,050
8,280
8,535
8,824
9,162
9,548
07
p2-34:p2-7.qxd 03/12/2010 17:36 Page 8
INDUSTRY – MOORING OPERATIONS
Avoiding serious
accidents during
mooring
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.
owever, there have been incidents
H resulting in death and serious
injury on board the Club’s insured
tankers, monitored since 1987.
In that period, the Club has dealt with 26
serious injury claims of over $100,000 each,
which have so far cost around $16.5 mill. These
relate to accidents on board tankers, involving
the vessels’ own mooring lines, ropes, stoppers
and winches, as well as tug ropes.
They have resulted in several fatalities, a
number of broken legs at least one of which
required amputation; serious and permanent
head injuries; neck, upper torso, facial and
dental damage; fractured pelvis, ruptured spleen
and 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 left
leg, which was later amputated, caused by
tug line.
The $100,000 plus claims have revealed a
range 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 during
routine operations, inadequate and
incompatible ropes and stoppers, plus mooring
ropes affixed to inadequate strong points.
In the past four years, the UK Club’s
inspectors, all experienced ex-mariners, have
run their practiced eyes over 164 oil and
08
UK P&I CLUB
IS MANAGED
BY THOMAS
MILLER
Injuries such as this could be easily avoided.
chemical tankers. While standards have
generally been high, comments nearly always
emphasise service, maintenance and safety.
The ISM Code aims to ensure safety at sea,
preventing injury and loss of life while
avoiding damage to property and to marine
and other environments. Shipowners and
operators must implement an effective safety
management system to ensure these purposes
are met. Essentially, these have to be achieved
through high standards in equipment,
procedures and practices.
However, as UK Club loss prevention
director Karl Lumbers pointed out, formal
code stipulations can only go so far. “It takes
experienced people and expert seamen to deal
safely with berthing and unberthing
operations. Everyone involved has to be
keenly aware of the risks they run when
dealing with such huge physical forces.”
Safety pointers
As it is essential that threats to safety are
contained, the inspectors have set down a series
of advisory points, most of which apply to cargo
TANKEROperator  November/December 2010
carrying ships in general, as much as to tankers.
 All winch greasing points must be free,
working correctly, and clearly numbered or
highlighted. Vessels’ split drums must be set up
correctly with only four or five turns of the rope
on the smaller drum with the rest on the larger
one. Annual break tests are particularly important.
 Ropes made fast on drum ends are more
likely to jump and cause extensive damage to
drum end bearings so drum ends should be
smooth and coated with linseed oil or other
synthetic liquid. Poor or damaged ropes should
be replaced. All ropes, wires and Tonsberg
links used in moorings should be certificated
(and kept in an accessible file for port authority
inspection). Spare mooring ropes, wires and links
should be stowed clear of the deck, preferably
on a pallet and in a dry ventilated position.
 Decks should be fully non-slip, particularly
around bits and drum ends, perhaps
supplemented by sand or a non-slip aggregate.
Mooring areas should be clutter free. Snap
back zones should be well marked. Rollers
should be free moving and regularly greased.
Correct stoppers should be used, appropriate
to particular mooring ropes and wires.
The UK Club is particularly concerned about
the growing number of incidents involving non-
deck crew in mooring operations. According to
Lumbers: “It is often crew with insufficient
training who are seriously hurt when things go
wrong, particularly in bights, or snap back zones.
All crew should be trained and familiar with
bights, snap back zones and prospective hazards.
“Correct procedures should be in place with
all mooring operations supervised by a
competent person. Training should be
incorporated into vessels’ regular schedules
and include all personnel.
“Crews must understand that mooring
accidents tend to have consequences as serious
as any on board ship. When manoeuvring the
largest tankers, this point takes on even greater
significance,” he concluded. TO
p2-34:p2-7.qxd 03/12/2010 17:36 Page 9

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3).',%ç2!-ç"!,%2çç47/ç2!-ç"!,%2
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p2-34:p2-7.qxd 03/12/2010 17:36 Page 11

INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS

IMO rules push Ship-

to-Ship transfers back
into the limelight
ews of classification societies, notably Lloyd’s Register (LR), DV 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.
he driver for these initiatives is the ambiguity in the way operations are produced oil. It should be noted that while it

T impending IMO MARPOL

Chapter 8 Annex 1 amendments,
one of which is aimed at
regulating STS. These amendments start to
come into force on 1st January 2011 and
include a new section to cover STS activities
while underway, or at anchor. A leading Ship-
to Ship Transfer expert warned; “….this
legislation will comprehensively remove any
conducted. The impact of the legislation
should not be underestimated and there will
no longer be a place for any sub-standard
operations, even in the remotest backwater”.
This regulation covers both crude oil and
products cargo transfers on tankers of over
150 gt, but does not include bunkering
operations using barges/tankers, or transfers
from platforms/FPSOs/FSOs receiving
does not include actual bunkering operations,
it does include the filling of bunker tankers
alongside a storage tanker and brings even
these relatively small scale operations under
exactly the same regulatory requirements as a
large tanker.
Although STS has been undertaken for
many years, mainly as a lightering, or topping
off exercise, it is only recently that the general

SafeSTS conduct
Ship-to-Ship Transfers
of Oil and Gas at many
bases around
the world.

For STS Services or SafeSTS Ltd

further information, Diss Business Centre,
please contact us at Dark Lane,
Diss, Norfolk IP21 4HD
UK
Email: operations@safests.com
Tel (24 hrs): (+44) 1379 640021

For specific advice on the implementation of Marpol Chapter 8

Please ask for Capt Bob Gilchrist
Fenders are critical to STS operations.

