SHIP MANAGEMENT INTERNATIONAL – ISSUE 51 SEPTEMBER/OCTOBER 2014 » THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS 74 68 46, 69 16 30 » STRAIGHT TALK 8 – Meeting the regulator half way » NOTEBOOK 10 – UK Chamber CEO appeals for divisions to be ‘healed’ after Scottish referendum – IMO Secretary-General to step down – Charterers remain optimistic despite small downturn in shipping confidence – Letter of intent signals breakthrough for very large ethane carriers

» FIRST PERSON 16 – Robert Yuksel Yildirim, President and CEO, The Yildirim Group

» SHIPMANAGEMENT 20 How I Work – Michael Phoon, Debasis Mazumdar

68 Opinion – Alok Sharma, Edward Hicks and Jasmin Sandhu

79 Letters – Send SMI your feedback

» REGIONAL FOCUS 30 Panama – Ebola impacts – Constantly evolving 49 Turkey on Mercy ships – Competitive advantage » BUSINESS VIEWPOINT – Ebola 42 P&I & Law – Squaring the MLC circle

Guidance 74 Classification – Japanese approval signals first for class Cover Story – Data drives change in maintenance strategies

Issue 51 September/October 2014 Ship Management International 5 SHIP MANAGEMENT INTERNATIONAL – ISSUE 51 SEPTEMBER/OCTOBER 2014 » THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS 94 46 48 64 90

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» MARKET SECTOR » ANTI-PIRACY & MARITIME SECURITY 28 Communications 81 – The state of piracy – Giving communications innovation the – Do not cross: Learning crime scene oxygen to breathe management with PGI

37 Ship Supply » COMMENTARY – The customer is king 85 Alternative viewpoint 64 Ship Registries – A bump in the night – Regulatory headache? » ADHOC » MARITIME MEDICAL 86 – Tragedy at sea 44 Heartbeat – European Shipping Week 2015 date announced 46 Ebola Crisis – Champagne sky ride for Hutton’s guests – Ebola impacts on Mercy Ships – Anglo-Eastern celebrates 40th anniversary in style 48 Diet – Nordic diet good for your heart » OBJECTS OF DESIRE 90 – Our pick of the most coveted creations » SHIP REPAIR 70 – ‘Scrubber’ conversions in Poland » REVIEW 92 – Bringing you the best in arts & culture » MARINE PROPULSION 72 – North America quickens pace in take- » LIFESTYLE up of LNG fuel 94 – A minefield of manners & suicide by knife and fork

6 Ship Management International Issue 51 September/October 2014

Straight Talk

September/October Issue 51 Welcome to www.shipmanagementinternational.com Ship Management International The shipping business magazine for today’s global ship owners and ship managers Published by Meeting the

Elaborate Communications Acorn Farm Business Centre, Cublington Road, regulator half way Wing, Leighton Buzzard, Bedfordshire LU7 0LB United Kingdom t is with a note of sadness that we learned only a few weeks ago that the Secretary- Sales/Accounts +44 (0) 1296 682241/682051 Editorial +44 (0) 1296 682356 General of the International Maritime Organization, Koji Sekimizu, is to step down Fax: +44 (0) 1296 682156 from the post when his first term ends at the end of 2015 due to personal reasons Email: [email protected] /[email protected] I www.elabor8.co.uk relating to the health of his wife. While his decision is a sad one, it is totally understandable Editorial Director: Sean Moloney and his efforts will be applauded and he will be missed for the work he has done at this Deputy Editor: Helen Jauregui Journalist: Samantha Giltrow important maritime institution. Regular Contributors: Michael Grey James Brewer As he said in a statement announcing his stepping down: “I am sure there are a number Thomas Ország-Land Paul Slater of highly-qualified people who can replace me and lead the Organization towards the future. Felicity Landon Margie Collins But nobody can replace me to take care of her.” Emotive words indeed. But his successor Motoring Journalist: Rob Auchterlonie New York Correspondent: Rajesh Joshi whoever it may be, will be inheriting a plate brimming to the edges with existing or pending Technical Editor: David Tinsley Advertising Sales Manager: Karen Martin legislation and an industry struggling to wrestle itself from the economic crisis that has beset Accounts: Sarah Jones Design and layout: Mike Argles it for so many years. Sean Glies And what of the role of the regulator? Well the shipping industry remains Editorial contributors: The best and most informed writers serving the global determined that any future regulation should be conducted on a global scale and away shipmanagement and shipowning industry. from the influence of the regional legislator. Take note of the decision by Europe’s Ship Management International (ISSN 2049- 9574) is published 6 times a year (Feb, Apr, owners to use a soon-to-be-seen European Shipping Week to promote the strengths Jun, Aug, Oct, Dec) by Elaborate Communications and significance of European and global shipping to the newly elected European and distributed in the USA by Mail Right Int., 1637 Stelton Road B4, Piscataway, NJ 08854. Parliament and College of Commissioners. As Patrick Verhoeven, Secretary General of

Periodicals Postage Paid at Piscataway, NJ and the European Community Shipowners’ Associations (ECSA), said: “The first week of additional mailing offices March is ideal (for the event) since EU institutions will by then be fully operational in POSTMASTER: Send address changes to Ship their new composition. The whole idea behind this important event is to give European Management, Elaborate Communications, c/o 1637 Stelton Road B4, Piscataway, NJ 08854. shipping the opportunity it needs to impress upon what is a new European Parliament

Elaborate Communications , Acorn Farm Business and a new College of Commissioners.” Centre, Cublington Road, Wing, Leighton Buzzard, And this change in emphasis of shipping standing tall and taking the initiative to sell its Bedfordshire LU7 0LB, United Kingdom. Tel: +44 (0)1296 682051/682241/682403 industry to its regulators and legislators has to be applauded. Only it has the passion to tell it how Printed in the UK by Warners Midlands plc. Although every it is. Shipping is important enough to get politicians onboard. Let us hope that they listen. effort has been made to ensure that the information contained in this publication is correct, Elaborate Communications accepts no responsibility or liability for any inaccuracies that Happy reading may occur or their consequences. The opinions expressed in this publication are not necessarily those of the publishers. All rights reserved. No part of this publication may be reproduced whole, or in part, stored in a retrieval system or transmitted in any form or by any means without prior permission from Elaborate Communications.

Approved and Supported by Sean Moloney

8 Ship Management International Issue 51 September/October 2014

Notebook

UK Chamber CEO appeals for divisions to be ‘healed’ after Scottish referendum

ollowing the long-awaited that we have expressed significant that uncertainty, but frankly the result was Referendum on Scottish concerns about what independence just too close to put an end to the Findependence and the returning of a would look like for a shipping industry independence question.” ‘no’ vote, Guy Platten, Chief Executive that is a powerhouse of the Scottish The UK Chamber, he believes, has Officer of the UK Chamber of Shipping economy. won many friends during the campaign has called for the divisions created by the He said the Chamber had held and he said the Scottish Government had campaign to be “healed – across industries, numerous meetings and events for valued the expertise it had been able to businesses and communities alike.” members and the Scottish Government to provide. He said the Chamber was already Mr Platten, who left Scotland and his address these concerns. working towards an event in Holyrood, role as Chief Executive of Caledonian “In business we know that the enemy Edinburgh in November and would Maritime Assets last year, said: “When I left of growth is uncertainty. And whichever continue its work across all aspects of Scotland late last year to become Chief side you supported, there has been Scottish shipping from Aberdeen Executive of the UK Chamber of Shipping, tremendous uncertainty across not just to Glasgow. the referendum debate was already reaching the Scottish economy, but the UK as a “A key part of my strategy is to foster fever pitch. I think few people south of the whole. As the polls tightened in the deep and productive relationships with border had, at the time, a real understanding closing weeks of the campaign, billions of our Scottish members – as well as those of just how divisive the campaign had pounds were wiped off the stock market we need to influence in Edinburgh become. and the pound plummeted against every and beyond.” “The UK Chamber was never going to major currency in the developed world. The final result of the vote was 55% publicly back one side, but it is no secret The result of the referendum has eased ‘no’ and 45% ‘yes’. G

10 Ship Management International Issue 51 September/October 2014 Notebook

IMO Secretary-General to step down

he Secretary-General of the International Maritime He said her problems had flared up in March and April and Organization, Koji Sekimizu, has announced he is to this has caused him to compromise his travel schedule with the Tstep down from the post when his first term ends at the IMO. Although she was now recovering, she needs continuous end of 2015. healthcare. In his blog on the IMO website he stated that he will not be “My core reason for not seeking reappointment is that if she seeking reappointment in December next year due to personal becomes unwell again in the future, that could affect my duty and reasons related to the health of his wife. responsibilities and I may have to compromise my work in order “I would like to retire from IMO at the end of the current term to ensure her care. which expires at the end of 2015. I will not seek reappointment. This “I am sure there are a number of highly-qualified people who is because of my desire to ensure my support to my wife, who has a can replace me and lead the Organization towards the future. But serious health issue, and I would like to ensure that, when needed, I nobody can replace me to take care of her.” could give more time for her care and support for her immune He added that until his retirement he would continue to put system problems.” all his time and effort into the IMO. G

Issue 51 September/October 2014 Ship Management International 11 Notebook

Charterers remain optimistic despite small downturn in shipping confidence

verall confidence levels in the to the 5.9 recorded in August 2013, and to unpredictable, and much will depend on shipping industry fell slightly the record high of 6.8 when the survey was political and economic developments Oduring the three months to launched in May 2008. between certain nations and on the easing August 2014, according to the latest Charterers expressed a significant or intensifying of economic embargoes.” Shipping Confidence Survey from increase in confidence this time, up from 6.1 Elsewhere it was noted: “Political risks have international accountant and shipping to 6.7, the highest figure recorded by this increased, and this will adversely impact the adviser Moore Stephens. They are, category of respondent in the life of the market.” Not everybody agreed, however, however, still higher than at the survey. Owners (up from 6.1 to 6.2) were with one respondent noting “Confidence is corresponding period 12 months ago, and also more confident. But confidence on the positive, with US economic growth positive confidence among charterers actually part of managers and brokers was down, and the global economy on a path to reached a six-year high. from 6.5 to 6.2 and from 6.0 to 5.3, recovery, easing capital flow into the The amount of anticipated significant respectively. The biggest fall in confidence market.” new investment over the next 12 months was in fact that expressed by uncategorised Others, meanwhile, were less optimistic. was down over the three-month period, as respondents (down from 6.7 to 5.9). “There is no economic basis for substantial were levels of expectation with regard to Geographically, confidence was down growth,” said one, while another observed improved freight rates in the dry bulk and in all main areas canvassed by the survey. In “The market is stuck at a level characterised container ship sectors. Once again, the Asia, the fall was from 6.4 to 6.0, in Europe by low income and low expenditure, which dominating concern among respondents from 6.2 to 6.1, and in North America from now seems to be the norm, despite was the perceived adverse effect on the 6.5 to 6.2. expectations of a speedy recovery following market of an excessive amount of tonnage. A number of respondents referred to the recession.” Still another warned “We In August 2014, the average confidence the adverse effect which political and have seen a very prolonged period of poor level expressed by respondents in the economic developments are having on the freight rates and, unless we witness a real markets in which they operate was 6.1 on a market. “The economic outlook is poor improvement in the next few months, some scale of 1 (low) to 10 (high), down from the globally,” said one, while another owners – especially those who bought 6.3 recorded in May 2014. This compares emphasised “The shipping markets are still expensive ships – will be in trouble.” G

12 Ship Management International Issue 51 September/October 2014

Notebook Letter of intent signals breakthrough for very large ethane carriers

artmann Schiffahrts, Jaccar said Torsten Schramm, DNV GL combined into one. Due to better use of Holdings, HB Hunte Maritime’s COO for Division Germany space in the cargo holds, this results in HEngineering and DNV GL, have “Such highly specialised vessels require higher efficiency and allows an increase in signed a letter of intent for the classification a very strong technical partnership and we cargo capacity of nearly 30% over similarly of five ECO STAR 85k very large ethane are looking forward to working together sized vessels with conventional tanks, carriers. with Jaccar, Hartmann and HB Hunte to reducing shipping costs through greater “It’s a great honour to be given the bring this project to a successful economies of scale. opportunity to act as the classification conclusion.” Pictured, left to right, are Frerk Brand, society for this new series of ECO STAR The five ECO STAR 85K ethane- Managing Director of HB Hunte 85K vessels. These vessels will be the largest fuelled VLEC-carriers will have a capacity Engineering, Ulrich Adami, Technical ethane carriers yet constructed, but it is not of 85,000cbm each. The cargo tanks of Director of Hartmann Schiffahrts, Jean only the size, but the technical innovations these five new vessels include another world Labescat from Jaccar Holdings as well as present in this design that will make these first – the use of the innovative Star-Tri- Torsten Schramm, DNV GL Maritime’s ships a real breakthrough for the industry,” Lobe tanks which consist of three cylinders COO for Division Germany. G

14 Ship Management International Issue 51 September/October 2014

16 Ship Management Internation al Issue 51 September/October 2014 First Person

First Person Robert Yuksel Yildirim President and CEO, The Yildirim Group

he Yildirim Group’s interests are certainly diverse, but when we meet President and CEO Robert Yuksel Yildirim, he wants to talk about ports Trather than shipping. Mr Yildirim is of course well known not just in the Turkish business environment and diversified business portfolio but also for his multi-national investments, which include a 50% holding in Malta Freeport and the bailing out of CMA CGM for a five- year investment period, which comes to an end in about 18 months’ time. What happens at the end of that term, he said, is up to the Saade family to decide. This may mean buying the shares back or going for an IPO, or alternatively finding a third party to buy the shares. Mr Yildirim said the secret of his success is being a majority shareholder that is “in the driving seat and not the passenger seat”. At CMA CGM, Mr Yildirim is not involved in day-to-day decision-making or the management of the company, acting as a financial investor only who, although he has certain voting rights, monitors the company and attends board meetings. Therefore, the incentive isn’t there to continue to invest, unless he decides to continue to hold shares on a personal basis. His intention in investing $500m in CMA CGM was to take part in the restructuring of the company and make money on his investment. “For me, it is a very “We are not just good investment, so far,” he said. interested in the port, we The group operates a fleet of dry cargo ships through Yilmar Shipping and are interested in human chemical tankers through Chemfleet, a technical management company of which Yildirim Group owns 51% that has around 20 vessels in total and that aims to grow in beings and training” the next five years. However, the group’s main area of growth in maritime is in the port business, through subsidiary Yilport Holding. Mr Yildirim’s dream is to see the group develop into one of the largest port operators in the world. At present the company is number 17 of the top 20 ports around the world and according to Mr Yildirim, the goal is to be in the top 10. “When I entered the port business in 2004, we were at zero and in 10 years we have moved to the top 20, and in the next 10 years, we want to be in the top 10,” he said.

Issue 51 September/October 2014 Ship Management International 17

First Person

He says that so far the group has seven MSME degree from Oregon State University. So would he consider the DP World ports, the most recent being at Gavle in He worked for five years in the US as a crane approach of building a business park in their Sweden. Yilport will also be running the Port engineer, so he knows the equipment side in new Thames Gateway facility? He said he of Oslo for a 30-year period. The company is ports and he claims to be able to ascertain would, but government funding is not going through the tender process for the whether or not someone is telling him the available in Turkey to back private Montreal Gateway project in Canada, and is truth when it comes to the equipment. investment schemes. also in the running to operate the Greek port So how is the investment to be financed In considering his latest expansion in the of Thessaloniki. for new port acquisitions? He said JP port sector, he points to his success in the The company is also talking to a further Morgan has been appointed to handle a chrome business, where he is one of the top seven ports in Africa, Latin America, the Baltic private placement to sell about 30% of three people. When he bought Eti Krom Inc. and North America. Mr Yildirim says to fulfil Yilport Holding for approximately $700m- in Turkey from the Privatization his dream to become a top 10 port operator $800m, and once the fresh finance is Administration, it was bankrupt with about he will have to acquire an average of two small available, the plan is to raise over $2bn to $120m worth of loss. Now, the metals and or medium-sized ports a year. invest in ports. The final investment figure mining division of his group ranks number So how does he choose the ports he will be approximately $5bn, he estimates. He four in the global chromium industry. wishes to go for? He adopts two different added that the company may also issue “For me shipping is a low entry business; strategies. The first targets ports in developed Eurobonds to fund the acquisition of ports. it doesn’t give me any excitement. You can countries with single-digit growth, where the Apart from the seven ports it currently have the money and you can be the number company can bring to bear its general cargo runs, the company also has six dry terminals, one today in shipping, but can you have any expertise in containerising the process. “We and he said they are growing not only in influence in shipping?” There are, he said, no have relationships with big producers and seaports but in facilities to supply landlocked controls and too many egos. Ports are not like liners, so we can attract their cargoes using countries. The company also invests a good that. “You have to be strategic; you have to these relationships,” he said. deal in training, particularly in crane operation, have a business plan and you have to place These relationships include those with drawing on Mr Yildirim’s expertise in robotics your money safely to make good returns”. In CMA CGM and MSC. Some of the port and crane automation. “I am very open to shipping, he believes people buy ships authorities are run by local authorities and these kinds of investments, particularly in without knowing what they are going to do are not necessarily ‘proactive’ when it comes training and education,” he said. So far, the with them. In ports, one can make a positive to marketing – and this is where the company has bought all of its new gantry impact, he added. Ports is the core market for company can provide its own expertise, he cranes from Mitsui Engineering & the future of the group, he said, “not shipping, said, as well as cargo handling equipment. Shipbuilding (MES) in Japan, and although not shipyards, not shipmanagement”. He added that while the top four port they may pay more than elsewhere due to their As far as ports are concerned, his name is operators – APM, Hutchison, PSA and DP higher quality, Mr Yildirim said breakdown now out in the marketplace, and ports are World – focus on containers, his company, rates are in the order of 0.5% per year, which he clamouring to attract his attention. Everyone, Yilport, is more multi-purpose oriented – said compares to 4%-5% in other ports: “We he said, wants to sell at a very high price, so the focusing on container, general cargo, dry are paying for quality” he said. company is looking at the opportunities but cargo, chemical tankers and Ro-Ro. The In the Turkish port of Gebze, the “we want the best for us, we are very selective company’s approach is to help importers company’s new cranes will be able to handle and we are not spending money for show, so and exporters and use its trading arm to buy the largest vessels, including the Triple E class. that we will be number so and so in the the cargos and use the ports. It will also When the new cranes are delivered from ranking of port operators”. invest in equipment like cranes. Japan at the end of this year, the port will have He said when the company did a In developing markets, growth is usually a 1m TEU capacity. In Gemlik, the capacity roadshow to support its private placement, double-digit, and the company looks at multi- will be 2m TEU by the end of 2016. Mr investors were surprised at the returns that purpose ports to make sure the right Yildirim said he feels very fortunate because could be made by a relatively small port equipment is there, to improve efficiency in “when I go to the port, I can see what I can do operator. “I’m there to make money,” he said. “I the operation. The company has an for the port and can immediately add value to serve the customers, I provide good quality, international team and puts a first-100-day the port. I’m an engineer; I want to see the but I charge them for our quality services”. integration process in place when it takes over. results”. He added that he personally visits “We are not just interested in investing “We are trying to set 70%-80% standardisation every port before an acquisition is made to in the port; we are interested in investing in in our port operations,” Mr Yildirim noted. ensure that the company can operate human beings and training. We are planning Mr Yildirim’s background is in successfully there. He takes a very hands-on the future, and work with the right people,” mechanical engineering, and he has an approach to the business. he concluded. G

Issue 51 September/October 2014 Ship Management International 19 How I work SMI talks to industry leaders and asks the question How do you keep up with the rigours of the shipping industry?

