Singapore Solutions Is Sponsored by 2018

This issue of Singapore Solutions is sponsored by 2018

Digitalisation: a question of when not if for Singapore

A revolution in marine lubes procurement Uptake of LNG as a fuel continues apace Virtual tanker management is here!

“Digitalisation means greater transparency and lower operating costs” Vinay Gupta, managing director, UMMS, see page 28

2018 contents 10

Regulars 15 5 Comment

Economic outlook 6 Concessions to stay competitive 7 Singapore launches Sea Transport Industry Transformation Map

Singapore initiatives 8 MPA embraces new technologies 9 Use of LNG as fuel continues apace in Singapore

33 Ports, terminals and containers 10 PSA makes future-proofing moves 11 Strong growth in PSA Singapore container volumes 13 Engineers for the future 14 Jurong Port building on landmark 2017 15 PIL staying on its own course? 15 Container fleet growth to continue

Shipmanagers and services 17 BSM books growth in Singapore 19 Future of shipping is digitalisation 57 20 Global Radiance to more than double livestock fleet 23 CMVP managed fleet to hit 35 vessels 24 Wootz Global goes for decommissioning 27 Expanding Orient Maritime Agencies is in bullish mood 28 UMMS sets foot in Europe 28 MTM focuses on efficiency

Shipyards 31 Singapore-listed shipyards face different fates 32 Keppel puts up strong fight in tough market

www.singaporesolutions.sg Singapore Solutions 2018 contents

Technology Published March 2018

34 Focal Marine keeps an eye on LNG 35 Shipping needs to react to Minamata Convention Head of Content: Edwin Lampert t: +44 20 8370 7017 e: [email protected] Consultancy Head of Sales – Asia/Singapore: Kym Tan t: +65 6809 3098 36 Spade Consulting sets ambitious targets e: [email protected]

Account Manager Asia/Middle East: Rigzin Angdu t: +65 6809 3198 Singtel e: [email protected] 39 Singtel finding the right notes on maritime connectivity Southeast Asia & Australasia Representative: Kaara Barbour t: +61 414 436 808 e: [email protected] Bunkering and lubes Production Manager: Sasha Tan 42 Singapore’s shrinking and expanding bunker market t: +44 20 8370 1718 47 Alternative fuel sources come under the spotlight e: [email protected] Shell Marine revolutionising marine lubricant procurement 48 Subscriptions: Sally Church t: +44 20 8370 7018 e: [email protected] Offshore Chairman: John Labdon 50 The grief of Singapore’s offshore capital market: M3 Marine Managing Director: Steve Labdon 50 Saudi group takes charge at Vallianz Finance Director: Cathy Labdon Operations Director: Graham Harman 52 HBA Offshore picks up a bargain Head of Content: Edwin Lampert 53 Positioning for the rising tide Executive Editor: Paul Gunton Head of Production: Hamish Dickie 54 Fit-for-purpose vessels are the future: Evolution Concepts Business Development Manager: Steve Edwards 55 MacGregor in expansive mode Published by: Riviera Maritime Media Ltd Mitre House Class 66 Abbey Road Enfield EN1 2QN 57 The journey to autonomy and the interim benefits to shipping UK 61 Creating effective solutions for real-world challenges Singapore office: Riviera Maritime Media Singapore Pte Ltd Level 26, PSA Building Training comms 460 Alexandra Road Singapore 119963 62 Swire Pacific upgrades Singapore Training Centre 65 Tru-Marine keeps up pace of innovation 66 Inmarsat introduces new Fleet Xpress plans for OSVs

Tankers www.rivieramm.com 68 Womar’s staying focused on chemical tankers ISSN 2055-6705 (Print) ISSN 2056-7480 (Online)

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COMMENT | 5

THE STAGE IS SET FOR TECHNOLOGICAL PROWESS

alk to any shipowner or maritime Singapore is embracing new technologies service provider about the need and has launched a Sea Transport Industry to continue to be conservative in Transformation Map, while ensuring LNG the way they do business, and you bunkering continues to develop smoothly. Port Twill probably be met with a questionable gaze. operators are teaming up with educational Indeed shipping is traditionally a conservative institutions to nurture young talent, and shipyards business due to its history of being largely are focusing on moving up the value chain. private and family-owned. But shipping, being Shipmanagers and service providers are the backbone of global trade, has to react to the future-proofing their businesses with digitalisation changing dynamics of the global marketplace and and maintaining growth and efficiency and adjust to the needs of an increasingly internet- international classification societies are promoting savvy consumer base. smart and autonomous shipping. Hong Liang Lee, Editor The journey of transformation to smart shipping Undoubtedly the wave of various technologies involves utilising and applying technologies such flooding the shipping and maritime sectors as data analytics, internet of things (IoT), remote is itself a challenge for the community to monitoring and control, unmanned operations and understand and incorporate into their operations. cyber security. This challenge is magnified as many owners Singapore Solutions spoke to many players and operators are currently struggling with tight based in Singapore, both international and local cash flow or burdened with debts due to the companies, and we found an easy and uncontested protracted fundamental problem of demand- conclusion that the country remains business- supply imbalances and low freight rates. friendly and efficient for companies to carry out The offshore marine sector is currently in a their operations and businesses. Apart from the depressed state, with the general consensus sound legal and banking framework, transparent being that a sustainable recovery is still at least and supportive polices and the convenience and two years away. Container shipping is expected availability of services from the entire maritime to see profitability provided that demand growth cluster, a key attraction for international players pans out as forecast and fleet growth is handled is the country’s ambitious goal and serious intent with care. The tanker shipping market is also on progressing towards integrating futuristic not in a bad shape, and the chemical tanker technology into shipping and maritime. segment in particular is expected to perform well In this 2018 edition of Singapore Solutions, in view of rising global demand and trade flows. you will read about several collaborations Singapore continues to register stellar numbers that are taking place among local authorities, in 2017, as the republic is the world’s second educational institutes and industry associations. busiest container port and the largest bunkering These co-operations are aimed at building a smart port. The country has also won accolades for technological ecosystem for the maritime sector. being a leading maritime capital and clinching the There will be the use and application of big data, top spot in digital competitiveness. digitalisation, automation and drone technology, There is optimism in the air, but challenges continued R&D and innovation, clean technologies remain on the ground. Those that can maintain and sensors, backed by the establishment of a a firm footing while keeping an eye on the knowledge-based hub to spearhead education opportunities above are most certainly going to and training of the next generation workforce. do well. SS

www.singaporesolutions.sg Singapore Solutions 2018 6 | ECONOMIC OUTLOOK

CONCESSIONS TO STAY COMPETITIVE

Port dues concessions are a welcome aid during tough times

ingapore promises to remain more than five days. This concession have been extended until 30 June 2018. a competitive shipping port, will run until the end of 2019. The MWF For oceangoing container ships carrying particularly in light of various is collected to provide welfare activities, out cargo works with a port stay of not concessions it has put in place for training and subsidies for housing seafarers more than five days, an additional 10% port S2018 to help the maritime industry weather at Maritime House when they are in port. dues concession is added on top of the the continuing challenging market ahead. Secondly, newbuild LNG-fuelled existing 20% concession. The Maritime and Port Authority of harbour craft qualify for a waiver of craft For bulk carriers carrying out cargo Singapore (MPA) has been proactive in port dues for five years, with the waivers works with a port stay of no more than monitoring market conditions, rolling out to be rolled out between October 2017 five days, the existing 10% port dues timely and appropriate initiatives that and December 2019. The MPA has also concession was extended from 31 will help maritime companies ease their allowed a 10% port dues concession for December 2017 for another six months. operating cost burden in 2018 and beyond. LNG-receiving vessels that engage LNG- The MPA also extended the Firstly, the MPA approved the extension fuelled harbour craft for bunkering over incremental concessionary rate of S$0.50 of a concession of a 100% waiver of the the same period. per day (US$0.38) for OSVs from the Maritime Welfare Fee (MWF) for all vessels Thirdly, port dues concessions for current 90 days to 180 days, with the aid exceeding 75 gt with a port stay of not container ships, bulk carriers and OSVs stretching until 30 June 2018. SS

Singapore Solutions 2018 www.singaporesolutions.sg ECONOMIC OUTLOOK | 7

Singapore launches Sea Transport Industry Transformation Map

ingapore has launched a Sea not just about building physical assets. the maritime industry, digitalisation of Transport Industry Transformation “You may have noticed the key trade and maritime documentation, human Map (Sea Transport ITM). words in the Sea Transport ITM are capital development for next-generation The aim is to grow the sector’s connectivity, innovation and talent. This multipurpose ports and container ports, and Svalue-add by S$4.5Bn (US$4.5Bn) and new emphasis – which includes non- the application of robotic process automation create over 5,000 jobs by 2025. physical flows like data and technology technology in the ship agency sector. Developed by the Maritime and – will require new forms of collaboration. As the maritime industry transforms Port Authority of Singapore (MPA) in In other words, working together to and grows, more than 5,000 good jobs will partnership with the industry, unions develop ideas and to innovate,” Mr be created in the next decade. Those in and other government agencies, the Sohmen-Pao commented. more traditional job roles will undergo skill Sea Transport ITM builds on MPA’s He added “This plays to a strength upgrading as jobs evolve with increasing long-term plans to develop Singapore’s of Maritime Singapore, which is a automation and digitalisation. next-generation port and strengthen its cluster that is instinctively collaborative, On the global and connectivity front, international maritime centre. collegiate and cohesive.” Singapore will continue to strengthen its Singapore Maritime Foundation (SMF) Five pillars of partnerships underscore international maritime centre by building chairman Andreas Sohmen-Pao said that the Sea Transport ITM initiative. They up the connectivity of maritime clusters the new strategy looks to strengthen include a maritime technology acceleration overseas to harness the extensive network intangible assets and capabilities, and is programme to help bridge start-ups with effects of such linkages. SS

Launch of the Sea Transport Industry Transformation Map

www.singaporesolutions.sg Singapore Solutions 2018 8 | SINGAPORE INITIATIVES

MPA EMBRACES NEW TECHNOLOGIES

The Maritime and Port Authority of Singapore is staying firmly on the track of technology advancement and intelligent operations as the future for the maritime sector of Singapore

he use of such as erecting staging. This and financial commitments in unmanned aerial also means surveyors do not the preparation, printing and vehicles can help have to climb to high places to delivery of these certificates. shipowners save check for defects. “The use of e-certs will Tpotentially millions in costs “The use of drones also save time and costs, reduce during a ship survey, and the reduces man-hours and costs the risk of fraud, and do away busy port of Singapore is for shipowners – it is a win-win with having to mail hard copy heading towards leveraging situation for all,” Mr Tan said. certificates to ships wherever the drone technology for The onset of new they are in the world. We Singapore-registered ships. technologies including drones are one of the first flag The Maritime and Port and digitalisation open up new administrations in Asia to test Authority of Singapore (MPA) intelligent operations for ships this out,” Mr Tan said. has been developing the and ports. “IoT, digitalisation The SRS boasts more acceptance criteria for the and new technologies such than 4,600 ships flying the use of remote inspection as blockchain and smart Singaporean flag. The SRS is ANDREW TAN (MPA): No let techniques on board drones are changing the way the fifth largest ship registry up for Singapore in the pursuit Singapore-registered ships, we work. To stay ahead, the in the world with one of the of technology and innovation and the plan was rolled out in Singapore Registry of Ships youngest fleets. the first quarter of 2018. (SRS) needs to embrace In the long term, the MPA is M3 Marine group chief these technologies to offer looking at reducing customer executive Mike Meade said value-added services to its turnaround time through the erection of scaffolding for customers,” said Mr Tan. automation such as using a special survey of a VLCC, The MPA has embarked robotics processing to verify level as countries seek for example, can cost US$2M. on a more digitalised path certificates, automatic approval to make shipping more “You eradicate a need for with the recent issuance of armed guards and issuance environmentally friendly. that with the use of drones. of electronic certificates of mortgage confirmation. “The onset of new But this drone technology is (e-certs) directly to Singapore- “As you know, the industry technologies such as sensors, moving quicker than the big registered ships, in addition to continues to face strong IoT and data analytics open class society organisations, so e-certs issued by Recognised headwinds. The offshore up new opportunities for there are instances where they Organisations. This was rolled sector is going through a ships and ports to be more are unable to deliver some out at the end of last year. prolonged depression, while intelligent, interconnected of the services that we want Before e-certs, hard imbalances in supply and and more ready for the from them,” Mr Meade told copies of over two dozen demand continue to weigh digitalisation wave of change,” Singapore Solutions. certificates had to be kept down on freight rates in the Mr Tan commented. MPA chief executive on board ships to provide container segment. The tanker He added that the next Andrew Tan said the port proof of compliance with and bulk markets also remain phase of development will see authority has been conducting the various regulations or volatile,” Mr Tan said. MPA focus on productivity, several trials using drones to conventions applicable “Against this backdrop, innovation, internationalisation survey cargo tanks of ships, to them. Converting the the industry faces increasing of local companies, and jobs eliminating the need for hardcopy certificates to regulatory pressures both and skills for those in the traditional methods of survey e-certs reduces manpower at the IMO and national industry. SS

Singapore Solutions 2018 www.singaporesolutions.sg SINGAPORE INITIATIVES | 9

Use of LNG as fuel continues apace in Singapore

KEY DEVELOPMENTS HAVE TAKEN PLACE IN THE REPUBLIC European Union’s Connecting Europe Facility. AND THE FOUNDATION FOR LNG BUNKERING TO BECOME A The increasing focus on REALITY IS STRENGTHENING WITH EACH PASSING YEAR promoting the use of LNG as fuel is not surprising given the fact that the IMO Marpol Annex VI regulation on curbing n late December last PSA Marine is set to benefit under this LNG shipping and sulphur emissions will kick in year, Singapore’s from a Maritime and Port bunkering initiative started in from 2020, mandating all ships Pavilion Gas confirmed a Authority of Singapore (MPA) September 2015 with S$12M. to burn fuel with a maximum contract to supply LNG grant of up to S$2M (US$1.5M) All the funds from the first fuel sulphur content of 0.5%. Ibunker fuel to compatriot PSA for each newbuild tug, under round have been utilised. The use of LNG is one Marine’s LNG-fuelled tugs that the port authority’s initiative to The funding aid by MPA of the few solutions for are scheduled to be delivered promote LNG bunkering via on the construction of new operators, who can also opt to in 2019. ship construction projects. LNG bunker tankers, however install scrubbers or simply buy PSA Marine has inked a In December 2017 the MPA small the amount, is a much- the more expensive compliant deal to build one dual-fuel announced the injection of an needed cost offset because fuel or distillates. LNG harbour tug and awarded additional S$12M (US$9M) to these vessels can cost The LNG as fuel option faces a second newbuild contract for help companies co-fund LNG upward of US$30M. hurdles such as an absence a similar unit in January 2018. shipbuilding projects. In the middle of last year, of a global interconnected Tugs are the workhorses Half the amount will be Singapore LNG Corporation LNG bunkering network, an in any port, and they will have earmarked to co-fund the (SLNG) successfully performed insufficient number of LNG to be one of the first to run construction of new LNG bunker its first small-scale LNG gas- bunker tankers to conduct on clean gas or low-sulphur tankers, and the other half up/cool-down and reload at deliveries, and the inability fuel oil if the port is to set will go toward co-funding the its terminal on Jurong Island. of the clean gas to cut out an example on regulatory building of LNG-fuelled ships. The completion of the LNG emissions of carbon dioxide. compliance come 2020. The first round of funding reload operation demonstrates Singapore is conducting an the SLNG Terminal’s ability LNG Bunkering pilot programme to break LNG cargoes into that will run until 2020. The smaller parcels and facilitate pilot programme is testing Singapore is not holding back in its efforts deliveries of small volumes of operational protocols to ensure to become an LNG bunkering port LNG to other terminals in the LNG bunkering can be carried region, or as bunker fuel to out safely and efficiently. ships in Singapore port. A part of the pilot The operation was programme includes conducted at SLNG Terminal’s international co-operation. secondary jetty, which is Singapore has started designed to accommodate working with 11 global ports LNG vessels from 60,000 m³ to establish a global network to 265,000 m³. of LNG bunker-ready ports SLNG chief executive John across the East and West. Ng said SLNG is exploring Some of the port members possible modifications to include Europe’s Antwerp the secondary jetty for it to Port Authority, the US Port accommodate LNG vessels as of Jacksonville, Japan’s small as 2,000 m³. The bunker Ministry of Land, Infrastructure, delivery was carried out by the Transport and Tourism, China’s 6,500 m³ Cardissa, owned by Port of Ningbo-Zhoushan and Shell and co-financed by the Canada’s Port of Vancouver. SS

www.singaporesolutions.sg Singapore Solutions 2018 10 | PORTS, TERMINALS AND CONTAINERS