November/December 2010  TANKEROperator 11

p2-34:p2-7.qxd 03/12/2010 17:36 Page 12
INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
public has sat up and taken notice of what is
going on virtually on their doorstep. This is
primarily due to the recent huge increase in
offshore storage in tanker hulls due to the
contango situation, which has arisen during
the past few years.
A typical offshore operation is normally
carried out while both vessels are underway at
around 5 knots. The approaching vessel
parallels and matches the speed of the
‘mother’ ship, then closes slowly to come
alongside. Captain Robert Gilchrist, a director
of SafeSTS stated “Undertaken correctly, the
operations are not as dramatic as are
sometimes made out and there are a
significant number of safeguards in place to
minimise the chance of steel-to-steel contact
or oil pollution. These measures comprise of
trained and competent personnel, tried and
tested procedures, certified and tested
equipment, slow approach speeds (less than
0.3 knots), pneumatic fendering, double hulled
vessels, oil pollution response vessel standing
by and a comprehensive Risk Assessment,
these together have contributed to giving our
industry a track record of safe operations to be
proud of. ” For this reason, he believed that in
many cases, STS operations are much safer
conducted while the vessels were underway in
deepwater, rather than bringing vessels into
shallow waters and congested ports.
Taking the UK as an example, STS
operations have switched from the Lyme Bay
12
area – the favourite of the 1970/1980s - to
off Southwold and in Scapa Flow. STS
operators voluntarily implemented an STS
management system alongside the MCA and
already meet nearly all of the Marpol
requirements. A few years ago, a scheme was
introduced to transfer Russian oil in an STS
operation in the Firth of Forth. However,
local opposition was such that this scheme
did not get off the ground.
Since then, the ports of
Copenhagen/Malmo and Gothenburg among
others have set up storage facilities ashore
for Russian oil, which is shipped out of the
Baltic ports for transhipment to the US and
other destinations in larger vessels. Off
Denmark, there are dedicated STS areas near
the Skaw, Kalundborg and Frederikshaven.
Further south, the Port of Rotterdam has
installed large buoys in the Caland Canal to
load vessels of up to VLCC size from
smaller tankers lying alongside. These
mainly tranship fuel oil for Singapore and
other Asian destinations.
In the US, there are dedicated areas for
lightering operations in the US Gulf, East
and West Coasts and these could soon be
affected by additional future legislation in the
wake of the Macondo well incident. These
areas are controlled by the US Coast Guard
and they work closely with the STS service
providers through an organisation called the
‘Industry Taskforce on Lightering (ITOL)’.
TANKEROperator  November/December 2010
It would be ideal to
have two Mooring
Masters controlling
such an operation.
As in the UK, operators work with the
regional authorities and the reality is that this
indirect voluntary regulation has contributed
to keeping the industry safe and successful.
Additional legislation would likely serve to
increase overall operational cost, but as the
US is reliant on lightering to import crude to
the majority of its domestic refineries, STS
will certainly continue for the foreseeable
future.
As with any new regulation there are pros
and cons and the little matter of interpretation
by the flag states.
Vessel specific plan
In essence, the new regulations call for the
development of a vessel specific STS plan
describing how the operation must be
conducted, which has been approved by the
vessel’s flag administration. In addition, the
relevant coastal states will have to be notified
of the intention of carrying out a transfer no
less than 48 hours in advance. Some
relaxation of the rules may be allowed in
certain very specific cases, the IMO said,
Consequential amendments will need to be
made in the International Oil Pollution
Prevention (IOPP) certificate, the IOPP’s
supplement and the Oil Record Book. The
class societies have said that they will work
with the STS operators to produce manuals
and approved customised plans. Indeed, LR
has produced such a draft document that a
p2-34:p2-7.qxd 03/12/2010 17:36 Page 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 or
operators contemplating an STS must give a
minimum of 48 hours notice to the local
authorities if the STS is to be undertaken in
territorial, or EEZ waters. It is recognised that
flag states are steadily increasing their level of
requirements for the vessels undertaking such
operations, with an implication of additional
costs and time required for the
notification/permission process. As the
approved vessel specific STS plan,
conforming to the guidelines, must be in place
before the operation starts, flag states could
potentially withhold permission for non-
compliant vessels.
“When considering a ship-to-ship (STS)
operation, the parties involved should take
advice as soon as possible to avoid potential
delays to operations and understand the extra
costs involved through a variety of individual
plans being produced to meet the new
MARPOL rules,” Capt Gilchrist explained.
Charterers will need to look at the plan to see
if there are any potential hidden costs for their
account, as the plans drawn up will be unique
November/December 2010  TANKEROperator
INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
to each individual vessel. “The implications of
each plan will need to be understood prior
committing to a particular contract, as any
potential amendment to the plan needs to be
sought through class,” he said.
Capt Gilchrist advised to note the following
in 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 be
approved by class and potentially the flag
state controlling the area of each operation
and it is unclear how (or if) some flag states
can manage this effectively. He warned that
owner/charterers/traders should also be made
aware on the impending pitfalls of not
complying with the new regulations.
Under the new Marpol Chapter 8 rules,
vessels have to keep a three-year record of
compliance to these rules, available for
inspection. The onus will be placed on the
master and shipowner to prove compliance to
the new rules and if not, he or she could be in
danger of a serious non-conformance within
the vessel ISM system and potentially
prosecution under Marpol. For example, if the
hose testing date was not available and the
operation still went ahead, the owner carries
the liability and risk of penalty, if identified as
a deficiency at a later date following a Port
State Control inspection.
Significant changes, like the formal
appointment of the Person in Overall Advisory
Control (POAC), commonly called the
Mooring Master, before an STS takes place
will become a legal requirement. In the past,
standards were in place for equipment to be
used, such as fenders and hoses, however the
qualifications and experience of the Mooring
Master (who may have been one of the
Masters of the vessels) was not clearly
defined. The new regulations require the
Vessel STS Plan to clearly specify the
13
p2-34:p2-7.qxd 03/12/2010 17:36 Page 14
INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
qualifications, duties and responsibilities of
the POAC and provide guidance on the level
of competency expected. Capt Gilchrist said
“It is unlikely that given the duties &
responsibilities, the owners will specify
qualifications below that of Master Mariner
with appropriate Dangerous Cargo
Endorsement”.
However, Capt Gilchrist warned that while
a POAC would not relieve the masters of the
two vessels involved of the overall
responsibility for their vessels and cargoes, the
level of responsibility for the person in the
role of POAC is certainly increased and
extends across both vessels. In all but very
few scenarios, it is unlikely that the Masters
of the vessels will meet the qualifications and
experience levels for a POAC and even if they
are qualified and experienced, they physically
cannot be everywhere and adhere to STCW
2010 working hours limits.
Questions arise, as to who may be
responsible for an incident such as burst
hose, the supplying vessel, the receiving
vessel or the service provider supplying the
hose? It is still unclear how the insurance
underwriters consider liability if this
specifically becomes the responsibility of the
POAC and all this at a time of increasing
criminalisation of the seafarer even for
SafeSTS – a potted history
SafeSTS was formed in late 2009
by the current managing director
Yvonne Mason, who previously
founded Fender Care in 1988
before selling the company to
the James Fisher group in 2005,
together with fellow Director
Capt Robert (Bob) Gilchrist MNI
FIMarEST. SafeSTS and parent
company Future Marine Services
enable the reinvestment of
Mason and Gilchrist’s experience
and expertise back into an
industry which they are both
passionate about.
The first company’s transfer was
accomplished in April of this year.
Combining technical and commercial skills
and applying them with integrity will be the
company’s hallmark, SafeSTS said.
Future Marine Services and SafeSTS
regional hubs have been set up in the UK,
Mediterranean and Singapore and the
company now offers STS operations across
10 bases. To date, around 60 STS transfers
14
Who is responsible if the equipment fails?
accidental pollution incidents.
To meet the new guidelines, he said that it
was likely two professional Mooring Masters
would become standard due to the increased
level of responsibility throughout the whole
cargo transfer operation. “By doubling up, it
will be an additional cost at a time of very
tight budgetary constraints, but it will increase
supervision levels and be easier to train
have been successfully completed by the
company. Capt Gilchrist believed that it is
vitally important that at this point in time,
with the introduction of significant
legislation, that clients understand the
potential impact on their operations. From
the wealth of experience gained through
many years in the industry, SafeSTS is able
to offer advice and consultancy services on
the issues affecting ship-to-ship transfer for
both oil and gas.
Prior to starting the new companies,
Mason also founded The Mason Trust
(www.themasontrust.org) and has spent the
past two years inspiring young people
across the region to consider the energy and
marine sectors as a career of choice. The
trust provides them with global work,
community based experiences and
knowledge to support their decision making
process. Mason said. “Numerous initiatives
are underway to continue the work and the
contributions and support from my industry
contacts from the last 20 years have been
fantastic”.
TANKEROperator  November/December 2010
Mooring Masters on board ship, so
consequently will be of real benefit to the
industry,” he explained.
Opportunities
Overall, Capt Gilchrist thought that there were
still many opportunities for STS operations
worldwide, despite the downturn in storage
due to the contango issue all but disappearing
today.
Trade routes and patterns are continually
changing. “Our policy is to ask what the
companies want, rather than tell them what
they need. It is matter of trust,” Capt Gilchrist
explained. With approvals from most of the
oil majors falling into place, SafeSTS
customer base is continuing to grow and the
company said that it was confident of future
prospects.
An additional but significant service offered
by SafeSTS is giving support to governments
and salvors in cases of tanker emergencies and
salvage, which might involve specific STS
operations to lighten a casualty. Under Lloyds
Open Form (LOF), best endeavours are
interpreted as best available expertise and in
the company’s specialist field, it claimed to
provide this. Capt Gilchrist explained that
while often, marine casualties are used as
reason to restrict the practice of Ship-to-Ship
transfers, little credit is given to the role of
STS to remove the remaining oil from a
casualty. Industry expertise and equipment has
for many years been critical to the UK and
Europe maintaining the capability to respond
to such disasters and the provision of an
emergency cargo transfer capability both
enhances and forms part of the government’s
response to any national incident. TO
p2-34:p2-7.qxd 03/12/2010 17:36 Page 15

INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS

Safer STS through

simulation
ncouraging the maritime industry scrutiny of UK government’s recent decision

E
– and beyond - to pay tribute to
the world’s seafarers and recognise
the risks they shoulder,
automatically focuses attention on the support
they receive to perform the roles that they are
tasked with*.
In his World Maritime Day address in
September, Efthimios Mitropoulos, IMO
secretary general, honoured the contribution
made by seafarers to international seaborne
trade, the world economy and civil society as
a whole. But he also addressed the
implications of shortened training periods and
the premature promotion of those who may
lack the necessary experience.
These concerns have been reiterated by a
variety of industry sources; DNV, for
Approaching the end of the
IMO’s ‘Year of the
Seafarer’ provides an
opportune time for
reflection.
example, believed that the basic principles of
shipping safety are being sidelined by the
environmental agenda. And now the notorious
Gulf of Mexico oil disaster has triggered
widespread debate and discussion around how
best to prevent spills from damaging the
environment and local economies.
For those companies operating ship-to-ship
transfer (STS), the reflected post-Deepwater
Horizon gaze on STS – augmented by
to postpone the plan to ban STS in UK
waters and the veto of the pre-booming bill
in California - is unlikely to diminish
anytime soon.
Despite a proven track record of safety
coupled with growing demand, the
controversy surrounding STS has been
rumbling on for years. And with new
requirements to the IMO’s MARPOL Annex
I, Chapter 8 entering into force on 1st
January 2011, tanker owners and operators,
as well as the oil majors and authorities, face
escalating pressure to ensure that STS
activity is carried out competently;
proactively managing the risks to vessels,
equipment, HSE and the environment.
In turn, this has prompted greater emphasis