Networking Business Unit for Southeast Asia, Taiwan and Hong Kong that he earned his spurs as a behavioural coach. “In all my business roles I have been able to motivate staff to a higher level of performance and while shipping may be a different industry, it is still all about getting staff to work to higher standards. As employees move on it is important that they possess a sense of achievement and a belief that they can develop to their fullest potential.” “Other than normal attrition rates, I am also lucky enough to have never had an employee leave me. For me that is a good testimony. I like coaching and have been a ‘coachee’ in the past and have been quick to pass on the lessons I have been taught,” he said. When you start business coaching someone, what are the key elements you latch onto? Mr Phoon again: “Well there are two key issues I see as important. I always believe “I am lucky enough to that everyone wakes up in the morning and wants to go to work and do a good job. All of have never had an us wake up with a good intention to bring employee leave me” home the bacon and once that is in mind, I look at what levers will motivate an individual employee? What will make them say I want to be part of the team and I want to contribute?” “It all begins with ownership. On many occasions I feel that employees and managers MICHAEL PHOON become disengaged because they have no Executive Director, Singapore Shipping Association (SSA) sense of ownership. To direct them towards that, is to get them involved in the day-to-day f there is one thing that Michael Phoon Bachelor of Science Degree in Business decision-making process so they understand fervently believes in, it is the power of administration, the new Executive Director of what is in store for them. The second key Ithe people. Or to put it more the SSA is also a certified master coach, factor is empowerment; otherwise they won’t accurately, the power that is within people graduating in 2009 at the Graduate School of want to make a decision. Once they are to perform at even higher levels than they Master Coaches at the Behavioural Coaching empowered, they then have a sense of mission may have previously believed themselves. Institute in California. And it was during his and empowerment,” he added. And he should know what he is talking time at Hewlett Packard as Director and Mr Phoon took over as the new about because apart from holding a General Manager of the HP Enterprise Executive Director of the SSA from 1st

20 Ship Management International Issue 51 September/October 2014 Shipmanagement: How I Work

August this year as a result of the retirement my entire career I have only spent about three engaged collaboratively for its members and of Mr Daniel Tan after 29 years of dedicated years in finance. The rest of my roles have put for the industry. service to the Association. me beyond my comfort levels. I like the So what is his plan for the next few Welcoming the new appointment, SSA challenge because I am very hands on and I months as he settles into his role? Honorary Secretary Esben Poulsson, who pick up the technical stuff very quickly. “I have been putting together a work headed up a committee of four elected SSA “My past successes in roles beyond my plan which encompasses a handing over Councillors charged with undertaking the comfort zones, were partly because I had and taking over process before spending search for the next Executive Director, said: asked for and received help from colleagues time meeting with key SSA members and “The process of choosing a successor to the who knew better than me, and saw my its stakeholders and finding what their Association’s long-serving and extremely eagerness to want to learn and contribute.” market drivers are. I will also look at the talented Executive Director Daniel Tan has So does the new Executive Director feel events and calendars coming up. It will also been a big challenge, given how difficult it challenged as this is a new industry? “I am give me an opportunity to start to engage will be for anyone to succeed such an thoroughly excited being here in this industry with the ASF secretariat which is based here illustrious and well respected industry figure and, yes, I will be challenged in some areas of in Singapore. The best approach is to take it as Daniel. expertise where experiences built the all one step at a time.” “We did, however, interview some knowledge. And I have a lot to learn from my “There is also a drive to increase the highly impressive candidates and the final colleagues that is for sure. I won’t be on par, broad membership of the SSA which I choice was very difficult. Nonetheless, the knowledge-wise with them. believe is too small. My intention is to drive SSA Council was unanimous in its choice “But it is in my plans to engage them, and this forward. We want to know why there of Michael Phoon who, while not being I will see them as collaborative partners. I are still shipping industry players who are from the industry, demonstrated a level of have worked long enough to know that if I not yet ready to be members of SSA and so understanding, enthusiasm and passion for asked for help, people are often willing to it is important that SSA continues to be the role and was in the end simply chosen help. And I hope to also bring in my own seen as an engaged leader for its members on the basis of being the best person for qualities into the industry” and observers. the job.” And the question has to be put to Mr “SSA has actively launched many It was his track record as a results-driven Phoon, coming into this role at SSA, what working groups which are set up to address person, with excellent people management qualities will he bring to the job especially matters affecting the shipping industry. These skills that the SSA believed would enable him when he will immediately embark on a steep working groups (committees and sub- to lead it to the next level. learning curve? committees) comprise members who Indeed as Esben Poulsson stressed, there “One of the issues I feel committed to is volunteer their time and effort to help is a clear trend for Associations around the that I feel the SSA needs to have a higher address these issues with the maritime and world to be run along more business-like profile regionally and internationally. I am a related authorities. This, to me, is the value lines and in this respect, the SSA in the future strong advocate for the business to grow and that SSA brings. SSA must be seen as an will be no exception. “With more than 475 I would like to see the SSA grow to be even organisation which the shipping industry member companies, the SSA has a very solid more of an important player. Today, the SSA want to be a part of, by offering added value foundation from which to grow further and is a collective voice for all its members so I services, a collective voice, educational continue to make its contribution to further believe the SSA should ensure the concerns seminars, related training programs etc. enhancing Singapore as a leading of its members are heard inside and outside "I said that SSA needs to be relevant, and international maritime centre,” he said. the industry loud and clear.” that’s why the SSA Executive Council and its So what motivates the new Executive As Singapore continues to stay ahead council members comprise individuals with Director as a person? “First of all it is a sense and remain relevant in the global world, both domestic and international experiences of achievement. I have always been a results- Michael believes that SSA, must also match in the industry. This is essential because we driven person; that is the little spark that fires its pace with Singapore as well. That means need that kind of exposure to grow and me. I have a degree in finance but throughout SSA must be ever ready to step up, and to be engage globally.” G

Issue 51 September/October 2014 Ship Management International 21 Shipmanagement: How I Work

Cardiff, Wales – the city which Debasis but Mr Mazumdar has met with many of Mazumdar, Head of the UK Ship Register, these owners to discuss the benefits of the Maritime and Coastguard Agency (MCA), Register. The Flag currently has over 20 calls his home. German companies who have registered Mr Mazumdar’s enthusiasm for his role vessels with the UK but Mr Mazumdar is is patently clear, particularly when he keen to increase the potential here, proudly notes that one of the world’s most particularly as new tonnage tax laws loom, famous ships, the Cutty Sark (the last stating that German owners must have 60% surviving British tea clipper, built 1869) is of vessels under an EU Flag. still under British register. Despite its age, With over 1,000 staff in the MCA, 18 this beautiful specimen, permanently offices around the UK and over 120 housed as an exhibit at Greenwich, is not experienced surveyors and lead auditors, going to threaten the Flag’s status as a top10 the UK Register has independent ‘White List’ register and Mr Mazumdar departments, much like a classification explained that retaining a Flag with only society and is in charge of its own plan quality, well-run vessels is the only option approvals, anti-pollution, ISM and security, for the UK Register. navigation and safety departments. “We are top 10 on the Paris MoU white “Everything is in-house so we do not have list. We are seventh at the moment – we to depend entirely on a classification were first at one time but now our fleet has society,” Mr Mazumdar said. “Top 10 White List grown so much. In 2001 we had six million As the UK Registry is part of the UK gross tonnes and now we have almost 14 Government and is run in a not-for-profit status is extremely million gross tonnes! A considerable rise! fashion, it must adhere to strict rules important to us and “We need to maintain quality levels regarding how it can market itself and so, we will never with ships and owners being of a high Mr Mazumdar and his team must work calibre. Our doors are not open to hard to convince owners of the benefits of jeopardise this” everybody, we only want those companies the Flag, particularly when meeting with who properly maintain their ships, we don’t those who may not have much prior want those who cut corners. Our top 10 knowledge of the Flag. White List status is extremely important to “It’s a revelation to many European us and we will never jeopardise this,” he said. owners, to find out about our services. Each of At present, the UK Register has about our ship owners has one single point of DEBASIS 300 shipping companies registered with it contact. You are given a dedicated Customer worldwide, including blue chip companies Accounts Manager who is available by mobile MAZUMDAR and to build on this, Mr Mazumdar and his 24/7 who will assist you with absolutely Head of UK Ship Register, team are keen to promote the flag to owners anything. You will also be given a dedicated Maritime and Coastguard Agency overseas. “Our biggest challenge is to get Customer Service Manager to help you on foreign vessels flagged into the UK,” he said. technical matters. Any member of the public Mr Mazumdar, who graduated from the can call us at any time regarding problems. We ith choice comes freedom but prestigious Marine Engineering Research don’t give any opportunity for a customer to nowadays, with such a broad Institute in Kolkata, India in 1983, has been say they have phoned us and couldn’t get hold Wvariety of maritime making efforts to woo foreign owners, of us – we won’t allow that because it’s administrations offering their services, this including those from Greece, Germany and unacceptable but unfortunately it does can leave some ship owners dizzy with Singapore. In February, he made a special happen in the marine industry. With some confusion over who best to flag their vessels visit to Singapore with the then Shipping flags, if you call with a problem on a Friday with. But according to its head, the UK Ship Minister Stephen Hammond, where they afternoon, nothing will be done until the Register is testament to that classic held an event for premium ship owners at Monday morning because everything is assertion that oldies are definitely goodies! the British High Commission. Though closed. We don’t subscribe to that and we The UK Ship Register’s rich history is there must be well over 100 Greek owners issue certificates, or whatever the owner’s indeed something to be proud of. The Flag based in the UK, the UK Register currently requirement may be, in the middle of the registered its first ship, Blessing, in 1855 in does not have any Greek ships on its books night if needed.”

22 Ship Management International Issue 51 September/October 2014

Shipmanagement: How I Work

Keen to emphasise the unique selling about the support which the flag can offer. lead surveyor for newbuildings). He also points of the UK Register, Mr Mazumdar That is one of our biggest selling points, the worked for ABS in Dubai, prior to joining explained: “Because we are a non-profit fact that we give constant support to ship the MCA in 2004. government organisation, we only recover owners when there is a problem. All of our Despite his dedication to his job, Mr costs for the time spent by our staff and so, Auditors are also Port State Inspectors and Mazumdar said he believes it is important our charges are very low. Registration costs they are able to point out obvious defects to a to take time out and enjoy some are the same across the board, regardless of captain and get them sorted out during flag relaxation time but what does he do in his how big the vessel is – from the smallest state inspections. Our ships are audited by our own spare time? “I spend quality time boat to a VLCC, it costs £124 for own staff and our surveyor inspects like a Port with my family and that is so important to registration of your first vessel and this is the State Officer which gives us, and the owner, me because there is a lot of only registration charge for the first five confidence that wherever the ship may go, it professionalism in our house. My wife is a years. There is no annual registration fee, has been inspected by us and if there is any doctor so we are both always very busy. I the renewal cost after five years is £49. problem, it will be sorted out promptly.” travel away a lot and my wife is often on- Other certificates have some fees but we Though there are almost 46 countries call or works nights. My son is currently charge £94 per hour for our services and in on the White List, Mr Mazumdar is keen to studying his fourth year of medicine at comparison to the market rate of £250 per emphasise that the top 10 are the best university and my daughter has just hour, this is very reasonable. performing flags and that these Registers are started high school and, of course, it is “Ship owners can’t believe their ears renowned for having well-maintained important that I spend quality time with when we tell them this. Some of the vessels. The UK Register is also the proud them both.” Singaporean owners have told us we are recipient of a Qualship 21 certificate from Describing his pastimes, Mr 50% cheaper than flags of convenience they the US Coastguard – this means ‘Quality Mazumdar said he is extremely fond of have used in the past. It’s also important to Shipping of the 21st Century’ and the golf and said last time he played in the ABS note that anti-terrorism (ISPS) audits are certificate is given in two different golf championship, he was in the runners free with the UK Register – audits, ship categories, an individual ship can get a up team and won a prize. “This year, I security plans etcetera, these are all free of certificate and around 12 flag states have couldn’t play because it clashed with travel charge. The UK thinks the security of the also been recognised as being of high commitments but I try to play when I can ship and its crew is the responsibility of the quality, with a positive Port State Control and my son is a golfer too so we play Flag which the ship is registered with. This record. The UK Register is one of these. together sometimes. I also enjoy gardening is a life or death matter, but this service is According to Mr Mazumdar, this certificate and music – I like soft rock from the 1970s still chargeable in the industry. We do these assures that vessels sailing under the UK and 1980s, including bands like Pink audits in-house, by our trained and Flag are less likely to be subject to a surprise Floyd, Dire Straits, Jim Morrison, Jimi experienced auditor. We visit UK-flagged inspection from US Port State Control Hendrix, Bob Marley and Crosby, Stills & vessels every two and a half years for audits inspectors. This gives peace of mind to ship Nash – all of which remind me of my and flag state inspections and these owners because the US Coastguard is college days!” inspections are free of charge.” known for its prowess in detaining ships. Mr Mazumdar added that he has a But surely cost isn’t everything? Having served at sea for 11 years as a penchant for Bollywood films on Particularly for wealthy blue chip companies? Chief Engineer, Mr Mazumdar understands occasion and also listens to Bollywood Mr Mazumdar agreed: “Why do the big blue the frustrations seafarers, owners and music. He also used to play a lot of table chip companies stick with us? It is more about managers can suffer when a vessel is tennis in India for his state and although what the UK flag does for a ship owner's detained for no good reason. He also he has “lost touch” with this recently, he reputation, as well as the level of support we worked at the classification society explained that he enjoys playing provide. It’s not necessarily about cost because American Bureau of Shipping (ABS) for 10 badminton and going swimming with his a lot of the good shipping companies are not years, during which time he was posted to daughter. “Cardiff is a great place for worried about cost in this way – it is more India and to China (where he worked as a family life,” he concluded. G

24 Ship Management International Issue 51 September/October 2014

Market Sector: Communications

Giving communications innovation the oxygen to breathe

hip owners do not have to wait on “Key Performance Indicators (KPIs) are “Crew training plays a critical role in the side lines for new technologies becoming the measuring stick of vessel insuring the smooth operation of vessel Sto arrive but have to take an performance and optimisation and KPIs are systems – including onboard network and aggressive posture when it comes to ship all about information transfer between ship connectivity. Working from shore with a connectivity if they are to stay one step and shore. As we deal with an ever more knowledgeable crew onboard makes it ahead of the competition. competitive market place, owners will equip easier for the shore IT staff to maintain and This message by Asad Salameh their vessels with the tools to win today’s optimise network operations. (pictured), President of World-Link market. Vessel connectivity is a competitive “Moving forward there are a number of Communications, is reflective of the edge that needs to remain sharp and up to new technologies at hand which will changing mood in the marketplace towards date,” he told SMI . provide an ever faster connection to the ship-to-shore communications as ship And as owners continue to invest in vessel. Inmarsat with its Global Express, or owners and managers strive to match infrastructure and resources, what can be a Intelsat’s HTS (High Throughput Satellites) software applications available to them with better future proof option than investing in will bring the vessel network performance the current bandwidth capabilities. the human assets onboard, he questioned. closer to that of the shore. However, we see

28 Ship Management International Issue 51 September/October 2014 Market Sector: Communications that current technology is as capable of efficiencies? Asad Salameh delivering today’s applications and again: “I do not see a lack of information as effectively,” he said. applications or bandwidth in Vessel operation optimisation is seen the market needed to promote today by a number of ship managers as a vessel operation optimisation. joint effort between the vessel staff “We know from our cooperating with the shore staff, making experience ashore, that faster joint decisions on how to best handle a information flow promotes specific voyage or situation. Whether it is faster decision making, leading route optimisation over a weather system, to faster benefits. We can no measuring engine temperature, speed or longer depend on email to send deciding when is best to perform systems information to shore and then maintenance, information, and lots of it has to be manually inputted and to flow between the ship at sea and shore. then analysed; not when the Now the link between the ship and shore competition is able to send the becomes critical and can no longer operate information directly from a in store-and-forward mode – as in email. ship’s engine to a software Internet connectivity for vessels has programme onshore to perform been around for a quite a while but the cost close to real time voyage of internet connectivity has been the analysis,” he said. prohibitive and controlling factor. Up until “Two major expenses that a the last two years or so, internet manager or owner incurs in connectivity was affordable only to the oil operating a vessel are fuel and majors, cruise vessels, and limited in the crew wages. One of our prominent clients One cannot have the corporate network OSV market. Mainstream shipping and the has used the internet to benefit his vessel running on fibre optics speed ashore and commercial fleet remained on the side lines. operations by marrying both. When the the remote office running on a dial-up In the past two years we have seen an crew exceed the fuel efficiency KPIs, they modem and expect that the vessel will increase in the uptake of ‘higher bandwidth’ are rewarded with free internet access. This perform in the same efficient manner as the services from the shipping industry in shows that when information is flowing, rest of the company. general. Information delivery prices have KPIs can be monitored, managed, and “Onboard networks supporting come down considerably, and vessel optimised and benefits can be reaped. In connectivity to shore have become as applications and services have improved. this specific case, the voyage fuel saving paid complex as those onshore. However, Today, the market has abundant for few months of internet access cost. some concerns are amplified when using connectivity technologies and bandwidth Again a value versus cost mind set.” internet onboard due to cost of service, availability. However, as Asad Salameh So how can shipboard operating lack of accessibility from shore IT staff, contends, the main driver for current owner efficiency be improved and be on par with lack of shore-based IT staff to support the spending on the internet remains the shore office? “When internet systems are new network users, and the different demand for connectivity from the crew. installed onboard, the vessel becomes levels of users onboard using the same “Today, whether one is considering connected to the rest of the world all the network. One has to think in terms of Inmarsat Fleet broadband or other VSAT time; very much like any office. What is upgrading vessel infrastructure to support technologies, there is an internet missing in this case, is that connecting a shore operations. If we are to have a real capability that fits your budget and vessel to the internet, or to the shore time engine monitoring system onshore, purpose. It is unfortunate that some of our network, is very much like connecting a we will need a high capacity network managers and owners remain cost driven branch office in a different city. The vessel onboard,” he said. instead of value driven, to a point where I will require the same resources including And, as he stressed, security of the dare to say that innovation onboard those human, technology, and financial network at sea, control of crew usage, fleets is being smothered.” investments. Adding 10 vessels to the onboard network auditing, and protection But there is a view that the problems in corporate network is the same as adding 10 from remote threats are issues that need to the industry lie not with the need for greater remote offices with their 250 users. Now be addressed when deploying internet bandwidth but with the need for more we have more sea-based network users than onboard so that ship connectivity remains suitable applications to boost shipboard shore-based – using the corporate network. an asset rather than becoming a liability. G

Issue 51 September/October 2014 Ship Management International 29 Regional Focus: Panama

Constantly evolving

he Panama Maritime cluster has become a global logistics centre”. Great reliable transit service to world trade. The been growing and improving for strides have been made in this area, and once Canal continues to be an important artery for Tyears, adjusting to the changing expansion works are completed, the global trade, connecting 1,700 ports in 160 demands of world trade and as the Panama maritime and transportation logistics cluster countries. The Canal confirmed to SMI that Canal celebrates its 100th anniversary, the will grow even further. The challenge cited by during the years since it was transferred to the nation must continue to use its geographical the Canal, is the ability to harness this growth Republic of Panama, it has been position to its advantage but, according to so that it is in harmony with the ever strengthening its ties with the shipping the Canal’s team, must also evolve into a changing opportunities presented. community and has maintained its plant and ‘global logistics centre’. One related issue is that Panama needs to equipment in optimal operating condition. Speaking with representatives from the secure an adequate labour force to fulfil all The Canal’s Planning and Business Canal’s Planning and Business Development the jobs in logistics which the cluster will Development team told SMI : “Today, the team, SMI found a positive force but one require in the near future. Canal Canal and its associated cluster are much which acknowledges that much of Panama’s representatives told SMI : “Panama’s more deeply integrated into the Panamanian past growth and development as a maritime challenge is to redirect education towards the national economy, are a source of significant centre has required “significant investment in new realities that our country faces and guide and justifiable national pride, an awesome infrastructure, human resources, strategies our young population towards more highly national responsibility and a cornerstone of that improve coordination between various skilled technical jobs that are already in Panama’s national heritage. This did not independent entities and in planning and high demand. happen overnight; rather it was a process of executing the necessary steps to meet greater “Furthermore, Panama’s maritime cluster continuous growth over more than 100 competition and growing demand”. This must strive for excellence as it faces increasing years. In the early days of the nation, Panama development occurred in the context of competition within the region. Panama’s showed its willingness to invest in rapidly increasing world trade. maritime cluster must seek synergies and international trade and that willingness has But now, one of the greatest issues and efficiencies to maintain the position that it growth over the last century. challenges facing the Panama maritime has worked so hard to obtain, especially in “Even though the Canal expansion is cluster is, from the Canal’s perspective, for the current global situation of lethargic financed by the Canal, the newer larger locks Panama to continue to make the most of its growth.” and improved channels being built are geographical position, while continuing to On 15th August, the Panama Canal symbolic of the significant investment that “evolve from a place of interoceanic transits reached an important milestone, with the both the Canal and the country are willing to and a multimodal transportation corridor, to celebration of 100 years of providing safe and make in the Maritime industry both to serve

30 Ship Management International Issue 51 September/October 2014 Regional Focus: Panama

Panama as well as global trade. As the Canal plans and noble aspirations. The new and adapting its services to the growing celebrates its first 100 years, it is making plans administration faces a challenging maritime needs of the industry. It would be unfair to for the next 100 years, both as a Canal and as sector that is also ripe with opportunity.” dismiss the struggle and invaluable efforts a nation.” Some might argue that Panama has throughout our history to reach at the point The construction of a new lane of traffic grown over the past 20 years into a more where we are today. Of course, there are will allow the transit of larger, wider and professional and respected maritime cluster, improvements to make, but we are proud of deeper draft vessels through the Canal. At the whereas in the past it was seen as an our long term tradition and heritage.” same time, the country has been able to make expensive, unreliable place to do maritime When asked what he believes to be the use of the strategic areas within the Canal and business. But the Canal is keen to defend the greatest challenges facing the Panama has built a strong transportation and logistics cluster’s efforts in making Panama the maritime cluster at this time, Juan Carlos centre like no other in the Americas, but maritime hub it is today: “Panama has Croston, President, Panama Maritime Canal representatives have warned that this probably the longest maritime history within Chamber and Vice President of Marketing, type of development cannot be achieved in the region. Our flag registry dates back to the Manzanillo International Terminal (MIT), the short term: “It is the effort of many 1920s and the Canal has served maritime said: “Panama’s maritime cluster has enjoyed generations that have worked toward the trade for a century. Our country has always 20 years of unprecedented growth, starting sustainable growth of the sector, and that been avant-garde in maritime issues and the with port privatisation in the early 1990s. have developed a service culture that meets Panamanian maritime cluster is also one the Private sector involvement played a pivotal the needs of world trade.” first to offer services to transiting vessels. In role, including an investment plan that today Now Fernando Solorzano has been the 1990s, it was the first successful port totals $3.5B. The next 20 years will be appointed as new head of the Panama concession in Latin America. defined by how well business facilitation is Maritime Authority’s (AMP) Merchant “We set the pace on standards for the achieved: ease of access to a pool of skilled Marine directorate and Ship Registry, do the port development and transhipment workers, enforcement of private sector fair Canal’s representatives believe this will operations. With the transfer of the Panama competition rules and laws, integration benefit Panama as a maritime cluster? “The Canal to the Panamanian government, it was (infrastructure and process-related) of Panama Maritime Authority (AMP) is an finally possible to develop a national existing and future maritime cluster assets, important part of the Panamanian Maritime economic policy to develop the country as a better focus on customer’s needs (fast, Cluster, and a significant element in national whole and to integrate the Canal in order to sustainable services) including technology and global trade. It is up to the new generate synergies. Panama has been leverage and to assess future demand to administration to detail its vision, concrete continuously improving its maritime cluster create a long-term plan.”