PSA makes future-

to consolidate all port operations to a new Tuas Terminal that will The port of the future needs a competent feature state-of-the-art automated container handling technology. next-generation workforce, and PSA The operation of this technologically advanced new port will fall into the hands of the next generation by the time the project is is not holding back on making sure fully completed. Singapore will have this pool of In January 2018, PSA and Republic Polytechnic (RP) launched a joint Experiential Laboratory to provide an authentic simulated young talent environment for classes to be conducted based on real-life port management and operations scenarios. The joint effort is part of a three-year memorandum of understanding between PSA and RP. The lab is equipped with a port simulation hardware and software system mimicking operations at actual PSA container terminals allowing students to visualise how changes affect plans and their dependency effects. Around 400 RP students from the Diploma in Industrial and Operations Management, Diploma in Supply Chain Management and Diploma in Aviation Management are expected to benefit from the Experiential Laboratory annually for their respective discipline modules. PSA International regional chief executive Ong Kim Pong said f there is one area that PSA has put a lot of effort into for “As PSA develops our next generation of highly automated and 2017, it is the nurturing of talent and the next generation intelligent container terminals, we need to continue to attract young of workers. talent who possess the necessary competencies.” Over the course of last year, PSA launched joint In November last year, PSA and the National University of Iinitiatives with three Singapore-based educational institutes and Singapore (NUS) collaborated to develop human capital in formed another early this year. The series of partnerships with advanced port technologies and intelligent systems. the educational institutes is in line with a mega 30-year project PSA will jointly develop curriculum and programmes with the

PSA Singapore Terminals recorded a 9% increase in box throughput last year PORTS, TERMINALS AND CONTAINERS | 11 proofing moves

NUS School of Computing and NUS Faculty of Engineering, where On the technological front, PSA, Pacific International Lines (PIL) students will have opportunities to advance their knowledge in and IBM Singapore have agreed to collaborate to explore and trial a wide range of areas, including data analytics, cyber security, proof of concept blockchain-based supply chain business network automation and intelligent systems. innovations. A memorandum of understanding was signed by the As the new Tuas integrated port will leverage automation three parties in August last year. technologies and intelligent interconnected systems to enhance PSA, PIL and IBM Singapore will work together to explore proof terminal productivity and optimise processes, it will be important of concept using technologies such as blockchain to achieve for the next-generation workforce to understand how new better security, efficiency and transparency in regional supply technologies and intelligent systems are applied to modern port chain business networks, as well as connect to trade finance operations and equipment. solutions that can facilitate faster approval and fraud prevention. Mr Ong said “PSA has moved quickly to embrace advanced Blockchain, a decentralised ledger technology used by a port technologies and intelligent systems, such as data analytics, business network to securely exchange digital or physical assets, automation and robotics at our terminals as we prepare for is gradually being integrated into the shipping and port businesses Singapore’s container port of the future in Tuas. as a new mode of operation to prevent breach of sensitive data. “We have embarked on a plan to redesign jobs and build PSA group chief executive Tan Chong Meng commented competencies, to continue to create exciting new career pathways “Across the global movement of goods and cargo, many activities for our present and future employees,” he said. continue to operate in silos. Blockchain has the potential to reduce PSA will also provide and strengthen its support for NUS’ inefficiencies and gaps within the supply chain, promote more Global Engineering Programme, Innovation and Design-Centric cost-efficient transactions and facilitate the continued growth in Programme, and Co-Operative Education Programme. world trade.” In April 2017, PSA entered into a collaboration with the Institute of Technical Education (ITE) to launch a new Specialist Nitec course on port equipment drives and spreader controls, aimed at providing a structured course for ITE graduates to sharpen their skills in port equipment. Strong growth in PSA Conducted by qualified trainers at PSA Singapore, the ITE graduates will be trained to diagnose and rectify faults in port Singapore container volumes equipment drives and spreader controls. In March 2017, PSA and Singapore Institute of Technology PSA International’s flagship PSA Singapore Terminals handled (SIT) signed a memorandum of understanding to co-operate on 33.35M TEU of containers in 2017, representing a 9% year-on-year building knowledge in advanced port technologies and developing increase. PSA terminals outside Singapore moved 40.89M TEU of manpower for engineering and infocomm technology disciplines. containers, bringing PSA International’s total throughput in 2017 to The collaboration displays both parties’ commitment in 74.24M TEU. developing talents for the maritime industry through various “In 2017, the global economy saw some recovery and bright spots of platforms, as a skilled workforce is vital for PSA’s new generation growth although the shipping industry continued to face challenges as of ultra-modern and intelligent container terminals. the huge wave of consolidation and alliancing in 2016 began to manifest As part of the memorandum of understanding, students and its full effects operationally,” Mr Tan said. faculty from SIT will be exposed to PSA’s inner workings, with “The word ‘disruption’ has moved from being a buzzword to being specialists from PSA delivering guest lectures on port technology the norm for most industries, reflecting the accelerated pace of change and operations. PSA and SIT will also work together on applied and leaving no industry untouched.” research projects to explore solutions to business problems. He added that PSA has performed reasonably well against the Meanwhile a four-party partnership was formed in January challenging backdrop and tough competition. There is also a need this year, bringing together PSA Corporation, Maritime and Port to adapt and pre-empt the changing needs of shipping lines, amid Authority of Singapore (MPA), Singapore Port Workers Union developments and issues buffeting the industry in the forms of (SPWU) and Port Officers’ Union (POU), to work on a host of technological forces and IT security threats, he pointed out. human capital development initiatives. “In addition, we are also preparing for a future where logistics The collaboration under a memorandum of understanding and supply chain needs are transformed by new technology trade, will last for five years, covering training and development of port manufacturing and e-commerce dynamics,” Mr Tan commented. employees, enhancement of capabilities and outreach efforts to “As we sail into 2018, we are cognisant that the world will continue elevate the profile of maritime careers. These initiatives are aimed to grapple with uncertainty geopolitically, economically and socially. The at equipping port employees with vital new competencies, and way businesses and consumers engage, transact and collaborate continue to attract youth and mid-careerists into the port sector, helping to to evolve, and will have further impact on the form and flow of the ensure continued competitiveness of Singapore port. global supply chain.” SS

www.singaporesolutions.sg Singapore Solutions 2018 MTM Ad A4.pdf 1 19/1/16 10:50 am

CMY

K MTM Ad A4.pdf 1 19/1/16 10:50 am

PORTS, TERMINALS AND CONTAINERS | 13

ENGINEERS FOR THE FUTURE

SA Corp and the Institution of Engineers, Singapore Some features of an intelligent port include unmanned (IES) have joined up to launch the Chartered drones, data analytics and simulation, augmented reality, robotic Engineer certification programme for the port and arms, exo-skeletons to perform physically demanding motions, P marine sector. and a future command centre to co-ordinate automated port The Chartered Engineer certification is an external validation equipment such as automated rail-mounted gantry cranes, of an engineer’s experience, expertise and technical competence automated guided vehicles and automated quay cranes. across various sectors. This collaboration allows port engineers PSA International regional chief executive Ong Kim Pong C with the requisite experience and training to gain a globally commented “This programme will give engineers from PSA M recognised certification of engineering professionalism. The and the industry an opportunity to receive internationally partnership will also help develop engineering talent for the recognised validation of their experience, and a respected mark Y maritime industry. of professional competency. This collaboration will elevate the CM A pioneer batch of 13 engineers from the Maritime and prestige of engineering careers in the port industry, attracting

MY Port Authority of Singapore (MPA) were presented with the and retaining the talent needed for the future.” certificates late last year. These engineers passed a rigorous IES deputy president Dr Yeoh Lean Weng said the port CY assessment process that looks at their experience and skills in and marine sector is a key contributor to Singapore’s economic

CMY managing complex engineering systems. growth. “The programme’s stringent peer review system and In tandem with the certification, PSA will collaborate with international benchmarking will help to build a strong core of K IES to identify relevant skills development programmes for the competent engineers to support the development of the Tuas engineers to enhance their engineering capabilities, to meet the mega port, and will strengthen Singapore’s position as a leading needs of the intelligent port of the future. global maritime hub,” Dr Yeoh said. SS

Certificates presented to the pioneer batch of engineers under the Chartered Engineer programme

www.singaporesolutions.sg Singapore Solutions 2018 Jurong Port building on landmark 2017

A NEW LIQUID BULK TERMINAL AND THE JOURNEY TOWARD A ‘NEXT GENERATION MULTIPURPOSE PORT’ FORM THE BACKBONE OF DEVELOPMENTS FOR JURONG PORT

ingapore’s multipurpose port of clean petroleum products. That capacity alongside Jurong Port’s berth. operator Jurong Port concluded represents about half of the past year’s Mr Ooi said the port is in a position 2017 with a few key milestones additions to Singapore’s overall capacity. to not only support LNG bunkering S that touched on the expansion of The liquid bulk terminal is supported activities but also the development of R&D programmes, the launch of a joint- by four jetties with draft of up to 17.6 m, regional LNG distribution. venture terminal and the opening of a skills capable of handling vessels up to 180,000 January 2017 saw Jurong Port launch its learning academy. dwt. The terminal, located on 16 hectares new Jurong Port Academy that leverages In November Jurong Port and Nanyang of existing land in Jurong Port, will be new technology and innovation to enhance Technological University (NTU) signed a connected via pipelines to the Jurong Island capabilities, increase productivity and upskill five-year memorandum of understanding to petroleum and petrochemical network. port workers. As workers are at the centre jointly pursue R&D in areas such as smart Construction of Jurong Port Tank of port operations, a technology-enabled multi-energy systems, alternative energy Terminals started in May 2017. It is on workforce can move away from routine and source applications and environmental track for completion by 2019. labour-intensive tasks to focus on productive monitoring solutions. Jurong Port believes that the and higher value-added activities. Both Jurong Port and NTU will development of the new liquid bulk Both new and existing port workers conduct research projects and testbed terminal will be an important milestone will benefit from the structured approach solutions as part of Jurong Port’s Living because it will reinforce Singapore’s applied to develop a new generation of port Lab programme, conduct mutual exchange international maritime energy and professionals for the industry. The Jurong of expertise including staff secondment chemicals hub status. Port Academy will help to create a future- programmes, and organise events to The Jurong Port Tank Terminals come at ready workforce. promote environmental sustainability a time when the global petrochemical trade Apart from the main terminal handling through maritime outreach activities and is on the rise as upstream activities slow general, bulk and containerised cargo, thought leadership. down after the oil prices collapse in 2014. Jurong Port operates the Offshore Marine Jurong Port chief executive Ooi Boon The energy and chemicals industry Centre, a multi-user waterfront facility Hoe said the partnership with NTU “forms accounted for about one-fifth of Singapore’s providing port services to companies the inaugural component of Jurong Port’s total manufacturing value-added in 2016, engaged in fabrication of marine and Living Lab programme to testbed solutions and provided jobs for around 25,000 people. offshore equipment. for our journey towards a ‘next generation Globally, Singapore ranks in the top 10 by On the international front, Jurong multipurpose port.” chemicals export volume. Port invested in strategic assets overseas In September 2017, Jurong Port and Jurong Port is fully behind Singapore’s with two joint venture terminals in China Oiltanking celebrated the official launch drive to become an LNG bunker-ready (Rizhao in Shandong province, and Yangpu of their joint venture Jurong Port Tank port. It conducted the country’s first LNG on Hainan island), and two in Indonesia Terminals, which has a total capacity of bunkering demonstration: a truck-to-ship (Marunda Center Terminal in West Java, 480,000 m³ catering to storage and trading transfer of LNG to a receiving vessel and Eastport in East Java). SS

Singapore Solutions 2018 www.singaporesolutions.sg PORTS, TERMINALS AND CONTAINERS | 15

PIL STAYING ON ITS OWN COURSE?

fter a spate of consolidation and freedom to work with different partners mergers in the container shipping across key trades. Indeed this has worked A industry, only four independent in PIL’s favour as in January this year, for mid-sized carriers remain. They are PIL, example, PIL collaborated with Ocean Yang Ming, Hyundai Merchant Marine Alliance to launch two upgraded weekly (HMM) and Zim. Among them, only services on the Far East-Red Sea route, Singapore-headquartered PIL is not superseding three previous services. government-linked. In the meantime, PIL is in the PIL is also the last major Singapore- middle of a newbuilding programme that based container line after the partly state- comprises 16 11,800 TEU containerships owned Neptune Orient Lines – which due for delivery between the end of 2017 owns operating arm APL – was sold to and 2019. France’s CMA CGM. As of January 2018, PIL owns and The family owned PIL, though, operates a fleet of 155 ships comprising is managed by Teo Siong Seng, who 137 box ships with a combined capacity has been a politically active figure in of 420,000 TEU and 18 dry bulk carriers/ Singapore both as a nominated member multipurpose vessels totaling 1.1M dwt. PIL ships trade across a range of of parliament between 2009 and 2014 and The carrier is ranked 11th among the ports in the Asia-Pacific as the current chairman of the Singapore top container ship operators globally, with Business Federation. a dedicated network of feeder services Rumours persist that China’s COSCO covering a range of ports in southeast Shipping is looking to buy Singapore’s Asia, the Bay of Bengal, the east coast of Pacific International Lines (PIL). Industry India, East and West Africa, the Federated sources contacted by Singapore Solutions States of Micronesia, the Mariana Islands have mixed views on the rumoured and the Pacific Islands. PIL offers a direct acquisition. Some have said it will be a link for project and breakbulk shipment strategic and natural move by COSCO through its multipurpose service between Shipping because PIL can help fill gaps the Far East and Africa, the Red Sea and in its trading routes. Others say there is Indian Subcontinent. no reason for PIL to sell out, given its profitable niche service operations during a tough market (see also boxed item). A partnership between COSCO and PIL was announced in September 2017 in a charter swap deal, wherein COSCO Container fleet growth to continue Shipping will lease one 6,600 TEU box The global container shipping segment exercises and permanent slow-steaming ship and five 4,250 TEU ships from PIL, is projected to see net fleet growth of to keep fuel costs on a tight leash. On top while PIL will lease six 5,500 TEU ships approximately 4% in 2018, compared with of that: operational efficiency gains and from COSCO Shipping. 3.3% in 2017, according to BIMCO. positive demand growth gain more boxes COSCO Shipping explained that BIMCO chief analyst Peter Sand said on the individual ships. The latter means chartering the six PIL vessels would allow the nominal fleet growth level over the harvesting some of the economies of the group to cover routes to the US, New next few years will also be around 4%, scale the industry relies heavily on – with Zealand, Africa and India, as well as to leaving little room for fundamental market the large volumes coming from front-haul benefit from securing deployment for its balance improvements. The expected fleet trades,” Mr Sand explained. surplus vessels. growth is due mainly to the 20 new orders He added that profitability is up for COSCO Shipping is a member of for 22,000 TEU ships that are scheduled to grabs across the container shipping the Ocean Alliance. PIL is not a member be delivered in 2019-2020. industry, if demand growth remains in the of any alliances because the Singapore “As a result, increased earnings region of 4-5% and actual fleet growth is company believes that confers more must come from continued cost-cutting “handled with care.” SS

www.singaporesolutions.sg Singapore Solutions 2018 Where The West Meets The East

Union Marine Management Services Pte. Ltd. Singapore Announcing the opening of UMMS Norway at Storgata 17, 0184 Oslo

Head Office: 3 HarbourFront Place. #12-01, Harbourfront Tower-2, Singapore 099254 India Office:Unit -7,2nd Floor, Ansal Plaza Mall,PalamVihar, Gurgaon-122001, Delhi-NCR Philippines Office/ Training centre: 10th Floor Marc 2000 Tower, Quirino Avenue, Manila Vietnam Office/ Training centre:1502, Floor 15, Catbi Plaza Building,Le Hong Phong Str, HaiPhong City

Ph: +65 6922 0260 / Email: [email protected] / Website: www.unimarships.com

full_page_ad_template.indd 1 23/02/2018 09:25 SHIPMANAGERS AND SERVICES | 17 BSM books growth in Singapore

ernhard Schulte continue growing the fleet “LNG will be a great International Shipmanagement over the course of this year. solution, especially for cruise shipmanager (BSM) continues to The group’s managed fleet vessels and ferries on fixed see business growth is fairly spread across the runs, as well as for large BSM is keeping Bamid the protracted downturn different ship types, with two- container ships on long-haul of the global shipping market, thirds of the ships being gas voyages,” Mr Maxwell said. one eye on LNG as it enlarges its managed fleet and chemical tankers and one- He noted that due to the as the group in Singapore and looks to play third being bulk carriers and high cost of retrofitting existing a bigger role in LNG shipping. container vessels. ships to run on LNG, the use continues to BSM Singapore managing Mr Maxwell highlighted of LNG as fuel will mostly record growth director Bob Maxwell affirmed that LNG is a sector that BSM be for newbuildings. A good that expansion is continuing, will not lose focus on, and the example is leading container in the Singapore though the pace of growth group believes it is already line CMA CGM, with its plan to can never be the same as in fairly connected to being part order nine 22,000 TEU ships managed fleet the previous shipping boom. of a future where LNG will to run on LNG. “Business over the last few increasingly be used to propel “Over the next 10 years we years has been good for us. ships. BSM has partnered will likely see 15% of the world’s It is not booming, but there with Babcock International merchant fleet run on LNG,” Mr is growth,” Mr Maxwell told Group to build a 7,500 m³ Maxwell said. Singapore Solutions. LNG-fuelled bunkering vessel LNG is also becoming a The managed fleet for scheduled for delivery in more common seaborne traded BSM in Singapore has grown September this year. The commodity due to the change in to 98, from just over 90 in bunkering vessel will operate its pricing structure, and shipping 2017, and there are plans to in the Baltic Sea to supply LNG has come to benefit from this, to ferries, containers, cruise according to BSM corporate vessels and other shore-based director Angus Campbell. gas consumers. “We have seen the break in BSM is also working with the link with oil on LNG prices, the Society for Gas as a and that is making natural Marine Fuel (SGMF) and the gas a more competitively Society of International Gas priced fuel that is encouraging Tanker and Terminal Operators Asian countries to establish (SIGTTO) to support the LNG import facilities such as development and adoption of FSRUs,” Mr Campbell told uniform operating standards Singapore Solutions. for LNG shipping. Mr Campbell noted that The move into LNG the introduction of an FSRU shipping fuel also means BSM can in turn prompt the has committed itself to crew existing pipeline producers to and shore staff training, as reconsider their pricing and well as getting up-to-date on make the LNG market more the regulatory and technical competitive overall. aspects of operating an LNG- The increasingly stringent A BSM officer on the watch fuelled ship. IMO and European Union

www.singaporesolutions.sg Singapore Solutions 2018 18 | SHIPMANAGERS AND SERVICES

limits on fuel sulphur content Meanwhile, BSM further operators to know in advance BOB MAXWELL (BSM): will also restrict fuel choices entrenched its position in the if maintenance is needed, Singapore remains an over the next five years, LNG business after it signed and to enhance workplace excellent business hub accelerating the move to a deal in January 2017 to fully safety. Mr Maxwell said ship for shipmanagers cleaner-burning fuels such as acquire LNG shipmanager performance reports are LNG, with a concurrent need PRONAV. Hamburg-based collected and analysed to for new technologies and LNG PRONAV specialises in large reap such information, and refuelling infrastructure in the LNG tonnage. The BSM there is hardly a substantial world’s major bunkering ports. group currently provides cost increase for owners. “As we look at management services for 23 Not to mention that prices environmental concerns, the LNG carriers. for modern technology are decrease in use of coal for Apart from the focus on on the decline due to the power generation and the the LNG sphere, BSM is competitive nature of the increase in supply of natural continuously looking to tap technology industry. gas as a comparatively clean big data and digitalisation Mr Maxwell added that fuel are reasons why we to help owners get things shipmanagers are looking are seeing various countries done in a more efficient way, at vessel information in a in Asia establishing more according to Mr Maxwell. more analytical way to get an LNG receiving terminals,” Mr “We will be happy if we can overview of the status of the Campbell said. handle and apply ‘medium machineries and the overall Mr Maxwell observed that data,’” he said, as the actual vessel performance. “We are the small-scale LNG markets of big data could be too not just looking at numbers. Indonesia and the Philippines voluminous and complex at Ship performance reports present vast opportunities for this stage for shipping. are now being collated and BSM, as there will be growing Big data also tends to analysed in a more modern way demand for FSO, FPSO and refer to the use of predictive – or you can call it predictive LNG carriers in the region. analysis, an important tool for maintenance,” he said.