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November/December 2010  TANKEROperator 15

p2-34:p2-7.qxd 03/12/2010 17:36 Page 16
INDUSTRY - SHIP-TO-SHIP TRANSFER OPERATIONS
on training and qualifications. It is no longer
enough for Mooring Masters to cite extensive
experience – the oil majors and authorities
(especially European), are becoming much
more prescriptive about STS activities,
increasingly demanding the reassurance
provided by specialist courses.
Preferred training alternative
While previously, all training had to be on the
job – posing safety and environmental risk - it
is 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 feel
like their full-sized counterparts in terms of
momentum and inertia. However, although
they provide an organic training experience,
weather conditions are limited to the
conditions on that day and therefore, as
physical models, only one or two types of
vessel are available at each training centre.
Simulators, such as the GAC Training and
Service Solutions (GTSS) simulator based in
Cork, Ireland, offer a more flexible
alternative. Although some are stationary, a
damper-mounted simulator moves with the
programme to realistically recreate the
movement of the ocean. With the ability to
change the weather in infinite steps, this not
GAC training simulator.
16
only simulates the challenges of operating in
varying weather conditions on 360 deg
screens, but can also demonstrate how those
different situations physically impact those on
the bridge.
With various vessel type simulations,
companies that frequently train are offered
custom programmes that simulate their own
real-world vessels. Additional advantages
include linking two bridges, as in the real
world and the capacity to record the entire
exercise, enabling a more effective debriefing.
Significantly, our experience tells us that it
isn’t just Mooring Masters that are
undertaking training. Prudent tanker owners
and operators are increasingly sending senior
masters on a course, given the likelihood that
they will have to negotiate an STS transfer in
the absence of the Mooring Master.
As well as real qualifications, GTSS
courses provide trainees with the confidence
to deal with shiphandling. As the Master’s role
is rationalised, when a vessel leaves port, the
pilot disembarks and automatic steering
applied, logging onto a satellite until the
destination port when the next pilot boards.
Simply put, shiphandling experience is
critical to the successful execution of delicate
operations like STS. So simulator, or man-
model training, is the ideal way to increase
experience without the risks associated with
TANKEROperator  November/December 2010
training on the job.
GTSS has launched a week-long intensive
simulator training course at the $100 mill
National Maritime College of Ireland in Cork.
The interactive course starts by introducing
STS procedures and gradually increases the
difficulty of the situations faced until, towards
the end of the week, trainees are subjected to
worst-case scenarios, such as engine
breakdown and steering failure. This ensures
that crew members are not only aware of what
could happen in an STS situation, but actually
experience it.
With STS operations increasingly
illuminated by the intensifying green
spotlight, it is essential that all key team
members are more than adequately trained;
from Mooring Masters, senior masters and
superintendents, to those co-ordinating
operations from the shore.
Whether afloat or ashore, specialist training
for all those involved in STS is fundamental
to realising profitable efficiencies and
minimising environmental and financial risk
of spills that has been starkly evident in
TO
recent months.
*This article was written by Christer
Sjodoff, group vice president, GAC
Solutions & director GAC Training &
Service Solutions.
p2-34:p2-7.qxd 03/12/2010 17:37 Page 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.
imilar to many places in Norway,
S Bergen has set up a regional
concern to promote business
developments in the area. This
particular area is strong in energy – oil, gas
and renewables – and the maritime sector
being home to shipowners, shipyards and
many service companies.
Opportunities abound as Norway is the
world’s third largest oil and gas exporter
employing some 60,000 people in the sector.
The Bergen region is home to both the Sture
and Mongstad terminals serving large and
small tankers and further south towards
Stavanger is the gas terminal at Kaarstoe,
which as well as handling the storage of gas,
exports condensate.
The Bergen region, or Hordaland county, is
home to the world’s largest concentration of
parcel/chemical tanker owners, including
Odfjell, Jo Tankers, Seatrans and others. Most
have newbuilding programmes to renew their
November/December 2010  TANKEROperator
INDUSTRY - NORWAY REPORT
fleets with more modern tankers.
In the huge offshore sector, the region
houses 60% of the vessel operators working
for Norwegian oil major Statoil. In this sector,
there are 19,000 employees in roughly 1,300
companies.
Bergen claims 25% of Norwegian
Shipping’s ‘value creation’ and is the second
largest Norwegian financial area after Oslo
with 5,200 employees in 98 companies.
In 1995, a Maritimt Forum was established
in Bergen, which now has 130 members,
including shipowners, yards, service
companies and equipment suppliers. It is
basically a networking organisation
connecting with knowledge centres and
national and local government departments.
Eight Maritimt Forums have been set up in
Norway. 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 1,471
companies, boasting a total turnover of
NOK97.3 bill. Although many companies are
involved in the offshore sector, as mentioned
the world’s largest chemical/parcel tanker
owner resides in Bergen – Odfjell. In total
there are 40 large shipowning concerns in the
region and in all 661 shipping companies
employing 6,700 people.
Among the big names in the Hordaland
region are the chemical tanker owners, STX
Europe, FRAMO pumps, cargo handling
equipment supplier TTS, Wärtsilä, Rolls-
Royce (Bergen Diesel) and others. The
recently formed Bergen Group has repair and
building facilities, but mainly concentrates on
offshore, passenger and naval craft.
Maritime services are made up of
insurance/P&I representatives, class society
branches, a NIS office, a naval academy and
the ports of Bergen, Mongstad and Sture.
There are also various research institutions
17
p2-34:p2-7.qxd 03/12/2010 17:37 Page 18
INDUSTRY - NORWAY REPORT
Looking towards the energy sector.
working with the maritime industry, looking
into ship designs, propulsion techniques,
including LNG as a power source, fuel cells,
plus other initiatives.
A major project underway in Norway at
present is the use of LNG as a fuel. Thus far,
a few offshore support vessels and local
Fjord ferries have been fitted with gas
burning engines and a logistics LNG supply
chain has been set up using a small LNGC,
which trades up and down the west coast
delivering gas supplies.
In the Hordaland area, there are more
owners with vessels flying the NIS/NOR flags
than overseas flags. Some, like Odfjell, use a
mix of flag states, as the company has a base
in Singapore.
Tonnage tax
By and large, Norwegian shipowners are
happy with the tonnage tax as it stands,
having won a case heard by the Supreme
Court of Norway against the government’s
earlier decision to heavily tax owners on a
retroactive basis. The Court upheld the
shipowners’ claim against this ‘onerous’ tax,
but the Forum warned that the politicians in
Norway can change their minds, which is a
big question and a ‘headache’ as one source
said, not knowing if and when this will
happen. “We need shipowners in Norway.
18
Hopefully, the politicians will agree,” the
Forum said.
Under the old tax regime, many companies
were considering upping sticks and going to
foreign parts, which has always been a
feature of Norwegian shipping. Norway used
to boast 70,000-100,000 seafarers, so the
inclination would be to vote for the party that
supported the local shipping scene, a member
of the Forum said.
“We need to show the shipping industry’s
‘value creation’ to society as well as the
politicians”, the Forum explained.
In another move, the Russians recently
signed a demarcation agreement with
Norway over a disputed area in the Barents
Sea, paving the way for research and
development to proceed. There is a vast
potential seen in oil and gas in the area,
which will eventually lead to the use of
specialist ice class tankers and LNGCs.
Norway has put traffic control centres in
place to monitor the tanker traffic currently
sailing past its coastline from Russian
loading terminals, such as the FSO
transhipment facility in Murmansk. An
example is the VTS station installed at
Vardo, located at the top of Norway where
vessels leaving the Barents Sea have to sail
through the Norwegian Sea. Oil spill
response capabilities have also been installed
TANKEROperator  November/December 2010
in strategic areas. There has already been talk
of the possibility of ship-to-ship transfers
taking place in the northern Norwegian
fjords, near Kirkenes.
A 10-year programme has been set up
called ‘Maritime 21’, which is aimed at laying
down the future maritime strategy. Many
companies are involved as is the Norwegian
government. For example, the Wärtsilä facility
in Bamlo, near Haugesund, is involved in gas
engine research.
Haugesund area
In the Haugesund region (Haugalandet &
Sunnhordland), there are 145 companies and
similar to Bergen, many are involved in the
offshore sector. Included in the total are 14
shipping companies responsible for 172
vessels of all types. They also belong to the
Haugesund Shipowners’ Association, which
was established in 1910. Down the years, the
association has included some of the most
famous names in Norwegian shipping, five of
which have chaired the Norwegian
Shipowners’ Association (NSA) at some point.
The latest to serve was Trygve Seglem of
Knutsen OAS.
Knutsen is the largest player with 38% of
the tonnage entered with the Bergen
association, which in total includes 21 oil, 29
chemical/product tankers and five LNGCs.
A boost for the local economy came with
the opening of the new headquarters of the
Sjofartsdirektoratet (Norwegian Maritime
Directorate) in 2006. It was previously housed
in Oslo and now employs 200 people in
Haugesund. The area also houses a maritime
simulation centre, which is currently being
upgraded with the help of Kongsberg and
supported by the local shipping companies.
Although mainly aimed at offshore rigs and
support vessel training, a shuttle tanker
simulation package is also to be included. The
new simulator centre will be operational on
1st August next year.
A company called RESQ has been set up
by four companies and the shipowners’
association, which looks at all aspects of
crisis management and is involved with the
simulator project, which will be housed in an
academy, which is already involved in
training, education and research . Knutsen’s
head Trygve Seglem is chairman of RESQ
and also the nautical college and was a past
chairman of the Norwegian Shipowners’
Association.
Many Norwegian shipping companies said
that they would like to be part of the EU to be
involved in the discussions on maritime
affairs, being heavily involved at the IMO. TO
p2-34:p2-7.qxd 03/12/2010 17:37 Page 19

INDUSTRY - NORWAY REPORT

Shuttle tanker and STS

transfer equipment
high on the agenda
arlier this year, the group split its company operates a dedicated after sales