Issue 51 September/October 2014 Ship Management International 31 Regional Focus: Panama

As a large container transhipment known in Panama’s maritime circle and has the Colón community. Describing some terminal, MIT has plans for the future ample experience with the Maritime recent activities in corporate responsibility where growth and expansion are Administration. We hope that he works on and why this side of MIT’s business is so concerned. “MIT is currently in the first strengthening Panama’s flag in light of vital to the company, Mr Croston added: phase of a US$270m expansion plan that advances by our competitors.” “MIT is an integral part of the community will improve capacity from 2.5m teu per When asked what MIT’s greatest of Colón and as such, it feels committed to year to 4m teu per year,” Mr Croston said. achievements over the last year have been, the management of significant social “The expansion plan includes the Mr Croston said it has handled over 2m teu changes in the region, as a contribution to construction of an additional container for two years in a row, contributing to the the development of the Colón society. berth equipped with four super post position of Colón port (MIT, CCT, Cristobal MIT’s main focus in social responsibility is panama cranes; dredging alongside to a port) in the first position of Latin American health and education. MIT gives back to depth of 16.5m; and deployment of an ports by teu throughput with 3.3m teu. “Over the community through the Santa Maria automated stacking system in the yard to the last year we also handled several projects de Belen Educational Institute located in maximise space efficiency. The automated of importance for the country. MIT received La Feria which provides free education for stacking system will use remote controlled shipments of culvert valves, an important 800 children. RMGs (rail-mounted gantry cranes), component of the Panama Canal expansion “In 2007 MIT inaugurated the Dr Juan making MIT the first port in Latin America project. Likewise, MIT was the port of call of Antonio Nuñez Health Center located in to employ this technology.” the metro cars for the subway of Panama Colón City and this serves a number of Sharing his views on Panama’s City, the first subway system in Central communities in the Colón province. MIT Maritime Administration, Mr Croston said: America. MIT also became the first port in also tries to positively influence society in “The registration has shown resilience Latin America to take delivery of six new general. As such, MIT’s employees are during recent years, although users Automatic Stacking Cranes (ASCs) which active members in national trade complained of some questionable decisions should be operational by the end of 2014.” associations, including the Maritime taken by the former Administration. The MIT has important social responsibility Chamber where it holds the presidency of new AMP’s Merchant Marine head is well activities and the company is a central part of the board.” G

Moving on fter 16 years in the Panamanian dedicated to serving the shipping industry.” working with the members of a new team maritime sector, Alfonso Castillero, He says his decision to move to Liberia, to provide the very highest levels of Aformer Director General of the where he is Vice President, was motivated service to the owners and operators of Panama Ship Registry, has joined the Liberian by ‘a commitment to develop my passion to Liberian-registered ships.” Registry. It’s an interesting move, from the provide the shipping industry with the best In difficult economic times, and in world’s biggest ship register to the second service available, as part of a renowned, difficult markets, responsible ship owners biggest – does Liberia have ambitions to dedicated and successful team’. and operators are likely to be more overtake Panama? “Although I have more than 20 years’ discerning than ever in their choice of “We are looking forward to continued experience, the shipping industry is one in service providers and business partners, said growth in numbers, but Liberia’s focus is on which you never stop learning. I had an Mr Castillero. He says that he and his new quality, safety, environmental protection exciting opportunity, over a period of 14 colleagues will be focusing on potential new and seafarer welfare,” said Mr Castillero. years, to learn and to implement new ideas services and ideas. “It is important to bear in “The organisation’s ambitions that resulted at the Panama Registry, for which I am mind that there are always new and viable in my joining Liberia are about building and very grateful to all my former colleagues. I options to explore in a globalised industry maintaining a staff of maritime professionals look forward to using that experience in such as shipping.” G

32 Ship Management International Issue 51 September/October 2014

Market Sector: Ship Supply The customer is

ith clients demanding “Ecoships (a subsidiary of Newport partnerships with vendors based on quality extremely low costs yet a Shipping Group) is set up as a process and price, with a process which seeks to Wflexible approach at all times, based matrix, where we have a fleet team source a spare part by finding the most ship suppliers face one of the most consisting of a crew manager, a technical optimal vendor to purchase from based on pressurised jobs in our industry and supervisor and a purchasing manager who price, quality and logistics. Newport has expansion and diversification are a must in serve a number of vessels. Our teams work also entered into long-term frame order to keep afloat. in real-time using planned maintenance agreements with certain vendors to improve It’s easy to see how such pressures get systems so we can purchase spare parts well delivery time, cost and follow-up from passed down the chain and can be felt in advance a nd therefore reduce the need to the vendors. acutely by managers and their suppliers. purchase expensive ‘urgent’ parts in areas of Ship supply is an extremely competitive Harald Lone, Chairman and CEO of the world with little access to maritime industry at this time, so what qualities does Newport Shipping, a shipmanagement equipment. Mr Lone look for in a supply partner? company headquartered in London, said: “We strictly adhere to budgets and we “With all our vendors we look for quality in “The most important issue today, in a very keep short-term and mid-term active cash the product, delivery time and cost, difficult bulk market with severe pressure management on all procurement. payment considerations, personal follow-up on freight rates, is the domino effect it has Purchasing larger lots of supplies drives and flexibility. We update our procurement on third party ship managers to reduce down costs and reduces logistics costs. Our and service history of all vendors, and red OPEX costs.” procurement managers work closely with flag any vendor which does not provide the But he added that considering the new the onboard officers to ensure proper service and quality we require. We have pressures on ship managers, procurement is demand planning so that the purchase of reduced the amount of suppliers we work in comparison, one of the least challenging supplies is more long-term driven, rather with to encourage a closer working aspects of shipmanagement – particularly than transactional, which increases relationship and to guarantee cost considering the Maritime Labour purchases at lower cost and where rebates effectiveness, optimal response and delivery Convention’s (MLC) crew welfare are given. time and a flexible approach.” requirements, environmental compliance, “Some parts of the world also require Mario Adam, Director of Special technical management, crewing, cultural understanding in terms of Accounts & Projects at Netherlands- quality/safety measures and technological bargaining each transaction. Procurement headquartered NeKo Ship Supply, is concerns. officers take a holistic approach, making well-versed in the need for efficiency in So, in order to avoid more stress than decisions not just based on the spare part serving customers’ needs. For the last year, absolutely necessary, the procurement price, but using a whole supply chain Mr Adam has headed up NeKo’s activities process must be streamlined. Mr Lone management approach, taking into account in Spain where the firm has set up new described how his company’s procurement the entire transportation, storage, material premises in the busy bunkering port of strategy has been perfected: “Chief and import tax when making a decision on Algeciras. engineers onboard the vessels and where to purchase and deliver to the ship.” Mr Adam joined NeKo in 2013 and has superintendents in the office work closely to When asked about balancing cost 25 years’ experience in ship supply. balance maintenance costs with the cost of control with the need to keep close Explaining the reasons for this expansion defects and breakdowns which can result in relationships with ship supply partners, Mr into the Strait of Gibraltar, which began in an off-hire using a life cycle management Lone explained that Newport purchases are November 2013, Mr Adam said: “NeKo system. made by taking into consideration has been doing very well in Holland for the

Issue 51 September/October 2014 Ship Management International 37 Market Sector: Ship Supply last 12 years, to the extent that we are now inviting local port agents and ship supply Considering it has only been in looking for a bigger warehouse in competitors, some of whom NeKo supplies existence for 12 years, NeKo has become Rotterdam because we have outgrown the products to. NeKo is also a member of one of the biggest players in Rotterdam in a one we have. COMPORT, the port community for relatively short time. “We are expanding “To build on our success, we came up Algeciras Bay and visited SMM Hamburg as more and more, we are not worldwide but with the idea of offering our customers the part of the COMPORT stand. “Some of our being selective about where exactly we same level of service which we offer in competitors have benefited from us being in should go in order to benefit our customers Rotterdam, but in Algeciras – one of the Algeciras because we have been able to most. Rotterdam is growing because our busiest ports in the Mediterranean. supply them owing to our purchasing purchasing power has become very Initially, the idea was to open a small power. This benefits us and makes a big effective. We are keeping the same high warehouse there and start growing but difference for local suppliers too.” quality products as always but for a lower then we realised we would need larger price. NeKo has been growing for 12 years premises in order to consolidate stock and even in the last five or six years of crisis, from Rotterdam because locally in Spain, “Purchase of supplies is we have succeeded and this shows we are prices were not competitive and sub doing things right,” Mr Adam said. suppliers were practically non-existent. long-term driven, rather But how does NeKo ensure positive “So we started with a big warehouse and than transactional” customer relationships? “We tend to select now we have over 3,800 consumable items our customers and so, we make sure we are which we renew on a weekly basis. We are Harald Lone, dealing with genuine people. They have general ship suppliers, covering provisions, Chairman and CEO of faith in us and our relationships are great. bonded, technical stores and spares – Newport Shipping The main challenge might be to find the anything which our customers require.” He right people to create an effective team – explained that NeKo’s operation in Spain this was my main worry when I started out has been built up with the intention of but it has all come together so well. In mirroring its Rotterdam offering, in terms of With the assertion that ‘bunkering rules’, Algeciras, we have staff with a wealth of customer service, staff knowledge etcetera. Mr Adam believes the bunkering patterns in local, technical knowledge and in starting “Initially we are covering the south, the Strait have altered and although he said things up there, I had a lot of support from dealing with many vessels in Algeciras and Gibraltar has been ‘winning’ for some time in our team in Rotterdam so with all this Gibraltar on a daily basis and we are also terms of ship volumes calling at the port, he experience combined, I am so positive branching out to ports like Malaga and said Algeciras has caught up dramatically, about our new endeavour here in Spain,” Mr Cartagena. We do supply in the north at helping suppliers such as NeKo to build on Adam concluded. ports such as Barcelona if the order is big their customer base. NeKo is also perfectly In ship supply, location is so important enough and if time allows.” situated in Algeciras for supplying spare parts and for some companies, challenges can Algeciras is a strong bunker port, with via Malaga airport. stem from factors out of their control, such 100,000 vessels transiting the Strait of “The main issue we have now is to as outsider perceptions of the port in which Gibraltar each year and Mr Adam said he is ensure our customers know that we are in they operate. Suppliers operating in Panama confident NeKo will build on its successes Algeciras because of course the name NeKo – a vibrant yet constantly evolving maritime in the region because demand for bunkers is synonymous with Rotterdam. We visit cluster, have faced this issue. Vikash Deepak, in Gibraltar and Algeciras are growing. customers to let them know that NeKo is President, Panamanian Association of Ship “Rotterdam may be the most convenient also in Algeciras! We are seen as a Dutch Suppliers, said: “I believe the biggest port in Europe, but because we now offer brand but now we have branched out. We challenge we face is the perception of the same service in Spain, we have become didn’t expect to do so well so early which is customers towards us. Many customers still very competitive in comparison with local a great sign. Customers are coming back view Panama not as it is today but as it was Spanish suppliers. We are aiming to bring again and again. twenty years ago - the perception of being Rotterdam quality and competitive pricing “We started up our Algeciras an expensive and unreliable port for supply to Spain.” operation with just two people but now it but this is not the reality of Panama today. Of course, with many well-established has quickly grown and we have nine “Suppliers here have a come a long way suppliers already present in Algeciras, Mr permanent staff members based in and many have become suppliers of Adam explained that when NeKo began Algeciras. We are buying more local stock excellent quality. With its economic boom operating there, they understood the need to too so we don’t just rely on Rotterdam for and developing maritime sector, highlighted enter the market softly and held a reception, our suppliers. It’s a win-win project.” by the Panama Canal, Panama is on its way

38 Ship Management International Issue 51 September/October 2014

Market Sector: Ship Supply to becoming a major player in the ship supply denied the opportunity to better sector in the coming years. You have to realise themselves. Additionally Odyssey will work that almost 90% of supplies are made at with key benefactors, partners and anchorage on both sides of the canal while supporters to grow the Odyssey fund for vessels await transit and this gives a very the benefit of the marine industry. limited window of time in which to carry out In other ship supply news, EMS Seven supplies efficiently. The ability to carry out Seas has appointed Lars Rosenkrands as its these operations in short time has made new Chief Executive Officer (CEO). Mr suppliers in Panama highly efficient.” Rosenkrands has 30 years’ experience in the Another supplier looking to spread a shipping industry, having worked for a positive message is Gulfhead – a global variety of ship supply and ship services supplier and manufacturer of marine and companies across Europe, the Middle East industrial spare parts which has recently set and South East Asia, including Inchcape up a new charitable Foundation for the Shipping Services (ISS), Maersk, J. marine industry named ‘Odyssey’. Lauritzen, Wilhelmsen Ship Services, Since 1986 Gulfhead has specialised in ShipServ, and Sinwa. the supply of genuine/OEM brand spare EMS Seven Seas has also entered into parts. The company was founded by an agreement to acquire 100% of shares of Apostolos Sfakianakis when he identified a Wave Shipping, a maritime and port agency need to quickly, efficiently and cost- services company based in Singapore. effectively meet the urgent requirements of Under the new ownership, Wave will ship owning and management companies. continue as a standalone division within Today, Gulfhead’s expertise is in EMS Seven Seas. It will carry on the path analysing a supply request and offering to expand its operations across the globe, customers a range of technical solutions to while pursuing its goal of revolutionising suit their exact project needs. Where the port agency industry by providing a necessary they can also provide expert significantly improved customer engineers on board ship to resolve any experience. problem whether it is relating to Mr Rosenkrands said: “We are thrilled refrigeration, hydraulics or automation. to become part of EMS Seven Seas, which The company has a proven track will give us the ideal platform and support record of successfully completing to shake up the shipping agency industry projects, regardless of size or location, on and to deliver on our mission to provide a time, to budget and to precise higher level of convenience, transparency international standards. Their aim is to and consistency in serving clients and keep ships moving. partners within the maritime industry. Gulfhead has also recently launched There are exciting synergies to explore their Educational Foundation Charity between ship supply and port agency and as named ‘Odyssey’. Michael Sfakianakis, the such, the combined assets of EMS Seven company’s Managing Director, said: “What Seas and Wave promise to bring unrivalled sets Odyssey apart from other charitable benefits to our customers.” G organisations is our commitment to work with educational institutions and charities in countries where Gulfhead operates, to 1/ L-R: Michael Sfakianakis, Managing Director, identify where money raised can be best Gulfhead and Apostolos Sfakianakis, spent to maximise educational Founder, Gulfhead opportunities for young people.” 2/ Vikash Deepak, President, Panamanian Gulfhead will use a proportion of its Association of Ship Suppliers 3/ Lars Rosenkrands, Chief Executive Officer, profits to invest in education and bursaries EMS Seven Seas through the Odyssey Foundation Trust for 4/ Mario Adam, Director of Special Accounts & young people who would otherwise be Projects, NeKo Ship Supply

40 Ship Management International Issue 51 September/October 2014

Business Viewpoint: P&I & Law

Squaring the MLC circle

his year’s highly publicised force, the very rules governing how seafarers to the fact that if a large cruise owner goes amendments to the Maritime are treated, if and when their vessel is bust then will the other Club members be TLabour Convention 2006 have abandoned, are amended in the seafarers willing to foot the repatriation bill for created a dilemma for ship owners and favour yet will not become law until 2017 at hundreds if not thousands of seafarers? managers: should they be looking after the very earliest. Watchers of the shipping And it doesn’t end there? When it the welfare and longer-term financial markets will know that the next two years comes to unpaid wages how willing will needs of their seafarers now, or should may well have their fair share of ship owner some club members be to foot this they wait for two and a half years’ time financial casualties as the industry struggles particular bill when the reason for a when it becomes a legal obligation for to shake off the ravages of the financial crisis member’s financial capitulation may well them to do so? and start to build for the future. have been his own poor business The answer to this question will Best practice has been in place for years management decisions? almost certainly be split between those and indeed the guidelines surrounding the And while all of this is going on, the owners who value their sea-going staff MLC, while not legally binding, point to seafarer is struggling to redeem what wages enough to place personal insurance owners and managers putting the financial are due to him and return home to the policies in place to cover what they would needs of the seafarer first, but when it comes comfort and security of his family. regard as the ‘unlikely’ event of them ever to unpaid wages, there is a bit of a mismatch Nothing can be done to speed up the going bust and their vessels and seafarers over the payment of repatriation costs and implementation process but at a time when being abandoned and left unpaid; and the four months unpaid wages. P&I clubs ship managers are struggling to attract the those owners who look to the bottom line have changed their rules to say that if a best and most competent sea staff to their and see the next 36 months as a respite seafarer gets abandoned, then they will pay books, maybe the time has come for owners against any additional cost. the costs to fly him home and then ask for to ensure that, for the time being anyway, A bit harsh maybe, but it does seem reimbursement from the owner. But this their seafarers can rest soundly in their something of anathema that just as the may be difficult if the owner himself has bunks knowing their financial future is MLC amendments are about to enter into gone bust? No one seems to have woken up assured, albeit only for four months. G

42 Ship Management International Issue 51 September/October 2014

Heartbeat

IMMA launches free Philippines medical stores app Secretary celebrates first anniversary of MLC 2006

year on from the Maritime Labour Convention (MLC) A2006 entering into force, the Labor and Employment Secretary for the Philippines has congratulated all Department of Labor and Employment (DOLE) partners for observing high standards. Rosalinda Dimapilis-Baldoz said: comprehensive catalogue of all the medicine and health-related items needed onboard “The MLC 2006, one year since it ship has been launched as a free iPhone/iPad and Android app to ship owners and entered into force on 20th August 2013, Amanagers by the International Maritime Medical Association (IMMA). has been providing comprehensive The IMMA Maritime Medical Stores Catalogue lists in excess of 5,000 items, all crucial welfare and protection at work for foreign to the health and well-being of crew members onboard ship and is designed to run alongside and domestic seafarers.” established medical guidelines issued by bodies such as the World Health Organization. The global seafaring treaty, with 61 This easy to use app has a section on recommended medicines as well as a ‘doctor’s bag’ ILO member-states, including the of necessary medicines that should be available at any time onboard ship. The medicine Philippines, representing more than 80% section can also be interrogated by health complaint such as what medicines should be taken of the world’s global shipping tonnage for motion sickness or indigestion or coughs etc while there is a comprehensive list of having ratified it, aims to achieve decent emergency and non-emergency medical equipment that should be used onboard. work for seafarers while securing fair A useful guide as to what medicines should form part of onboard medical kits is also competition for ship owners. included as well as a section on alcohol and drug testing as well as waste management and The treaty lists regulations and codes cleaning equipment – all part of working to preventing disease onboard ship. which cover minimum requirements for All medicines listed have an IMMA number which owners and managers can quote seafarers to work on a ship and provides when ordering from their ship suppliers or chandlers. conditions of employment that ship The International Maritime Medical Association was formed in 2010 with the declared owners should provide, such as aim of promoting seafarer health and welfare and to act as a central organisation to represent accommodation, recreational facilities, suppliers or medical services and supplies globally. and food and catering. Other concerns, The IMMA Maritime Medical Stores Catalogue is free to owners and managers and can such as seafarers’ health protection, be downloaded from the App Store and Google Play Store. Ship owners wishing to receive medical care, welfare and social security their free access code can receive this by emailing [email protected] . h protection, are also covered. h