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FUTURE OF SHIPPING IS DIGITALISATION

The reality of autonomous operating to serve the global LPG carriers, ropax and shipping is not a question fleet, he added. car carriers, FPSO/FSO, of if but when, according WSM provides full containers, cruise, bulk, to Wilhelmsen Ship technical management to seismic and offshore. Management (WSM) around 140 ships and crew WSM’s other key services CARL SCHOU (WSM): president Carl Schou. management for over 200 include drydocking, lay-up, “We will be looking at a WSM has embarked on a ships,2_Tanker_W124xH190_EN-.pdf in various vessel 1 2018/02/13newbuilding 14:53:08 supervision, and whole new operating model” growth strategy that centres segments including LNG/ green ship recycling. SS on digitalisation, and a part of that strategy is to move its headquarters to Singapore, a place where the digital innovation drive is in full gear. “We are already working on a concept for autonomous ships and the regulatory aspects of it,” Mr Schou said. He added that dialogues are ongoing with the relevant parties to bring this concept forward. “We will be looking at a whole new operating model. For example, machinery on board must not break down during the voyage because there will be no crew to manually do repairs,” Mr Schou told Singapore Solutions. “The future of shipping is digitalisation. In view of that, C Singapore is the ideal place to have our headquartersM because the country offers Y the full spectrum of activities within the maritime confines,”CM

Mr Schou said. MY WSM is relocating its global headquarters to CY

Singapore from Malaysia’sCMY Kuala Lumpur during the K first quarter of this year. “The Singapore authorities have a strong focus on developing the maritime industry, and they have been extremely supportive. Being in Singapore enables us to position ourselves in the centre of an ecosystem that shares our ambitions for growth and digitalisation,” Mr Schou said. Kuala Lumpur will continue to be an important location where shared services and back office functions will remain 20 | SHIPMANAGERS AND SERVICES

Global Radiance to more than double livestock fleet

Livestock vessel Awassi Express has executed voyages for charterers and livestock exporters including ILE, Landmark and KLTT

Shipmanager Global Radiance year for the industry. An ever increasing global population means is anticipating a busier year for that there will be an ever increasing demand for food, he said. Moreover, last year a groundbreaking deal was signed between livestock trades Australia and China that will double Australia’s export of live cattle to China. One million cattle valued at more than US$1Bn will be shipped to China each year. As such, the livestock business is healthy and only expected to grow, according to Mr Siddiqui. Meanwhile Australia is also looking to restart livestock trading ingapore-based Global Radiance has its sights set on the with Saudi Arabia. Trade between these two countries stopped livestock vessels segment as it looks to expand its managed in 2012. International Livestock Export chief executive Graham fleet. This is despite the challenges faced by the livestock Daws said although there had been some positive developments, the S industry in 2017. process of renegotiating trade options and restarting trade between Last year was difficult for the livestock industry because Australia and Saudi Arabia would be a lengthy process. Australian cattle prices were high and Indonesia reduced its order Global Radiance manages three livestock vessels, and will be intake. This compounded an already difficult market situation for adding four more in the first half of this year. Furthermore, the managers of livestock vessels. company is looking to take over two more units that are planned Global Radiance managing director Abdul Lateef Siddiqui for construction. The company also manages three chemical tankers, told Singapore Solutions that in addition to the specific challenges one of which was added earlier this year. posed by livestock vessels themselves, their management is Apart from specialisation in livestock vessel conversion made more time consuming by extremely stringent Australian and management business, Global Radiance is involved in the Maritime Safety Authority (AMSA) inspections and regulations. management of chemical tankers and other industry segments such AMSA will introduce new regulations on age limitation as project management (including cold stacking, warm layup of and livestock welfare under the new Marine Order Part 43 OSVs, and manpower supply). regulations, which will be enforced from September this year. “The layup business is another area of focus for us and we continue Younger vessels will be the preferred choice for charterers so as to have strategic alliances with certain chemical suppliers and anchorage to fetch higher charter rates and eventually give better returns to operators to handle the layup projects with care,” Mr Siddiqui said. the investors/shipowners. The company’s manpower arm supplies certified and experienced “No one can deny the fact that reliability for livestock vessels seafarers for long- or short-term requirements. Mr Siddiqui pointed is more critical compared with any other type of vessel because out that the crew retention rate for their managed fleet is around 95%. livestock vessels have live cargo on board,” Mr Siddiqui commented. Global Radiance serves these diverse clients with a strong regional Mr Siddiqui further noted that livestock vessels’ operating costs and global network. It aims to use this to provide customised and are much higher compared with other commercial ships, so it will economical solutions to its clients, in order keep the operating cost low. not be viable to manage older livestock vessels that earn lower In addition to its headquarters in Singapore, Global Radiance charter rates and have high operating costs. has a back office in Karachi, Pakistan. The company is looking to But Mr Siddiqui firmly believes that 2018 will be a turnaround open another office in Manila, the Philippines, by 2019. SS

Singapore Solutions 2018 www.singaporesolutions.sg

www.kimheng.com.sg [email protected]

(A Subsidiary of Kim Heng Offshore & Marine Holdings Ltd)

• Agency, Husbandry & Ship-management • Supply of OSVs, Rig Move & Towage • Supply of Marine Tugs, Barges & Crane Barges • Afloat Repairs, Upgrades and Conversions • Rig & Vessel Preservation and Re-activation • Supply of Drilling Tubular & Equipment • Steel & Aluminum Shipbuilding & Fabrication • Oil Spill Response & Salvage Operations Main Office: No. 9 Pandan Crescent | Singapore 128465 Yard: No. 48 Penjuru Road | Singapore 609152 www.kimheng.com.sg [email protected] SHIPMANAGERS AND SERVICES | 23

(A Subsidiary of Kim Heng Offshore & Marine Holdings Ltd)

Centennial Maritime Ventures’ diversifying portfolio

hipmanagement firm Centennial Singapore's business-friendly environment will propel the Maritime Ventures Pte Ltd (CMVPL) has expanded and CMVP managed fleet to 35 vessels diversified its portfolio to include Scrude oil tankers and dry bulk carriers. Last year its portfolio was just four current difficult times,” Mr Rastogi said. months, largely unchanged from the past product tankers. He hopes that incentives such as the year or so. “The market may move up The Singapore-headquartered Maritime Cluster Fund (MCF) or similar a little bit during the last quarter of this shipmanager today boasts a managed policies will continue to be available for year. At the moment, owners are at least fleet of bulkers and tankers including the long run. Introduced by the Maritime able to keep their heads out of the water,” handysizes and mid-sized kamsarmaxes, and Port Authority of Singapore, the he commented. as well as Aframax crude tankers, MCF is aimed at supporting the maritime The dry bulk market, on the other according to CMVPL general manager industry’s manpower and business hand, has improved slightly compared Amitabh Rastogi. development efforts as well as its drive for with two years ago. “Going forward we “We are looking at versatility in our productivity improvements. may see the same trend of a soft rising business going forward. It is better to be On the near-term outlook for product gradient. China will continue to play a in at least two shipping segments,” Mr tankers, Mr Rastogi said the market is major role in supporting the bulk market,” Rastogi said. expected to stay flat over the next six he said. SS CMVPL, established in Singapore in 2015, took over the technical management of four 45,000-47,000 dwt product tankers from March 2016. The company also has TANUJ BALANI (LEFT) AND AMITABH RASTOGI an operations centre in Delhi, India. want to inject versatility into their business The long-term goal of CMVPL is to manage between 30-35 ships from a mix of tankers and bulk carriers, Mr Rastogi said. CMVPL senior manager Captain Tanuj Balani pointed out that the company has grown to be recognised by all oil majors, and business activities have picked up. “When we first took over the • Agency, Husbandry & Ship-management product tankers, our rating statistics were averaging six observations per inspection. • Supply of OSVs, Rig Move & Towage We are now down to 2.9 observations per inspection,” Captain Balani said. • Supply of Marine Tugs, Barges & Crane Barges Mr Rastogi added that the business- friendly environment of Singapore has • Afloat Repairs, Upgrades and Conversions allowed the company to achieve the growth that it wants to see. “Singapore • Rig & Vessel Preservation and Re-activation has very supportive polices and a healthy tax regime that can encourage growth for • Supply of Drilling Tubular & Equipment the shipping market, especially during the • Steel & Aluminum Shipbuilding & Fabrication

• Oil Spill Response & Salvage Operations www.singaporesolutions.sg Singapore Solutions 2018 Main Office: No. 9 Pandan Crescent | Singapore 128465 Yard: No. 48 Penjuru Road | Singapore 609152 24 | SHIPMANAGERS AND SERVICES

skipped the annual maintenance of their oil rigs. This has created a snowball effect and operators are now starting to look WOOTZ again at maintaining their rigs. “We are into the fourth year of no maintenance for many rigs out there, and 2018 to 2019 will have to be the GLOBAL maintenance period,” Mr Khabya reckoned. During the last quarter of 2017, Malaysia’s Petronas conducted a pre-award meeting for its maintenance, construction and modification (MCM) jobs, which GOES FOR translate into contracts collectively worth RM6Bn (US$1.5Bn). The MCM jobs would run for five-year periods starting from the DECOMMISSIONING commencement of the respective contracts. “We will go after specific shorter contract jobs where we go in to complete and come out in a quick turnaround time so as to capture revenue fast. We are taking on risks in our books, hence our contracts have to be completed fast,” Mr Khabya explained. Amid the active decommissioning and maintenance oil rig market, he he offshore market’s severe observed that there are “very early signs” downturn has presented of recovery for the offshore oil and gas opportunities for Wootz market. A crude oil price of about US$50 TGlobal, a Singapore-headquartered per barrel is now the new norm that is firm that has captured a share of the “accepted and digested” in the finance decommissioning market, and is eyeing books of the oil majors. VIVEK KHABYA (WOOTZ GLOBAL): the rig maintenance market. “I believe we are headed for an The offshore market downturn has The decommissioning work done by industry recovery. We have started seeing presented new opportunities Wootz Global is concentrated in the southeast Petronas, PTT and Pertamina talk about Asia region, where more than 700 offshore their need for survey jobs and some new structures are waiting to be removed. jack-up drilling rigs for 2018 onwards,” Mr Wootz Global managing director Vivek Khabya said. Khabya said the group has been involved in Wootz Global has dipped its toe in parts of the dismantling process for over 70 the South American market in Ecuador, structures in Malaysia alone. “Malaysia still where the offshore market is at a very has over 500 structures left to be removed, premature stage. The potential in Ecuador and Indonesia has about 100. Thailand has is in gas exploration of its shallow waters. just started the decommissioning process, Mr Khabya said the company has a local and it has about 120. They are all located in partner in the country to start geophysical shallow waters and these markets are good and geotechnical studies. entry opportunities for us,” Mr Khabya told Meanwhile the vessel chartering arm Singapore Solutions. of Wootz Global is looking to firm up He said Wootz Global only gets bareboat charter contracts for a pair of involved at a particular stage during the 120-tonne bollard pull AHTS vessels, one decommissioning process rather than crew boat and one seismic support vessel undertaking the entire work, which is or 60-tonne AHTS vessel. These ships typically completed in approximately three will help execute Wootz Global’s various months. The most dangerous stage of projects. The company has the option the decommissioning process is the early to buy the vessels upon expiry of the work of plugging and abandonment of the charters ranging from three to five years. well cap. Mr Khabya said the company is not “We expect to generate revenue from looking at chartering dry bulk carriers the decommissioning market for the next due to the sector’s severe oversupply. It three or even five years,” Mr Khabya said. is “flirting” with the more positive tanker He noted that due to the sluggish shipping, but there are no commitments offshore market, many operators have as yet. SS

Singapore Solutions 2018 www.singaporesolutions.sg An Ocean of Expertise Complete Solutions from a Trusted Partner Newbuilding & Conversion Crew, Technical & Commercial Management Maritime Training Catering & Housekeeping Seafarer & Corporate Travel Software Application Solutions Consultancy Services Global Support & Expertise

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Rolls-Royce is widely recognised for its system solutions for a broad range of vessel types. Systems comprising propellers and thrusters, engines, stabilisers, deck machinery, rudders, steering gear, automation and control systems. Rolls-Royce supply gas-powered propulsion solutions that reduce emissions significantly. Compared to diesel engines that meet IMO Tier 2 emission levels, Bergen gas engines give E2 weighted emission reductions of 92% NOx, close to 22% in CO2 and virtually eliminate SOx and particulates, already meeting enforced IMO and EPA Tier 3 requirements and are subject to EPA Tier 4 certification. Clean efficiency by Rolls-Royce.