E
Bergen houses one of the
activities into three operation department complete with engineers and a
units – marine, port and logistics, world’s leading cargo access 24/7 emergency telephone number.
plus energy. Equipment design, equipment concerns Service is another strong area for the
manufacture and supply for tankers and division. For example, Teekay recently
other types of vessels is handled by the – the TTS Group. signing a long term agreement with TTS.
marine division. Maintenance and pre-inspection before
Turnover in this division totalled class would confirm that the upgrade is drydockings and pre-conversions should be
NOK1,249 mill for the first half of 2010, an performed according to the rules. carried out. The company offers one and five
increase of 18% compared to the first six Automatic and manual overload protection year davit surveys with a designated survey
months of 2009. The division reported an systems need to be installed for different co-ordinator worldwide, which is claimed to
operating profit before depreciation of modes for both lifting and sea states, as the be a cost efficient exercise.
NOK68.6 mill, compared to NOK59.5 mill crane(s) might need to be de-rated according Both surveys and training are undertaken in
in the same period last year. The division is to the load and sea state with the help of load accordance with MSC.1/Circ.1206/Rev1 and
involved with Chinese joint ventures - TTS charts. Battery backup is also needed. MSC.1/Circ.1277.
Hua Hai Ships Equipment, TTS Bohai Conversions, services, after sales and
Machinery and TTS Keyon. Genuine spares training are undertaken for marine cranes,
The port and logistics division supplies Spares are another consideration and TTS davits, winch bollards and service platforms.
production lines and systems for cargo warned that an operator should only get spares Examples of shipboard crane conversions
handling in shipyards and other industries, from a ‘genuine’ supplier. TTS has spares include for personnel handling, ship-to-ship
and loading and handling systems for ports. from stocks in various locations worldwide. transfer equipment handling, extending the
The energy division supplies offshore cranes TTS will also carry out crane documentation crane’s reach, increasing its lifting capacity,
and winches, drilling equipment for offshore and certification, giving the operator a cabin installation, parking cradle installation,
rigs and complete drilling rigs for land- complete history of the equipment. The remote control operations, logging and
based operations.
Typical enquiries for tankers handled by the
marine division include the modification of
shipboard cranes to accommodate personnel
transfers, ship-to-ship handling equipment
including fender davits for shuttle tankers.
Winch bollards have also been supplied to
Vela, among others.
These tend to be tailored to the vessel and
operation, type of crane with the authorisation
of the vessel’s flag state and classification
society, especially the preparation for
personnel handling. For personnel handling,
the crane’s winch needs to be fitted with a
double brake system and a power pack with
backup for failure and the crane’s SWL will
probably need to be de-rated for personnel
handling, plus other modifications, according
to flag and class.
For ship-to-ship transfer operations at sea,
the crane(s) need to prepared according to flag
and class. TTS said that in normal
circumstances, it will not be possible to
upgrade the crane(s) to offshore class, but TTS is involved in the manufacture, suuply and servicing of fender davits.

November/December 2010  TANKEROperator 19

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

INDUSTRY - NORWAY REPORT

“ The company offers one and five year davit

surveys with a designated survey co-ordinator
worldwide, which is claimed to be
a cost efficient exercise.
monitoring equipment, hook stop up and
down and slew limitation equipment.
TTS also offers both operator and
maintenance courses for its equipment, both
general and tailor made courses. The company
also offers davit surveyor qualification courses
and has a dedicated training department.
Part of the company’s equipmemnt portfolio
includes single point rescue boat davits from
1.5 tonnes to 12 tonnes SWL. These are fitted
according ot SOLAS and DNV is used as the
notifying body. The most common types are
those fitted for a swing-out, tilt-out and
telescopic slide out operation. Davits for
fender operations are dual point, ranging from
an SWL of 1.5 tonnes to 10 tonnes.
” The order intake during the first six months
TTS Marine AS is located in Kristiansand
and is an amalgamation of the former
Hydralift and TTS Marine Cranes
Kristiansand operations.
Financial matters
As for the TTS Group, last July the company
carried out a private placement with Scana
Industrier, at a price of NOK6.30 per share,
increasing TTS’ equity by NOK42 mill. This
resulted in Scana Industrier taking a 9.9%
shareholding in TTS.
At the middle of this year, net interest-
bearing debt was NOK884.5 mill, compared
to NOK1,037.9 mill at the end of the second
quarter of 2009. Efforts to reduce the
binding of capital in the group continue, the
company said.
For the first six months of 2010, TTS Group
reported an operating profit before
depreciation (EBITDA) of NOK22.7 mill,
compared to a loss of NOK6.3 mill in the
same period last year.
was described as brisk, although the market
was still uncertain going forward, said
Johannes Neteland, president and CEO when
announcing the first half results.
The TTS group’s total turnover in the first
half of this year was NOK1,678 mill, a 17%
decrease from the same period last year. The
group reported a pre-tax loss of NOK48.4
mill, compared to a loss of NOK165.7 mill in
the first six months of 2009.
The net result was a loss of NOK28.9 mill,
compared to a loss of NOK146.5 mill the
year before. TTS’ order backlog at the end of
the first half of 2010 was NOK3,789 mill,
compared to NOK4,510 mill at the start of
this year. The order intake in the first half
year was NOK1,214 million, which was
NOK300 mill more that at the end of the first
half of 2009. TO

Shipboard handling excellence

At 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.
MARINE
TTS Marine AS +47 38 04 95 00 info@tts-marine.no www.ttsgroup.com

20 TANKEROperator  November/December 2010

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

INDUSTRY - NORWAY REPORT

Seatrans overcomes
major 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.
mong the nine vessels are eight the NIS, Bahamian, Singapore and Liberian The organisation explained that the

A chemical tankers, all of which are

currently with the Norwegian
International Register (NIS).
Director of human resources Atle Sommer
explained that as a result of the Norwegian
and Polish governments agreeing a tax treaty,
which means that Polish seafarers serving on
board NIS registered vessels will have to pay
Norwegian tax from 1st January 2011, the
seafarers would look elsewhere for employment.
Rather than loose the Polish expertise,
Seatrans has decided to reflag to Malta,
necessitating the appointment of a
representative on the island.
Sommer explained that chemical tankers
demanded a high level of expertise and for
that reason the company was keen to retain
the Polish element. Some 50% of the top
officers in the fleet are Polish, he said.
Seatrans owns 20 vessels in total and uses
flags. In all, 181 of the 435 seafarers
employed by the company are Polish and to
foster the relationship, the company also has
an office in Poland.
As well as Poland, Seatrans' seafarers come
from Norway, Romania, Croatia and the
Philippines.
Another chemical tanker in the fleet flies
the NIS flag, but is currently in layup and is
unlikely to sail next year, the company said.
Sommer said that the company had made
representations to the government through the
Norwegian Shipowners’ Association (NSA),
but the decision was now irreversible.
He was at pains to stress that Seatrans
regretted the decision as it was a keen
supporter of the NIS.
The Bergen Shipowners’ Association also
told Tanker Operator that more companies
could leave the NIS, due to the tax situation.
agreement only affected Polish people
working in Norway.
Seatrans Chemical Tankers (STC) was
formed in 2007 as a standalone commercial
concern, operating a type of pooling
arrangement for Seatrans and partner vessels,
including those timechartered in. STC is
responsible for marketing, chartering,
operations and accounting.
The present fleet is split into trading areas –
Northern Europe/Mediterranean, intra
Northern Europe and US Gulf/Mediterranean.
The cargoes include aggressive acids in
independent Teflon-lined cargo tanks,
hydrogen peroxide up to 70% solution,
propylene oxides and other semi-gases and
offers transport solutions for combined LPG
and chemical cargoes.
The latest vessel to join the fleet was the
Trans Adriatic on 30th June. She was delivered

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

November/December 2010  TANKEROperator 21

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INDUSTRY - NORWAY REPORT

For NIS read Malta.
in Taichung and had previously been called Bow
West, having been on timecharter to Odfjell
since she was built in Japan during 2002.
She is fitted with 22 stainless steel tanks
and is of 12,500 dwt. She has entered STC’s
Mediterranean sphere of operations.
A Seatrans spokesman told Tanker Operator
that the fleet would likely increase during the
coming years, but at present there are no
specific plans to purchase secondhand vessels,
or place newbuilding orders.
He explained that STC’s chartering policy
was to have a portfolio of medium to long
term 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 chemical
cargo operations. They mainly conduct on
board training when needed, such as for new
crew and/or special cargoes. They also run
some of SCT’s cargo related courses.
Another important part of crew training is
the familiarisation process, which is given to
all new employees, crew changing ship types
and/or positions.
Vetting is another important factor for the
company and the spokesman said that several
times, the company has established best
practice during an oil major’s TMSA audit,
or review. TO

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22 TANKEROperator  November/December 2010