44 Ship Management International Issue 51 September/October 2014 Maritime Medical: Heartbeat Communications company drives seafarer welfare campaign

new campaign to help improve seafarer welfare has been one-stop online entertainment and social media tools for seafarers launched by maritime communications group SingTel and it is tested to work over popular broadband satellite services ASatettelite. including maritime VSAT and FleetBroadband. It has joined with three maritime charities to help crewmembers Lim Kian Soon, Head, Satellite at SingTel, said: “As a company, use onboard technology so they can keep in touch with loved ones we take corporate social responsibility very seriously. at home. Communication is vital to SingTel so it is only natural that we At the heart of the project is a new seafarer Facebook campaign would want to get behind this campaign. We aim to provide where seafarers are being encouraged to use SingTel’s affordable and effective methods for seafarers to stay in touch with CrewXchange@SingTel portal to communicate with their family their loved ones. Ultimately, the ability to stay connected with their and friends while at sea. friends and family is the key to improving the lives of the crew SingTel has pledged to donate S$1 for every ‘Here’s One From onboard ships. Me’ unique post placed by a crewmember on the CrewXchange “Joe Standerwick, Corporate & Trusts Fundraising Manager at wall to the three charities – Apostleship of the Sea, Seafarers UK and Seafarers UK, said: “We are absolutely thrilled that SingTel has Sailor’s Society – which all provide vital support and funding to launched this campaign. It will help thousands of seafarers across seafarers and their families. the world stay in touch with loved ones which is pivotal in our role It is hoped the campaign will help play a part in improving the to support them. The charity drive aims to create awareness and communication and educational needs of the seafarers and their acknowledge the 1.5million men and women who are out at sea in families. CrewXchange@SingTel is a data-optimised portal offering some format, helping to keep our economy afloat.” h

Issue 51 September/October 2014 Ship Management International 45 Maritime Medical: Ebola Crisis

Ebola impacts on Mercy Ships

ollowing the Ebola outbreak, Mercy Ships, a fleet of hospital “Though our hospital ship isn't configured to handle patients vessels which provides health care and surgery for the suffering from Ebola, we are making a joint response with our PQMD Fworld’s poorest people, has postponed planned operations (Partnership for Quality Medical Donations) partners to assist them in in West Africa, choosing Madagascar as the focus for its next field their response. Partnering with other NGO's that are set up to handle service (until summer 2015) instead. disasters like this and with major medical and pharmaceutical Don Stephens, Mercy Ships President and Founder explained the companies allows us to provide a coordinated response with a far situation: “With the recent World Health Organization announcement reaching impact in the fight against Ebola.” that the deadly Ebola outbreak in West Africa could infect more than When asked what advice he might offer to individuals regarding 20,000 people before it is brought under control, Mercy Ships has the Ebola outbreak and the issue of protecting individuals in industry, made the decision to accept an invitation by the government of particularly seafarers, from the disease, he added: “Following the US Madagascar for its next field service until summer 2015.” Center for Disease Control recommendations, Mercy Ships has Describing the greatest challenges for Mercy Ships in facing this banned crew travel to Guinea, Sierra Leone, Liberia and Nigeria. outbreak, Mr Stephens added: “The safety of our crew and patients is Likewise, crew guests and day crew may not board the Mercy Ship for our top priority; and we are keenly aware that our ship is a magnet for at least 21 days after they have visited one of the four affected countries. those who are ill. A major concern – both for our patients as well as for We have done a thorough Threat Analysis and set up medical our crew - is that our hospital ship in a West African port would only protocols should any of our crew or patients come into contact with encourage Ebola patients to cross borders seeking our help. That would any of the types of Ebola in any way.” be counterproductive to the cessation of this horrible viral outbreak What plans does Mercy Ships have now, in order to continue which requires people to stay in isolation and affected nation’s efforts at operations despite these difficult times? “Mercy Ships has multiple containment. invitations to serve the Continent of Africa than we can manage,” Mr “Postponing our field service in West Africa was the right decision. Stephens said. “Our teams have been in continuous assessment for Nevertheless, it was difficult. We have served in Sierra Leone, several months. Our thoughts and prayers continue to be with our Guinea and Liberia at least 13 times within the past two decades. friends in West Africa and it is our sincere hope that we return soon to However, our specialised surgical ship has multi-bed wards and the area.” isn’t equipped with isolation facilities needed, should we be faced with Ebola patients. The Mercy Ship is also unique in that we sail with families and children onboard.

46 Ship Management International Issue 51 September/October 2014 Maritime Medical: Ebola Crisis

Mr Stephens added that he is “honoured” to be able to come endangered the nation’s ability to meet a number of millennium alongside the island nation of Madagascar and to help support their development goals and has taken a heavy toll on Madagascar’s government’s efforts to strengthen healthcare infrastructure through economy and people, especially the most vulnerable. More than 92% of the training and capacity building Mercy Ships can offer. “Thousands Madagascar’s population lives on less than $2 a day. of patients are suffering there from pathologies which the Mercy Ship is Donovan Palmer, Mercy Ships Group Manager, added: "It is with equipped to assist through the surgical expertise of our dedicated great sadness that we postpone our anticipated visit back to West Africa professionals onboard.” due to the ongoing Ebola crisis there. Our hearts are with those we have partnered with and served over the last two decades in the region. We remain committed to Africa and hope one day soon to serve the people “Postponing our field service in of West Africa again." Mercy Ships is aware that the presence of the hospital ship in the harbor can be a magnet to attract those with health West Africa was the right decision,” issues to cross borders, movement that West Africa does not need at Don Stephens, Mercy Ships this time as leaders struggle to contain this deadly crisis. President and Founder In consultation with a range of external sources, Palmer stated that Mercy Ships has developed an Ebola threat and response plan. The Africa Mercy is a specialised surgical ship with multi-bed wards and limited isolation facilities. With a crew of more than 400 from around The hospital ship has had a full schedule: Sailing from the Canary 40 nations, including families with small children, the Mercy Ship is not Islands by mid-September with a stopover in Cape Town, South Africa, designed to quarantine Ebola patients. at the end of that month for refueling and crewing. Arrival into Mercy Ships has made 13 port visits to the nations of Liberia, Sierra Tamatave, Madagascar, is anticipated for the end of October. Leone and Guinea within the past 20 years and most recently had to Madagascar is located off the coast of East Africa. More than 43% postpone invitations to Guinea, Benin and the Republic of the Congo of its population of 22.6 million is under the age of 20, and the nation is due to concerns around the spread of the Ebola outbreak. positioned at 151 out of 187 countries and territories in the Human The last visit of a Mercy Ship to the island nation of Madagascar Development Index. A protracted political crisis in recent years has was in 1996. h Maritime Medical: Diet

Nordic diet good for your heart

or decades, the Nordic region has been a major player in the shipping Findustry and now the seafaring community could also be looking to the area for advice on diet. Heart experts are claiming a Nordic-style diet could help people shed pounds and protect against heart The Nordic diet attacks and strokes following research at the world’s top restaurant, also led to reductions in cholesterol Michelin-starred Noma, in Copenhagen, Denmark. and reduced chemical levels in the blood Researchers at the University of Copenhagen, worked with that cause inflammation, which has been linked to heart disease and the restaurant’s chefs to devise 180 recipes and seasonal menu type two diabetes. plan for dieters comprising 15 food groups including fruit and For many years, heart specialists have been promoting a vegetables, particularly berries, root vegetables, legumes and Mediterranean-style diet with plenty of olive oil, fish and sun-ripened cabbages, potatoes, fresh herbs, foraged plants and mushrooms, vegetables to protect the heart but now experts are claiming many nuts, whole grains, meats from livestock and game, fish, shellfish countries can learn from Nordic eating habits and it seems the and seaweed. Little red meat was eaten with poultry or game maritime industry could be following suit. chosen instead for its low fat content. Stanley Morrice, Director for Strachans, the offshore arm of The study of 181 obese men and women found those on the Wrist Ship Supply, said his company had seen an increased interest diet lost an average of more than 10lbs in six months while those put in low fat produce, high fibre and fresh produce, as with the on a standard Danish diet lost just 3lbs. Nordic diet. Those on the Noma, or ‘Nordic’ diet also saw greater reductions “Items like wild rice, whole wheat pastas and even quorn are in their blood pressure, said Thomas Meinert Larsen, Associate starting to appear on menus,” he said. Professor at the University of Copenhagen, delivering the results of “The oil and gas industry has identified the importance of the research at the recent European Society of Cardiologists dietary control to both ensure the health and welfare of their staff Congress in Barcelona. and help to control or reduce people’s weight and BMI. Obesity is a He said the use of fresh foods, especially seasonal produce, growing problem in the UK and the oil industry recognises the meant those in the study received extra nutrients. importance of keeping the workforce fit and healthy. “There’s particular emphasis on foraged foods because they taste “Several oil companies and caterers have employed better, and usually contain greater amounts of vitamins and minerals external/internal consultants to provide nutritionally sound menus than conventionally grown plants.” controlling salt content, fat content and calorific values.” h

48 Ship Management International Issue 51 September/October 2014 Regional Focus: Turkey

Competitive advantage By Sandra Speares

he Turkish maritime industry has developed in leaps and bounds during the past few years and offers an array of different shipping segments from ship building and ship repair, through to communications, agency work, shipbroking and insurance Tto name but a few. According to Yavuz Kalkavan, Managing Director, Besiktas Ship Management, who owns Besiktas Shipyard, Turkish ship repair yards are the most active in the area and only east China is more active. The shipbuilding industry changed globally after the 2008 crash and Turkish shipyards have been trying to specialise in areas like offshore support vessels, rather than more mainsteam vessels. Turkey has been getting a number of projects from Norway, for the offshore industry and also for the fishing industry. After the crisis, the group decided to expand its ship repair facilities and concentrate on specialised shipbuilding including small LPG carriers, serial type tankers and offshore supply vessels. The company can build up to eight ships per year. The concentration is on high value small ships. Turkey is the most competitive place in Europe in terms of ship repair and ship building, he said. There are 40 shipyards in Turkey which carry out 1,000 ship repairs and dockings per annum, for clients from Greece, Germany, Denmark, Singapore and Japan, among others. Ship repair is doing better than last year and some Turkish yards like Tersan are targeting the offshore support and fishing vessel markets. Shipbuilding projects are mainly coming from northern Europe, for example Norway, and Tersan has an order from Norway for a vessel worth $150m. The Middle East is also a good potential market, for example Qatar. Norway sees Turkey as a good future shipbuilding centre as prices are not too different from China, Mr Kalkavan said. Shipowning and shipmanagement group ER Shipping Chairman Cihan Ergenc said there is enough business in Turkey to attract major players to the market. The market is still continuing to develop with new schools opened to train crews so there will be enough experienced crew available in the future he said, with a lot of officers and crew working abroad. ER Shipping is part of the ER Group which is a family-owned company and one of the major coal importers in Turkey. The shipping arm started in 1990. The company now has five Chinese-built vessels – four supramax vessels and one handysize. He said the company takes a

Issue 51 September/October 2014 Ship Management International 49 Regional Focus: Turkey conservative approach to investment and The system combines filter and UV in and Terra-Marine in Karachi. In Turkey, Mr borrowing so the breakeven point is lower. one so the footprint is very small, power Esinduy said there are companies which use Three of the vessels are eco-type and two consumption is at least 50 pct less than all foreign crew. are standard ships which he said the competitors. Maintenance is only required Esko also represents shipyards around the company will replace in time. once every 12,000 hours and the system has world including German Drydocks , South Istanbul-based Esko Marine provides a been tested in all three salinities. It has also African Shipyards, Singapore Technologies, wide range of services both to Turkish owners been tested under worse case scenarios in Cassar Ship Repair Malta, Cernaval Shipyard and foreign owners, Managing Director terms of water clarity and UV lamp and filter Spain, Boloumiao Shipyard, Huangpu Erhan Esinduy explained. These services technology is in house. Shipyard, Shanhaiguan Shipyard and is in include providing armed guards from a UK- With over 25 years’ experience of doing talks with a few more yards in Panama and based security firm called Bowline. business in Turkey, Mr Esinduy said the Colombia to add to its portfolio of clients. The company also acts as deputy company can assist owners with ships visiting Mr Esinduy said that in China, through registrar for the Belize flag and can register Turkey to act as a “one stop shop” for supplies, local partners, Esko Marine appoints their in- ships under the flag from its own office, as technicians or repairs. Mr Esinduy said Esko house Chinese Superintendent to assist well as handling seafarer certifications. can use its contacts and local knowledge to owners, right from the start of repairs up to The company was also recently find the absolute right person at the best and including the closing of accounts. This appointed as agent for Canadian company prices and get the job done in the shortest service is provided at no extra cost and has Trojan Marinex which makes ballast water possible time. been welcomed by clients who have made use treatment systems. Mr Esinduy said such The company also provides crew of the service so far. systems are not easy to sell at this time, management and acts as agent for Esko Marine is also the exclusive agent for because the ballast water convention is PTC in Manila, Singapore firm Ascenz not yet in force but he expects Trojan’s MASES in China Solutions. Ascenz is a system to be one of the first to obtain leading provider of full US Coast Guard approval, by mass based live mid 2015.

50 Ship Management International Issue 51 September/October 2014 Regional Focus: Turkey marine fuel management (MFM) system to depends on freight rates. In view of the current doesn’t know why the crisis is taking so long shipping companies looking for fuel saving market conditions, the company gets more to resolve itself, having lasted six years already. and energy efficiency management benefit from freight rates remaining at low One problem is perhaps that Chinese growth solutions. The system can be purchased and level because there is more call for them when has dropped back to about 7%-7.5% and the can also be leased. the market is bad, according to Mr Meric. political situation is not helping, he added. According to Ahmet Meric of Grena Captain Behzat Esinduy is Fleet General Maritime lawyer Ravi Ravindran is clearly Shipping & Logistics, which offers a wide Manager for shipping company Furtrans someone who enjoys his job. It’s hard work range of services include chartering and which operates a fleet of container ships, but “very enjoyable” and demanding he said. broking, dry cargo , project cargo and heavy including bulk carriers, MPP and “You are not a desk bound lawyer”, he added. lift work, the company does a good deal of oil/chemical tankers. The dry cargo of the Mr Ravindran has a general practice, but work on the dry side, but also in containerised equation is managed from Istanbul and specialises in marine casualties and has cargoes and project cargoes and some tanker Hamburg and the tankers from Genoa, he worked on over 100 such cases. No two days shipment orders. explained. The main operation is the dry fleet are the same, he said. “You may wake up in the A. Serhan Polat, Managing Partner, here, he said. There is one newbuild due to be morning and not know where you are going explained that the company handles heavy lift delivered in Tuzla next year. to sleep that night.” The number of casualties cargoes destined for countries like Captain Esinduy spent nearly 20 years has tapered off significantly, he said. At one Turkmenistan and deals with the at sea before coming ashore. The shipping stage he would be instructed on three or four transhipment to ports, via inland waterways industry has changed he said, as when he casualties in a year, whereas now he will be via rail or truck. Grena also handles coastal was at sea he took his family with him. He instructed on one or two. The Turkish fleet trade with West Africa and the mostly worked on tankers on the Turkish has improved in “leaps and bounds” from the Mediterranean. Project cargo is also being national line. safety perspective, he added. handled for China and the Far East, Mr Meric Captain Esinduy is not particularly bullish Crew training is vitally important to avoid said. Commodities like iron ore and chrome about short term prospects for the market casualties and Mr Ravindran said he sees the ore for China are also shipped from Turkey. improving for the next 18 months at least. problem first hand. There is a dire shortage of Chinese interest in buying these commodities Furtrans trades its tankers in the crew “right across the board” he said and as a Mediterranean and the company’s container consequence, promotions are being vessels trade worldwide. He said he accelerated. Mr Ravindran is one of very few lawyers who have negotiated directly with Somali pirates for the release of crew. The

tIssue 51 September/October 2014 Ship Management International 51 Regional Focus: Turkey

including feeder trades. The company is looking to expand into the LNG market Delmar Safety acts as manufacturer, agent and service supplier for a wide range of safety equipment including fire-fighting equipment and lifesaving equipment. The company’s head office is in Istanbul with a branch office in Izmir and another in Rotterdam. There are workshops in all three centres. The company wants to open a facility in Houston and the next step will be centres in Singapore and Dubai, explained Arda Akyuz, Managing Director. Mr Akyuz added that his firm is a manufacturer of Med Approved safety Left to right: Hakan Gruel, General Manager, YA/SA, Captain Erbil Ozkaya, General Coordinator, YA/SA products. Sister company Delmar Marine is and Mehmet Kayhan, General Manager, Bulk Carriers, YA/SA distributor of over 20 pcs European ship equipment manufacturers dealing with the consequences of piracy on seafarers are next year. The four container ships are time new shipbuilding sector. shocking, he said, and he blamed insurers for chartered to Hanjin Shipping for eight years, Delmar Safety can supply and service a paying up in the early days which resulted, he with the possibility of an extension. complete range of safety products including said, in a whole cottage industry building up. The two tankers are due to be delivered liferafts, lifebuoys, lifejackets, fire extinguishers, The last piracy case he dealt with was the this year and next year. The company has breathing devices, fireman suits, ladders and Iceberg 1 whose crew members spent nearly invested over one billion dollars over the past the like. The company also carries out three years in captivity. four years. The way the fleet is structured inspections of fire-fighting equipment, Ciner Shipping Industry & Trading was means that one segment can counter-balance liferafts, davits and lifeboats, as well as davit set up in 2009 under Chief Executive volatility in the others, he said, with the and crane load tests. The emphasis these days Vasileios Papakalodoukas and the company container ships acting as a hedge for the is on the provision of services, rather than sale took delivery of its first ship in January 2011. volatile kamsarmax and cape segments. of products, Mr Akyuz said. He considers it lucky that the company got its The firm is lucky because it has a low One of Ilkfer’s major roles is to supply first ship after the financial crisis of 2008 and breakeven point on its vessels, he said. chemicals to the maritime industry but the built eco-design ships which Mr Running costs are low, and the company company has expanded its role into Papakalodoukas believes is an advantage. The invests a lot in supervision. The ships are shipmanagement software and also does company ordered a total of 26 ships out of classed with ABS and Lloyd’s Register. So analysis of fuel samples, calibration, and the which 20 are bulk carriers, four container far the company has made profits, but much supply of communications services to ships in ships of 9,000 teu and two suezmax tankers. will depend on how long the market cooperation with Italy’s Telemar. The So far the company has taken delivery of remains depressed. All the financing has company has also recently set up a new 18 ships, which have an average age of 1.8 been done through mainstream banks. He shipmanagement firm. years. Of the 18 bulkers in the water at said the company is planning further Generally speaking, testing of fuel samples present, seven are 35,000 dwt handysize expansion on the container side. He show that they are on spec, but there are some vessels, which are Korean built, then seven considers that the 9,000teu vessels offer occasions when they are not of good quality, ultramax vessels built in China and four flexibility. As the east-west trades are Feramuz Askin, company owner said. Kamsarmax ships from Hyundai Mipo. Two dominated by the larger teu vessels, smaller Mr Askin is President of the Turkish more capesize vessels are due to be delivered vessels are exploring other markets Chamber of Marine Engineers. While he said

52 Ship Management International Issue 51 September/October 2014

Regional Focus: Turkey that 10 to 15 years ago there was only one school for marine engineers in Turkey now he believes the training facilities are the best in Europe. The problem of recruitment of crew is one issue he believes, as Turkish wages are at a low level so “shipping is a business for poor people’s sons”. There is also the difficulty of crew members being promoted too quickly, and not having the necessary experience as well as academic qualifications. The association aims to educate new engineers and give of their experience at conferences. It also liaises with the government on any new rules that may be coming in. The association works to extend Arda Akyuz, Managing Director, Delmar Safety the time new engineers stay at one level before being promoted, so as to ensure they gain maritime service providers SpeedCast to are one reason why the company turned its more experience before they become chief build a telecommunications port in Turkey. attention to VSAT, he said. engineer. One problem is crew retention, as “We are providing airtime for the crew members are coming ashore after only company, but also for the crew,” he explained. an average of three years, because wages are The company has developed its own solution less than half what they could earn on land. The Turkish flag has for real time image transfer so ship owners are Arskom Group of companies offers been on the Paris able to see what is going on, onboard. The complete turn-key software and company also provides a fleet tracking system communication solutions, mainly focusing on MOU white list which has been developed in house. the marine industry. The company is an since 2008 But what is the next project for Mr Inmarsat silver partner and an Express Link Arslan? He said he is thinking about solar dealer in the area. energy and providing solar panels on vessels The company has its own software team and the plan is to have a factory to develop which includes the two sons of Chief Apart from a satellite control office, the them for ships. Executive Bulent Arslan. There are three teleport will also include a research and The Turkish Shipbuilders Association companies in the group, and it provides development office, which, Mr Arslan stated, was established in 1971 and is one of the hardware such as bridge systems and safety is important to produce new devices and oldest non-governmental organisations in equipment, but Mr Arslan explained the main services which will need testing with the Turkey said Secretary General Suheyl driver is the software side in addition to teleport. The first company was established in Demirtas, who also chairs GISAS whatever is needed on the vessel to secure 1986 and it has been in the satellite Shipbuilding Industry Company. There are communications. The company has recently communications market for more than 20 88 members of the association, which signed a contract with one of the major years. Crewing issues and communications includes all the major players in the industry.