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MT_Natural gas_1_1_012018 MT_Natural Trusted to deliver excellence SHIPMANAGERS AND SERVICES | 27

EXPANDING ORIENT MARITIME AGENCIES IS IN BULLISH MOOD

rient Maritime Agencies expects to 56,344 in 2015, according to statistics from the handle up to 2,000 ships in the port Singapore will Maritime and Port Authority of Singapore (MPA). of Singapore in 2018, a significant continue to be the In terms of vessel tonnage, Singapore port increase from slightly more than key market for recorded 2,520,040 gt from containers, bulkers O1,000 ships last year. the company, but and tankers, compared with 2,419,746 gt in 2016 Orient Maritime Agencies chief executive and 2,269,547 gt in 2015. Lakhbir Singh said “We expect to handle plans are already “The MPA has been very supportive when we 1,800-2,000 ships in Singapore this year. The underway to first started out in Singapore and we were given market is there for grabs, we just need to a S$30,000 grant, which was very helpful,” Mr strategise and approach the market correctly.” establish a presence Singh recalled. The company also has a physical presence in neighbouring “The Singapore market is moving very in Indonesia and Malaysia and its three offices Vietnam, Thailand quickly to become a knowledge-base hub. handled around 1,600-1,700 ships in 2017, up From a ship agency perspective we are seeing from just over 1,000 in 2016. and the Philippines that the use of technology will increasingly The company clinched a new container help us do our jobs more efficiently,” Mr husbandry contract in February 2017, in Singh explained. He cited the example of the addition to the existing contract with Hapag- voluminous paperwork involved in the entire Lloyd. In 2017, the company also secured supply chain: the path toward digitalisation volumes from naval vessels and activity from will greatly reduce the tedious process. The this niche segment is forecast to grow this MPA recently teamed up with the Singapore year, according to Mr Singh. LAKHBIR SINGH (ORIENT Shipping Association (SSA) and a local start- Orient Maritime Agencies launched in MARITIME): “The market is up technology firm to look into developing a Singapore in December 2015. Its staff include there for grabs” shipping agency tool utilising robotic process many who were formerly with Jardines. The automation technology to automate manual company is a pure agency business, carrying processes and save time. out works for bulk carriers, oil tankers and Looking ahead, Orient Maritime Agencies container vessels. is planning to open an office in Vietnam, most “We are volume-driven, especially in the likely in Ho Chi Minh City, within the year to Singapore market. Even though the shipping capture opportunities in the country’s vast oil market is sluggish, there are still a lot of ships and gas market. coming to Singapore simply because it is “In Thailand we already have a tie up with a port of convenience and operators know a local partner and have started handling they can get things done here. In that sense some ships,” Mr Singh said. He added that the volume has not dropped so much for us. In company is also looking to venture into the fact Singapore is a bullish market because the Philippines, Myanmar and eventually China. port is capable of quick turnaround times for “If you really want volume you need to go to arriving vessels. And with the charter market China,” he said. on a gradual rise, the turnaround time is Orient Maritime Agencies has contacts in becoming more sensitive for charterers,” Mr Myanmar, but it does not expect to be able to Singh told Singapore Solutions. fully enter that market in the near future. In 2017 Singapore port registered 58,055 “We will very much confine ourselves to the vessel arrivals (containers, bulk carriers and agency business. There is no aspiration as yet to tankers), compared with 58,587 in 2016 and get into asset plays,” Mr Singh said. SS

www.singaporesolutions.sg Singapore Solutions 2018 28 | SHIPMANAGERS AND SERVICES

UMMS sets foot in Europe

ingapore- UMMS managing director serving seven shipowners to continue sustained growth headquartered Union Vinay Gupta has noted a located around the world. The in the coming year, and come Marine Management “vacuum” in the western market fleet has grown consistently closer to our target figure,” Mr S Services (UMMS) as international shipmanagement since inception. UMMS added Gupta said. established a presence in Europe companies have all started to 11 ships to its portfolio in In a digitalisation with the opening of its office look to the Far East for business 2016, and seven ships in 2017. move, Mr Gupta said in Oslo, Norway, in March. and growth. The UMMS managed fleet the company has gained This move set the stage for the “Norway has a long history is majority bulk carriers plus a significant growth mileage company’s planned expansion of in shipping and there are a handful of container vessels and since the commercialisation its managed fleet. lot of shipowners there, but car carriers. While there are no of its inhouse cloud-based there is a lack of shipmanagers tankers in the UMMS fleet yet, shipmanagement Enterprise in Oslo and the wider Mr Gupta said the company Resource Planning (ERP) Scandinavian region. While has every intention of entering system in mid-2017. some shipmanagers do have the tanker market whenever the One of the features of the VINAY GUPTA (UMMS): a representative office there, opportunity arises. ERP system is 24/7 robotics Move towards digitalisation there are no technical services For 2018, UMMS is already software that helps to automate means greater transparency to really look after the interests committed to five more vessels, some of the processes to and lower operating costs of the owners,” Mr Gupta told while a few older vessels may increase productivity, improve Singapore Solutions. be sold. By 2020, the company efficiency and avoid human The new UMMS Norway plans to take on three larger errors. “We are also in the office, located in downtown container vessels and intends to midst of marketing this Oslo, started with a team further increase the container inhouse system to third parties of five people comprising fleet. At present, UMMS has and other shipowners,” Mr technical and operations staff. only two feeder containers on Gupta said. For a start, UMMS has moved its fleet trading between China “Part of our success story has eight vessels from Singapore to and Japan. been because our system is able be managed from Oslo. “Our intention is to grow to demonstrate transparency The boutique to a fleet of 50-60 Singapore- and achieve 100% compliance. shipmanagement firm has a managed ships, beyond The software is also a strong portfolio of 39 ships with 36 on which we believe the control value-add service to strengthen full technical management and on operation becomes a bit our core shipmanagement three on crew management, weak. We hope we are able business,” he said.

has four newbuild 30,000 dwt chemical tankers under construction, MTM focuses on efficiency which are scheduled for delivery in phases over 2018. MTM Ship Management will focus on efficiency rather than There are no plans for now to look for more vessels to manage. expanding its fleet portfolio amid the prolonged downturn of the But MTM Ship Management will pounce on opportunities in any vessel shipping industry. segment because the ship type “makes no difference to its operations” Managing director Vijay Rangroo said he is sticking to his belief due to the company’s experience in handling different ships. in an ‘owner-first’ strategy, with services revolving around how best The company was founded in Singapore in 1988. Mr Rangroo to benefit owners. said the city-state continues to be the ideal location for MTM Ship “We are not interested in looking at the number of ships in Management, which employs about 60 staff in its Singapore office, our portfolio as a way to gauge our growth,” Mr Rangroo told mainly taking care of shipmanagement and vetting services. It also Singapore Solutions. has around 60 staff in Mumbai, India, as well as crewing and training “Efficiency is the key. Even with the hype surrounding all that offices in Manila, the Philippines, and Yangon, Myanmar. digitalisation or modernisation of your operations, they seem to be “Singapore has always been preferred due to the country’s only for ‘look good’ purposes. Our principle has always been how sound infrastructure, reliable banking system, good education to benefit the owners,” he said. structure and availability of local talent,” Mr Rangroo said. But he The shipmanagement company manages a fleet of 64 vessels noted that the cost of doing business in Singapore has been on comprising 14 owned dry bulk carriers, eight third-party managed the rise in recent years, putting pressure on margins in an already bulker carriers and container vessels, and 42 tankers. The company difficult market.SS

Singapore Solutions 2018 www.singaporesolutions.sg full_page_ad_template.indd 1 26/02/2018 11:22 SS_2018_text.indd 18 14/02/2018 08:35 SHIPYARDS | 31

Singapore-listed shipyards face different fates

Nam Cheong’s first diesel-electric MPSV, the first ever to be built in Malaysia

hina’s Yangzijiang Shipbuilding and Malaysia’s Nam Industries late last year as a stepping stone to make its mark in Cheong, both listed on the Singapore Exchange (SGX), crude tanker construction. are facing different fates. The former is set to reinforce its Nam Cheong, another Singapore-listed shipbuilder, is facing Cposition in the republic, while the latter has a gloomy outlook. threats of bankruptcy as it struggles to come to an agreement with Last year, Yangzijiang Shipbuilding celebrated the 10th year its noteholders and creditors on the approval of a restructuring anniversary of its listing on the Singapore Exchange (SGX). Group plan under a scheme of arrangement. executive chairman Ren Yuanlin said the listing on SGX has given The plan would see shares and convertible bonds issued, the Chinese shipbuilding company the exposure needed to grow provide potential equity upside and an opportunity to exit an international business, and that the group will continue to immediately through cash out or immediate share conversion maintain a strong presence in the republic. options. Nam Cheong stated that the “timing and amount of Back in 2015, Yangzijiang Shipbuilding had delisted from the recovery under a liquidation scenario is highly uncertain given the Taiwan Stock Exchange (TSE) due mainly to the small trading depressed OSV sector.” The group stressed that the scheme would volume and the cost of maintaining the listing. offer significantly higher recovery than a liquidation scenario. A recent development in Singapore for Yangzijiang The financial restructuring of Malaysia-based Nam Cheong Shipbuilding, through its subsidiary Yangzijiang Shipping, is the involves approximately US$220M of unsecured debts. establishment of a new vessel leasing and chartering subsidiary. A liquidation scenario and subsequent delisting from the SGX The Chinese shipbuilder entered into an agreement with several is a real threat for loss-making Nam Cheong, a builder of OSVs strategic partners (undisclosed) to set up Yangzijiang Taihua caught in the offshore market downturn with 13 unsold vessels Shipping Pte Ltd. under the company’s build-to-stock business model. Nam Cheong Yangzijiang Shipbuilding will own a 49.45% interest in Taihua delivered only two vessels in 2016, compared with 11 vessels in Shipping through Yangzijiang Shipping, while the remaining 2015, 24 in 2014 and 20 in 2013. 50.55% equity interest will be held by the strategic partners. Meanwhile Nam Cheong has sold an office located in Yangzijiang Shipbuilding said this new set up can help the Singapore as part of its restructuring plan, with all proceeds group “better position itself in the shipbuilding industry when from the disposal going towards settlement of an outstanding opportunities arise amid the current trend of consolidation.” amount under a credit facility granted by DBS Bank. The Chinese shipbuilding industry continues to struggle During better times back in late 2012, Nam Cheong with excess capacity and a dearth of new orders, leading to the launched Malaysia’s first diesel-electric multipurpose PSV, shutdown of many privately owned shipyards. Mr Ren anticipated equipped with remote-operated vehicle mezzanine deck, and that it will take another three or even five years for the Chinese an 800 m3 deck area. shipbuilding market to recover. In 2014, Nam Cheong launched a new diesel-electric AHTS Yangzijiang Shipbuilding, which mainly builds container vessel with 80-tonne bollard pull based on its proprietary design. vessels and bulk carriers, has ventured into the construction of The energy-efficient vessel is equipped with selected electric crude oil tankers. The group acquired a half-completed 157,000 drives for lower fuel consumption and medium-speed controllable dwt Suezmax tanker from defunct compatriot Rongsheng Heavy pitch thrusters to provide better operational response. SS

www.singaporesolutions.sg Singapore Solutions 2018 32 | SHIPYARDS

Keppel puts up strong

Singapore’s rigbuilding and repair yards will continue to be he global offshore oil challenged by a listless offshore and marine market this year, and gas industry is though a glimmer of optimism and pockets of opportunities not out of the woods T yet, leaving major have surfaced rigbuilding yards still reeling from the impact of a lack of newbuilding orders and a slash in earnings. Singapore’s Keppel The KFELS Super B Class jack-up rig Corp, known for its leading role in global rigbuilding, saw its full-year results bogged down by its weak offshore and marine business division. Keppel Corp’s offshore and marine division incurred a full year loss of S$835M (US$638M) compared with the profit of S$29M for 2016. The loss was a combination of a one-off financial penalty, lower revenue, an additional S$81M provision for losses on the Sete Brasil rig contracts, an impairment of S$54M made to other assets and a lower share of associated companies’ profits. In 2017, the offshore and marine division secured new contracts of approximately S$1.2Bn mainly for LNG- related vessels, the conversion of FPSO units and newbuild dredgers. The handful of new contracts is already crucial because they contributed to stabilising Keppel’s finances. Keppel Offshore & Marine (Keppel O&M) landed a contract worth S$120M to build two dredgers for Jan De Nul. It also won a S$103M deal to build two LNG carriers for Stolt-Nielsen Gas. Keppel AmFELS, a subsidiary of Keppel O&M, secured a contract worth more than US$400M from Pasha Hawaii to construct two LNG- fueled container ships. Keppel Shipyard, another subsidiary of Keppel O&M, clinched an FPSO conversion contract from SBM Offshore. The shipyard also won

Singapore Solutions 2018 www.singaporesolutions.sg SHIPYARDS | 33 fight in tough market

a deal worth S$85M for will enable it to improve cash to Borr Drilling until the first and day rates remain low. While the conversion, repair and flow and minimise the risks of quarter of 2019. FIDs have doubled in 2017 modification of vessels for both the projects. “There is growing compared with 2016, and are new and existing clients. All the rigs are KFELS optimism in the offshore and expected to gather momentum Keppel Corp chief executive Super B Class designed to marine industry, following as oil companies restart their Loh Chin Hua commented operate in 122 m water depth the recovery of oil prices on oil exploration and exploitation “In the past year, amid a and drill to 10,500 m. With the back of extended supply programmes, it may be some challenging environment, a two-million-pound drilling cuts by OPEC and other oil time yet before they translate to Keppel delivered on projects, system and a maximum producers. The increase in orders for new drilling units,” entered new markets, seized combined cantilever load offshore rig transactions has he said. new opportunities, and of 3,700 kips, the KFELS also helped to improve the Nonetheless, Keppel continues established vehicles and engines Super B Class is equipped outlook,” Mr Loh said. to see “opportunities in the for growth.” with tremendous horsepower “But the rig market continues demand for production assets, In January this year, Keppel during drilling operations. to be plagued by a supply LNG solutions and specialised FELS delivered a jack-up rig In addition, each rig will be overhang, and both utilisation vessels,” Mr Loh added. to Borr Drilling, the first of five installed with offline stand under a bumper contract sealed building features in its drilling in March 2017. The contract system package, which allows Keppel Shipyard clinched an FPSO conversion contract in 2017 for building the five rigs was drilling and the preparation of originally with Transocean before drill pipes to take place at the it was novated to Borr Drilling. same time. The rig is capable The delivery dates of the of drilling at a 23 m outreach, five KFELS Super Class B allowing for coverage of a jack-up rigs were originally larger well pattern. between 2016 and 2017, but The rig acquisition spree they had been deferred by by Borr Drilling included its Transocean to 2020. The October 2017 purchase of first three rigs will now be another nine jack-up rigs from delivered between 2017 and Sembmarine’s PPL Shipyard, 2018, while the remaining Keppel’s Singapore rival in two rigs will be delivered in rigbuilding. The nine jack-up 2020. Keppel FELS said this rigs will be delivered in phases

RESULTS HIT BY ONE-OFF FINANCIAL PENALTY Singapore-listed Keppel Corp reported a net loss of S$495M in Keppel O&M has agreed to pay fines totaling US$422M to the fourth quarter of 2017 as against the net profit of S$143M in the three jurisdictions. The financial penalty is accounted as an the same period of 2016. The net loss mainly arose from a one-off extraordinary item and its impact is one-off. penalty and related costs as well as the weaker operating results of Mr Loh said “The global resolution reached by Keppel O&M its offshore and marine division. over past misdeeds in Brazil brings an end to what has been a For the full year 2017, Keppel Corp registered a profit of painful chapter for Keppel – one that we have recognised and S$217M, down by 72% from the S$784M profit for 2016. dealt firmly with. This is not Keppel. We are not just about results, Last year Keppel O&M reached a global resolution with but also how they are obtained. law-enforcement authorities in the US, Brazil and Singapore, “The past practices uncovered at Keppel O&M do not reflect bringing closure to investigations into corrupt payments how the Keppel Group conducts business today. Keppel does not made by a former agent of Keppel O&M in Brazil. The global just care about results, we care deeply about how our results are resolution relates to improper payments that were made to achieved. We have zero tolerance for corruption.” Brazilian Government officials between 2001 and 2014 in Mr Loh added that effective compliance controls are now relation to Keppel O&M’s various projects with Petrobras and embedded across all the group’s businesses, supported by Sete Brasil. rigorous anti-corruption training and compliance. SS

www.singaporesolutions.sg Singapore Solutions 2018 34 | TECHNOLOGY FOCAL MARINE KEEPS AN EYE ON LNG

Steering away from the sluggish OSV market, Focal Marine is picking up pace in the tanker shipping market and bunker tanker sector

hip designer Focal Marine & Offshore (Focal) is continuing Singapore, the world’s largest bunkering port, is a big market with efforts to break into the LNG market and maintaining its to tap into. The trend of bunker tankers getting bigger to match focus on the tanker shipping segment, while steering away larger capacity ships, and of them becoming more ocean- Sfrom the lacklustre offshore market. going vessels than being confined to port waters, means that The 2004-established Focal has offices in Singapore and incorporating energy-efficient design for bunker tankers is Shanghai. It had been involved mainly in the tanker shipping increasingly important. segment before it moved into offshore during the market boom of “There is a need to provide better systems solutions on bunker 2009-2014. The crash of the offshore market saw Focal return to tankers,” Mr Shu said. These systems can include cargo monitoring, the more positive tanker shipping market from 2015. fuel management, custody transfer and tank level gauging. The company has made new headway in tanker vessel designs, The gradual heightening of interest in LNG bunker tankers rolling out the WACBAS design for 51,000 dwt chemical/product is another area in which ship designers like Focal Marine see tankers. A global drive toward cleaner modes of transportation has potential. Singaporean authorities are making a big push for the put LNG shipping under the spotlight, prompting Focal to venture port to become an LNG bunker-ready port, and that means there into this clean gas segment. is huge potential to bring in more LNG bunker tankers. Focal general manager Shu Jun told Singapore Solutions: As for the offshore market, which is still in a recessionary state, “We are constantly making efforts to get into the LNG shipping Mr Shu shared that he has seen a slight increase in enquiries. “We market, and there is huge potential in the small-scale LNG market do see enquiries about conversion jobs such as from PSVs to ROV of Indonesia.” He added that the company is targeting the smaller support vessels, fishing boats or windfarm vessels. They are not big 10,000 m³ LNG carriers. contracts, but they still help in terms of revenue contribution,” he said. Focal’s interest in the tanker segment ranges from small The company’s portfolio includes two chemical carriers, three to medium-sized chemical/product tankers to the larger Aframax tankers and two product tankers, all completed since Aframax crude tankers. The WACBAS hull (WAve Cutter Bow 2008, as well as OSVs including PSVs, AHTS, OCVs, ERVs and & Asymmetrical Stern) design reaps 3-5% better propulsion accommodation barges. efficiency and reduces bow slamming. The design can optimise Some of the company’s designs include the Focal 523 cargo capacity, and allow the option of LNG as fuel and the featuring diesel-electric DP3 with Voith propulsion. There is stainless steel cargo-only tank option. also the Focal 530 featuring diesel-electric DP3 with azimuth “We need something unique to win business in a competitive propulsion, two offshore cranes, one walk-to-work active heave market. The important consideration is to put zero extra cost on compensated gangway, and accommodation for 300 persons. owners, but allow them to benefit from hull effectiveness for long- Some other designs include the Focal 552 DP2 ERRV, the Focal term savings,” Mr Shu said. 528 diesel-electric PSV, and the Focal 539 DP3 that includes ROV Focal is also looking for deals in the bunker tanker segment. operation. SS