p2-34:p2-7.qxd 03/12/2010 17:37 Page 23
Knutsen expands
technology 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.
oday, leading Norwegian tanker
T and LNGC owner Knutsen OAS is
split into two divisions – offshore
and shipping. Headquartered in
Haugesund with offices in Madrid, Aberdeen
and St John’s (NF), the group employs 1,560
officers and crew, plus another 95 onshore.
The offshore department looks after the
shuttle tankers, FSOs and specialised vessels,
while the shipping division is responsible for
LNGCs and projects, such as LNG FPSOs,
plus other shuttle tanker projects. The
technology branch coming under the shipping
department covers ship conversions and vessel
designs, compressed natural gas carriers
(CNGs), pressurised gas carriers (PNGs), the
KVOC project and the latest venture – a
ballast water treatment system. Also in the
pipeline is a PCO2 carrier, which is a spin-off
from the PNG project aimed at transporting
CO2 for carbon capture projects.
Knutsen claims to be the world’s second
largest shuttle tanker owner fitted with
dynamic positioning systems with 19 vessels
and three newbuildings. The two FSOs are
stationed in the North Sea (Auska C) and in
the Philippines respectively. Another project
being undertaken by the technology division is
the conversion of two Handysize tankers into
support vessels for offshore Brazil. They will
be fitted with dynamic positioning (DP)
systems and large bunker tanks. The
navigating seafarers will need specialist
training in DP operation, the company said.
The company operates its vessels under long
term contracts to oil and energy concerns. For
example, Knutsen recently won a five-year
contract with Statoil for a newbuilding 156,000
dwt shuttle tanker to be delivered early next
year. Options exist to extend the charter by a
further three periods of one year each.
Bodil Knutsen will be fully winterised
classed by DNV to Ice Class 1A. She will be
the world’s largest shuttle tanker when
operational with a cargo capacity of 178,900
cu m. All of her cargo tanks will be coated.
November/December 2010  TANKEROperator
INDUSTRY - NORWAY REPORT
They will be fitted with one deepwell pump
each and all the pumps and pipelines will be
protected by an enclosed shelter to prevent
pollution. The vessel was launched at Daewoo
on 9th October and is due to be delivered
during the first quarter of next year.
She will also be fitted with a redundant
dynamic positioning system to DP2 standards
and have the latest version of the bow loading
system fitted. The vessel will also be prepared
for an easy conversion to an FSO if necessary.
When the Bodil Knutsen and two 105.000
dwt shuttle tankers currently under
construction at Nantong shipyard in Shanghai
are delivered, the Knutsen fleet will have 24
shuttle tankers (including two tankers
converted to FSUs) in operation.
The shuttle tankers and FSU´s, plus the two
offshore support vessels, are managed by
Knutsen Offshore Tankers (KOT) and are
operated by Knutsen OAS Shipping (KOAS).
KOAS also operates 13 product/chemical Knutsen's technical expert Per Lothe.
tankers and eight LNGCs. Another gas carrier
is under construction at DSME and will be Offshore oil field operators are dependent
delivered later this year. on these type of tankers for their cash flow as
Another addition to the fleet is a recent they deliver the product from the wells to the
acquisition from Sovcomflot, which will be end user/refiner. Many are adapted to operate
converted to a bow loading configuration in a specific field and are thus chartered for
under a charter to BG for operation offshore long periods. Knutsen said that there is a very
Brazil. A further conversion is also to be high safety focus with shuttle tanker
carried out. Looking at KOT’s shuttle tanker operations driven by the oil companies and the
fleet, 14 tankers operate in and around the authorities. Personnel are vetted as are the
North Sea, three in Canada, three in Brazil vessels on a routine basis and there are strict
(including two newbuildings/conversions), reporting and documentation standards in
one in Venezuela and one in the Philippines. place. The navigators also need DP
The concept of a shuttle tanker was first qualifications to serve on board a shuttle
seen in the mid-1970s, alongside pipelines. tanker. “It is difficult to enter the market
Knutsen said that they are cost efficient as without prior experience,” Knutsen said.
they have low up front costs, compared with As for Knutsen main clients/charterers,
pipeline systems. They can be flexible to these include BP, Repsol,
changing field production profiles and Petrobras/Transpetro, Petro-Canada, Nido
reliable, as 80% reliability was originally Petroleum, Statoil, Shell, Husky Energy, Total,
projected for this type of vessel, but nearly DONG Energy, BG and PDVSA.
100% has been achieved, Knutsen said. They Knutsen operates in close co-operation with
also provide safe platforms for both personnel Teekay having previously fixed the vessels on
and the environment. timecharter with Statoil/Navion. Coas are
23
p2-34:p2-7.qxd 03/12/2010 17:37 Page 24
INDUSTRY - NORWAY REPORT
being optimised with Teekay, as both are now
major players in the North Sea shuttle market.
In the LNGC sector, KOAS took delivery of
the 173,400 cu m Valencia Knutsen in
September. She has been delivered for
operation on a 20-year charter to Spanish
energy concern Repsol, part operator of Stream
with Gas Natural. Like her sisters, she will
serve the newly completed Peru LNG terminal.
She is the third in the series, following the
Barcelona Knutsen and Seville Knutsen. The
last in this series will be delivered by the end of
this year. The company also manages three
earlier built 138,000 cu m LNGCs.
LNG feeders
Knutsen also pioneered the concept of LNG
feeder vessels with the delivery of the 1,100
cu m Pioneer Knutsen which operates on
charter to Gasnor along the Norwegian
NYK takes 50% of KOT
At the end of November, it was
announced that NYK had
invested 50% in KOT. Following
this investment, KOT’s name will
change to Knutsen NYK
Offshore Tankers AS.
As mentioned in the body of this article,
KOT is the world's second-largest owner
and operator of crude-oil shuttle tankers.
NYK said in a statement that it considered
the offshore shuttle tanker business to be
primed for growth following the expansion
of offshore operations related to oil
production in deepsea areas, including
locations off Brazil.
Knutsen NYK Offshore Tankers will
begin operations with 24 of the world’s 82
shuttle tankers - both existing and under
construction..
Through this investment, the NYK group
24
coastline taking LNG to distribution points to
fuel the many ferries and offshore support
vessels now running on LNG. Knutsen has
also unveiled an LNG FPSO design on which
the pre-FEED work was completed last year.
Valencia Knutsen is the company’s first Ice
Class 1A LNGC, as she has been prepared for
Arctic and winter operations in the North
Atlantic. She is of a twin-skeg design and has
a capacity of 173,400 cu m. Knutsen claimed
that her fuel consumption had been reduced
by around 20% by fitting a dual-fuel diesel-
electric propulsion system, which runs on
heavy fuel oil as well as LNG. The hull has
also been coated with fluoropolymer, which is
claimed to add to the vessel's efficiency.
KOAS also manages eight 16,500 dwt
product/chemical tankers, two 17,000 dwt
parcel tankers, one 19,000 dwt parcel tankers
and two 22,000 dwt parcel tankers. All the
will be able to expand its services in
upstream areas of the supply chain, in
addition to the group’s existing crude oil
transportation service, the Japanese
conglomerate said.
The new business fits well with NYK’s
expertise in the handling of specialised
cargo, such as crude oil, in addition to the
company’s experience with dynamic
positioning systems, such as that developed
by a group company with the deepwater
drilling vessel Chikyu.
Together with NYK’s financial strength
and one of the world’s largest pool of highly
trained seafarers and KOT’s pioneering
technologies, Knutsen NYK Offshore Tankers
will be able to further expand its market
presence, while continuing to offer services
of the highest quality to its customers who
demand these services, NYK said. 
TANKEROperator  November/December 2010
Valencia
Knutsen has
been built to
Ice Class and
is the third out
of a series of
four LNGCs to
be delivered.
eight chemical/product tankers are classed to
Ice Class 1A and the parcel tankers’ cargo
tanks are of stainless steel construction. In
addition the parcel tankers have between 24
and 34 segregations and two are classed to Ice
Class 1A.
The shipmanagement department takes care
of all technical and commercial aspects of the
fleet, including chartering, newbuilding
supervision and project development. The
newbuilding department has looked after 38
vessel constructions, plus has another six
newbuilding projects underway.
Knutsen’s main claim to fame has been its
North Sea operations, including offshore buoy
loading and DP systems. It was the first
company to use an STL type operation on
shuttle tankers and tandem offloading. It has
also provided a support vessel for extended
well testing and has undertaken chemical
PNG
Characteristics:
 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 25

INDUSTRY - NORWAY REPORT

injection in platform production risers. The
company operated the first diesel-electric
powered shuttle tanker on the Norwegian
Shelf and undertook FSO loading from two
independent production platforms
simultaneously.
Thus far, Knutsen has been involved in
North Sea shuttle operations for 23 years and
shipped more than 5,000 cargoes. Offshore
tandem loading has been undertaken for 18
years and the company has been involved in
the FSO market for 10 years. Nineteen vessels
have been equipped with bow loading systems
and six with STLs. In addition, 50 LNGC
ship-to-ship transfer operations have been
successfully completed and the company was
the first to fit a VOC recovery unit on a
shuttle tanker.
Ballast water
Following several years of research and design
appraisal, Knutsen has unveiled a new
proprietary ballast water treatment system,
called KBAL. The system was tested at NIVA
under the watchful eye of DNV and the
company is hopeful of receiving IMO approval
next 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 ballast
pump capacity is 2 x 3,400 cu m per hour with
the ballast tanks volume being 58,000 cu m,
while the 138,000 cu m LNGCs have two
2,500 cu m per hour ballast pumps, with a
ballast volume of 50,000 cu m. Each vessel is
also fitted with a spare pump.
Retrofits have been made easier by placing
the equipment on deck rather than in the
machinery space, Knutsen said. One
advantage claimed was that it will not be
necessary to drydock a vessel to fit the
equipment, which can be done alongside
a quay.
No filters are required as an ultra-violet
system has been chosen for the system, which
is claimed to be smaller in size than
conventional systems. The substances used are
passive and the operation is claimed to be
simple and cost competitive. It can be
combined with any other active substance to
meet the more strict proposed US standards,
Knutsen said.
Knutsen’s testing facility at Haugesund has
a capacity of 50 cu m per hour, while the test
rig at NIVA Solbergstrand has a capacity of
200 cu m per hour.
The company said that the industry as a
whole will be challenged to provide new and
efficient technology to meet the new ballast
water regulations. It is estimated that around
30 systems will have IMO approval by the
end of 2012 – the majority of which are based
on existing land technology. Knutsen
calculated that there will be a need for about
25,000 retrofits by 2016 while under the new
rules, all newly built vessels dating from 2012
will have to be fitted with a system.
Stricter requirements will be proposed and
may also be imposed by some countries
before IMO has ratified the proposed BWM
system convention. Knutsen explained that it
had decided to be prepared for the future and
was undertaking qualification testing to be
ready to retrofit its own fleet with a KBAL.
Returning to the gas sector, Knutsen also
has a proprietary pressurised natural gas
vessel design - PNG ®.
This has been developed by a consortium,
involving KOAS, Europipe and DNV and is
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November/December 2010  TANKEROperator 25