54 Ship Management International Issue 51 September/October 2014

Regional Focus: Turkey

The aim of the association is to promote and protect the interests of its members both nationally and internationally, he explained. Tuzla Bay, where his company is based, is the heart of the shipbuilding industry in Turkey, although there are other sites, including Yalova, Canakkale in the Dardenelles and Izmir. Projects for the yards in the association have included chemical tankers as well as luxury mega-yachts, but he explained all types of vessels are being built. Currently five members are building naval vessels for the Turkish navy, but also for export to places like Turkmenistan, but also ultra-fast vessels for Süheyl Demirtas, Secretary General, GISBIR countries like Malaysia and Qatar. They are also building ships for niche markets, like tugs number of Greek companies, which represent Pax Atlantic is a shipbroker that mainly and research vessels. One Turkish member of some 70% of members’ repair and operates in the handysize segment, and the the association, Sanmar, has built the first two maintenance work, Mr Demirtas said. company works worldwide but mainly LNG powered tugs as part of a five tug order. As far as new ships are concerned, the focuses on the Suez-Japan range according to Turkey, he said, is now the repair and shipbuilding segment is still suffering from Altan Atay. There isn’t much money being maintenance centre for Europe. A lot of big over ordering and building is continuing to made but he said the company is optimistic, names have fleet agreements with Turkish increase although freight rates are going down. especially in terms of India, China, Pakistan companies including Maersk, MSC, Genmar, Private equity is now getting involved with all and Thailand where the company does a lot Grimaldi, Novoship and Euronav as well as a that entails in making a quick return and of business. As far as the Chinese market is getting out of the market. He said he believes concerned, he said there are some issues as far this is having an unbalancing effect on the as Chinese import and export figures are market, because they want a short term return concerned, but he has heard raw materials rather than staying with the market over prices are under pressure. several cycles. Private equity has been He is optimistic for the future and thinks showing interest in the Turkish market. markets will rise as China will need to import raw materials. Other issues affecting the Far East economy include the Indonesian Availability of minerals export ban. If this can be overcome there would be more trade in the Far East. qualified crew is a Before the ban, China was sourcing 80% to problem because the 85% of nickel ore in Indonesia but since the ban, China has looked for new sources and fleet is growing in th at affected the market badly, he said. The Turkey Russian situation is also affecting the markets. The company mainly trades in minerals, grain, and fertilisers. It mainly “Offshore is another world,” he said. concentrates on Japan, the Red Sea, Turkish yards have been doing maintenance Bangladesh, Pakistan and China. of offshore platforms and he said the There are clearly a lot of political association considers that offshore will be a problems in Ukraine, Iraq and Libya among lifesaver for the industry. Norway is a key others. Western markets are losing Iran to Far market for cooperating with Turkish Eastern competitors because of the sanctions,

Vasileios Papakalodoukas, CEO, Ciner Shipping shipbuilders. There are now some 71 he added. If the sanctions were removed, Industry & Trading operational shipyards, in the country, of which everyone would benefit because the country’s about 80% are located in Tuzla Bay, Istanbul". infrastructure needs to be updated.

Issue 51 September/October 2014 Ship Management International 57 Regional Focus: Turkey

ship owners’ organisation. Established in 1982, it has seven main branches, 16 representative offices, 8,395 members and 47 professional committees covering the different segments. The Turkish fleet comprises 8.6m dwt under the Turkish flag with 21.8m dwt under foreign flags. The country is 13th in the world list. There are 171 ports in the country, 22 under government control, 23 managed by municipalities and 126 in private hands. The Turkish flag has been on the Paris MOU white list since 2008. Yard capacity was 25,129 in 2014 compared to 6,714 in Erhan Esinduy, Managing Director, ESKO Marine Trading 2002. The Turkish Lloyd class society is in 10th place in terms of performance. Given the tough market conditions, ship ship owning side is poor in the current The Turkish Maritime Foundation was owning is not generating any money market, Capt Tunc said. established for marine education in 1993 according to Captain Alev Tunc of Bora He added that he is looking at crew and with the full support of the Turkish Shipping, who is a board member of the management although it is quite a complex Chamber of Shipping on 8th February Chamber of Shipping. Bora also performs area and with the advent of the Maritime 2008 the foundation set up Piri Reis shipmanagement of dry cargo vessels and is Labour Convention there are a lot of new Maritime University. branching out into new areas like salvage, in issues. Costs are also a consideration as these Besides Piri Reis, there are also private collaboration with Greek salvage firm are increasing every year. and government universities and high Tsavliris. Bora may also branch out into tanker A former president of the Turkish schools (23 universities and 56 high chartering, Capt Tunc said. Oceangoing Shipmasters Association, he also schools) with maritime courses The company was established in 1985, as taught for three years at Istanbul University. accommodating a total of 25,000 students. a chartering brokery, also doing agency work, He was the youngest ever captain in Turkey at Martı was founded in February 1980 by shipowning, shipmanagement and insurance, 26 years old. Erol Yucel and four partners. Mr Yucel is especially hull and machinery. The company The Turkish Chamber of Shipping is a Vice Chairman of the Turkish Shipowners’ is concentrating more on the salvage, unique association. All companies involved in Association as well as Chairman of the insurance and chartering side because the Turkey have to be members and it is not just a TOBB The Union of Chambers and Commodity Exchanges of Turkey. He said the association was designed to ensure that if the government wants to approach any shipping company or vice versa, there is an intermediary through which to do so. The association also acts as an advisor for government. Government policy has been to ensure that at least half of Turkish goods are carried by Turkish flagged vessels. Turkey was able to transport 32% of her cargoes 12 years ago. Now that figure is 10% because while the Turkish tonnage 12 years ago was around 10m dwt, today it has reached 31 million dwt. Export figures went up dramatically, Mr Yucel said.

Left: Feramuz Askin, Managing Director, Ilkfer and President, the Turkish Chamber of Marine Engineers The government target for 2023, the Right: Ilker Mese, Managing Director, Ilkfer 100th anniversary of the Turkish republic, is an exports income of $500bn compared to

58 Ship Management International Issue 51 September/October 2014

Regional Focus: Turkey

years so what are the prospects going forward? Captain Ozkaya said he hopes 2014 will be a better year than 2013. The next three years the world economy will be growing by around 2.5%-3% but newbuilding orders and the delivery position shows growth of 21%- 22%, or 7% per year. One problem is that dry cargo funds are diminishing, ship owners are not as indulgent as before as far as supplies and expenses are concerned while port state requirements and new regulations are forcing them to spend more. YA/SA prides itself as being a quality management company, and believes it should

A. Serhan Polat, Partner, Grena Shipping & Logistics Ahmet Meric, Partner, Grena Shipping & Logistics not reduce expenditure if it means compromising on quality and this attracts business. The availability of qualified crew is a $150bn today. Export income covers about other with bulk carriers and the two are kept problem because the fleet is growing in 60% of import income. Total figures are completely separate, explained YA/SA Turkey. The company recruits from maritime expected to reach $1.2 trillion. General Coordinator Captain Erbil Ozkaya. academies and universities. Mr Yucel said he believes it will be The company has a total of 26 vessels – 18 In 2005, YA/SA established it training possible to reach that figure, if growth bulk carriers and eight tankers. The company centre which includes a simulator. The continues in the same pattern as it has for has both foreign flag and Turkish flag vessels company’s crew retention rate is in the order the last few years. Turkey is building many under its management. The challenge for ship of 80%-85%. It tries to deploy the same crew naval ships both for its own use and for managers in Turkey is that many Turkish on the same vessels, claiming this improves some Middle Eastern countries. For the owners try to keep control of the quality. Rules and regulations are increasing shipbuilding industry, the expected amount management of their vessels and tend not to day by day which are followed strictly by for the year 2023 is an order of $10bn for use third party managers. charterers. If they are going to be offshore vessels, offshore and yachts. YA/SA favours keeping control of its implemented, the charterers have to support European countries are still the main management system, Captain Ozkaya said. owners, otherwise quality will drop. Industry market for Turkey and EU rules bring some The Turkish fleet has trebled in the last few has to support owners. G discipline to the industry, he said. Relations with the European Maritime Safety Agency and close cooperation with the IMO and strong technical representation in the organisation create a positive force. Education and the environment are two key elements and Mr Yucel is a founder member of Turmepa, which Greece’s Helmepa helped to set up. The Union of Chambers and Commodity Exchanges of Turkey acts as an umbrella for producers and exporters of commodities in Turkey. Mr Yucel said he is not very optimistic about the state of the market because of the orderbook. The Turkish Shipowners’ Association has been restructured over the past year. YA/SA Holdings has two distinct Bulent Arslan (centre), Chief Executive Officer, Arskom Group of Companies, with his sons divisions one dealing with tankers and the

60 Ship Management International Issue 51 September/October 2014

Market Sector: Ship Registries RegulatoBy Frelicityy Landon headache? egulation, more regulation, International Maritime Organization of Uncertainties about type approval of overregulation: it’s a favourite topic course never sleeps (or so it seems) and ballast water management systems are Rof most ship register professionals there are always new conventions and causing particular concern in the industry, and, with Europe’s new SECA (Sulphur revisions of existing conventions and said Thomas Heinan, Senior Vice Emission Control Area) rules entering force regulations to enact, and advice notices and President, Maritime Administration at IRI, in January and the ongoing Ballast Water inspection regimes to in place for.” the US-based managers of the Marshall Management discussions, He highlights the Ballast Water Islands Registry. nothing’s changed there. Management Convention and its revised A number of ship owners have begun to “Regulation is implementation timelines as a key issue. “This install BWM systems that are type approved always an issue,” is a real headache for the industry and the according to the IMO’s G8 Guidelines but said Dick operators are always seeking clarification on may not necessarily meet all the Welsh, how flag states will interpret the phase-in for requirements of the BWM Convention. Director of existing ships,” he said. “As the convention is “The G8 Guidelines are still a bit weak, so the Isle of not yet ratified, this is very much a guessing we are going back to MEPC to see if we can Man Ship game – although the new timelines do take have them beefed up, so that systems being Registry. this into account. For large ship operators, this type approved through that guidelines will “The will involve significant outlay and planning to be able to pass all the parameters required of invest in and install equipment for which they the system,” said Capt Heinan. have little experience or confidence in its Meanwhile, a US type approval efficacy. It may also involve some ‘juggling’ of programme is allowing alternative BWM dry-docking dates to ‘buy’ the most time systems to be used for a five-year trial before installation is required on existing ships.” period. “During that period of time, the Overall, environmental considerations systems should prove themselves as being and fuel efficiency are of prime effective. If not, they have to be changed out. importance at present, said Mr Welsh. The problem is, a ship owner is having to “Fuel prices and profit margins mean install a BWM at the cost of around operators are looking to run more US$1m. What is the ship owner to do? efficient ships either by buying new Install a system operate it for five years and eco ships or by running older then be told it is not good enough, get rid of tonnage more efficiently. Paint it and replace it with something else? coatings and voyage “The convention is close to coming optimisation are the easy into force. What might tip the scale is if the wins in this before G8 standards are improved sufficiently to modifications are produce systems that would be acceptable required.” to everyone. The G8 standard and the US type approval programme have created this problem.” The European Union’s Sulphur Directive, entering force on 1st January, is

64 Ship Management International Issue 51 September/October 2014 Market Sector: Ship Registries providing another set of challenges – and a fair amount of uncertainty too. Will there be enough low-sulphur fuel? What will be the penalties for not complying? What will happen to scrubber waste? The Directive requires that all ships sailing in the new SECAs in the English Channel, North Sea and Baltic Sea use bunker fuels with a sulphur content of 0.1% or lower or, alternatively, install exhaust scrubbers. The new SECAs will be very difficult for the industry to deal with, said Mr Welsh. “Going down to the 0.1% sulphur limit will It’s unlikely that ships unable to get the problem of waste storage onboard – and be difficult for the bunkering and correct fuel would be turned away, he said. how and where to discharge it. availability of fuels but also for the accuracy “Can you imagine ports not allowing ships “Scrubbers that discharge water of testing regimes and confidence in the to come in, basically cutting off domestic overboard have to watch the PH level; work analysis for taking fuel onboard, and also lines of supply? If there is no fuel, the ships is being carried out to define what the PH confidence in any port state control regime would have to be allowed in and have fuel and dissipation levels should be,” said Capt once it is in force next year,” he said. samples and documentation to prove that Heinan. “Meanwhile the residual products “Companies are having to do a lot of was indeed the case.” that can’t go overboard have to be collected research into fuel abatement technologies Ship owners and operators are and discharged to shore facilities – of which (scrubbers) and fuel availability and change increasingly considering scrubbers as an there are none.” over systems and procedures to try to stay alternative, but this has raised two new John Ramage, Chief Operating Officer within the limits. We can only hope that the difficulties. at IRI, likens this to the problems of port state control officers in the ECA areas “There are some scrubbers available in discharging ballast or slops water in many apply some common sense and some the market – more so for newbuilds, but ports: “Again this highlights that ships are degree of pragmatism to this as it beds in, some for retrofitting as well. But this is being regulated more and more and really otherwise detention statistics next year may creating a problem with respect to the oil shoreside isn’t keeping up.” be very skewed.” refineries that produce the fuels. They are in Alfonso Castillero, former Director- Capt Heinan said the main issue for a quandary as to whether or not they should General of the Panama Registry and now ship owners and operators is whether they pour billions of dollars into retrofitting their Vice-President of the Liberian Registry, will be able to find enough of the low- plants to produce low sulphur fuel, when all said: “It is important that fuel to meet the sulphur fuel that complies with the of a sudden ship owners might opt for lower sulphur emissions limit is readily requirements. installing scrubbers which will allow them available and that fuel oil delivered to and “There have been some efforts made at to use the original fuel.” used on board ships strictly meets certain IMO and also international shipping The second issue is scrubber waste. An quality standards in regulations 14 and 18 associations to provide some guidance to the ‘open loop’ scrubber uses seawater for of MARPOL Annex VI. The obligation to ship owner/operator as to what they should exhaust gas scrubbing; the water is filtered deliver fuel that meets this standard rests do if they can’t find the fuel they need,” he for heavy metals and particulate matter and with the supplier, who should verify said. “They need to be documenting this then discharged into the sea, containing all compliance through a quality control information and providing information back the sulphur that’s been removed from the mechanism prior to supplying the fuel to, for example, ourselves as flag state and the exhaust. Some ports and areas do not allow to ships.” IMO, of those ports and bunker facilities that the discharge of this sulphur-containing Andreas Chrysostomou, who is acting have not been able to supply low sulphur waste water, and recently it has emerged that director of Cyprus’s Department of fuel. That information also needs to be disposal might also conflict with the EU’s Merchant Shipping following Serghios provided to the first port of call in the ECA own Water Framework Directive. In a Serghiou’s retirement, points out that since so that the authorities are aware of the ‘closed loop’ system, most of the water, shipping is an international industry, the situation, and before they arrive. Then we which is chemically treated, is re-circulated. existence of international regulations, which may just have to let the chips fall where they That means there isn’t an issue with waste are implemented and apply worldwide, is will in that respect.” water discharge at sea, but instead there’s a very important. “Ships operate in a

Issue 51 September/October 2014 Ship Management International 65 Market Sector: Ship Registries

Alfonso Castillero. “We The Liberian Registry has understand that coastal intro►duced a programme to screen advance state preventative measures notice of ship arrivals. “This is part of a are likely to cause delays detention prevention programme to help and possible charter and maintain its independent ranking among trade complications,” he the safest and most efficient ship registries said. “However, the use of in the world,” said Mr Castillero. All well-documented Liberian vessels calling at US, EU, precautions serves to limit Australian and Chinese ports must provide the spread of the disease. By an Advanced Notice of Arrival (ANOA), adhering to best practice, which can be used by the Liberian the shipping industry can administration to assess the probably of a mitigate the risks.” PSC boarding; appropriate steps can be harmonised environment, following The Liberian Registry has provided taken if necessary to prevent a detention. standardised procedures which facilitate guidance to ship owners and managers and The St Kitts & Nevis International trade,” he said. “The duties, responsibilities a list of precautions that will need to be Ship► Registry (SKANReg) has moved up to and rights of all the stakeholders involved taken when visiting ports in the affected Grey List ranking on the Parish MoU are clearly defined – the absence of countries, said Mr Castillero. performance lists, after three years of regulations would create chaos.” John Ramage at IRI said: “We [the improved PSC inspection results. SKANReg, He highlights the Maritime Labour Marshall Islands Registry] have a number of headquartered in London, says it now sits Convention as one of the most important ships calling into African ports – first of all, midway in white/grey/black list spectrum. issues. “The protection of seafarers’ rights we stopped our inspectors, both contract This keeps it on course for targets set in 2012 is very important because seafarers are the and permanent people, from going on – to make the Grey List within two years and backbone of the shipping industry,” he board. We have sent out a number of the White List after a further two years. said. “The implementation of MLC 2006 marine safety advisories about this.” The Isle of Man Ship Registry has as from August this year, and the Some South American ports are impl►emented a ‘green ship’ scheme to reduce certification of all Cyprus ships for looking at holding ships in a kind of fees and reward operators of eco ships which compliance with its provisions, quarantine if they have come from West are ahead of the international strengthens the rights of seafarers African ports, says Capt Heinan. “They implementation of fuel efficiency measures. worldwide and reduces unfair competition are looking at holding ships up until 30 IRI/The Marshall Islands Registry in respect to shortcuts to these rights.” days from their departure from West has j►ust doubled the size of its London office, Seafarers are also impacted as ports, Africa. We are also managing a list of which is responsible for Europe, the Middle shipping lines and authorities react to the information on what individual port East and India. It is also midway through a Ebola outbreak. “In the case of the Ebola states’ requirements are and what they are major overhaul of the IT systems that serve outbreak, it is our duty to ensure the safety doing in respect of Ebola.” its global network of 25 offices. G of crews visiting the affected countries, and minimise the risk of the virus spreading further,” said Mr Chrysostomou. “Guidance and recommendations should be made to the ships calling into countries Latest stats which have been impacted by the virus. The master and the crew must be aware of the symptoms and how the virus is spread; Liberian Registry (latest info): 4,000 ships, totalling 136m gross tons in addition, clear instructions must be Marshall Islands Registr y (August 2014): 3,241 ships, totalling 109.2m gt given, ensuring that unauthorised personnel do not board the ship while at Cyprus Registry (figures at end 2013): 1,809 ships (including yachts), total port. Also, ship owners/operators should 22.3m gross tons. avoid making crew changes in the ports of Isle of Man Ship Registry (latest stats): 538 ships (including commercial an affected country.” yachts), total 16.37m gt The threats made by the Ebola virus are real and potentially devastating, said St Kitts & Nevis Registry : 540 vessels totalling 2.5m gt

66 Ship Management International Issue 51 September/October 2014

Opinion

Reduce risk and streamline processes: Is it time bunker traders moved to the cloud? » Alok Sharma , Head of Marine, Inatech

uying and selling fuel oil is a capital intensive task with The best way for bunkering companies to get a full view of their bunker suppliers often borrowing millions of dollars to financial information is to use cloud-based software that automates Bfinance their operations, only repaying loans once they are treasury processes. Software can automatically update and integrate paid by the buyer. Treasury departments in these fuel oil bunker credit lines. It also allows treasury departments to compare different trading companies are frequently required to manage multiple credit sources of credit to choose the best option, potentially saving lines, in different currencies and sourced from different geographic millions of dollars on the cost of credit. locations. This can create a logistical nightmare and makes it difficult With financial reporting regulations becoming stricter, in many cases to get a clear view of a company’s finances. automated software has the additional benefit of making This situation can be compounded by the outdated technology compliance easier. The software can retrieve and analyse the data currently used in many treasury departments, with spreadsheets still needed for sophisticated financial reports. All of this can now be commonly found. This leaves the company at risk of problems done in seconds, rather than days. caused by human error, computer malfunctions or viruses. Bunker traders are in a risky business. However, this risk can be Large spreadsheets with vast amounts of information are managed with the right software. Sophisticated cloud-based cumbersome, often leaving trading companies with an incomplete software automates treasury processes and offers traders a real-time or out-dated view of their cash flow. In a global industry that view of their finances, which in turn increases efficiency across the operates 24/7, out-of-date information is of no use. business, saves money and make compliance easier. G