Focal's portfolio includes two chemical carriers TECHNOLOGY | 35

Shipping needs to react to Minamata Convention

SAGAR TANKSALI (SERAPHIC ENERGY): The Minamata Convention is important at various levels

a proactive and sensitive government like Singapore. I would like to see governments issuing 'public interest' notices in popular media about the treaty. People must be apprised about Minamata well in advance so he global shipping industry will thermometers, hygrometers, and manometers. that mercury-free replacements are procured need to start making preparations Mr Tanksali pointed out that some gradually over a period of three years to replace all onboard products countries have requested certain exemptions without causing a price spike,” he explained. T that contain mercury, mainly to the convention until 2025, such as An alternative for shipping companies lighting equipment, ahead of the Minamata Canada exempting CCFL, China and Peru would be to switch to LED lights. Mr Convention that will come into force in 2020. exempting thermometers and BP monitors, Tanksali foresees that there will likely be “The impact on shipping is that all and Iran, Lesotho and Swaziland exempting a huge spike in demand for clean lighting commercial lights need to be replaced, and all products. technologies from 2020. during that process there will be difficulties in “My guess is that there will be no more Seraphic Energy has been working on a the disposal of the conventional lights,” said exemption requests,” Mr Tanksali said. He search-light product using LED technology. Seraphic Energy director Sagar Tanksali. observed that the shipping industry has At present, the industry has to depend As of January 2018, 128 countries have ignored the Minamata Treaty, but that it is on xenon arc technology from the World signed the treaty and 85 have ratified it. The important for the market to react now with World I era, according to Mr Tanksali. countries that have ratified include China, fewer than three years until governments “While there are a few LED searchlight the US, Panama, Brazil, Japan, Singapore, enforce the convention. vendors/makers, their products are either all the Scandinavian nations, and almost all Mr Tanksali believed that while the inadequate or extremely expensive. We are western European nations. outcome of implementing the Minamata trying to launch a search-light product that The Minamata Convention, a global Convention will result in a much safer offers a clear 2 km (or longer) beam and is treaty to protect human health and the environment for the world in general, the not too heavy on the pocket. A couple of environment from the adverse effects of switch would cause substantial inconvenience prototypes have already been deployed on a mercury, was adopted in October 2013 in to people in the short term. bulker belonging to one of our customers. Japan. The convention arose from a prolonged “While land-based businesses and We are awaiting their feedback to fine-tune mercury poisoning from 1932 to 1968 factories can manage the outcome better, the product. This product will have about in Minamata village in Japan, leading to marine industry – especially the vessels on 300 W of driven power and will employ thousands of deaths and deformities. high seas – would face a lot of difficulties,” advanced optics,” he explained. Under the provisions of the Minamata Mr Tanksali told Singapore Solutions. Late last year, Seraphic Energy entered Convention, the governments have agreed on “A few proactive companies that have into an agreement with Singapore-based a range of mercury-containing products whose taken the precaution will tide over without National Forwarder to store its lights at production, import and export will be banned any hitch. Not so the others. What surprises their warehouse. Mr Tanksali said that this by 2020. The products include batteries, us at Seraphic Energy is that governments development allows its Singapore customers switches and relays, compact fluorescent lamps, of different countries are keeping silent to procure its products quickly and without cold cathode fluorescent lamps (CCFL), about this convention. This applies also to having to pay for long-distance freight. SS

www.singaporesolutions.sg Singapore Solutions 2018 36 | CONSULTANCY

SPADE CONSULTING SETS AMBITIOUS TARGETS

Working collaboratively with clients yields dividends

ingapore-headquartered Spade owner with three to five vessels, as an Consulting has set its sights example, wanting to take the business to on an ambitious regional the next level and expand the accounts S expansion in 2018, targeting the and finance team, we can come in on establishment of a physical presence in a retainer basis to advise on scaling developing countries to help companies up, overseas expansion or restructuring grow their businesses via structured and current operations,” Mr Sreedharan said. personalised approaches. There is also the finance efficiency Spade Consulting managing director aspect, where Spade Consulting can assist Kiran Sreedharan said his vision for this in optimising cash flows and budgeting year is to expand regionally to countries of funds. such as Bangladesh, Cambodia, Indonesia, Mr Sreedharan also shared the example Myanmar and Vietnam. of bunker traders looking to become “Everyone has their own niche. For shipowners, where new governance us, we offer strategic insights and work mechanisms need to be established and with our clients to solve the problems old systems replaced with new ways together, rather than solving the of operations, as well as implementing problems for them,” he told Singapore financial checks and balances. Solutions, adding that the company “We will help our clients achieve finance prides itself as a strategic long-term efficiency by streamlining the financial partner to its clients with a specific focus structure and strengthening internal on the maritime space. processes and controls,” he explained. The key services offered by Spade Another service aspect is project Consulting include virtual CFO, financing, such as raising money to fund corporate structuring and business new ships, negotiating with banks to advisory, project and structured finance, get financial support and navigating the company incorporation and compliances, legal minefield. “We can help companies accounting, tax and immigration services, venture into difficult markets such as business expansion and turnaround. Africa and India, with risk assessment KIRAN SREEDHARAN (SPADE The virtual CFO service is suited alongside on-the-ground presence, strong CONSULTING): We help clients achieve to medium- and large-size companies, due diligence when on the lookout for financial efficiency by streamlining those that are in their growth stage or local partners, and management of the financial structures and strengthening companies that are in distress. “For an flow of funds,” he said. SS internal processes

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SINGTEL FINDING THE RIGHT NOTES ON MARITIME CONNECTIVITY

SINGAPORE SOLUTIONS SPOKE TO SATCOMMS PROVIDER SINGTEL

What technological available online through this vessel-side protection by the developments portal and with ease of access software-based unified threat from Singtel can at sea via a data platform. management (UTM) from benefit the wider For maritime cyber Trustwave (Singtel’s cyber maritime industry? security, Inmarsat partners security arm). The Singtel SingTel operates antennas at a Singtel partnered with Alpha with Singtel to enhance the Cyber Security Institute was land earth station in Singapore Ori as part of an MPA collaboration to provide the maritime industry with a more efficient and cost-effective way of managing their fleets using secured broadband satellite combined with cybersecurity and internet of things (IoT) applications on data collection and analytics which tracks and analyses more than 5,000 data points from the ships’ navigation, engine performance and cargo handling systems. This will enable ship operators to make real-time decisions with real-time data which will improve operations efficiency such as re-routing ships to achieve better fuel efficiency or conducting maintenance work only when necessary. Singtel is partnering with Singapore Maritime Academy to drive initiatives in crew training and development. This will kick-start the development of a crew portal where training and informative materials are

www.singaporesolutions.sg Singapore Solutions 2018 40 | SINGTEL

also launched to provide market, what has There is a strong drive the areas of cyber security. security training to different been the response towards autonomous ships With more data transfers levels of business. of owners/operators where operational efficiency between ship and shore, there in terms of investing is the key focus in ship will be increased vulnerability Can you provide an in systems and management. Human errors to cyber attacks. Focusing update on Singtel's technology upgrades? will be reduced to a minimum on solutions to improve satellite internet The market response in and onboard IoT will become operational efficiency and cost service in terms of systems and technology a reality. Satellite broadband effectiveness with a strong any upgrades to the upgrades has been lukewarm communications will be a cyber defence is imperative bandwidth, speed and for the past year with only norm where data transfer for the shipping industry. uptake by companies? about 5% upgrading their becomes essential for ship- The data transmission between service. Budget constraints shore communications. Fleet When do you think ships to shore will be secured seems to be the key reason for managers can make real-time digitalisation will using Singtel’s Fleet Xpress not investing. The outlook for decisions from the comfort accelerate in the high-speed satellite broadband 2018 may not be too promising of the office via a portal. shipping industry? service. Singtel’s leadership in as ship supply will continue to Many companies are already There is a strong push in the satellite communications and outstrip demand, ship owners/ developing both hardware maritime industry to cut down cyber security helps to further operators would likely defer and software for big data on paperwork on board ships. secure data exchange between their plans to invest in new collection on board and Onboard electronic platforms ship and shore. These innovative systems and technology. performing data analytics such as e-Certification for communications solutions can to help ship captains better ships, ECDIS and blockchain also help reduce the cost of What is Singtel's view manage their vessels. Despite are becoming the norm. data exchange for digitalised on digitalisation? budget constraints, some Digitalisation is the game ships, preventing cyber incidents How far-fetched is companies are keen to find changer for ship operators to occurring and hindering the this in view of the out how digitalisation of ships stay competitive, especially when operations of vessels. conservative mindset will help improve efficiencies the same job could be done of shipowners? and reduce manpower. more efficiently and with less Considering the The maritime industry There is revelation in how manpower. Digitalisation may sluggish environment is undergoing a wave of digital transformation in the make a huge impact in the next of the shipping digital transformation. maritime industry is seen in two to three years, if not now. SS

Singtel has long been at the forefront of of satellite communications. Pictured: The ILS Proton launch vehicle transports the first Inmarsat-5 satellite into space

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Singapore’s shrinking and

Mass flow meter technology installed on board a bunker tanker

ingapore’s bunker fuel market has limits. The number has decreased from 58 Bunker fuel sales seen a shrinking number of marine in 2016, 60 in 2015, 63 in 2014, 68 in 2013 volumes continue to fuel suppliers over the past few and 71 in 2012. Syears. In 2017 alone four disappeared. At The MPA’s continuing crackdown on grow while the number the start of 2018 another left. the licensed bunker suppliers engaged in of licensed bunker There is, though, no cause for alarm malpractices of short deliveries has been over this falling number of bunker suppliers. the main cause of the dwindling supplier suppliers is declining In fact, it is good news for Singapore. numbers. Three suppliers lost their First, the level of bunkering services licences last year. after the use of mass offered from Singapore to ocean-going In addition, the mandatory use of flow meter technology ships is unlikely to be compromised given mass flow meters (MFM) for high-sulphur that the leading and reputable suppliers bunker fuel bunkering since the start of was made compulsory are still in business. Second, the top-10 2017 has further tightened the leash on suppliers account for 80% to 90% of errant suppliers addicted to kickbacks bunker fuels sold, meaning that bottom- by shortchanging the delivered fuel. The rung players that exit the market do not mass flow meter technology is as accurate have much of an impact. as it can get, operating within 0.5% overall The Maritime and Port Authority of measurement uncertainty, compared with Singapore (MPA) lists 55 accredited 0.7% for the traditional sounding tape bunker suppliers that are licensed to carry measurement method. out fuel deliveries within Singapore port The MFM device, a digital technology,

Singapore Solutions 2018 www.singaporesolutions.sg BUNKERING AND LUBES | 43 expanding bunker market is also armed with non-resettable totaliser accumulated demerit points for delivery of total sold in 2017, with the higher viscosity and tamper-proof seals to ensure the bunkers that were severely aerated as well as 500 cSt materal being the second most integrity of the system. But errant suppliers for stoppages during bunkering operations. popular, accounting for approximately 20% still want to find a way to beat the The positive change for Singapore’s of the total. technology, and those caught have lost bunker market since the introduction of mass The average bunker stem size for last their right to operate in Singapore. flow meters is not just increased transparency year went up to 1,244 tonnes from 1,147 In February 2016 MPA launched and quicker bunkering turnaround, but also tonnes in 2016. But the number of calls for a technical reference, referred to as the weeding out of crooked suppliers that bunkers in 2017 decreased to 40,736 from TR48:2015, outlining a set of core tarnish the image of Singapore. 42,380 in 2016. requirements for metering system There were also those who opted to Homegrown Sentek Marine & Trading qualification, installation, testing voluntarily exit the market. Greek company was Singapore’s biggest bunker supplier procedures and documentation for bunker Aegean Marine Petroleum announced in by volume in 2017. Sentek moved up from custody transfer. October 2017 that its Singapore operations second spot in 2016, displacing Chemoil The MPA has repeatedly said it will take would close on 1 January 2018, after nearly International to third spot. PetroChina firm action against any licensee that acts in 11 years as a prominent player in the city- International jumped from 12th spot last contravention of its licence. state. In a company statement, Aegean said year to second, with Shell Eastern Trading In November last year, Transocean “2017 has seen heightened commercial and Equatorial Marine Fuel Management Oil’s licences were revoked by the MPA as pressures in Singapore,” leading to the Services taking up fourth and fifth place the company was found to have several decision to pack up and leave. respectively. ExxonMobil Asia Pacific and falsifications of records and discrepancies in In September 2017, Uni Petroleum did not BP Singapore were ranked sixth and the stock movement logbooks on board its apply to renew its bunker supplier licence. seventh respectively. bunker tankers. While the number of suppliers is Two other homegrown suppliers, In August 2017, Panoil Petroleum and gradually decreasing, Singapore bunker Ocean Bunkering Services and Global Universal Energy lost their licences. Panoil sales are continually on the rise, reaching Energy Trading, took the eighth and ninth Petroleum made unauthorised alterations a historic high of 50.6M tonnes in 2017, up positions respectively, while the number 10 to the pipelines of its bunker tankers 4% compared with 48.6M tonnes in 2016, spot was taken by Total Marine Fuels. and accumulated demerit points for non- which was itself a record. The rankings were revealed by the MPA, compliance with bunkering procedures. The sale of the commonly used 380 but the port authority traditionally does not Universal Energy, on the other hand, cSt bunker grade accounted for 75% of the disclose volumes sold by each supplier.

Plugging the bunkering loophole for the volume of bunkers transferred with sounding tables and conversion from volume to mass. The use of MFM is a lot more accurate than manual measurements and conversions. The record bunker sales volume came in the year that Singapore Despite all the operational advantages, there is one issue to iron mandated the use of mass flow meter (MFM) technology, a move out if the MFM operation is to avoid a significant loophole. that some suggested may have caused bunker fuel sales to fall. The loophole in question exists at the point of fuel custody Making the use of MFM technology mandatory for all transfer between onshore oil terminals and bunker tankers. The bunkering operations in the port of Singapore was a good move. onshore terminals are not bound by regulations set by the MPA on The introduction of MFM has given rise to greater transparency the mandatory use of MFM during the transfer of fuel to the bunker and efficiency during bunkering operations, leading to fewer tankers. This creates inconsistency in the fuel supply chain as bunker disputes over the delivered fuel quantity. tankers must accept the delivery volume recorded by the terminals, The MFM device is considered tamper-proof technology, as putting MFM-equipped bunker tankers at a disadvantage. there is an unresettable totaliser and tamper-proof seals to ensure Both the International Bunker Industry Association (IBIA) and the integrity of the system. The system displays and records critical MFM manufacturer Endress+Hauser have raised concerns over this parameters in real-time to allow users to address abnormality on site. matter, with both calling for the application of MFM systems at In bunker fuel trading, fuel is sold by mass but delivered by the oil terminals. volume, which is in turn affected by changes in pressure and Endress+Hauser said the MFM-equipped bunker tankers temperature, unlike mass. The use of MFM allows the fuel to be frequently experienced differences in bunker cargo readings when measured by mass directly, raising the accuracy of the quantity compared with delivery figures provided by the terminals. Such during custody transfers. differences in readings arise from the current method of having Traditional measuring methods use manual sounding pipes to manual sounding operations conducted before and after unloading calculate the volume of bunkers, followed by manual calculation product into a terminal, a procedure considered inefficient and

www.singaporesolutions.sg Singapore Solutions 2018 44 | BUNKERING AND LUBES

prone to human error. with scrubbers. It is unclear if this loophole can be plugged in the near term, The port authority has been running trials on MFM for but talks with the terminal operators are already underway. The MGO and the results are encouraging as seen from test-bedding solution will be for either the terminal operators to accept the projects. In fact, there are currently seven MGO bunker tankers readings on the MFM installed on board the bunker tankers or for using the MFM technology for fuel deliveries, with three using them to install their own MFM systems. Endress+Hauser systems and four using Emerson devices. As of 17 January 2018, a total of 150 out of 213 bunker tankers The MPA said the eventual implementation of MFM for MGO operating in Singapore port waters are equipped with an MPA- will create a level-playing field and harmonise operating procedures. approved MFM. Of the 150 bunker tankers, 93 are installed with The use of MFMs for bunker custody transfer not only presents Endress+Hauser MFM systems, and 57 with Emerson systems. a digital innovation for Singapore but also extends it globally. Looking ahead, the MPA will officially implement MFM for Countries such as China, Hong Kong, Greece, Gibraltar, Taiwan marine gas oil (MGO) bunkering. Sales for MGO accounted and the UAE have expressed interest in transitting toward the use for just 1.5% of the total sold in 2017, but they are expected to of MFM technology. Singapore-based Metcore International has increase substantially by 2020 with the enforcement of IMO’s reached out to China, Hong Kong, Taiwan and the UAE to help global 0.5% fuel sulphur content cap, virtually rendering the use the local players gain a better understanding of the operational of high-sulphur 380 cSt impossible unless the ships are installed benefits of MFM within the bunker supply chain.

ARE BUNKER PRICES ON A ROBUST PATH?