p2-34:p2-7.qxd 03/12/2010 17:37 Page 26
INDUSTRY - NORWAY REPORT
Knutsen was one of the pioneers of bow loading technology.
manufacturer who will be responsible for the
fabrication of the ship containment system.
DNV was the first class society to issue
rules and regulations for marine CNG
transportation and also has expertise in
offshore piping.
As for the gas characteristics, both lean and
rich gas can be transported in KOAS’ PNG
carrier. The water dew point has to be controlled
;-:>1+-9=)41<A
):-?1<016A7=::-)+0
16<-:6)<176)4:-/1;<:1-;6-<0-:4)6,;*>
<PM5IZ[PITT1[TIVL[5IZQ\QUMIVL+WZXWZI\M)LUQVQ[\ZI\WZ[
<-4"d.)@"
:77;-6,))4(:-/1;<-:1:1+75
26
(as in pipeline systems), while CO2 and H2S
will also be treated as in pipeline systems.
The CNG concept has been ready for the
market since 2002. However, Knutsen
conceded that the technology needed a ‘first’
project to demonstrate its benefits. The
company said that PNG will be a reality in the
near future, as the next generation of offshore
fields will be smaller and further away from
TANKEROperator  November/December 2010
any infrastructure. Also to be considered are
future gas prices, energy demand and
environmental challenges, including flaring
restrictions. In addition, there are deepwater
challenges with associated gas, Knutsen said.
As a spin-off from PNG, KOAS has also
developed PCO2, which is pressurised CO2
proprietary technology for marine compressed
CO2 transportation.
Finally, Knutsen has developed a volatile
organic compound unit – KVOC, which it is
now marketing to third parties (see VOC
feature on page 55).
Several systems have been fitted on KOT’s
shuttle tankers due to the Norwegian
Government’s rigid stance on air pollution in
and around its coastline.
In essence, a KVOC unit fitted on board a
tanker will reduce VOC emissions into the air
during loading and transit.
Knutsen said that around 30 tankers have
and will be fitted with a system, most of
which are operating in the North Sea.
A VOC unit is not only applicable for crude
oil tankers, but also for product carriers and
vessels carrying volatile chemicals, the
TO
company said.
.WZIKWUXTM\MTQ[\WNWNÅKM[XTMI[M^Q[Q\"
???:-/1;<-:1:1+75
p2-34:p2-7.qxd 03/12/2010 17:42 Page 27
Vessel operators
faced with the
‘distillate premium’
At DV Petroleum Services (DVPS), 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.*
n order to significantly reduce SOx
I 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
DNVPS’ Dr Rudolph Kassinger.
November/December 2010  TANKEROperator
INDUSTRY - BUNKER OPERATIONS
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
$/BBl MGO factor
Crude* 1.65 1.80 2.00 IFO 380
70 224 275 343 344
100 319 393 491 491
150 479 589 736 736
* Light sweet crude, 38 API, 7.55 BBl/MeT.
below considers the high IF 380 price
scenario, - 0.75 times crude cost - with the
same MGO factors as above:
$/BBl
Crude* 1.65
MGO factor
1.80 2.00 IFO 380
70 258 318 397 397
100 368 454 567 567
150 553 680 850 850
* Light sweet crude, 38 API, 7.55 BBl/MeT.
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. TO
*This article was taken from a paper
written by Dr Rudolph Kassinger of
DV Petroleum Services (DVPS).
Email: Rudolph.Kassinger@dnvps.com
Office Phone: +1 201 512 8948.
27
p2-34:p2-7.qxd 03/12/2010 17:42 Page 28
INDUSTRY - BUNKER OPERATIONS
Best practice
sampling vital as
scrutiny heightens
Bunker 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.
n this article, Matthias Winkler,
I 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
P&I clubs have recently highlighted the need for sampling under MARPOL rules to defend claims.
28
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
TANKEROperator  November/December 2010
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
p2-34:p2-7.qxd 03/12/2010 17:42 Page 29

INDUSTRY - BUNKER OPERATIONS

“ The costs of lower-quality fuel can be

very severe, including the risk of
serious engine damage.
operators to take matters in hand by taking the
sample themselves.
Guidelines available
There 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.
” control” for a minimum of 12 months, but
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
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. TO

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p2-34:p2-7.qxd 03/12/2010 17:42 Page 30
INDUSTRY - BUNKER OPERATIONS
Fuel choices
considered at annual
seminar
Wilhelmsen 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.
he company used its annual
T 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
30
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 increase
Heavy 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.
“
“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
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
TANKEROperator  November/December 2010
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
p2-34:p2-7.qxd 03/12/2010 17:42 Page 31

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INDUSTRY - BUNKER OPERATIONS
GPSChemoil phase
four fuel terminal
project on track
The 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.
ne of the largest terminal
O 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
Chemoil is ramping up its Fujairah storage capacity.
32
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
TANKEROperator  November/December 2010
confidence and commitment to the Emirate’s
growth and strategic importance to the region.”
Construction contract
At 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 quarter
Meanwhile last month, Singapore-listed
Chemoil announced a net profit attributable to
equity holders of $2.6 mill for the third
quarter of this year.
p2-34:p2-7.qxd 03/12/2010 17:43 Page 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-
marinvent
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November/December 2010  TANKEROperator
INDUSTRY - BUNKER OPERATIONS
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
Topaz Engineering COO Bill Bayliss.
maximise growth opportunities as we move
towards more favourable market conditions. largest global storage facility in Fujairah
“We have seen in the past two months there through our joint venture with Gulf Petrol
have been a number of positive developments Supplies LLC; and the launch of our expanded
for Chemoil, including the establishment of a offering to include risk management products
new regional operations office in New York; and services to our shipping customers as a
proceeded with the fourth phase of fitting complement to our core physical fuel
construction of what would be Chemoil’s delivery,” he said. TO
33
p2-34:p2-7.qxd 03/12/2010 17:43 Page 34

INDUSTRY - BUNKER OPERATIONS - BOOK REVIEW

An Introduction to
Bunker Credit Risk’
‘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.

resenting a complex subject in a companies and independent traders to assess a

P 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.
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. Author Adam Dupré.

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
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

“ “Any fool can succeed in a rising market but

it takes good management to steer through a
companies.

*An ‘Introduction to Bunker Credit

Risk’ by Adam Dupré, first edition –
TO

2010, published by Petrospot Limited,

falling one and both bunkers and shipping Oxford, 113 pages, plus 22
preliminaries. Price: £45/€50/$80, plus
are cyclical businesses.”
Stuart Kenner, MRC Business Information Group
” postage and packing.
www.petrospot.com/books Also available
as an eBook via Witherby Seamanship
www.witherbyseamanship.com

34 TANKEROperator  November/December 2010

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TECHNOLOGY - TRAINING SYSTEMS

Getting the most out

of your equipment
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.
he so called STCW Manila challenging is the requirement to accurately capable of processing such information?”

T 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
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
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
operating in a paperless mode, or not. those contained within the Admiralty Manual use of radar to avoid detection and where GPS
ISM has a major bearing on ECDIS use, of Navigation. jamming and other sensor denial is prevalent.
part of which is type specific training that a These include fixing by a line of soundings, Hence the navigators must be trained to
company needs to implement in order to running fixes, sextant angles, doubling the acquire such skills.
satisfy audits. SOLAS now includes a rolling angle on the bow and use of bearing pairs to This necessitates pushing the ECDIS system
programme from 2012 that requires the calculate distance off an object. On the course, to the limits of its capabilities and is why the
majority of vessels to be ECDIS fitted, it is quite common for students to conduct an warfare equivalent of ECDIS (WECDIS)
maintained and managed. anchorage with a sextant in either hand, taking gives access to increased functionality to
To help satisfy the training needs, about a a vertical sextant angle with one and a facilitate underwater navigation, water space
couple of years ago, a small team of ex UK horizontal angle with the other. management and the input of position
Royal Navy (RN) and Royal Fleet Auxiliary “Now, imagine plotting fixes in this manner information from a variety of traditional
(RFA) navigating officers set themselves up as on a paper chart. Would you know how to do sources.
ECDIS training consultants. Since then, the it? When was the last time you picked up a The ability to perform some of the
newly formed company – ECDIS Ltd – has sextant or station pointer? Now imagine techniques mentioned above may be deemed
joined together in a partnership arrangement planning and executing it with ECDIS as your unnecessary and old fashioned for commercial
with four of the leading navaids’ OEMs to primary means of navigation. Again, would operation. However, the skill of manually
offer training using their hardware and you know how to do it and is your ECDIS fixing independent of radar and GPS and the
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 ECDIS Ltd’s training facility.