68 Ship Management International Issue 51 September/October 2014 Shipmanagement: Opinion

Ebola guidance » Edward Hicks and Jasmin Sandhu , from law firm Hill Dickinson discuss some of the legal implications that have arisen from the Ebola virus outbreak

number of shipping organisations, to follow a charterer’s lawful orders. Under The charterers have a duty to pay hire including the International English law the safety of a port is assessed at continuously throughout the charter period, AChamber of Shipping, the point of nomination. At that time, for a unless they can prove, on the terms of their International Maritime Employers’ Council port to be considered safe, the vessel must charterparty, that an exception applies. and International Transport Workers’ be able to reach it, use it, and return from it. The World Health Organisation Federation, have issued guidance on the If the vessel is exposed to danger (unless an (WHO) has issued statements regarding risks associated with vessels calling at abnormal occurrence), that danger must be the outbreak to advise travellers of the countries affected by the current Ebola capable of being avoided by good symptoms, risks, prevention, and treatment virus outbreak. navigation and seamanship. of the Ebola disease. It has also published The advice warns of a ship owner’s duty English law has traditionally focused on recommendations for precautions that of care and the importance of crew safety. the physical safety of the vessel and her owners can take to protect their vessel and Recommendations include: the Master cargo rather than the health of her crew. crew, the adoption of which may also lead to ensuring crew are aware of the risks of the However, the question here would be delays. These include the declaration of sick virus and how to reduce the risk of whether, for a port to be unsafe, it is enough crew members and passengers, a declaration exposure; giving careful consideration to if there is a risk to the crew but no physical of health for arriving vessels, and granting any shore leave while in impacted risk to the vessel. Whether the port is legally documentation of measures taken onboard ports; and, adhering to ISPS standards in unsafe, and whether a Master can refuse to in order to reduce the risk of exposure. order to control the problem of stowaways. enter a port affected by Ebola, will depend Employers have a duty of care under Owners/operators should also avoid on the terms of the negotiated charterparty. individual contracts of employment and making crew changes in the ports of As to a charterer’s obligations under a owners may also encounter difficulties and affected countries. time charter, where there is supervening delays if crew members refuse to visit There are also legal issues that need to be unsafety, i.e. a port is affected after the affected ports or ports in affected countries. considered, some of which follow. charterers have nominated it, they will be As there is no immediate prospect of In particular, all parties may wish to bound to re-nominate. the outbreak coming to an end, it is review the terms of their insurance policies Liabilities for delays arising out of the advisable to take steps now to minimise (including P&I cover if applicable) to outbreak will depend on the relevant facts exposure to potential risks, including understand what duties they are under and for and the charterparty wording. Potential drafting appropriate Charterparty and/or what losses they may be protected. They relevant causes of delay, which may even Bill of Lading clauses. Most importantly, it should be aware that in some cases local amount to force majeure, may include is essential to keep up to date with authorities may interpret contracts in refusals to grant free pratique, refusal of warnings and guidance issued by port accordance with local, rather than English, law. pilots to board vessels arriving from affected authorities, national and international Time charters often contain express or areas, the placing of vessels under authorities, and industry leaders, so that implied safe port warranties, which will quarantine, port closures, or the refusal of protective measures are implemented in a continue to apply despite the Master’s duty members of the crew to visit affected ports. timely and consistent manner. G

Issue 51 September/October 2014 Ship Management International 69 Ship Repair ‘Scrubber’ conversions in Poland

s the 2015 deadline for the six by Japan’s Mitsubishi Heavy Industries’ some 10 ferries operated by the reduction in sulphur emissions for Shimonoseki shipyard. All 14 vessels are each Copenhagen-based ship owner is currently Aships trading in the world’s ECA fitted with a single Wärtsilä 6L64 medium- being completed. The Suecia Seaways is due areas draws close, a number of ‘scrubber’ speed diesel engine with an output of 12,060 to leave the yard this week, ending almost conversions are underway in Poland’s kW (16,397 hp) at 333 rev/min and two years of work for the shipyard. Three Remontowa shipyard, Gdansk. Mitsubishi auxiliary diesel engines type ferries were completed during 2013, the first The yard has won an important S6R2-MPTA, although only the main engine being the Selandia Seaways , and a further milestone contract in the ‘Emissions’ market will be connected to the scrubber. seven this year. It is expected that DFDS will involving a 14-ship contract from Holland’s Each vessel will have an Alfa Laval now look to convert other ferries within its Spliethoff Bevrachtingskantoor BV, PureSOx System installed, the vessels fleet, but no firm contract has yet been Amsterdam, all to be fitted with Alfa Laval expected to stay in the yard for some three signed with any shipyard. PureSOx systems. The ships involved are a weeks each, which will include special Also last year (2013), Remontowa series of S-Type 21,000dwt (11 vessels) and survey and the normal drydocking completed a similar conversion project S2L-Type 23,000dwt (three) general cargo operations. The single scrubber system will onboard Scanline’s 15,187grt passenger/car vessels, all with side-loading capabilities. cater for SOx reductions from both main ferry Schleswig-Holstein , on that occasion Each vessel will have Alfa Laval PureSOx and auxiliary engines. Dutch-based ACE scrubber technology used. scrubber technology installed onboard, the It was as far back as 2012 that Spliethoff In October this year, her sistership – contract to be completed by the end of 2015. announced that it was to look into the Deutschland will enter Remontowa for a All the vessels regularly use Baltic and North ‘scrubber’ market, with the initial plans to fit a similar conversion. Sea ports and therefore require the necessary PureSOx scrubber on-board the 18,250dwt Recently in the yard was Solvang’s reduction of SOx emissions as part of the new Conro-Type Plyca one of its vessels carried 13,712dwt LPG tanker Clipper Harald , which ECA regulations. The installations onboard out that year. This test proved successful as had two Wärtsilä scrubber systems installed in two vessels will be carried out at Remontowa Spliethoff has now signed a contract for 14 the funnel, for the main and auxiliary engines. during this year (2014) and the remaining 12 ships (all S-Types). In January next year (2015) Color Line’s vessels will be in the yard during 2015. The last of the DFDS ferry conversions 36,822grt SuperSpeed 1 will enter the shipyard Of the 14 vessels, eight were built in involving the installation of Alfa Laval for a similar conversion, again a Wärtsilä Poland by Szczecinska Nowa, Szczecin and PureSOx scrubber technology on-board system to be installed. There is also a firm

1/ 2/

70 Ship Management International Issue 51 September/October 2014 Ship Repair

contract from an unnamed western European ship owner for scrubbers The FPSO will be a harsh-environment unit that is designed to be installed onboard two self-unloading bulk carriers, Remontowa for operations in the North Sea under a stringent regulatory expecting the work to be completed during 2015. regime. Work has commenced and the FPSO is scheduled for The installation of scrubbers, in which Remontowa is now delivery during the third quarter in 2015. When completed, the Europe’s leading exponent, is part of the yard’s ‘Green Technology’ FPSO will be capable of producing the heavy-oil (API degree 14) programme, which also includes the installation of Ballast Water in the Kraken field, UK sector of the North Sea, over a period of Treatment systems. Remontowa has carried out six such installation 25 years. projects, but currently have no further firm contracts in its orderbook. In addition, the FPSO will be able to handle a peak fluid rate of 460,000 bbls/day and 80,000 bbls of oil/day, 275,000 bpd of water New FPSO/FSRU contracts for injection, 20m standard ft3 (MMscf) of gas handling and has a storage capacity of 600,000 bbls. Singapore yards Keppel Shipyard's work scope for this FPSO project includes Sembawang Shipyard, part of Sembcorp Marine, recently secured refurbishment and life extension works, upgrading of living quarters a FPSO conversion contract worth some S$600m from France’s to accommodate 90 personnel, installation of an internal turret Saipem SA for the conversion of two FPSOs for the Kaombo Project in mooring system as well as the installation and integration of topside Offshore Angola approximately 150 kms from the coast. process modules. Major work also includes refurbishment of the VLCCs, Following the announcement during June 2014, Singapore’s construction engineering, the fabrication of flare, helideck, upper turret Keppel Shipyard has now announced that the contract, which it has and access structure, integration of the topsides modules (which will be entered into with Golar Hilli Corp, a subsidiary of Golar LNG, to fabricated at Saipem’s Indonesian Yard) and lower turret components, perform the world's first-of-its-type conversion of an existing Moss and pre-commissioning of the FPSOs. The two converted FPSO units, (spherical) LNG tanker, the 126,227m3 Hilli , into a Floating owned by Total, will each have an oil treating capacity of 115,000 Liquefaction Vessel (FLNGV), has become effective. The contract bbls/day, a water injection capacity of 200,000 bbls/day, a 100m scfd is worth approximately US$735m. gas compression capacity and a storage capacity of 1.7m bbls of oil. In carrying out the FLNGV conversion, Keppel Shipyard shall The first VLCC, the 2008-built 315,981dwt Olympia , is expected be responsible for the provision of the design, detailed engineering to enter Sembawang Shipyard in third quarter 2014 while the second and procurement of the marine systems and all of the conversion- VLCC, the 2009-built, 318,000dwt Antartica , will be in the Shipyard in related construction services. first quarter 2015. Both tankers were recently part of the Euronav fleet. Keppel Shipyard's scope also includes engaging Black & Veatch The total project duration will be 32 months. to provide design, procurement and commissioning support Meanwhile, Keppel Shipyard has secured a contract for the services for the topsides and liquefaction process. Black & Veatch's conversion of a Floating Production Storage and Offloading (FPSO) PRICO technology has been selected for the liquefaction process vessel for Armada Kraken, a wholly owned subsidiary of Bumi Armada because of its long-established record in the marketplace. Berhad (Bumi Armada). In carrying out the FLNGV conversion, This contract, which includes options for another two similar Keppel Shipyard shall be responsible for the provision of the design, units, follows the completion of a year-long Front-End Engineering detailed engineering and procurement of the marine systems and all of and Design (FEED) study by Keppel Shipyard and Black & Veatch. the conversion-related construction services. The FEED study was conducted as part of the terms of a term sheet Keppel Shipyard's scope also includes engaging Black & Veatch to agreement with Golar to convert up to three LNG tankers into provide design, procurement and commissioning support services for FLNG vessels. the topsides and liquefaction process. Black & Veatch’s PRICO The conversion has been approved in principle by DNV in technology has been selected for the liquefaction process because of its accordance with their classification rules and international long-established record in the marketplace. standards. The FLNGV will take about 31 months to convert and is This contract, which includes options for another two similar units, expected to be completed in the first quarter of 2017. follows the completion of a year-long Front-End Engineering and Detailed design and engineering activities will commence Design (FEED) study by Keppel Shipyard and Black & Veatch. The shortly, and the Hilli will be delivered to Keppel Shipyard within FEED study was conducted as part of the terms of a term sheet 2014 to initiate renewal of key marine systems onboard the vessel agreement with Golar to convert up to three LNG carriers into FLNG while the manufacturing of topsides commences. G vessels. The conversion has been approved in principle by DNV in accordance with their classification rules and international standards. The FLNGV will take about 31 months to convert and is expected to 1/ The Clipper Harald in Remontowa be completed in the first quarter of 2017. 2/ Golar LNG’s Hilli

Issue 51 September/October 2014 Ship Management International 71 Marine Propulsion

By David Tinsley North America quickens pace in take-up of LNG fuel

as extracted from shale is now so diesel-electric ro-ro cargo ships so as to use propulsion engine, each ship’s three plentiful and available at such LNG fuel. auxiliaries will be able to run on gas or Gcomparatively low prices that the Towards the end of last year, and with heavy fuel oil. LNG bunkers will be US has become the world’s leading the prospect of the ECA edict being supplied from a new fuelling facility in producer of LNG. The shale gas revolution considerably toughened to a 0.1% sulphur Jacksonville. has fostered a renaissance in US industry, cap in 2015, a contract was signed with Crowley Maritime has also not least in the chemicals sector, and has Wärtsilä for the supply of 50DF-type dual- implemented a project for LNG-fuelled brought about a growing export trade in fuel main engines, generators and LNGPac newbuilds to serve the Puerto Rico/US LNG to the benefit of the US economy. integrated LNG storage and fuel gas mainland trade. Each of the two 26,500dwt Against the backcloth of tougher handling systems for the two Orca-class con-ro vessels contracted from VT Halter environmental legislation governing vessels. Marine of Pascagoula, for completion in shipping in North American waters, the The re-powering of the 2003-built 2017, will employ an MAN two-stroke, new contributor to US energy self-reliance sisters will be the largest LNG conversions dual-fuel propulsion engine, type 8S70ME- is also stimulating the clearest shift ever undertaken in North America. The GI, to give a speed of 22 knots. anywhere in the world to the use of gas as a vessels will bring a new level of Matson Navigation Company gave a marine fuel. Competitively-priced US environmental performance to the resounding endorsement of dual-fuel methane is making LNG an economically Tacoma/Anchorage service, whereby technology towards the end of last year viable fuel across-the-board as regards vessel running in gas mode will virtually eliminate when it specified a 7S90ME-GI main types. emissions of sulphur oxides (SOx), cut engine for each of two 3,600 TEU boxships Companion investments in gas nitrogen oxides (NOx) by 90%, particulate entrusted to Aker Philadelphia Shipyard. infrastructure and dedicated bunker barge matter (PM) by 91%, and reduce carbon The power concentration of 42,700kW capacity at key locations give added impetus dioxide (CO2) by 35%. The shoreside ranked as the highest contracted for a dual- to the adoption of natural gas fuel by LNG supply infrastructure that is to fuel marine engine. Scheduled for handover shipping operators. accompany the TOTE initiative may assist during the second half of 2018, the 23-knot The uptake of LNG in the US extends other transportation operators in Puget duo is destined for the US West to the wider ‘Jones Act’ market, Sound in switching to LNG. Coast/Hawaii traffic. encompassing large trading vessels. Gas- In addition, TOTE has set a precedent Aker Philadelphia’s orderbook also burning, dual-fuel propulsion machinery is for the liner shipping industry worldwide by includes an extensive series of 50,000dwt championed by blue-chip owners with nominating LNG-capable, MAN two- home-trade product tankers designed to established, scheduled cargo services stroke ME-GI engines for a pair between the contiguous US mainland and of 3,100 TEU containerships non-contiguous states and territories. ordered from the NASSCO 1/ The IMO-designated North American shipyard in San Diego, Emission Control Area (ECA) took effect California. The Marlin-class, in August 2012, stipulating a maximum fuel Jones Act vessels will operate sulphur content of 1.0%. Totem Ocean between Florida and Puerto Trailer Express (TOTE) was granted a Rico, and are due to enter conditional waiver from the requirements, service in 2015 and 2016. linked to the conversion of its Alaska-trade, Besides the 8L70ME-GI

72 Ship Management International Issue 51 September/October 2014 Marine Propulsion facilitate conversion to LNG-fuelled main and the conclusion of the propulsion at some future stage. requisite financing, WSF St Lawrence River ferry operator could implement the first Société des traversiers du Québec (STQ) conversion in 2016. has set a precedent in Canada by specifying The rationale for the LNG-burning dual-fuel engines for three scheme is both economic newbuild vessels. Two 92-metre ‘double- and environmental. In a enders’ under construction at local builder project status report issued in Chantier Davie will serve the vital July 2014, the company said Tadoussac/Baie Sainte Catherine crossing that switching from diesel to at the mouth of the Saguenay River. The LNG could save around 40- 2/ third vessel, a 130-metre ferry, has been 50% in fuel costs at today’s ordered from Fincantieri for the V-shaped pricing. Compared with the current use of fleet, the barge has been conceived for route connecting Matane with Godbout ultra-low sulphur diesel fuel, running the direct deliveries to ships, and for intra- and Baie-Comeau on the north side of the Issaquah ferries on LNG is predicted to harbour and waterway bulk transport. St Lawrence. reduce PM emissions by 89%, NOx by 61%, Houston firm Waller Marine has Dual-fuel plant rather than pure gas SOx by 59% and CO2 by 29%. moved to the detail design phase with its engines offered the requisite operating Offshore service vessel operator Harvey LNG and regasification articulated tug flexibility in the context both of STQ’s Gulf International is establishing the first barge (ATB) concept. The barge will be extensive network and its need to be able to LNG marine bunker facility on the US Gulf fitted with four independent Type ‘C’ LNG support a wider government contingency coast at the company’s Port Fourchon tanks and the associated tug would be response. For the larger ferry, Wärtsilä 34DF terminal. This will supply Harvey’s equipped with natural gas-ingesting dual- engines have been nominated as the main newbuild series of LNG-burning dual-fuel fuel engines. Shell is considering LNG genset drives, while the double-enders will platform supply ships, and potentially other bunker vessel capacity, and last year issued a have Wärtsilä 20DF-series units. users in the marine, offshore and request for proposals for ATB units for Subsequent Canadian investment in transportation sectors. operations on the US Gulf coast. G gas-fuelled propulsion was denoted by BC Houston-based LNG America, formed Ferries’ July 2014 announcement of a in 2013 with the aim of providing volume C$165m contract award to Remontowa supplies to emerging LNG fuel markets, is Shipbuilding of Poland for three 105-metre planning to introduce newbuild LNG double-ended ferries. Designated as bunker barges into service by the end of intermediate class vessels, these will be the 2015. Crowley Maritime’s naval architecture first dual-fuel vessels in BC Ferries’ fleet. and marine engineering consultancy Jensen As well as cutting environmental Maritime has been tasked with drawing up emissions and ensuring compliance with designs offering of up to 3,000m3 and related, tougher legislation, it is anticipated 1,000m3 capacity, respectively dubbed the that lower fuel costs for LNG will reduce Gemini and Mercury class. upward pressure on fares and yield vessel Meanwhile, the US subsidiary of through-life running cost savings. The new French engineering company Gaztransport trio will each be arranged for 145 vehicles & Technigaz (GTT) has received ABS and 600 passengers on British Columbia approval in principle for a 2,200m3 design routes. The company is also deliberating on of LNG bunker barge. Leveraging GTT’s whether or not to convert two 1993/94- membrane technology and know-how, built Spirit-class ferries to LNG propulsion. utilised for 70% of the global LNG carrier 3/ Just over the border, Washington State Ferries (WSF) has conducted a lengthy evaluation into the possible use of LNG fuel 1/ Dual-fuel MAN two-stroke S90ME-GI engine in six of its vessels. The project would entail 2/ Matson Navigation's new breed of 3,600 TEU boxships will each be powered by a potent, dual-fuel retrofitting the propulsion system in the MAN two-stroke S90ME-GI engine

Issaquah-class ferries with new engines. 3/ TOTE's Orca-class ships are being re-powered with Wärtsilä dual-fuel machinery and LNG plant – the Pending US Coast Guard approval largest such conversion in North America

Issue 51 September/October 2014 Ship Management International 73 Business Viewpoint: Classification Japanese approval signals first for class

fter many years of hard work, ABS says it has become the ABS gained the status in December 2012 but it opened its first foreign classification society to include a Japanese- first office in Japan 65 years ago and has been supporting ship Aflagged vessel in its fleet – so could this signal a sea change owners there ever since. in the Japanese shipping industry? “We are honoured to become the first foreign class society to include The 302,488dwt very large crude carrier Yamatogawa , owned a Japanese-flagged vessel in our fleet. This is testament to our long-term and managed by Kawasaki Kisen Kaisha (‘K’ Line) recently commitment to delivering the high levels of professionalism that are transferred to the US-based society after ABS was awarded the status demanded by the top Japanese ship owners,” said Derek Novak, President of ‘Recognised Organization’ (RO) by the Japanese Government. and Chief Operating Officer for ABS’ Pacific Division.