Bunker fuel prices, a significant portion of a 29 December 2017. BELOW: A bunker tanker delivering fuel to ship’s operating cost, climbed over the past The price trend of bunker fuel, a a receiving ship in Singapore port waters year in a shipping market where freight by-product of crude oil, tracked crude oil rates continue to stay under pressure due prices closely last year, as WTI oil prices to lingering excessive tonnage. firmed from July to steadily cross the The price of Singapore 380 cSt bunker US$60 per barrel mark at the start of this fuel, considered a global benchmark, year. SS opened at US$392 per metric tonne (pmt) on 2 January 2018, translating to a 13% increase compared with the price of US$347 pmt seen on 2 January 2017, according to data from Ship & Bunker. The price of Singapore marine gas oil (MGO), or distillates, also spiked to US$591 pmt on 2 January this year compared with US$503 pmt a year ago. Marine fuel prices have been on the rise since the sharp downward correction in June 2015. Bunker prices doubled over the course of 2016, rising from below US$200 pmt to more than US$300 pmt. By the end of 2016, Singapore 380 cSt prices hit around US$350 pmt. In 2017, Singapore 380 cSt bunker prices started to soften over the first quarter, touching an annual low of US$289.50 pmt on 27 March, following a steep plunge from US$323 pmt on 8 March. During the second quarter of last year, bunker prices displayed volatile movements as they hiked to US$327 pmt on 12 April before dipping to US$299 pmt on 9 May, followed by another jump to US$322.50 pmt on 25 May before a drop to US$296.50 pmt on 22 June. It was not until July that the market picked up again and prices rebounded swiftly to an annual high of US$391 pmt on

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The IMO sulphur cap aims to reduce harmful shipping emissions

A cloud of uncertainty looms over the bunker fuel due to its qualities of being able to remove more than 90% shipping industry with no silver-bullet of SOx and PM, and emit 60% less NOx compared with high-sulphur bunker fuel, according to Chris Chatterton, the chief operating officer solution to meet the IMO fuel sulphur of the Methanol Institute, which has an office in Singapore. content cap of 0.5% from 2020 “Methanol is a balanced and practical liquid fuel that offers emissions reduction across carbon dioxide, SOx, NOx and PM,” Mr Chatterton noted. The use of methanol has already found its way into shipping iofuels and methanol are increasingly coming under the via a 2013 Stena Bulk project, with the 51,837 gt cruise ferry Stena spotlight for consideration as marine fuels in light of Germanica having one of four engines operating on methanol-diesel stricter environmental regulations by IMO to combat since 2016. The vessel is classed by Lloyd’s Register. Bshipping emissions. In January 2015, LR announced plans to design a new Shipping has evolved from the use of dirty coal to the burning generation of cruise ships and ropax ferries powered by methanol, in of high-sulphur bunker fuel, which emits harmful pollutants such as partnership with German shipyards and a methanol distributor.

CO2, SOx, NOx and particulate matter (PM) into the atmosphere. Mr Chatterton believes that methanol is also readily available, Starting in 2020, IMO will enforce the global use of bunker with China accounting for 50% of the world’s production and fuel with a maximum sulphur content limit of 0.5%, down from the significant new capacity set to come on stream in the US. current cap of 3.5%. Another advantage of using methanol is that the fuel is easier to “Biofuels can present a cleaner and low-carbon alternative handle compared with LNG because methanol is a liquid and does fuel source for the shipping industry,” said Singapore’s Nanyang not need to be held frozen nor be under a specific set of pressures. Technological University senior scientist Dr Prapisala Thepsithar. “Methanol can be cost-effectively stored at any port in the world,” But there are drawbacks to the use of biofuels. The energy said Mr Chatterton. source still contributes to air pollution with the release of carbon With a handful of options to choose from to comply with monoxide and NOx, according to Dr Thepsithar. the sulphur cap and a slight possibility of IMO pushing back the The types of biofuels include biodiesel, ethanol, vegetable oil, implementation of the regulation, many vessel owners and operators are biofuel gasoline and biogas, among others, with vegetable oil being waiting until the last minute before choosing their compliance option. the dominant feedstock. Gulf Oil Marine director of global client group Jackson Davis “Biofuels are also more expensive compared with traditional said “A vast majority of vessels will probably go for low-sulphur fuel marine fuels, so their use may not be realistic to shipowners,” oil as the simplest option, but this will mean higher fuel costs. said Dr Thepsithar. “There will be a need to increase demand to “On the use of LNG, a lot still has to be done on storage consequently reduce the cost of biofuels, especially for the second- handling and distribution, and the establishment of a global generation and third-generation biofuels.” infrastructural network,” Mr Davis said. Biofuels production can be categorised into three generations, with Another feasible option is to install exhaust gas treatment the first-generation biofuels (or conventional biofuels) produced from systems, or scrubbers, which would allow ships to continue to burn food crops. Second-generation biofuels are manufactured from different high-sulphur bunker fuel. But scrubbers are not cheap, with one unit types of biomass, and third-generation biofuels are produced from algae. potentially costing US$1M, and the vessel downtime needed for Seraphic Energy Limited T +91 94 83 532427 Methanol is also seen as a promising long-term alternative to retrofitting is not welcomed by operators. SS Unit 905, 9/F Kowloon CTR 33 E [email protected] Ashley Road TST KLN www.senergyhk.com HONG KONG www.singaporesolutions.sg Singapore Solutions 2018 48 | BUNKERING AND LUBES

The highly automated Shell plant can produce up to 430M litres of lubricants and greases every year Shell Marine revolutionising marine lubricant procurement

A newly opened lubricant plant in Singapore will support Shell’s business ambitions in the Asia- Pacific region and strengthen its marine lubricant business presence in Singapore port

wo major roro operators are piloting a new scheme in inefficiencies in their current approach, which were often linked partnership with Shell Marine that will give them greater with the number of port calls being made. control over their marine lubricant costs, including the He added that Shell is committed to going “beyond the T ability to pay these costs in 12 equal monthly instalments. molecule” in its dealing with the market. By this he meant forging The secret sauce is a sophisticated algorithm Shell Marine has client relationships that were more along the lines of partnerships jointly developed with an undisclosed London-based data specialist. with information sharing. Such relationships, he predicted, would The programme has been running since September 2017, lead to fewer, larger orders from operators as well as better voyage according to Shell Marine executive director Jan Toschka. Mr Toschka planning. “In Latin America, if a vessel was calling at 25 ports to declined to name the operators, but confirmed they were sizeable take on marine lubricants and, as a result of our collaboration, it companies, with significant fleets trading internationally. now calls at five, that’s a win-win.” The key benefit of the scheme is “exposure mitigation,” said Mr Shell Marine officially opened its new integrated lubricants and Toschka, referring to the operators’ new fixed monthly marine lubricants grease production facility in Tuas, Singapore, on 1 November 2017. bill. He explained that the two roros are expected to trade 200-250 days The lubricant plant is the oil major’s third-largest lubricant plant in a year, but added that if that trading period changes significantly, or if the world and the second largest in Asia-Pacific. there is a significant variation in feedstock prices or foreign exchange, the The facility is capable of producing up to 430M litres of contract allows the terms of the agreement to be revised. lubricants and greases every year. Approximately 50% of the total This new initiative, which Mr Toschka referred to as a first for lubricants produced at the plant are sold to the marine business. the industry, is an iteration of Shell Marine’s marine integrated The Tuas plant replaces the 55-year-old facility located in lubrication and expert solutions (MILES) announced in April 2017. Woodlands North. Shell Marine says the new facility has 50% more The MILES scheme includes purchasing options, lubes monitoring capacity and will deliver a six-fold improvement in productivity. Mr and technical support services. Toschka said output at the Tuas plant has the potential to eclipse its So far 85 vessels have signed up to MILES and the “aim is to two larger plants in Houston and Shanghai. have 500 ships on the programme in the second half of 2018,” said Shell Global Commercial executive vice president Huibert Mr Toschka. Shell Marine regional sales manager Hew Shaw Siang Vigeveno said “This state-of-the-art, highly automated facility in identified Asia’s (in particular Indonesia’s) huge feeder vessel market Singapore was built to support our business ambitions here in the as being especially prospective. APAC region. It serves as a strategic production hub, and will be the Vessels engaged in tramp trades have been drawn to MILES, centrepiece of our lubricants supply-chain network. Asia represents especially tankers, bulk carriers and roro vessels. Mr Toschka noted over 40% of the world’s lubricants demand, and is home to half that some container vessel operators initially resisted MILES of the world’s largest lubricants markets. This facility will also believing they did not need help optimising operations. But they further strengthen our marine lubricant business’s presence here in warmed to the scheme when shown operational data highlighting Singapore, the world’s second busiest [container] port.” SS

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The grief of Singapore’s offshore

Confidence is executive Mike Meade said understand economics. What they are easy to build, leading “What I worry about is that has happened here is that to massive overbuilding and severely shaken in when the market recovers, the bonds were sold to the then we’ve got China,” he said. Singapore’s offshore those three to four banks in common investors and these Chinese shipyards, hungry for Singapore are not going to have investors are putting their orders, had jumped onto the equity market the appetite to come back.” pension in and even leveraging bandwagon of building OSVs after the demise Mr Meade believes that off with bank loans. And all and now found themselves European and American those bonds have failed.” sitting on at least 500 newbuild of many listed banks, hedge funds and PE Several notable Singapore- vessels that the market is companies, but there funds will all be able to take listed offshore companies unable to absorb. advantage of eroded equities that have failed include “The solutions are is a silver lining in and cheap assets in a market Swiber, Ezra, EMAS Offshore, consolidation and scrapping. the form of a new rebounding from a trough. and Swissco, while those Consolidation has happened One problem with struggling include ASL Marine, but scrapping OSVs is very debt restructuring Singapore-listed, family-owned Ezion, Marco Polo Marine, and difficult. Nobody wants framework offshore companies is that Pacific Radiance. to scrap because there is a huge proportion of their The offshore sector no scrap value due to the equities are owned by the is troubled with a severe insufficient steel content of families themselves and their oversupply of OSVs amid a OSVs,” Mr Meade said. belief is that their equities are lacklustre market marked by “There are less than 1,000 of higher value than debts, soft oil prices. tonnes of steel in OSVs and ingapore’s capital according to Mr Meade. A part of the problem with not to forget the owners need market may miss the “But in the world of business, today’s oversupply situation is to pay for the fuel cost to get next offshore market debt takes precedence the massive number of PSVs the vessel to the scrapyard. upturn after the recent over equity and bonds take flooding the market, a scenario Whoever can get their Srecession that brought many precedence over bank debts – which did not exist during heads around the business listed offshore companies to normally,” he said. the last oversupply of 1985. of scrapping OSVs based their knees, and local banks “If you look at the “What we didn’t have in 1985 on the residue value of the are unlikely to regain their bond market in the west, was PSVs, which was like a equipment will make a lot of confidence for the sector. the bonds are bought by boutique new thing. This time money,” he quipped. M3 Marine group chief institutional investors who round we’ve got PSVs and He explained that for a

SAUDI GROUP TAKES

allianz Holdings now owns a 41.2% stake in LING YONG WAH is one of the last Vallianz after a rights cum (VALLIANZ): Good few financially warrants issue. Rawabi had prospects ahead to stable offshore previously owned a 14.8% expand in the Middle East Vservices companies listed stake in Vallianz. in Singapore following the As Rawabi will be industry recession that exercising most of its brought several big names to warrants, its shareholding in their knees. Vallianz will increase further OSV provider Vallianz to 57.2%, assuming Swiber won the backing of Saudi Holdings, which is currently Arabia’s Rawabi Holding under judicial management, Company, its strategic also exercises its warrants partner and investor that and other shareholders do

Singapore Solutions 2018 www.singaporesolutions.sg OFFSHORE | 51 capital market: M3 Marine company having a OSV on its utilisation and charter rates balance sheet for US$2M to will struggle to get above opex US CHAPTER 11 HITS HOME US$4M, scrapping the asset before comfort starts to reside. for US$400,000 means taking The biggest question for the FOR SINGAPORE a $3.5M writedown hit on the industry is how to deal with profit and loss. “The moment the lack of scrapping of OSVs A debtor-in-possession modelling after the US Chapter 11 in Singapore you scrap it, you take the hit,” – nobody has the answer.” will be particularly helpful to offshore companies struggling to stay afloat he said. under mounting debts. Over the past year, the proposed US Chapter With so many idled vessels 11-like bankruptcy code has been gradually adopted in the city-state, a especially on Indonesian change that will see Singapore’s debt restructuring scene become more waters, these assets may find nimble and substantive. it hard to re-enter the market MIKE MEADE (M3 MARINE): The switch to adopting the US bankruptcy code will allow even when activities pick up. Going deeper with its relatively distressed companies to obtain fresh financing while undergoing “Nobody has ever reactivated a new business set up M3 restructuring – a much-needed step for many of the Singapore-listed complex DP2/DP3 ship yet. It is Marine Remote Inspection offshore marine companies. just too costly,” he said. The changes to the restructuring framework is a long-term game There were an estimated plan for Singapore that is set to benefit not just the offshore marine 1,700 OSVs in cold stack and segment but also the wider market. Chinese shipyards have 400- Over the course of 2017, Singapore courts saw six cases filed 600 completed newbuilds that adopted the US Chapter 11-like scheme in local company laws. waiting for owners to take Singapore’s senior minister of state for law and finance, Indranee Rajah, delivery of them. These are said in November 2017 that the six legal cases are an indication that the in addition to a global fleet of market is willing to try out this new restructuring regime. around 5,500 in operation today. The long-term aim of Singapore is to bolster its position as a centre “It is going to take 10 years for debt revamps through an amended Companies Act, paving the before we see the next (OSVs) way for a worldwide debt moratorium, enabling debtor-in-possession building boom. There are still financing, and granting rescue-capital providers priority claims on assets too many boats even if you over existing creditors. factor in 80 rigs that were Consultant AlixPartners said that more restructurings may happen scrapped,” he said. in the Asian offshore market in 2018, with the new insolvency law in “Businesses will go on, Singapore making the restructuring process "more fluid".

CHARGE AT VALLIANZ not exercise. to resolve the outstanding is constantly keeping an Apart from the downfall Rawabi’s group chairman issue with Swiber and also eye on opportunities and of Swiber, Ezra Holdings Sheikh Abdulaziz AlTurki strengthen our balance sheet. strategic alliances to increase also filed for bankruptcy in said the group is prepared to We see exciting opportunities its penetration in the major March 2017, followed by the support Vallianz and ensure for Vallianz to further expand and emerging offshore oil court approving Swissco’s that it will remain in a strong our business by leveraging our and gas markets. bankruptcy filing in April. position, both financially and leading market position as one Mr Ling noted that the Companies such as ASL operationally, to execute of the largest OSV players in OSV market will continue to Marine, EMAS Offshore, long-term growth plans in the the Middle East.” be challenging due to the Ezion, KS Energy, Marco Polo Middle East market. To date, Vallianz owns situation of excess vessel Marine, Pacific Radiance and Ling Yong Wah, chief and operates a fleet of 55 supply. “This inevitably Triyards are burdened by debt executive of Vallianz, said OSVs covering markets in the exerts pressure on vessel restructurings and are heavily “The rights cum warrants issue Middle East, Asia Pacific and utilisation rates and charter reliant on support from banks clears the path for the group Latin America. The company rates,” he said. and noteholders. SS

www.singaporesolutions.sg Singapore Solutions 2018 52 | OFFSHORE

HBA Offshore picks up a bargain

The offshore market downturn is in a judicial management. HBA around companies, according to deleveraging phase and green shoots Offshore chairman Hassan Mr Hassan. Basma, though, is no stranger Swissco’s OSV fleet comprises of recovery are now in abundance, to the offshore world, having mainly lower-specification vessels says Bumi Armada’s ex-chief executive been the former chief executive that are likely out of favour with of Bumi Armada. oil companies. The acquisition of “We took on a little challenge Swissco’s entire OSV business at and now we want to make an attractively low price valued sure that it will work. Swissco each vessel at an average of just is Singapore-based and is a over US$1M. The buyout price ingapore-based the offshore market is expected reasonably sized company,” Mr is considered to be at an “absolute HBA Offshore will to stay downbeat. Hassan told Singapore Solutions. minimum” by Mr Hassan. focus on integrating HBA Offshore’s little The investors behind Asian In its heyday, Swissco was a S the acquisition of known Asian Strategic Strategic Turnaround Ventures considerable OSV player with OSV operator and owner Turnaround Ventures has been are said to be a group of like- a fleet of close to 40 vessels Swissco Holdings in 2018, revealed as the white knight for minded people who have gone including utility tugs, anchor- and will position itself for new financially troubled Swissco, through market cycles and share handling tugs, accommodation opportunities in 2019 even as which is currently under similar experience in turning workboats, crewboats and deck cargo barges. It operates two shipyards in Singapore to undertake repair, maintenance and fabrication. In April 2017, a Singaporean court approved Swissco’s application to be placed under judicial management after the debt- ridden company failed to receive support from its major creditors. Swissco is just one of many victims of the protracted downturn in the offshore market. The recession is into its fourth year since the crash of oil prices in late 2014. During the previous market boom, banks flooded the market with easy credit and attracted many speculative investors that left their marks in the sector in the form of surplus assets, leading to the crash in charter rates and non- profitable utilisation levels. The Singapore shipyard of Swissco, which is under judicial management Mr Hassan said the industry recession will continue

Singapore Solutions 2018 www.singaporesolutions.sg OFFSHORE | 53

for another “few years” and laid up OSVs, regardless of in particular exploration drilling, with HBA Offshore taking the that he expects to see more whether they are cold-stacked oil companies are still willing remaining 30% and executing consolidation and companies or in warm layup. Many of the to charter a rig reactivated from the operations. unwinding their positions. This vessels have been laid up for warm-stack at lower rates versus HBA Offshore, which started is the so-called deleveraging two to three years, and their paying higher charter rates for a in 2015 with just two people, phase of the offshore market, technology is starting to become new rig. has grown to a team of 25 staff according to Mr Hassan. obsolete. They have hardly any The success rate for comprising commercial and On a positive note, he said scrap value. Given the high cost exploration drilling is typically technical people, as well as IT international oil companies of reactivation or no demand three out of 10, and out of the personnel and naval architects. have balanced their books, and to reactivate at all, more OSV three maybe only one will see The company expanded its office oil prices are forecast to stay at companies are going to suffer commercial returns, making it space in March 2017. the US$60 per barrel level. The heavy losses. somewhat impractical for oil Mr Hassan said that green shoots of recovery are in Mr Hassan noted that oil majors to use new rigs and incur although 2015 was a year of abundance as companies continue firms such as Petronas, Saudi hefty charter bills. recession for the offshore market, to rationalise assets and go up the Aramco and Shell have declined With recovery for the it was in fact a good time to value chain by specialisation. to use laid up OSVs. If the offshore and marine market still set up the company. “You need “There could be more pain OSVs have been idled for some time away, HBA Offshore a solid business case and to be for the industry in 2018-19. less than a year, their chances is not resting on its laurels after able to read trends properly or More companies are looking of reactivation are higher – the latest Swissco investment. anticipate what is around the at focusing on services rather otherwise they are unlikely to The company is eyeing leasing corner,” he said. “Recession is than taking on more assets,” Mr ever see the light of day again. and operating contracts for a good time to start a business Hassan said. The jack-up drilling rig floating production projects. It because you can focus inwards A major headache is what market is different from OSVs. has a plan for private equity to and clients will be looking out to do with the thousands of Due to the high cost of drilling, take up at least 70% ownership, for someone different.”