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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 ECDIS Ltd’s Mal Instone.
window and driving the ship safely using
all navaids. also mean loss of positional information on the
2) The task is performed as a quick check at radar. Furthermore, the environment may
an appropriate time. preclude, or limit visual fixing to such an extent
3) Operators should be able to comfortably that the operator may have to use transferred
manage long periods of relative navigation position lines, or fix by a line of soundings.
for areas of the world that require it and in Some systems can perform beyond the
case of sudden need. minimum performance standards in this regard
In event of GPS failure, the operator can utilise by allowing the operator to plot visual bearings,
the DR function in ECDIS and revert to radar ranges and other techniques accordingly.
traditional fixing skills in order to provide As well as being quick and easy to plot, the
accurate positional data - the loss of GPS may operator also benefits from a system that

ECDIS Ltd’s five-day course

An advanced level of knowledge
could be deemed to be required
in order to ensure the best use
of an ECDIS system on any
given ship. However, what level
of knowledge is required to
manage and quality control a
fleet of ECDIS systems? The
answer is that a level of
expertise and understanding is
required that goes beyond being
an 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. 

36 TANKEROperator  November/December 2010

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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 line
The 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.
November/December 2010  TANKEROperator
TECHNOLOGY - TRAINING SYSTEMS
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

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 Ltd
Northern 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
TO
Admiralty digital and paper products.

ECDIS Ltd - A profile ECDIS Ltd’s top eight

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.  rubbish out!
points to remember
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


38 TANKEROperator  November/December 2010

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Dutch training
specialist expands on
all fronts
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.
sing interactive 3D technology,
U 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
November/December 2010  TANKEROperator
TECHNOLOGY - TRAINING SYSTEMS
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
39
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TECHNOLOGY - TRAINING SYSTEMS
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,
40
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.
RescueSim - a firefighting and emergency management tool.
TANKEROperator  November/December 2010
It has also held advanced training courses
for Argentine and international shipping’s
higher ranking personnel.
US presence
Only 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
TO
products in the curriculum.
p35-60:p2-7.qxd 03/12/2010 17:59 Page 7
There is more than one way to ECDIS training
The maritime industry will face a
huge challenge when the STCW
2010 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
November/December 2010  TANKEROperator
TECHNOLOGY - TRAINING SYSTEMS
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).
Furuno’s in-house training facility.
 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. TO
41
p35-60:p2-7.qxd 03/12/2010 17:59 Page 8

TECHNOLOGY - TRAINING SYSTEMS

Videotel – working
with industry to ramp
up safety awareness
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.

e are not just a video including the MCA and by flag states, such as the approved manner and with the right

“W 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,
Stephen Bond
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
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

42 TANKEROperator  November/December 2010

p35-60:p2-7.qxd 03/12/2010 18:00
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 deaths
Another 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
/NBOARDs/NSHOREs/NLINE
November/December 2010
Page 9
TECHNOLOGY - TRAINING SYSTEMS
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 Spaces
is 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 training
In the wake of piracy escalation, especially in
the Indian Ocean, Videotel has launched a
revised version of its Piracy & Armed
Robbery training package.
VIDEO | BOOK | CBT | ONLINE
Training solutions & services for
IMO, ISM & STCW standards
mail@videotelmail.com | www.videotel.co.uk
 TANKEROperator
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. TO
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43
p35-60:p2-7.qxd 03/12/2010 18:00 Page 10
p35-60:p2-7.qxd 03/12/2010 18:01 Page 11

TECHNOLOGY - NAVAIDS

AIS data provides

valuable maritime
business intelligence
Recent 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*.

eal-time vessel movement data is

R 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 Real-time ship movement data can now be disseminated.
(VTS) operators, major oil companies, vessel
owners and operators, port and marine estimated time of arrival. Additionally, the fuel consumption and transit routes.
terminal management and other maritime system broadcasts dynamic data, including the AIS information becomes most compelling
professionals. time and the ship’s current position, course when it is compiled and provided as a web-
AIS transponders broadcast a variety of and speed over ground, gyro heading and rate based resource that can provide years of
information on a fixed schedule, some every of turn and navigational status. analytical history around a specific vessel,
two to 10 seconds and others in up-to-six- fleet, terminal, or platform.
minute intervals. This information includes Deriving business intelligence Additional information can be attached or
static data, such as the ship’s name and call AIS data transmitted from commercial vessels linked to these vessels, allowing users to
sign, its unique IMO or maritime mobile can be used to generate extremely valuable associate the vessel with a cargo manifest or
service identity (MMSI) number, its length business intelligence, from the competitive photographs of the loaded cargo. Small
and beam, the ship type and its antenna analysis of offshore fleets to marketing satellite tracking units can similarly be used to
location. information related to marine fueling track information about buoys and other high-
The system also broadcasts a variety of companies. The availability of extensive value assets. These combined details can
voyage-related data, including the ship’s draft, vessel transit details can also provide better provide a new level of visibility.
cargo information and destination, plus contract accountability related to tanker speed, One example of this approach is the

November/December 2010  TANKEROperator 45

p35-60:p2-7.qxd 03/12/2010 18:01 Page 12
TECHNOLOGY - NAVAIDS
Figure 1
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,
46
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 practices
When deploying an AIS system, tanker
operators can improve efficiency by defining
customised fleets of chartered vessels,
TANKEROperator  November/December 2010
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
TO
and security.
*This article was written by Dean
Rosenberg, chief executive officer,
PortVision (http://www.portvision.com)
p35-60:p2-7.qxd 03/12/2010 18:01 Page 13

TECHNOLOGY - NAVAIDS

UKHO unveils
Admiralty
Information Overlay
The 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 EC validation programme.

his overlay is displayed as a single

T 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. Transas claims to have dealt with underwater hazard problems.

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.
NORDEN tankers opt for Transas
Danish drybulk and tanker group
NORDEN has selected Transas
Multifunction 4000 display
series 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.
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
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. 
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.

November/December 2010  TANKEROperator 47

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TECHNOLOGY - NAVAIDS

Michael Cauter, deputy CEO with

Test S-57 Attributes Attribute DRVAL1 Required
Object value (minimum display responsibility for developing new Admiralty
depth of mode products and services, said “The marine
surrounded area) environment is constantly changing. The
Admiralty Information Overlay is needed
1. UWTROC NATSUR Rock 10 STANDARD
because many nations don’t yet include
WATLEV Always underwater important temporary or preliminary
submerged notifications of those changes in their
weekly updates. Even when they are
VALSOU
included, they can be difficult to identify
QUASOU Depth unknown within the ENC.
“The Admiralty Information Overlay
2. WRECKS CATWRK Dangerous Wreck 10 STANDARD
provides this information on top of the ENC
WATLEV Always underwater and displays it clearly and consistently so the
submerged mariner can instantly see the impact of
changes on a route and can take appropriate
QUASOU Least depth unknown
action,” he said.
EXPSOU Shoaler then range of Alongside AVCS and Admiralty e-
depth of surrounding Navigator, the UKHO said that the overlay is
depth area a further step in its programme to support the
VALSOU 8.5 transition to digital navigation and ensure
vessels continue to sail safely, compliantly
3. WRECKS CATWRK Dangerous Wreck 10 STANDARD and increasingly more efficiently.
WATLEV Always underwater Transas explained that it would be available
submerged with the Transas Admiralty Data Service
(TADS) license, through the Transas Navi-
4. WRECKS CATWRK Wreck showing any 20 STANDARD Sailor ECDIS.
portion of hull or
superstructure
Underwater hazards
WATLEV Covers and Uncovers The company also gave additional information
on the UKHO ‘NAVAREA I Warning 317/10’,
5. OBSTRN CATOBS Foul Area 10 STANDARD
issued on 29th October 2010.
WATLEV Always underwater The UK Maritime and Coastguard Agency
submerged (MCA) and UKHO have performed tests to
VALSOU ascertain different ECDIS behaviour.
As a result of the testing, the UKHO
QUASOU Depth Unknown identified that in some ECDIS, underwater
hazards were not displayed and did not
6. OBSTRN WATLEV Always underwater 20 STANDARD
submerged activate alarms in route checking and route
monitoring modes.
VALSOU Transas Marine has carried out a test of its
CATOBS Fish haven Navi-Sailor 4000 ECDIS MFD and Navi-
Sailor 3000 ECDIS-I based on the description
QUASOU Depth unknown of the ENC objects and attributes provided by
UKHO. The test results show that there are
7. OBSTRN WATLEV Always underwater 10 STANDARD
submerged no errors in Transas ECDIS with displaying
underwater hazards, which was also
VALSOU confirmed by UKHO.
QUASOU Depth unknown
In particular, the following objects were
tested by UKHO. Each object was checked in
8. OBSTRN WATLEV Always underwater STANDARD Transas Navi-Sailor 4000 ECDIS MFD and
submerged all objects were displayed correctly in
VALSOU standard mode and generate anti-grounding
alarms. The table opposite shows symbols
9. OBSTRN CATOBS Fish haven STANDARD displayed in Transas ECDIS.
VALSOU
In order to ensure that all safety related
information from ENC data is always
WATLEV Always underwater correctly presented on ECDIS display, Transas
submerged Marine said that it will continue to investigate
in close co-operation with the UKHO. TO

48 TANKEROperator  November/December 2010

p35-60:p2-7.qxd 03/12/2010 18:01 Page 15
New Integrated Navigation System (INS) launched
At the opening day of SMM the
German navigation system
supplier Raytheon Anschütz
launched its recently announced
Intelligent 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
Wärtsilä launches the Wärtsilä 3C control centre
Also at SMM, Wärtsilä launched
the Wärtsilä Communication and
Control Centre (Wärtsilä 3C)
solution. The navigation
technology used in the centre was
supplied 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
November/December 2010  TANKEROperator
The Synapsis IBS
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.
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
TECHNOLOGY - NAVAIDS
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
TO
steering failure monitoring.
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. TO
49
p35-60:p2-7.qxd 03/12/2010 18:01 Page 16

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“Our phenolic epoxy HEMPADUR 15500 has more than fifteen years track record with excellent
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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 17

TECHNOLOGY – TANK SERVICING

APC develops
organisation and cuts
product costs
Advanced Polymer Coatings (APC) has ramped up its European sales business by
appointing Jan Slooter to the position of director, business development, Europe.
PC manufactures and supplies worldwide handling a wide range of coating barrier, thus ensuring product purity

A MarineLine coatings for oil,

chemical and product carrier
cargo tanks.
Slooter has had experience in operating
chemical tankers coated with MarineLine
aggressive chemical cargoes. The coatings
system uses forced hot air heat to cure its
coating. This creates a nearly-impermeable
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.