74 Ship Management International Issue 51 September/October 2014 Business Viewpoint: Classification

“We look forward to providing our and to promote the security of life, “The Japanese Government has best-in-class technical services and global property and the natural environment.” recently introduced a policy to encourage support to a growing part of the Japanese He said that with the recent shale gas growth in Japanese-flagged tonnage,” said commercial fleet in the coming years.” revolution in the US, interest and demand Mr Akiyama. Akira Akiyama, Vice President – for LNG and LPG vessels had grown “As part of this agenda they have Japan at ABS added: “ABS worked with among Japanese owners and so vessels offered RO to three foreign classification the Japanese Government for many years classed with ABS would benefit from societies.” to obtain their authorisation to operate expertise of its Global Gas Solutions team, The other foreign classification as an RO. a group of gas specialists formed to societies that are granted authorisation by “ABS has been established in Japan for respond to the rapidly escalating number MLIT to serve as a Recognized over 60 years, working closely of gas-related projects, including LNG Organization for Japanese-flagged vessels alongside industry to offer and LPG transportation, and the growing are Lloyds Register and DNV GL. guidance as operating use of LNG and LPG as fuel for the “With long-established relationships frontiers change commercial fleet. with the Japanese industry, ABS offers an So, why has it taken so long for a alternative option for owners, Japanese-flagged vessel to be classed with particularly those looking to trade in US a foreign classification society? waters, or those looking to benefit from the experience of a global workforce,” said Mr Akiyama. Business Viewpoint: Classification

“Being classed with ABS offers Japanese owners access to our toward more stable international sea-borne transportation as well as best-in-class technical services. Our close relationships with US reinforcing our corporate commitment to meet customer needs.” Government agencies such as USCG (US Coast Guard) and EPA ‘K’ Line is a shipping company that owns and operates a diverse (US Environmental Protection Agency) enable us to keep Japanese fleet of ships including containerships, gas carriers, tankers and bulk owners up to date with the latest regulatory requirements for carriers and in the past few years has diversified its business activities operating in US waters.” to include drillships, offshore support vessels and heavy-lift vessels. A statement from ‘K’ Line said the Yamatogawa had become “a Earlier this year, ABS, which has four offices in Japan serving pioneer in worldwide shipping as the first ABS-classed Japanese- both Japanese owners and other clients constructing vessels and flagged vessel”. offshore assets within the country, was selected to serve as the first The vessel has been transporting crude oil to Japan since her foreign classification society for a new construction Japanese- delivery in December 2006 but was previously flying a foreign flag. flagged vessel when Offshore Japan Corporation, a joint venture ‘K’ line had been pursuing a change in flag from foreign to Japanese, between ‘K’ Line and Offshore Operation Co announced the working together with the government of Japan - Maritime Bureau construction of a new anchor handling tug supply vessel to the of Ministry of Land, Infrastructure, Transport and Tourism (MLIT) ABS’ standards. – ABS, and other parties in order to meet its own corporate strategy ABS’ Mr Novak said choosing to class with ABS for ships to increase the number of Japanese-flagged vessels owned or being built in Japan will make owners eligible for the most operated by it. knowledgeable technical support and regulatory guidance when “The flagging back of Yamatogawa has been achieved and calling in US waters. enabled by ABS’s authorisation and registration as a Recognised The RO designation allows ABS to provide statutory Organization by MLIT on December 21, 2012 to provide statutory certification services to Japanese-flagged vessels on behalf of the certification services to Japanese-flagged vessels. government and it allows ABS to verify the compliance of those “‘K’ Line maintains an affirmative position on the acquisition of vessels with the major international safety and environmental more Japanese-flagged vessels by making use of various newly- conventions such as the International Load Line, SOLAS and available options, thereby sustaining our company’s contribution MARPOL. G

76 Ship Management International Issue 51 September/October 2014 Business Viewpoint: Classification Data drives change in maintenance strategies

sing a data-driven risk-based systemic view of regime rather than one of the vessel as a Uschedule rule-based whole. There are, maintenance can lead to more accurate however, new and timely maintenance resulting in options that make increased safety, lower costs and greater maintenance safer availability of ship systems. and more cost That’s according to a new report effective.” ‘Beyond condition monitoring in the maritime industry’ from classification society DNV GL, which looks at the state of the art in condition monitoring for predictive maintenance and the potential benefits of introducing new maintenance strategies in the shipping industry. The report states that in the past 70 years, ‘expectations with maintenance have grown considerably’ with maintenance performed after a functional failure to a preventative activity with maintenance based on the assumption that a component has a defined lifetime. The trouble with this, it says, is that estimates of lifetime often have large He said the systems could also lead to uncertainties, hence scheduled a real-time, risk-based maintenance maintenance is often performed too early, system approach where the condition of resulting in high costs because of components is estimated at the system unnecessary replacements, or performed He said one example of these was level. Reliability and risk indicators can too late, resulting in functional failures. In smart sensors, which are installed on the then be evaluated in real-time to prioritise order to reduce this uncertainty, new vessel and sift through large amounts of maintenance actions on individual approaches are emerging, based on the data, streamlining the information to be components. asset’s condition. passed on to specialists. This means that “In short, this gives us a more holistic view Knut Erik Knutsen (pictured), Senior critical components can be monitored of a ship,” said Mr Knutsen. Researcher from the Research and more closely, sending data to shore “We can evaluate the importance of every Innovative division of DNV GL which through quick, reliable connections. This component based on comprehensive data produced the report, explained: “Until now, has been made possible by innovations and predict its remaining lifetime. This is condition monitoring mainly took place on such as cloud computing which allows helpful when it comes to prioritising a component level - this meant that its information to be stored, distributed and maintenance and repairs and enables more efficiency depended very much on the managed efficiently. intelligent investment decisions.” supplier. But inspections on individual Mr Knutsen added that by collecting Mr Knutsen also said that component components needlessly increase and analysing data, reductions can be made manufacturers could also find the information complexity, cost and can result damage – all in costs for maintenance, repairs, insurance, useful in adopting an ‘improve-as-you-go’ the while failing to contribute to a broader down times and fuel consumption. approach to upgrading technology. G

Issue 51 September/October 2014 Ship Management International 77

Letters Send your feedback, including your name and position to the SMI editorial team by emailing us: [email protected]

The Editor reserves the right to edit and abridge letters accordingly

Maritime Organization issued Guidelines for shipping to Dear Editor mitigate underwater noise impact on marine ecosystem. I would like to make a few general comments on Thomas The shipping industry organised at least three conferences Ország-Land's article ( SMI 50, ‘Dispatches’). last year to reduce noise on ships for environmental reasons and If you were in Australia over recent days, you would be aware of as reduced prop cavitation equates to better fuel consumption phenomenal revelations from an Australian Senate Hearing on the and that of course should be recognised. management of the Great Barrier Reef in late July that eclipsed Noise reduction is viewed as essential by the IMO and in fact everything said by Thomas Ország-Land well before the article. by most of the shipping classification societies. But that is where I won’t focus on that. willing reference to underwater noise stops and a cloak of I was asked to provide expert Testimony at the Senate Hearing silence remains. and specifically on the impact of underwater noise from shipping. That is why the bulk of my Senate Submission dealt with I would like to focus on the reality that your magazine is a ways that reference to noise by shipping agencies has related to shipping magazine and that the article barely mentions the impact of influencing governments not to mention it (almost down to shipping noise on the Great Barrier Reef. corridor and desk numbers) and how shipping agencies have I am not going to dwell on ship strike on the reef as that is funded sham environmental companies that deliberately don’t agreed to be low in occurrence but it is increasing. There are some mention noise. reasonable approaches available to address this problem. Your correspondent must have gone out of his way not to I would like to highlight the impact of underwater noise from mention underwater noise given it is so well referenced. It’s a real the transit of ships that is currently recognised by the UN world out there, so best reflect that. Environment Programme as a major ecosystem threat. In fact, The good thing about noise is that it can be mitigated in underwater noise has been an accepted marine pollutant since the some time/area constraints and it is not toxic and long-lived as 1982 UN Law Of the Sea (UNCLOS) and a specific issue for some chemical pollution can be. Particularly Sensitive Sea Areas of the IMO with the Great Barrier Reef being the first declared. Geoff McPherson, The impact of underwater shipping noise on marine ecosystem Marine Fisheries Acoustic Consultant, has reached such a state that in April 2014, the International Marine Acoustic Biodiversity Solutions

Issue 51 September/October 2014 Ship Management International 79

Anti-Piracy & Maritime Security The state of piracy John Thompson , Co-founder of private maritime security company Ambrey Risk, looks at the current risk of piracy

iracy’s gone away, right? You’d be forgiven for thinking that. sector. It is unrecognisable, with self-regulation coming in at such a The predominant narrative for the Indian Ocean is that rapid pace; the security companies should be applauded for their Ppiracy has been suppressed to an extent that ship owners are adaptation to change. Increasingly ISO accredited, they’re firmly part requesting fewer guards, even unarmed in some cases. Certainly of the commercial shipping industry supply chain, where PMSCs are private security team composition has adjusted beneath the “rule of members of shipping associations and reflect an industry driven and four” and the nationality of guards has shifted significantly away from governed by standards, quality and safety. the UK only model. But given the recent attacks in South East Asia The threat has adapted to present fresh challenges to ship and the prevailing amount of maritime crime and piracy off the Gulf owners. The Gulf of Guinea is beset with problems on and offshore, of Guinea, piracy hasn’t been eradicated at all; it’s simply evolved and where criminals are proving adept at moving between basic product will continue to change as it has done for hundreds of years theft (bunkering) through to the targeting of high value presenting a threat to global maritime trade. internationals for kidnap and subsequent ransom. Wider still are The increased profile of South East Asia/Gulf of Guinea West Africa’s challenges of overcoming transnational organised maritime crime and piracy presents a challenge for PMSCs to offer a crime: extortion, national embezzlement, human trafficking, drug global client base effective risk management/mitigation services that and arms smuggling and, of course, piracy. The recent intervention can meet their needs. These threats can range from Somali-style by the Nigerian Navy policing their territorial waters and making the kidnap of crew and vessel for ransom, to Nigerian-style extended use of private suppliers illegal is a concern and indicative of a region duration robbery and kidnap to violent robbery in the Malacca struggling to create consistency in combating maritime crime. In Straits. They are all very different and PMSCs must have a range of South East Asia, piracy attacks have apparently become more capabilities in order to advise ship owners properly. The challenge for prevalent, where attacks have been mainly focused on robbery at sea, the ship owner is to select a PMSC carefully and build a long-term some product theft but displaying a capability to move towards relationship based on detailed mutual understanding and trust. hijack. The ‘surge’ of attacks is more likely down to better reporting The recent extension of international naval commitment off than an actual increase in maritime crime, but this in itself is welcome, Somalia out to 2016 demonstrates that international naval forces where the sharing of information is wider, more transparent and view the significant cost of their presence worthwhile and necessary. consistent. In this region, the private armed deterrent is unlikely to be PMSCs will continue to be required for ship owners and operators to utilised with so many states surrounding these crucial sea-lanes but, demonstrate that they take the safety and security of their crew as in West Africa, PMSCs might be able to respond in support to seriously and to guarantee security in the many areas where the existing navies and coastguards. international naval forces cannot react swiftly. It is clear that the Piracy and maritime crime has not changed structures onshore in Somalia that support piracy are still very much a great deal, there will continue to be intact, with an estimated 40 seafarers still held captive; where piracy individuals seeking to profit illegally might easily return at short notice. on the high seas, but the The reality is that the ship owner will ultimately turn to the nature of the threat IMO/BIMCO for guidance and they in turn will rely on evolves. G international naval forces to determine policy. Recent extensions suggest guidance will not change significantly over the next 12 to 24 months, even if attacks do not resurface. Undoubtedly the dynamic onshore will continue to change, but the overall trajectory is some way from being decisively clear. In the interim it is the role of PMSCs to provide a cost effective, compliant service that provides the ultimate insurance to shipowners in an uncertain environment. The reduced frequency of pirate attacks within the Somali Basin and wider Indian Ocean might appear ironic given the sheer change in the private maritime security

Issue 51 September/October 2014 Ship Management International 81 Anti-Piracy & Maritime Security

Do not cross Learning crime scene management with PGI

hen Julius Caser was assassinated in 44 BC, the evidence collection, health and safety at crime scenes, learning Roman physician Antistius performed what is about firearm residue, body recovery, how to conclude a scene Wcommonly believed to be the world’s first autopsy, examination and much more. examining Caesar’s body and declaring that although the corpse SMI attended the course and found all other attendees to be had been stabbed 23 times, it was only one single wound through individuals from an ex-army/ex-marines background, all of whom his chest which was the genuine cause of death. Another early were attending to boost their skill sets, in search of new careers as application of forensic management occurred during the first PMSOs. These individuals recognise the need to learn the basics in century AD, when the Roman juror Qunitilian was able to prove forensic management owing to the possibility of an attack by pirates that bloody handprints left at the scene of a crime were a red or terrorists, but crimes onboard ships are, of course, not limited to herring, purposefully designed to frame a blind man for his own external influences alone. In the past few years, incidents observed in mother’s murder. the maritime press onboard cruise and commercial vessels include These are examples of early crime scene management and many rape, unexplained disappearances, fights between crew members of the principles applied are still used by crime scene investigators and suicide. This course would make any seafarer well-equipped to today – common sense, scene containment and the proper collating deal with such a serious incident onboard. of information and evidence are all important elements therein. Some of the most interesting focal points of the course included Whether you are working for the NYPD and dealing with a gang a discussion of ‘the golden hour’ – the period immediately following murder or you are a private maritime security operative dealing with an offence, during which material is abundant and readily available the aftermath of a piracy attack onboard – there are some universal to the investigator. The chance to take our own fingerprints and principles which can be vital to put into practice in such a situation explore how to bag and box up evidence correctly was also and Protection Group International (PGI) offers a course to help fascinating. seafarers and private maritime security operatives (PMSOs) learn It must be said that many of the images used on the course, how to deal with the aftermath of an accident or crime onboard. derived from real-life crime scenes, some of which took place in the Held at the company’s Institute of Leadership and local, Manchester area, are extremely graphic and not for those with Management (ILM) accredited centre in Stockport, England, a weak stomach. This reporter eventually managed to regain their PGI’s course ‘Maritime Security – Post Incident Forensic appetite after a day or so back in the office! But the course is Management’, is an intensive two-day residency which offers extremely worthwhile in providing a solid grounding of how to deal attendees advice and guidance regarding how to manage the with crime scenes in order to preserve as much evidence as possible scene of a crime, including best methodology in properly and the importance of this onboard ship cannot be underestimated. photographing a crime scene, the importance of fingerprints, For further info visit www.pgitraining.com G

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Alternative viewpoint Michael Grey, MBE, is an internationally respected A bump in the night maritime commentator here is something worryingly inexplicable about accidents mile channel between England and France had become. But there involving modern, well-equipped vessels, instrumented was no shortage of alertness on that occasion. Tlike the Starship Enterprise, mysteriously running aground So is it just sloppiness or a slapdash attitude to one’s instruments on a sandbank in the middle of the night. And then I guiltily recall that is responsible to the rash of ECDIS-involved groundings that I can barely work out how to use my mobile telephone, and commented on recently by Steve Clinch the Marine Accident used to keep the clock on my German car on GMT because I Investigation Branch Chief Inspector? In his remarks he suggests found it such a trial to change it to Summer Time. It could be that that it is a lack of ability with the electronic chart systems, with the technology is just getting beyond the abilities of the operators. people not really understanding how to use them. As I write, I am Is it preoccupation with the burden of bureaucracy, that fails to sitting in front of a laptop with an astonishing range of functions and alert a watchkeeper that the ship has actually stopped making any computing powers, of which I can comprehend a tiny proportion. speed over the ground, not least because it is sitting on a sandbank? But I can just about get by with the little I can do, which mainly You would think he would have noticed, but it took nearly 20 consists of processing words and sending emails, reaching into the minutes, even after he had been quizzed by the Coastguard, who web occasionally and availing myself of Google’s massive memory. had noticed the lack of progress, before the penny dropped. Anything else I have to scream for help to my granddaughter. It could perhaps be something rather more systemic, with the Similarly, you may well be able to scrape through a “generic” effective removal of a navigator from the constant business of ECDIS course, without really understanding what is going on in this navigation, relegating him from actual physical involvement to one magic box of tricks and once onboard, make some sort of fist of a of passive oversight. Cleverer people than I have waxed lyrical about voyage plan. Then, because the master may have had much the same this problem for years. Chief Inspectors of accident investigation sort of electronic upbringing, the fact that you have laid a course branches have issued stern warnings about complacency, but there right across a sandbank, or negligently edited out a navigational is no let-up in these accidents in which the watchkeeper was not buoy (or in one early disaster, an entire island), nobody then realises living up to his job-title. And all though some were undoubtedly that if the ship follows this track, it will lead right onto the contributed to by fatigue, it could be that the lack of alertness obstruction which hydrographers spent so much time illustrating. exhibited in such cases were largely due to their being bored by a Finally, with the watchkeeper, his mind in neutral (as we used to lack of challenge and involvement in the business of navigation. say), sitting in his comfortable pilot chair, with all the alarms The ‘ECDIS-assisted’ accident of which I write took place in the helpfully installed by the manufacturer inactive, the ship slides to a middle of the busiest bit of the English Channel, a piece of water in stop. In this particular case, there was little damage and the ship which you would think that every human navigational sensor would refloated on the tide, but with a rocky bottom we might have been be sharpened; honed like a well tuned Stradivarius in the hands of a looking at a far more disastrous conclusion. maestro. When I used to run through that waterway fairly regularly, One should not be surprised that grounding has been identified there would be a fully manned bridge, somebody running a radar in the Global Claims Review of insurer Allianz as the largest plot on ships in the vicinity, somebody making sure the ship stayed generator of marine insurance claims. At the top of the heap, as it on the course line. Visual bearings would be taken every few were, there is the regrettable loss of the Costa Concordia and some $2 minutes, checked against radar ranges, floating and fixed aids to billion it cost to take the wreck away. navigation carefully noted. Dare I say it, the master would certainly And to reiterate, groundings are happening aboard ships where not be below, but adding his senior experience to the situation. there is no reason for their navigators not to know precisely where The last time I went through it was aboard a laden 350,000dwt they are, such is the equipment available to them. But they need to ULCC and it was extraordinary to recall just how narrow this 22 know how to use it. G

Issue 51 September/October 2014 Ship Management International 85 AdHoc

Tragedy at sea Preventing migrant deaths in the Mediterranean

he International Maritime Rescue coordinating its efforts with other search and In many countries we see organisations set Federation (IMRF) was recently rescue authorities around the Mediterranean. up, privately in many cases, working with Tmade aware of the Migrant The intention is to mitigate against loss volunteers because people have identified Offshore Aid Station (MOAS) – a new of life at sea, not act as a migrant ferry or to need and are willing to do something about organisation made up of a group of rescue migrants exclusively. Resources will it. Giving SAR coordinators more options humanitarians, security professionals, medical be used to assist Rescue Coordination to call on when people are in distress on the staff and experienced maritime operators Centres, locate and treat those who are water can only be good. ” who have combined resources to help suffering and save lives where required. MOAS has already saved its first prevent tragedies at sea in the Mediterranean. To enable this, MOAS has a 40-metre migrants. At the end of last month, a group Based in Malta, MOAS was founded by (130 ft) expedition vessel called Phoenix of 227 Syrians and Palestinians, including Christopher and Regina Catrambone who which is deployed in major migrant 57 children, were rescued. They were in a were inspired by Pope Francis’s call for shipping lanes. The crew monitor the area wooden fishing boat when they ran into entrepreneurs to help those in need, after their using Remote Piloted Aircraft to locate trouble in a stretch of sea south of idyllic holiday scene was interrupted by the migrant vessels in distress using sonar, Lampedusa. Phoenix was approved by the sight of a winter jacket floating in the water. thermal and night imaging. The minute a Italian authorities to step in; MOAS also The couple, who established Tangiers, a boat in distress is located, the respective coordinated the rescue of 96 Sub-Saharan leading business specialising in insurance, Rescue Coordination Centre will be African men who were in distress on a emergency assistance and intelligence in informed. rubber dinghy. 2006, realised that the jacket probably “This is an interesting initiative set up to More than 20,000 men, women and belonged to one of the thousands of address the maritime SAR challenge children are estimated to have lost their migrants who try to cross the presented by the movement of migrants in lives in the past 20 years whilst trying to Mediterranean to reach Europe. the Mediterranean, which is both a major cross the Mediterranean Sea in search of a Regina Catrambone said: “We looked humanitarian issue with some major better life. Most of them are escaping at each other and we said: ‘Let’s do political challenges,” said Bruce Reid, Chief violence, prosecution and hardship from something’. From this moment came the Executive of the IMRF. “‘Vessels of places as far off as Eritrea, Somalia and, idea of buying a boat and doing something opportunity’ are in many cases the first on- more recently, Syria. in the Mediterranean where people are scene in maritime SAR emergencies, so the MOAS has a Board of Advisors made up dying every day.” concept of having a dedicated resource such of distinguished people from various sections More than 1,889 people have died in the as MOAS fulfilling this role, working in of society and its Director is Martin Xuereb. A waters since the start of this year and 1,600 of collaboration with the authorities, could be Maltese native, Martin trained in the UK and them since the beginning of June, according part of the solution. Italy and in a 26-year military career oversaw to the UN Refugee Agency UNHCR. “There will be difficulties with what many search and rescue missions as Chief of MOAS has been set up to act as an aid MOAS is working to achieve, but if it was Defence of the Armed Forces of Malta. G station to support vessels in need of assistance, easy someone would have already done it. For more info, please visit www.moas.eu