POSITIONING FOR THE RISING TIDE Singapore’s Kim Heng Offshore & Marine vessels. Now we see an opportunity to with overly optimistic assumptions. We are Holdings has put in place long-term own our own OSVs as the entry level is getting ready for the rising tide to refloat strategic plans and invested significantly very low. We are looking to expand our from aground position,” Mr Tan said. SS in distressed assets to position itself for a fleet because this will give us economy market upturn, as it ventures into the areas of scale,” Mr Tan said. The company is of both chartered and owned vessels. looking to enlarge its fleet to 10-15 AHTS/ THOMAS TAN (KIM HENG): "Constantly Kim Heng executive chairman and MPSV vessels. looking for new growth" chief executive Thomas Tan admitted that “We will be constantly looking for the business environment is extremely new growth, and to set new goals and challenging and the jobs available out strategy, while at the same time remaining there are mostly short term. Although the prudent to have sufficient cash on hand to market is showing signs of improvement sustain and guard against overleveraging in 2018 (notably increased tendering ourselves,” he said. activities), the company is looking at Mr Tan added that the group’s two different areas of the supply chain for shipyards in Singapore are valuable assets revenue and work. that will enable them to swiftly provide “Hopefully the oil majors will continue vessel activation and maintenance work to increase their expenditures in order opportunities in an upturn. Kim Heng also to see sustainable market recovery from has businesses in offshore rig maintenance, now on,” Mr Tan told Singapore Solutions. rig supply chain management, shiprepair, Late last year, Kim Heng ventured into marine salvage and oil spill response, and the ownership of vessels by acquiring three heavy equipment sale and rental. The AHTS vessels at a steal of just US$9.6M company is meanwhile diversifying into from bankrupt Swiber Holdings. The defence and other marine activities to purchase of the three 10,800 bhp vessels complement its business. was backed by a 60-day short-term charter “The industry recession is also good to perform rig towage and other marine in the way that it can reset the market, operations in Malaysian waters. consolidate the players and weed out the “In the past, we only chartered in highly speculative companies and those

www.singaporesolutions.sg Singapore Solutions 2018 54 | OFFSHORE

FIT-FOR-PURPOSE VESSELS ARE THE FUTURE: EVOLUTION CONCEPTS

Evolution Concepts is the go-to shop for cutter vessels that simply do not work.” Back then, these cookie cutter vessels were still able to find jobs due to market buoyancy. serious investors looking for peace of mind However, it is a very different story now. during the process of building complex and He told Singapore Solutions “Today, there is an ongoing consolidation and merger in the market and vessels that were not sophisticated offshore vessels built with a fit-for-purpose role will eventually be scrapped.” Projects undertaken by Evolution Concepts include dive support vessels, PSVs, AHTSs, jack-up rigs, heavy lift vessels, n alliance of five companies is seeing heightened FPSOs, semi-submersible accommodation platforms, self- interest from investors for its services in the design and elevating mobile drilling units and offshore drilling units, compact construction of fit-for-purpose offshore vessels. semi-submersibles, multi-gas vessels and river cruise boats. Singapore-based Evolution Concepts is an alliance The company is currently working on a project for two liftboats Aof Sindex, Marine Commerce, Blue Connect, InStudio and and a potential contract for an additional two liftboats. The liftboats Synergy Partners. are being built at China’s Jiangsu Dajin Heavy Industry. The five companies, each with their respective specialised MacGregor director Francis Tang shared that Dajin Heavy services, have come together to achieve economies of scale while Industry has never built liftboats before. But with the help of simplifying the often-complicated build process for owners. Evolution Concepts, the Chinese yard has managed to complete Evolution Concepts group managing director Tan Wee How said the construction in a relatively short time. “Our solutions are suited for serious investors who want their vessels “Investors may not have sufficient or relevant experience as they to stand out, be fit-for-purpose and be cost effective in the long run.” only look at building ships and do not understand the importance Mr Tan explained that during the construction process, owners of what is within the ships,” Mr Tang said. “We are not just looking have to deal with a myriad of suppliers including the classification at supplying the standard industry products but rather customised and state flag, onsite supervisor, interior designer, naval architect, solutions wherever possible to suit the vessel’s operations.” IT vendor, HVAC and refrigeration, fresh water maker, sewage One of the features of Evolution Concepts’ design is the treatment plant, electronics and communication, deck equipment, installation of air-conditioning in enginerooms. “This creates engines and propulsion and the shipyard itself. a more comfortable working environment for the crew and This is where Evolution Concepts can come into play as the in turn enhances safety and awareness, while optimising fuel company will help the owner integrate all the suppliers by working consumption,” Evolution Concepts’ Mr Tan said. with its alliance partners, assist owners in navigating the complex “The design of the vessel stretches all the way from the interior logistics process, conduct risk assessments, ensure timely to the mess room and cabin layout, and even the placement of completion of each project milestone and undertake document aircon ventilation openings,” he added. control and post project support as required. Looking ahead, Evolution Concepts is looking to expand further Mr Tan observed that during the offshore boom, there was into the cruise markets of Europe and China. “We are slowly an influx of speculative players who built a surplus of “cookie gaining traction in this segment,” Mr Tan said. SS

The team behind Evolution Concepts OFFSHORE | 55

MACGREGOR IN EXPANSIVE MODE

n Singapore, MacGregor has opened block of the autonomous vessels of the future. It a small head office in the Cargotec A NEW OFFICE makes no sense to have unmanned vessels that building, where the parent company has AND NEW would still require people to operate the cargo- had a presence for more than 10 years. TECHNOLOGIES handling systems. IMacGregor had been operating from many Another important element for MacGregor is different offices and from the Cargotec HQ IS HELPING sustainability. Mr Van Roozendaal explained that in Finland. MacGregor president Michel van the company is “striving for increased energy Roozendaal said the company will continue MACGREGOR efficiency, and to use biodegradable lubricants. to add people to its team in Singapore and WIN NEW Also, we are contributing to key developments increasingly have global management meetings MARKET SHARE for offshore windfarms. Our mooring systems in the city-state. MacGregor chooses to be in have enabled floating windmills, applying the Singapore so that it is closer to its customers as technology we developed for mooring oil rigs well as its supplier base in Asia. to the wind industry. With this we deliver our As a global market leader in cargo- and promise: ‘designed to perform with the sea.’” load-handling, a head office in Singapore is a In December, MacGregor announced the natural fit for MacGregor given that the majority acquisition of Rapp Marine, which will expand of shipbuilding takes place in Asia. Furthermore, the company’s presence in the fishery research MICHEL VAN ROOZENDAAL close to 70% of MacGregor’s sourcing volume segment. Apart from developing software- (MACGREGOR): is purchased from Asian vendors. That said, supported and remotely controlled operations, these innovations include our MacGregor continues to have a strong leadership progress and participation in MacGregor is also developing and offering presence in Europe, where the majority of the the development technology that enables operators to switch company’s competence centres are located. The of autonomous shipping from traditional, heavy steel rope to fibre- overall business climate in Singapore is attractive rope systems that maximise a ship crane’s to MacGregor. Mr Van Roozendaal explained capabilities. “We develop and innovate in close that “it is easy to conduct business in Singapore, co-operation with our customers and other key which continues to promote technology and the industry stakeholders. We are constantly looking development of people. We hope we can attract at applying current and future technologies for top talent to come and work for MacGregor in this the benefit of our customers’ operations,” noted leading global maritime hub.” Mr Van Roozendaal. “We are also strengthening “MacGregor has a strong track record in our position in new segments like the renewable developing and delivering systems and solutions energy sector,” he added. that maximise the safety, efficiency and eco- Mr Van Roozendaal is “very much aware efficiency of our customers’ operations at sea. of the cyclical nature of this business. We are committed to preserving our innovative Predecessor companies of MacGregor can be roots,” he added. traced back as far back as the 18th century. The MacGregor is leveraging emerging current downcycle is hard, as it simultaneously technologies to shape the future of shipping. affects the offshore and the merchant marine “Currently, these innovations include our business. But in 2017 we were able to win key progress and participation in the development projects, for example a roro-linkspan order in of autonomous shipping. Furthermore, we are Calais (France) and two projects in Bangladesh. using virtual reality to train ship operators to We have managed our cost base, and have be more efficient and safer, and are optimising been able to remain profitable in this market, onboard cargo systems to ensure that container which has allowed us to continue to invest ships can carry maximum payload,” Mr Van in new technologies. The years to come will Roozendaal explained. not be easy for our industry, but we will come One exciting new technology that MacGregor out stronger when the downcycle ends in is working on is autonomous cranes, a building 2018/2019.” SS

www.singaporesolutions.sg Singapore Solutions 2018

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New technology offers opportunities to better respond to the challenges of today and tomorrow The journey to autonomy and the interim benefits to shipping

structural-soil interaction; computational The transition toward digital shipping is an opportunity fluid dynamics; ice loads on offshore to drive iterative improvements, says ABS executive vice structures; the application of fracture mechanics; and the structural behaviour president for global marine Kirsi Tikka of jack-ups. The R&D personnel have been widening their scope to develop global solutions. One area of focus is the ith advances in that shipping has even better safety and transition to the next generation of ships, technology seemingly environmental performance in the future which will be enhanced by automation, being made daily, the than it does today. data and connectivity. Increased maritime industry is In Singapore, where ABS has been automation on board and connectivity to Won a journey to autonomous shipping. active for more than 50 years, one of its shore will allow greater use of predictive New technology offers opportunities key assets is the Singapore Innovation and preventative maintenance and more to better respond to the challenges of and Research Center (SIRC). The centre shore based support to the ships, remote today and tomorrow, whether these was formerly called the Singapore decision making and control. are environmental impacts, reliability of Offshore Technology Center, and the “But to make safety decisions based on equipment, more efficient operations or change in name was made to reflect the data, we need to be confident of its quality crew training, according to ABS executive classification society’s role beyond the and reliability. And to minimise the need for vice president for global marine Kirsi Tikka. offshore oil and gas industry. crew intervention, the systems must become But for the industry at sea and ashore Researchers at SIRC focus on six less mechanical, eliminating the continuous this journey will be a gradual process of primary areas, namely the performance maintenance that is currently carried out by evolution. It must be so, in order to ensure and strength of floating structures; the crew on board,” Ms Tikka said. SS

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KIRSI TIKKA (ABS): Safety cannot be compromised as shipping pursues technological progression

evolutionary development will introduce An iterative process significant benefits to shipping at each phase, before we reach autonomy on a Reliability of systems, cyber security, data larger scale.” integrity, regulatory hurdles and gaps in the These outcomes can result in increased required skills are some of the challenges reliability of navigation, propulsion, auxiliaries, that will need to be addressed on this and communication, all of which will journey, Ms Tikka believes. “To achieve contribute to increasing safety and efficiency. full autonomy we will also need to see Mechanical systems will be replaced further advances in artificial intelligence and by systems requiring less maintenance machine learning,” she said. during voyages, relying on predictive and “There are many projects and preventative maintenance routines. consortiums carrying out research and Cyber-enabled systems and greater developing plans for autonomous ships, connectivity will require safety and security but the ultimate goal of autonomy is measures to be implemented from end to challenging and difficult to get right without end. Regulatory reform, new standards, a process of iteration,” she observed. and systems of approval will also be “That process will require the design, required. The interim outcomes should construction and testing of interim enable introduction and certification of new outcomes. If implemented correctly, technology, Ms Tikka noted.

Cyber security and SMARTER SHIPPING, regulatory evolution SMARTER PEOPLE

“As we move closer to an era of autonomy and ships become more Despite the evolution towards autonomy, Ms Tikka said there is no reliant on cyber-enabled systems, data and software integrity, along doubt that the skills of master mariners, engineers and superintendents with cyber safety and security, are foundational elements for safe will still be required in the future. The challenge is how to ensure a operation. The system design and operational processes must pipeline of these skills if the crews on board are reduced. incorporate cyber security from the ground up and from the top down, “While we transition towards autonomy, the introduction encompassing infrastructure, procedures and training,” Ms Tikka said. of increased automation on ships will change how the crews She explained that more connected systems are more prone interact with the systems, and the training required for to disruption or systematic failure when a break in one part of the competence,” she said. system creates cascading problems. “The ships must be designed for In design and construction as well classification, traditional security, and the organisations operating the ships must understand engineering disciplines will remain important, but organisations the technology and have the right processes in place to protect the will need to blend that knowledge with systems and cyber and risk equipment function and communications with other systems on board engineers and data scientists. and onshore,” explained Ms Tikka. “This deeper systems integration and greater technical “These technology advances are not only changing how we sophistication suggests a more inter-disciplinary approach to view operational performance, but are impacting how governments education. These developments are very positive for the future of and regulatory bodies are adjusting their approach to developing the industry as long as education and training keep up with the requirements that will not hinder the advancements in technology,” pace of technology,” Ms Tikka said. she pointed out. More focus will be placed on performance-based She added: “It will take some time before we can rely on data standards that will rely on data, connectivity and integrated networks and algorithms to provide the same level of intuition and judgment that stream critical data back to shore. that we expect from the crew or class surveyors. There will be “The industry must look beyond the safety of traditional systems, intermediate steps using new technology to make progress, and such as hull and structure, mechanical and electrical. Just as important at the same time provide the level of confidence that safety is not are the new cyber-enabled systems and the integration of operational being compromised. technology and information technology,” Ms Tikka said. “Shipping will become smarter when we are able to manage “Safety-related standards must recognise this and address the fact the impact and consequences of new technology. This will require that software is the safety system that nobody sees. We must also be a great deal of research and development, digital and scale tests, aware that regulation needs to be developed and implemented on as well as pilot programmes.” a global basis before anything like global trading will be possible for Ms Tikka said that this investment can result in interim safety autonomous ships,” she added. and reliability advances that will benefit shipping during the ABS hosted an educational session on regulatory updates in evolutionary phase. Carried out in a diligent manner it need not be Singapore last August, which also served as a platform to discuss a threat to the industry, but a proactive response to the demands operational and environmental challenges. of tomorrow. SS

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Creating effective solutions for real-world challenges