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 for Chemical/Product Tankers
eight by 2008. Many of the vessels were coated
with MarineLine as the company’s vessels
carry a wide variety of chemical cargoes.
THE tank coating system for carrying
Prior to joining the Clearwater Group, CPPs, PFADs, Methanol, and Bio-Fuels.
Slooter worked with the Breko Shipyard in
the Netherlands from 1992-1995. Previous Rely on MarineLine® 784
positions also included being employed by
the Cummins Engine Co where he became tank coating to handle a
service manager. wide range of cargoes carried
He started his working career in engine
research with DAF Trucks in Eindhoven. by chemical and product
During this period, he became a qualified tankers. MarineLine® 784
mechanical engineer.
MarineLine competes with stainless steel
offers enhanced corrosion
tanks and is claimed to outperform this type of resistance compared to
tank construction. It has exceptional resistance
to thousands of chemical cargoes, has the ability
phenolic epoxies or zinc
to maintain high purity cargoes and ensures silicates, at a similar cost. It
easy tank cleaning operations, APC said. is faster and easier to clean,
At the recent SMM exhibition, the company
said that its MarineLine 784 cargo tank with higher cargo purity.
system was becoming an important factor in
Advanced Polymer Coatings
new transport markets.
“There is a growing market need for Avon, Ohio 44011 U.S.A.
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 +01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com

November/December 2010  TANKEROperator 51

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

TECHNOLOGY - TANK SERVICING

GLJLWDOJDXJLQJ
+RQH\ZHOO7DQNV\VWHP
LQWURGXFHVWKHZRUOG¶V
¿UVWSRUWDEOHGLJLWDO
DXWRPDWLFWRSSLQJRII
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. TO

PRQLWRULQJV\VWHP

7KH+(50HWLF7206<6LVDSRUWDEOH
GLJLWDODXWRPDWLFJDVWLJKWOHYHO
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FRQWLQXRXVO\DQGDXWRPDWLFDOO\PRQLWRU
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RIISURFHGXUHV7KHXQLWDFFXUDWHO\
PRQLWRUVWKHOLTXLGOHYHORYHUWKHODVW
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+RQH\ZHOO7DQNV\VWHPKHOSVFXVWRPHUV
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‹+RQH\ZHOO,QWHUQDWLRQDO,QF$OOULJKWVUHVHUYHG

TANKEROperator  November/December 2010

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

TECHNOLOGY – TANK SERVICING

Hydrocarbon gas detection hits new heights

Hydrocarbon gas detection in
ballast tanks, dry and void spaces
and pump rooms has been further
enhanced 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:
 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. TO

Technical Data
DA400
 Gas detection - alkane and alkene (C1 to C8).
GASBAL cabinet
 Alarm output: dry contact for a common alarm/one pre-alarm
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
A typical GASBAL installation.  MED pending.

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November/December 2010  TANKEROperator 53

p35-60:p2-7.qxd 03/12/2010 18:01 Page 20

TECHNOLOGY - TANK SERVICING

Progress on IMO’s
carriage
requirements
The International Parcel Tankers’ Association (IPTA) has outlined
the results of the IMO’s ESPH group meeting held last October.
mong the points of interest was that which means that if a vessel is loading the to internally circulate two or more different

A 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,
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
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. TO

Peace of mind

Monitoring of liquid cargo is in safe hands

CARGOMASTER® 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.

www.krohne-skarpenord.com

54 TANKEROperator  November/December 2010

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

TECHNOLOGY - VAPOUR CONTROL SYSTEMS

Knutsen offers its

VOC 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 DV among others.
he first of Knutsen’s KVOC

T
FPSO
capture tanks was installed on the droplines Metering Hose
shuttle tanker Elisabeth Knutsen in (trottling) connection Dropline
2007 and has since been fitted on (trottling)
board 10 vessels operating in the North Sea. >^

Following the equipment’s success on some

of the Knutsen shuttle tankers, the company /ŶĞƌƚнsK
recently decided to offer the technology to
third parties with the result that Teekay ĂƌŐŽdĂŶŬƐ
ϭ͘ϬϱͲϭ͘ϬϳďĂƌĂ
purchased the KVOC equipment to fit on ϬŵĞƚĞƌ
ĂƌŐŽdĂŶŬƐ
board six vessels, including the new Amundsen ϭ͘ϬϱͲϭ͘ϬϳďĂƌĂ

class 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,
November/December 2010  TANKEROperator
ƐŐĂƌĚ͕ƐŐĂƌĚ͕EŽƌŶĞ͕:ŽƚƵŶ͕EũĊƌĚ͕sŽůǀĞ͕ůǀŚĞŝŵ
Positional sources for VOC generation FPSOs
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 in
September. 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 in
2002, while the first commercial fitting on
behalf of a charterer was on board the Siri
Knutsen 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 Gijon
Knutsen, 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. TO
55
p35-60:p2-7.qxd 03/12/2010 18:01 Page 22
TECHNOLOGY - NEWS
Wärtsilä and MAN to continue HERCULES’ research project
MAN Diesel & Turbo and Wärtsilä
Corp have agreed to pursue the
HERCULES-C project, as a
continuation of the successful
programmes for the research and
development of marine engine
technology.
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
Transas Marine launches ECDIS CBT
Transas Marine has launched its
ECDIS computer based training
(CBT) course certified by
Germanischer 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
TANKEROperator
Photo:Crowley
The Latest News is now available on TANKEROperator’s
website at www.tankeroperator.com and is updated weekly
56
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
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.
TANKEROperator  November/December 2010
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. TO
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. TO
IBC:OBC.qxd 03/12/2010 17:33 Page 1

Marseq’s 6th Official Piracy Update Meeting “An extremely

valuable conference,
highlighting common
problems with
credible solutions”
David Fletcher,
Quality, Safety and
Security Manager,
CMA Ships

Latest Critical Industry Advice To Protect Assets &

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

Featuring Real Life Hijacking Experiences Hear From International

From Industry Experts Including: Maritime Experts Including:
• NITC Tankers
• APL Co Pte Ltd
• U.S. Department of State
Kurt Amend, Mohammad Capt. George Nicolas Teo, Arthur Bowring, James • ReCAPP
Principal Deputy Souri, Chairman Solomon, Director Deputy Director, Managing Director, Christodoulou,
Assistant Secretary and Managing Global Security & ReCAPP ISC Hong Kong Former Chief Executive, • US Navy
of State for Political Director, NITC Env. APL Shipowners Industrial Shipping
Military Affairs, Tankers Association Enterprises • Hong Kong Shipowners
U.S. Department
of State Association
• Industrial Shipping
Enterprises
• BIMCO
Giles Noakes, Tim Wilkins, Capt. Pottengal Capt. Chris Sageed Capt. Laxmi Salvady, • INTERTANKO
Chief Maritime Environment Mukundan, Chambers, M.Kunhiraman, Operations Superintendent
Security Officer, Manager, Director, IMB Combined Maritime General Manager & CSO, Anglo Eastern • IMB
BIMCO INTERTANKO Forces Chief of Staff, SHEQ, Smit Ship Management,
Vice Director, US Nederland B.V Singapore • Smit Nederland B.V.
Navy
• Holman Fenwick Willan
The VERY Latest Intelligence To Keep Your Anti-Piracy Procedures Updated
• London P&I
Q Hijackings Uncovered: Which critical factors must be taken into consideration when captured,
in captivity, on release and when managing the crew? How to plan for a quick release. • United Nations Office on
Drugs and Crime
Q Essential updates from Government and Military on what current and planned international
action is in place to address the growth of piracy. • Information Fusion Centre
Q Vital information on the growth of global piracy. Analyse latest attacks and vulnerable hot • ISS
spots. • Anglo Eastern Ship
Q Latest updates on safety, training and BMP3. Stress test your anti piracy techniques. Management, Singapore
Interactive Masterclasses and Site Visit: 25th January 2011 Media Partners:

A) A Practical Guide To Effective Preparation And Training Prior To Transiting High

Risk Areas
Facilitated by: Adrian Sutcliffe, CEO, ISS
B) Addressing The Latest Principles Of Piracy Prevention And Crisis Management
Facilitated by: Bill Kerr, Partner, Holman Fenwick Willan

C) Site Visit To Information Fusion Centre At Changi C2 Naval Base

Facilitated by: LTC Nicholas Lim, Head of Information Fusion Centre

To register: www.piracy-asia.com • Email: info@hansonwade.com

Tel: + 65 6338 9272 • Priority booking code: TANK
OBC:OBC.qxd 03/12/2010 17:34 Page 1