86 Ship Management International Issue 51 September/October 2014 AdHoc

European Shipping Week 2015 date announced Verhoeven (pictured), Secretary General of the European Community Shipowners’ Associations (ECSA), said: “The first week of March is ideal since EU institutions will by then be fully operational in their new composition. The whole idea behind this important event is to give European shipping the opportunity it needs to impress upon what is a new European Parliament and a new College of Commissioners.” Champagne European Shipping Week was the brainchild sky ride for of the European Community Shipowners’ he week of March 2nd-6th, Associations (ECSA) and is run by a Hutton’s 2015, has been chosen as the Steering Group made up of Europe’s main Tdate for the inaugural European shipping organisations as well as the guests Shipping Week when shipping industry European Commission and Shipping leaders from Europe and around the Innovation. The shipping organisations hampagne was on the menu world will descend on Brussels to meet involved on the Steering Group include: when international ship supplier, and network with top legislators from the ECSA; Cruise Lines International CHutton’s Group, entertained key European Commission, European Association (CLIA) Europe; European clients and guests with a trip on the Parliament and the Council of Ministers. Community Association of Ship Brokers London Eye. The week-long series of high level and Agents (ECASBA); Interferry; the Hutton’s Group Managing Director events will bring together the major European Dredging Association; the Alex Taylor, Hutton’s Medical General players in the shipping industry with the World Shipping Council, as well as the Manager John MacDonald, Offshore primary aim of promoting the strengths European Tugowners’ Association. Other Renewables Division Manager Robert and significance of European and global European shipping associations may also Ludlam and Gaidis Griva, International shipping to these important regulatory be invited to support the initiative and Projects Manager, joined guests in sampling bodies in Brussels. hold relevant events during the week. a variety of champagnes from young wines The European Commission, through ESW is organised by Shipping to vintages – while also taking in the DG MOVE, has endorsed European Innovation – the driving force behind fabulous night-time London scenery. Shipping Week and formal patronage is the highly successful London Alex Taylor said: “Operating a 24/7 already being sought from it as well as International Shipping Week (LISW). ship supply service which is expanding from the European Parliament and the More details about the week-long line-up around the globe is a fast-paced life and we Council of Ministers. of events will be released in due course. were pleased to be able to take some time Welcoming the announcement of the An official ESW website will be launched out to talk with clients and share a glass or European Shipping Week dates, Patrick in the next few weeks. G two of champagne.” G

Issue 51 September/October 2014 Ship Management International 87 AdHoc Anglo-Eastern celebrates 40th anniversary in style

nglo-Eastern has celebrated its 40th COO, Diamond S Management; Andre In Peter Cremer’s welcoming speech, he anniversary with an evening of fun at Goedee, CEO, Dockwise Shipping; Stacy paid tribute to Peter Nash, founder of Anglo- Athe Hong Kong Maritime Museum. Paul Miller, Executive VP Fairfield Eastern, for his loyal and hard-working Among a host of VIPs, both local and Chemical Carriers, USA; Paul Pathy, CEO workforce and to the Board for letting the international, Mr and Mrs Evert Maréchal, and President Fednav; Richard von management team run the company, a team The Consul General of Belgium, along with Berlepsch, Senior Director, Hapag-Lloyd that has remained constant for the better part of the Consul General of Japan, Hitoshi Noda AG; Tsutomu Shoji, Corporate Officer 25 plus years, throughout various ownership and the Consul General of India, Ravi Sinha and GM, NYK Line; Mark Haines, structures, until the final MBO (Management and Prashant Agrawal together with the Managing Director, Petredec Services Buy-Out) and the merger with Denholm. Director of the HK Marine Department, (Asia); Yukito Higaki, President, Shoei Today, Anglo-Eastern has around 450 Michael W L Wong, were welcomed by Kisen Kaish; Mukund Sharma, Director, vessels under full management, more than Group CEO Peter Cremers and the Board of Marine and Technical Services, Teekay 60 ships under crew management and a Directors of Anglo-Eastern. Marine (Singapore). joint venture with Teekay to manage some Some 200 guests attended the Local clients and ship owners and other 50 tankers. function including 50 of Anglo-Eastern’s ship managers were also well represented In a final comment, Group CEO, Mr clients who travelled from across the globe. with Chellaram Shipping, Unique Cremers said: “Whatever we have done They included: Benoit Timmermans , Shipping, Wah Kwong, Sinotrans, Saga with the company, we have taken the clients’ Managing Director, Bocimar Belgium; Shipholding, KC Maritime, Cido Shipping, interests first, because it is this priority John Denholm, J&J Denholm, CEO and as well as Maersk, Pacific Basin and Wallem which serves shareholders’ interests best – BIMCO President; Sanjay Sukhrani, in attendance. in the long run.” G

88 Ship Management International Issue 51 September/October 2014

Objects of desire

» Mean machine Based on the versatile Honda Super Sport, this sleek new Bishop motorcycle from Bandit 9 will be available to just nine buyers, due to its limited availability. Featuring a 90cc-125cc single cylinder air-cooled engine, the machine features a high-grade aluminium unibody, custom suspension, charcoal grey suede seat and panels made from walnut, oak, teak and burl.

Bandit 9 Bishop Motorcycle $6,400-$6,800 www.banditnine.com

» Bags of appeal Just because something is practical doesn’t mean it has to be ordinary – as this backpack from Givenchy shows. A luxury approach has been given to carrying round your belongings with the bag crafted in Italy in the finest butter-soft leather. There are multiple pockets and a spacious interior with drawstring top, along with two adjustable shoulder straps to keep you comfortable.

Givenchy Obsedia Backpack £1,850 www.harrods.com

» Driving force You can emulate (or try to emulate) the great Bubba Watson with this, the latest in the line of PING’s flagship big sticks. The G30 driver, which the popular US golfer is known to use, features a 460cc head with turbulators in the crown to help direct wind and increase clubhead speed, a lightweight titanium face, a new high-balance-point shaft and Trajectory Tuning+Technology. So, hopefully you’ll be able to hit the ball that bit further up the fairway!

PING G30 Driver £249 www.abcgolf.co.uk

90 Ship Management International Issue 51 September/October 2014 Objects of Desire

» Smart shot Sony is serving up a great new gadget for tennis players – the Smart Tennis Sensor – which can capture information about your swing, serve and more to a companion app on both iOS and Android. The device, due out in January 2015, also gives you a Memory Mode which holds details on up to 12,000 shots and is compatible with select tennis racket models by top manufacturers such as Wilson and Prince.

Sony Smart Tennis Sensor $200 (price tbc) www.smarttennissensor.sony.net/NA/

» Instant photos Polaroid cameras were very cool in their day but what do you do if you want instant photographs now, when using an iPhone? The Impossible Instant Lab transforms images into real, instant pictures, instead of leaving them buried away in the dark depths of your iPhone – just select a picture on your phone, put the phone on the cradle and press the eject button and within seconds an instant photo appears, ready to develop in the palm of your hand.

Impossible Instant Lab £240 www.firebox.com

» Neat seat This classy chair is designer Borge Mogensen’s interpretation of a chair often found in areas influenced by ancient Islamic culture from Andalusia in Spain to northern India. He drew inspiration from a trip to Spain in 1958 and modernised the shape, using broad arm rests to provide a practical place to put a glass or cup. It comes in a choice of black or natural finish and upholstery.

Borge Mogensen Spanish Chair £3,011 www.skandium.com

Issue 51 September/October 2014 Ship Management International 91 Review

» The Final Season By Nigel McCrery Random House Books

Just as today, in 1941 professional footballers were heroes and role models so when war broke out they felt it was their duty to join up. However, some teams lost half their players as they were killed or left so badly injured, in mind and body, that they were never able to play again. The Final Season is a moving account of some of the young men who swapped the turf of the pitch and the cheers of fans for the freezing mud of the battlefield and the scream of shell fire. It follows players such as Patrick ‘Handsome Jack’ Crossnan and Walter Tull, Britain’s second black professional player and first black commissioned officer, as they leave their towns, undergo training and then travel on to the bloody arenas of war.

» No Sound Without Silence The Script Columbia

The Irish pop rock band are back with this, their fourth studio album, which was largely recorded on their tour bus during the 3 World Tour in 2012/2013. Lead single Superheroes which, as with all the other Script songs, is full of rich melodies, is extremely catchy and likely to follow the success of their 2012 hit single Hall of Fame. Another cracking release from lead singer Danny O’Donoghue and Co.

92 Ship Management International Issue 51 September/October 2014 books , theatre , dining , events , culture , films , festival , music , art , dvd , wine

» At.mosphere Dubai, UAE » The EY www.atmosphereburjkhalifa.com Exhibition: Late Turner – For an evening dinner of afternoon tea, there really Painting Set is nowhere with a better Free view in Dubai than At.mosphere in the Burj Showing now until Khalifa. 25th January 2015 Located on level 122 of www.tate.org.uk the world’s tallest building, the restaurant is in the Guinness World Records for being the Highest Restaurant from Ground Level. Diners can choose from the à la carte menu which features an array of different steaks and vegetarian choices or a five or seven-course tasting menu which dishes up such delights as oysters, tuna tartare, foie gras and Wagyu beef. There is also the option of ‘High Tea’ with the Premium Selection including champagne, organic quiche, assorted sandwiches and patisseries and the obligatory This exhibition at the Tate Britain is English scones. the first devoted to the work JMW Turner created between 1835 and his death in 1851 and brings together spectacular works from the UK and » Cruso the Navigator abroad. By Graham J Steed Highlights include such important pictures as Ancient Rome; Agrippina Great Oak Books Landing with the Ashes of Germanicus and Modern Rome – Author and teacher Graham J Steed draws on the Camp Vaccino, which are rarely seafaring adventures of a young sea cadet for his new reunited since they were first novel, Cruso the Navigator. exhibited together in 1839. There is The book is set in 1967 when John Cruso joins the also The Wreck Buoy from 1849 and Merchant Navy hoping for a life of travel and adventure, magnificent watercolours like dreaming of becoming a navigator like his idol Heidelberg: Sunset c. 1840 and the Lieutenant Bligh who sailed 4,000 miles in an open boat. seldom-seen Bamburgh Castle, He believes he has years of learning ahead of him but Northumberland c.1837. when his ship sinks he tries to take responsibility for a By taking a fresh look at Turner’s late handful of passengers, struggles with leadership and love works, the exhibition, which includes and plans a dangerous ocean voyage in the tradition of many large-scale oil paintings, the great navigators. drawings, prints and watercolours, Six months later, under investigation, he tells a Court of sheds new light on his life and art and Inquiry he was shipwrecked on an unchartered island 350 miles west of the Canary Island, redefines ideas of one of Britain’s that the island was a mid-Atlantic weather station and supply depot for U boat operations greatest and best-loved painters. and that he found an artefact from ancient Atlantis. But who is going to believe him and who is going to understand what he and Miss Molineux had to do to get home?

Issue 51 September/October 2014 Ship Management International 93 Lifestyle

mAinefield of manners &suicide by

knife and foBy Margie Ck ollins

he musician Phil Collins told Jill Tavelman, his second wife of consultancy and training in contemporary etiquette, protocol and 12 years, by fax, that he was divorcing her. In 2007 Carole social skills to sundry nationalities, children and adults alike. TMiddleton, Prince William's yet to become mother-in-law, The modern table setting is attributed to Charles I when, in 1633, brought midden down upon her head when she chewed gum he declared: "It is decent to use a fork." Centuries of use and yet, as relentlessly during William's passing-out parade at Sandhurst in the Diana Mather says: "Table manners are also sometimes excruciating. presence of HM The Queen, Prince Philip and Prince Charles. When Teenagers come to us hardly able to hold a knife and fork - never mind he was Chancellor, in 1997, Gordon Brown cussedly refused to wear use them!" She added: "Many people also don't know how to shake the regulation white tie for the annual Chancellor's Mansion House hands properly - and it has to be said that many people make up their speech, cutting a poor figure. At the recent Commonwealth Games in minds about someone on their handshake. And they don't also know Glasgow, Queen Elizabeth II very nearly caused a collective cardiac how to make proper introductions - which can be very important, arrest among the commentariat when she re-applied her lipstick, in full especially in business." view of audiences, raising the vexed question on the social acceptability While familiarity with three-fork etiquette is high up on the list of of grooming in public. those in want or in possession of good manners, it's a hazard-strewn The Marquess of Bristol was speeding through Paris in his Bentley minefield out there, in a country that despite protestations to the when he knocked down a tramp in Montmartre. He got out of his car, contrary is still obsessed with class and breeding. People jumping walked over to the injured itinerant and shouted: "Now, look what queues; having loud private telephone conversations in public; letting you've done to my bloody fenders!" When Margot Asquith's personal children run wild; not acknowledging the receipt of gifts or acts of maid was killed in an accident, her friends commiserated with her, kindness; inconsiderate driving and road rage; not standing up in public saying: "Tragic for Parker." "Yes, but damned inconvenient for me!" transport for the disabled, pregnant women or the elderly; not replying snapped the socialite and wife of Prime Minister H H Asquith. to letters or emails; not returning calls; delaying to RSVP and putting The ritual incantations of politesse aside, in the discharge of human invitations on a "subject to a better offer" basis; walking out of the house and social obligations now lies growing despair over coarsening smelling rancid and looking like an exploded sofa; studied indifference standards of behaviour and the apparent decline of simple good to punctuality; four-letter words peppering normal conversation. The manners in a less deferential and increasingly informal society. Slob list of solecisms and crimes of behaviour is long, very long. mentality and yob culture have done a great job of chipping away at "Despite many of us saying we judge others by their manners, it what were once the highly lauded values of courtesy, politeness, respect seems that we all need to take a refresher course in acceptable manners," for authority and consideration for others. said Emma Soames, Editor-at-large of Saga Magazine, which recently "The worst manners are due to technology. People texting others conducted a survey of modern manners. "It's startling that so many whilst they are meant to be having a conversation with someone is the people avoid holding doors open and giving up seats on public height of rudeness and would never have happened before," said Diana transport, and don't seem able to detach themselves from their Mather, Director of Training of The English Manner (TEM), to SMI . smartphones to give people, even their friends, the courtesy of their Founded in 2001, TEM is a leading UK company providing individual attention." Saga's research found, among others, that over a

94 Ship Management International Issue 51 September/October 2014 Lifestyle quarter of those surveyed said they forgot to say 'please' or 'thank you'; that one in five pushes in front of others in queues and swears in front of children; that chivalry is dead. In a separate study, commissioned by Debrett's - arguably the British authority on etiquette since 1769 - it was concluded that "with so much focus on exam results and the hectic informality of modern life and technology, social graces can be a casualty." The research found that 90% of the senior executives surveyed said that social skills are as important, if not more important, than academic achievements; 63% said office juniors are lacking in social skills and that a quarter of these young employees, with their sense of entitlement and misplaced informality, have embarrassed their bosses in front of clients; had dressed inappropriately for work and had drunk too much at work-social events. John Cridland, Director-General of the Confederation of British Industry - the UK's independent employers organisation - recently said that many educational establishments today produced pupils who were 'exam robots'. He said business leaders want graduates and school leavers who not only have high academic qualifications, but who are also well-rounded individuals with qualities that businesses seek, including creativity, good manners, self-confidence and emotional intelligence. Every year, thousands of fresh graduates flood an increasingly cut- throat jobs market without the work-ready polish and soft people skills that would make them highly employable. Someone should tell them good manners and social skills advance career prospects, that they are essential not only in civilised society but also have practical value in business and commerce. Most job interviews for senior positions are extended over the dining table, with candidates' table manners seen to be indicators of other highly sought-after qualities: are they well

Issue 51 September/October 2014 Ship Management International 95 Lifestyle bred; do they have poise and teach them how to use cutlery, confidence, and a grasp of the art eat soup without slurping, have of conversation? artful conversations. Sara Jane "I think it's very important Ho, Beijing's self-styled Miss that schools should oversee Manners, launched Institute standards of good behaviour and Sarita in 2013; she has based her good manners, but with all the classes on British etiquette, restrictions that are put on reputedly the world's 'gold teachers these days, it has become Diana Mather outside Broomy Bank standard'. "When I said I was extremely difficult to impose discipline or good manners," said Diana starting an etiquette school, the first thing people said to me was 'thank Mather. "Responsibility really lies with parents or guardians. It should all you; China needs this,'" said the 28-year-old Harvard Business School start and end at home." graduate who aims, she said, to launch nothing less than a cultural Train a child in the way he should go, as the saying goes, and he will revolution in good manners in the Middle Kingdom. not depart from it. James Hebbert, founder of Seatton, is a British entrepreneur well A schools inspector recently bemoaned that a disquietingly large known among fabulously wealthy, social-climbing Chinese in need of number of primary schoolchildren are unable to hold a conversation, training in British etiquette. Hebbert's classes include tuition in Savile let alone eat with a knife and fork. The English Manner works with a Row tailoring, how to make the perfect Pimm's, wearing the right number of schools to teach students dining etiquette and social skills in cufflinks. He has prepared, he said, Chinese investment bankers for the efforts to make them more socialised and employable; they recently Season - the quintessentially British rites of summer which include trained an international bank's graduate intake of 80 men and women Royal Ascot, Henley Regatta and Cowes Week. in interpersonal skills, business protocol and table manners. Imagine a world which is just a veneer's thickness away from Kate Reardon, Editor of the British society magazine Tatler, vulgarity and crudity, without rules of behaviour and no etiquette; recently admonished girls at a private school in the Cotswolds, saying: say what comes to mind unbidden without filter or edit buttons; "It doesn't matter how many A levels you have, what kind of degree you wear what you please anywhere, any time; interact with others have; if you have good manners, people will like you and if they like without a scintilla of courtesy. you, they will help you." "Etiquette," intoned Miss Manners, whose advice column appears The English Manner, which has office-academies in the US, China, in more than 200 newspapers worldwide, "is all human behaviour. If the UAE, Russia, Malta, India and Africa, works with private individual you're a hermit on a mountain, you don't have to worry about etiquette. and corporate clients, including Barclays, Champagne Bollinger, the But if somebody comes up to the mountain, then you've got a problem. BBC, China Construction Bank, Bentley, AstraZeneca, BT, foreign It matters because we want to live in harmonious communities." embassies and high commissions. "Our most popular courses are the The little and big things that count, which when added together one- or two-day Essential Etiquette classes, followed by Dining spell good manners: how to shake hands, make introductions, put Etiquette and Essential Entertaining. Effective Speech classes and other people at ease, address a baronet's wife correctly, write a thank- Elocution are rapidly gaining in popularity," said Diana Mather. "We you letter, know which knife to use for fish, how to handle a bore, give people the confidence to feel comfortable in any social or business conduct telephone conversations, netiquette, the appropriate dress for a arena; everybody needs confidence." Course costs, between £450 - wedding or a funeral, entertaining at home, conducting civilised £2,000, seem a small price to pay for a lifetime's worth of confidence divorces, social kissing or doing the mwa-mwa thing. and self-assured ease. One can squirm and drown for lack of 'small talk' - that endangered Never underestimate, it's said, the crippling insecurity arising from a art and vital skill highly prized in both social and business worlds. The lack of confidence; the paralysing anxiety from an inability to navigate French journalist Agnes Poirier wrote: "I had never heard of the the treacherous waters of professional and social environments in the concept of small talk until I arrived in England at the age of 23. At first, I modern world. Hence the flourishing of 'schools for manners', such as was in awe. A few exclamations and interjections about the weather, TEM, Debrett's and Minding Manners in the UK; the D.C.-based Miss and a little fire of civility was born." Manners, which has been in business since 1978; the Etiquette School "Social skills and the art of conversation," said Diana Mather, "are all of New York, and the Emily Post Institute in Vermont, USA, founded in part of good etiquette, which is a code of rules by which a society lives, 1946 by the redoubtable American author Emily Post, whose name is and good manners, which means treating others with kindness, universally synonymous with etiquette. "Manners," Miss Post said, "are a consideration and respect. They are ageless, classless and priceless - sensitive awareness of the feelings of others. If you have that awareness, everybody should have them." you have good manners, no matter what fork you use." To be educated in the formalities and learned in the essentials, to In China, newly minted plutocrats, with their wives and children, ignite and spread the essence of civilised existence - yes, please. And are happy to pay from £2,000 to £11,000 to manners mavens who will thank you. G

96 Ship Management International Issue 51 September/October 2014