No let-up at DNV GL in quest digital replica of an actual physical asset. Another use of the technology is in preventive maintenance, where sensors attached for partnerships to expedite the to structures detect possible structural failure and feed data into incorporation of new technologies and the digital twin model. DNV GL chief executive of oil and gas Elisabeth Tørstad innovations into the maritime sector said “These projects are great examples of collaboration with our partners resulting in impressive and important innovative efforts which will realise cost savings and efficiency gains for the industry. “Innovation is at the core of DNV GL’s strategy and no more so than here in Asia where our Oil & Gas Technology Centre n a changing and fast paced business environment, the (OGTC) has been established as a sustainable centre to support the need to create effective solutions for real-world challenges industry with high-end advisory and technical assurance services,” is itself a challenge. In order to position oneself to tackle she added. I the changing paradigms of tomorrow, the drive towards Sembmarine president and chief executive Wong Weng Sun said technological advancement is something that classification “Our business and operating environment are constantly evolving. society DNV GL is constantly on the look-out for to accelerate Technology is rapidly developing. All too often, companies that are the delivery of innovations. slow to respond to change find themselves struggling to keep up. Late last year, DNV GL together with three other partners Some, unfortunately, have fallen too far behind to survive.” agreed to develop disruptive applications for the offshore and Mr Wong added “Disruptive technologies alter the way marine sector. conventional businesses work. When applied correctly, they can A memorandum of understanding was signed between DNV bring about game-changing solutions that revolutionise our GL, Sembmarine, A*STAR’s Singapore Institute of Manufacturing processes and efficiencies.” Technology (SIMTech), and National Additive Manufacturing In Singapore, DNV GL has expanded a memorandum of Innovation Cluster (NAMIC). The collaboration aims to develop understanding (MOU) with the Maritime and Port Authority of disruptive applications in additive manufacturing, drone and digital Singapore (MPA) to promote maritime R&D. The renewed MOU has twin technologies that could revolutionise solutions for Singapore’s expanded its scope to include the R&D of intelligent shipping systems. offshore and marine sector and boost its global competitiveness. The collaboration between DNV GL and MPA includes The quadripartite collaboration will focus on three developmental autonomous vessels and drones for maritime purposes, use of data areas. Firstly, there is the laser aided additive manufacturing, or 3D analytics, energy saving and emission reduction technology in ports printing, for fabricating large-scale ship structures for newbuild and use of LNG as fuel. SS offshore and marine constructions. Traditional manufacturing involves subtractive manufacturing where materials are removed from a large material template to form a shape or an item. In additive The project aims to refine DNV GL's class rules for drone surveys manufacturing, items are built upwards, layer by layer, into a three- dimensional shape. Through this collaboration, DNV GL said it will be able to enhance the qualification process of addictive manufacturing and support NAMIC in developing an addictive manufacturing ecosystem within Singapore’s offshore and marine sector. Secondly, drones for close-up ship inspection at height or in dangerous and relatively inaccessible areas is another potential disruptor in the offshore and marine industry. Traditional methods of visual inspections in shipyards involve erecting scaffoldings, a labour-intensive task. With the use of drones, shipowners will not have to worry about scaffoldings dirtying or damaging their ships during the inspection. Among other outcomes, the project aims to build Sembmarine’s capabilities in drone-based inspection of ships and rigs while facilitating DNV GL’s refinement of class rules for drone surveys. The third area is the digital twin for simulation-based optimisation of ship design and operations. It refers to the

www.singaporesolutions.sg Singapore Solutions 2018 62 | TRAINING COMMS

SWIRE PACIFIC UPGRADES SINGAPORE TRAINING CENTRE

New simulators wire Pacific Offshore (SPO) is seafarers will encounter on these vessels. investing in its training centre in SMTC houses two hardware-specific full- are being built at Singapore to ensure its vessel mission bridge simulators fitted with actual-size crews can use the latest technology, consoles and equipment common throughout the Swire Marine including augmented reality (AR) and the SPO fleet. There is a full-sized engine control Training Centre full-mission simulators. room, a virtual engineroom that simulates noise SIt is upgrading facilities at its Swire Marine from actual vessels and 10 desktop engineroom to ensure crews Training Centre (SMTC) as it seeks to keep simulators fitted with real propulsion controls. are trained on the abreast of new technologies and to ensure Facility training manager Captain Noel Leith courses remain relevant to new vessel types said the core areas of teaching at SMTC are latest technology entering the market. dynamic positioning (DP), safety management, SPO operates a fleet of 77 offshore support electrical and control systems engineering, vessels (OSVs), including anchor handlers, engineroom operations, anchor handling and platform supply vessels (PSVs), seismic manual ship handling for OSVs. survey ships, windfarm installation vessels, He explained that a near-term development accommodation vessels and multi-purpose would be to incorporate AR and virtual reality into offshore vessels. This means SMTC bridge the simulator training programme. “We will be able and engineroom simulators need to accurately to improve the training experience, as AR can tie in represent the operating systems and scenarios with our desktop simulators for the trainees to be

Seafarers are trained on the latest bridge operating systems in a full-mission simulator at SMTC

Singapore Solutions 2018 www.singaporesolutions.sg TRAINING COMMS | 63

immersed in a 3D environment,” he said. SMTC might build a diesel-electric engineroom Classroom-based simulator in the future. Captain Leith observed simulator training that many new vessels entering the market run on diesel-electric and a lot of them have variable frequency drives. “Most of our training here is hardware-specific and our fleet has a lot of standardisation, so that makes it easy for us to build our simulators to emulate what we have out in our fleet,” he said. “We strive to keep up with new technology, so we will need to introduce new simulation facilities,” he added. At present 23 vessels out of SPO’s 77, or approximately 30%, run on diesel- electric power, particularly its PSVs and windfarm installation vessels. “Another step change would be to introduce LED projection systems, which consume less energy and produce more brilliance,” Captain Leith said. SMTC has been upgrading its operating system over the past 18 months. The new operating system will bring a higher degree ones in the future. centre in Accra, Ghana, in January 2018 of realism, especially on anchor handling and Beyond Singapore, SPO has because it operates vessels in west towage training, said Captain Leith. longstanding collaboration with two Africa. That centre will start by offering One recent development was the training centres in the Philippines. Also, DP awareness training and other introduction of jet cone propulsion simulation. SPO will be opening a new DP training internal courses. It produces a 3D force-field and is reactive, “so if you thrust up against something, it impacts back on the vessel. That level of detail is actually quite difficult to simulate properly,” he explained. On the subject of fleet digitalisation, Captain What are augmented and virtual realities? Leith said that this technology trend was more suited to deepsea operations and for ships on Augmented reality (AR) is an emerging technology for the maritime and offshore sector liner trades, rather than contract-based, job- as it incorporates additional information on screens that augments what operators can specific OSVs. “But that is not to say that we already visualise. would not look to fleet digitalisation, especially Virtual reality is considered for training as it enables trainees to learn skills in a on larger assets,” he explained. “Otherwise I do computer-based environment. Users put on a set of goggles to enter a virtual world to not see ourselves proceeding down that road in simulate scenarios such as conducting repairs and maintenance on equipment via an the near future.” interactive interface. During 2017, the SMTC conducted training Blue Ocean Solutions, a subsidiary of Singapore’s Keppel Offshore & Marine (Keppel courses for around 1,000 officers, a figure that O&M), is helping to refine the use of AR at Keppel shipyards that are involved in the is expected to remain largely unchanged for servicing and maintenance of oil rigs. 2018. The centre has six full-time staff offering 19 “AR is not being fully exploited at the moment in maritime, but it is an emerging different courses. It is open for training 45 weeks technology,” said Blue Ocean Solutions chief executive Dr Jerry Ng. “You put on the a year with an average of 20 to 30 trainees on goggles and you can have immediate access to experts, augmented over the reality.” site each week. Even during the present severe Caterpillar Marine Asset Intelligence fleet advisor Michael Tan told Singapore market downturn, SPO has continued to support Solutions that the Caterpillar group is furthering its developments of AR across its its crew training. “Hopefully this will pay dividends different business verticals including maritime. on an upswing,” Captain Leith said. “Our AR technology is now available in the marketing and solutions aspects,” He drew a distinction between SMTC’s role Mr Tan said. He explained that the technology allows users to have live support and traditional marine colleges, saying that the in conducting repairs and maintenance on equipment via an interactive interface. centre does not provide Standards of Training, Caterpillar marketing brochures can come to life by wearing the goggles to enhance Certification and Watchkeeping (STCW) training understanding of its products. for seafarers. He believes it has a distinct role for One recent development of AR in maritime is a European Union-funded US$7.6M the wider industry, beyond SPO’s requirements, project that started in June this year to develop and test AR bridge systems to improve saying that the centre is looking to attract navigation safety and efficiency in Arctic ship operations. more trainees from third parties, who currently Dr Ng said that another emerging technology for maritime is expert system and constitute only 5% of total students. predictive intelligence. The expert system and predictive intelligence seek to raise alerts on SMTC first opened for training in June 2007, likely problems and offer diagnosis and preventive measures that can be carried out. This and the simulator facilities were commissioned technology is not widely applied in maritime, but it is a “very powerful tool” and especially in January 2008. “We have spent a considerable helpful for engineers, according to Dr Ng. amount of money on research and development “My personal belief is that intelligent ships will come before autonomous ships. These every year,” Captain Leith said. This is to expand technologies are not new to the market, it is a matter of application and adapting these and extend this simulator facility and open new technologies into the maritime industry,” he said. SS

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TRU-MARINE KEEPS UP PACE OF INNOVATION

ingapore’s homegrown technology Tru-Marine has introduced R&D, Tru-Marine has introduced at least firm Tru-Marine has kept up its one new repair technique every two years. innovative pace over the years as at least one new repair During Q3 2017, Tru-Marine launched a it has consistently rolled out new technique every two years, super-coating against component erosion Sways to take marine technology forward. including 3D printing of a using high velocity oxygen fuel (HVOF) Most recently, Tru-Marine embarked on a coating technology. The HVOF coating is learning scheme to further enhance and marine turbocharger nozzle a thermal spray coating process used to complement its services. ring and super-coating against improve or restore a component’s surface Late last year Tru-Marine kick-started component erosion properties or dimensions. This helps to a Mentorship Programme that offers a extend equipment life by significantly structured learning journey including regular increasing erosion and wear resistance and contact time between mentor and mentee. corrosion protection. Tru-Marine clinched the 18-month with the Nanyang Technological In 2015, it introduced the 3D printing Mentorship Programme with Singapore University (NTU) and industry partners, of a marine turbocharger nozzle ring Aero Engine Services Pte Ltd (SAESL), a ARTC collaborates with cross-sectorial using exotic super metal alloy, which joint venture by Rolls-Royce and Singapore companies in R&D to fast-track the produces simpler designs that do not Airlines Engineering Company known for development of advanced remanufacturing incorporate fasteners or welded seams. aero engine and component repair services and manufacturing solutions. The 3D-printed nozzle rings have yielded for the Rolls-Royce Trent engine facility. Tru-Marine Group founding and group positive results in tensile strength and in With Tru-Marine’s reclamation managing director David Loke said “To laboratory microstructure examinations. technologies mirroring those of SAESL’s remain relevant in today’s fast-evolving They have been tested as suitable for engine overhaul and component repair for business environment, we need to turbocharger applications. the aerospace industry, the Mentorship transform by looking beyond the sectors In 2012, Tru-Marine partnered with allows the mentee to cross-reference we serve and challenge our current the Singapore Institute of Manufacturing more stringent quality benchmarks so as mindset and best practices constantly. This Technology to develop robotic additive to elevate service delivery and exceed Mentorship gives us the rare opportunity manufacturing. Looking ahead, Mr Loke current industry expectations. where we would be exposed to the world’s said: “We are working with the Advanced The Advanced Remanufacturing and pre-eminent engineering service expert, Remanufacturing and Technology Centre Technology Centre (ARTC) is supporting allowing us to discover new disruptive to transform Tru-Marine into a ‘Factory of the Tru-Marine Mentorship Programme as approaches and service innovations. For the Future.’ With technology evolving at a technology resource partner. An initiative our clients, this translates into reducing an exponential rate, we are focused on by the Agency for Science, Technology downtime and maintenance costs.” building a higher-skilled team to serve and Research (A*STAR), in partnership Committing 3% of its sales yearly toward emerging needs.” SS

The launch reception hosted to celebrate the start of the Mentorship Programme 66 | TRAINING COMMS

Inmarsat introduces new Fleet Xpress plans for OSVs

The expanded Singapore office will continue to be an important facility for Inmarsat, especially in the Asia-Pacific region

nmarsat, a global mobile satellite communications provider, has launched a new set of plans for its Fleet Xpress designed specifically to meet the technical and commercial requirements of OSVs. I The new plan exploits the technical capabilities of Fleet Xpress, such as high-speed connections and guaranteed performance, according to Inmarsat. These features offer vessel operators levels of flexibility that are typically required by the high-end sector such as offshore support. The new plan also recognises that connectivity needs on board OSVs change frequently and that swings in data usage are likely to be more pronounced than for conventional cargo ships by accommodating free upgrades and downgrades in service levels during, for example, a 36-month contract period. When on-hire, the appetite for bandwidth from OSVs can be OSVs are set to benefit from Inmarsat’s enhanced Fleet Xpress immense. Projects often generate considerable volumes of data that need sending back to shore for analysis, with third-party contractors on board and an intense working environment. OSV operators are also traditionally generous with crew welfare. subscription,” Mr Griffin said. Supported by a 1 m antenna, Fleet Xpress for OSVs delivers In addition, the new set of OSV plans can be used in information rates of up to 3 Mbps for uploads and 6 Mbps for conjunction with new hardware from existing terminal downloads with a standard antenna, climbing to 5 Mbps and 10 manufacturers that will provide a dual antenna solution to minimise Mbps respectively with an enhanced antenna. When off-hire, a outages caused by line of sight blockages, a common occurrence for more economic 128 kbps/128 Kbps link may be sufficient to keep OSV vessels due to their proximity to rigs and operating in high core operational data exchange ticking over. seas. This can be managed by a single antenna control unit that will This elasticity means that OSV operators can utilise the full handle the service and seamless switching between antennas. potential of Fleet Xpress for the duration of a project and then “The connectivity requirements of OSVs place unique demands switch to a narrower ‘standby’ link between projects, also avoiding on satellite operators. Successful and timely completion of a contract early termination costs. is increasingly dependent on a highly resilient, high-capacity data There is also a network service device (NSD) that manages link. The technology behind Fleet Xpress has the capacity to meet bandwidth and regulates the flow of data traffic between the vessel these demands and our new plan sets a precedent in joining the and shore. The offer includes provision for owners to suspend services dots between the technical requirements and commercial realities of for up to 180 days, subject to equivalent contract term extension. OSV operation and highlights how Fleet Xpress can be used in the Inmarsat vice president maritime Eric Griffin said “The global energy sector,” Mr Griffin said. footprint of Fleet Xpress means OSVs can count on reliable In January 2016, Inmarsat opened a new expanded office connectivity wherever in the world they are deployed. in Singapore, making it the company’s largest facility in the “Unlike conventional VSAT installations, Fleet Xpress is Asia-Pacific region. Inmarsat said it sees the Singapore office as designed for seamless global mobility and automated satellite and the regional hub providing a new solutions lab, demonstration beam switching, supported by the added resilience of unlimited capabilities, training rooms, a knowledge and support centre, in FleetBroadband backup. Inmarsat satellites are supported by addition to enhanced production and storage facilities. redundant land-based infrastructure to ensure network availability, Singapore has been Inmarsat’s Asia-Pacific headquarters since as defined in the service level agreements that form part of a 2008. SS

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Womar’s staying focused on chemical tankers

BW’s 50% owned there is a growing need for chemical long-haul trades over over the years. Womar Logistics chemicals to fuel the global the coming years. Womar Logistics was founded has firm plans to economy, and next to chemicals The US will probably grow in 2009 in Singapore when we have food product such at a high rate on account of an investors formed a joint venture expand its pool of as vegetable oil, demand for increasing number of fleet owners, with Heidmar to operate Marida chemical tankers in which is also rising,” Mr Van shipbuilders and charterers, Tankers. In 2014 Singapore- view of rising global der Zijde said. Analyst reports availability of raw material, and based shipowner BW Group demand and more mentioned that the IMO capital inflow from multinational took over the shares of Heidmar III cargo type accounted for companies. The expanding and added two existing and 11 active trade flows the largest volume share in market of Asia Pacific is one newbuilding 20,000 dwt stainless 2017 due to high shipment of the most significant areas steel chemical tankers to the of vegetable oils and fats, and for growth due to the presence Stainless Tankers pool. Womar other non-volatile chemicals. of a large number of small Logistics is now 50% owned by Organic chemicals such as manufacturers in the region. BW Group. acetic acid, alcohols, propene, Womar Logistics director Womar Logistics carries out omar Logistics benzene, salt, benzyl acetate, Captain Manish Jain said the commercial management of is expanding methanol, formic acid, and phenol Womar Tanker Pools vessels the pools. It does not carry out its fleet of are some of the vital substances constantly achieved a utilisation technical management, which W commercially shipped in chemical tankers rate of around 95%, and that is the responsibility of the managed chemical tankers in across the world. they are never short of cargoes. individual vessel owners. Some view of expected growth in A recent report by Grand “We pride ourselves as having do this inhouse, while others cargo demand and rise in global View Research valued the specialised, newer and quality contract third-party technical trade flows. chemical tanker shipping market tonnage, and we position managers such as Thome The company currently at US$2.5Trn by 2025, compared ourselves to be involved in the Ship Management, Fleet Ship manages a fleet of 37 chemical with a value of US$2.07Trn in different layers of the market Management, Anglo-Eastern tankers consisting of 10 coated 2016. The boom is set against based on our performance and and others. (phenolic epoxy/marineline) the backdrop of a growing track record,” Captain Jain said. The company also has a chemical tankers of 12,800- chemical trade from increasing Captain Jain added that the partnership with Singapore 13,100 dwt under Marida manufacturing activities across the Womar Tanker Pools partnership Management University in the Tankers Inc, and another 27 globe. The US, China, Germany has never seen a partner leave to Maritime Economics Track stainless steel chemical tankers and Russia are some of the major join another pool, highlighting programme to nurture a pipeline of around 20,000 dwt under exporters of chemicals, and are the trust and close collaboration of young talent for the maritime Stainless Tankers Inc, including expected to foster the global among the partners established sector. SS five newbuilds added so far this year. Hans Van der Zijde (left) and Manish Jain of Womar are focused on chemical tankers Womar Logistics chief executive Hans Van der Zijde expects the stainless steel chemical tanker fleet to grow to at least 30 this year, bringing the entire chemical tanker fleet to 40. “The chemical tanker shipping market has been improving as there are more and more cargo flows around the world,” Mr Van der Zijde told Singapore Solutions. He added that while the outlook leans more toward the positive, the sector still needs to “fight against excess tonnage,” which is the “usual game” for the shipping market in general. “But on the demand side

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