For organizations, the strongest capital is intelligence, attention and honesty, and to know how to conduct technical and methodical works. Work hard with this motivation, you will definitely become successful! You will find the ambition and energy in your hearts for working, achieving your goal and moving up if you consider the goal of success as national price, national matter of honour rather than a personal matter of honour. INDEX ABOUT US 04 TURK LOYDU FOUNDATION 06

TURK LOYDU FOUNDATION CHAIRMAN Cem MELİKOĞLU 08

TURK LOYDU UDH A.Ş GENERAL MANAGER Lütfü SAVAŞKAN 12

MARINE SECTOR 16

INDUSTRY AND CERTIFICATION SECTOR 46

TRAINING SERVICES 82

FOUNDATION ACTIVITES 92

TL TECHNICAL RD and DESING COMPANY 106 ANNUAL REPORT | 2018

ABOUT US

OUR VISION OUR MISSION OUR PRINCIPLES

To become the most preferred To provide conformity assessment Independence and Impartiality, international classification and services in the field of safety of life, Honesty and Reliability, Continuous certification society that is powered property and the environment, in improvement, Generating and by its own rules and knowledge as accordance with our principles Sharing of Knowledge, Customer well as expertise Oriented and Quality Service, Employee Appreciation

04 TURK LOYDU FOUNDATION TURK LOYDU HEALTH, SAFETY, ENVIRONMENT Chairman of the Board AND QUALITY POLICY Cem MELİKOĞLU

Deputy Chairman of the Board Atilla ÇİFTÇİGÜZELİ TURK LOYDU ; • Maintain the principles of independence, impartiality, Treasurer confidentiality and reliability, Halim METE • Ensure compliance with the Code of Ethics of TURK LOYDU, Member • Provide services in accordance with the applicable legislation, Mehmet Akif EROĞLU rules and standards, including the requirements of customers, Atilla OKSAY • Contribute to the protection of safety of life, property, and the Ferhat ACUNER environment with its rules and services, Gürsel GÜRÇAY • Maintain national and international recognitions in compliance Gürsel YILDIZ Prof. Dr. Hakan AKYILDIZ with the Health, Safety, Environment and Quality standards, • Ensure customer satisfaction by providing services in line with Supervisory Board customer expectations in a timely and equal manner, Ali ÖNDER • Ensure an efficient training and qualification system to maintain a Derya TURGUT highly qualified staff, Ufuk TEKER • Manage the risks related to service processes, • Provide the necessary environmental conditions and resources to prevent injuries and health problems of its employees and to ensure their safety, • Demand their customers to provide the necessary resources to TURK LOYDU CONFORMITY ensure safe performance of field activities, ASSESSMENT CORP, BOARD OF • Exercise its power and responsibility not to provide service until DIRECTORS the necessary health and safety conditions are met in cases that may endanger the health and safety of its employees, Chairman of the Board • Always keep its employees aware of occupational health and Lütfü SAVAŞKAN safety, and protection of environment, Deputy Chairman of the Board • Assess and minimize the environmental impacts during Ayfer ADIGÜZEL operations, and prevent pollution, • Use resources in a sustainable manner, Member • Constantly improve its Health, Safety, Environment and Quality Okan ÇETİN performance by periodically reviewing the key performance indicators and objectives determined for this purpose

05 ANNUAL REPORT | 2018

TURK LOYDU FOUNDATION

Cem MELIKOĞLU Chairman of the Board Cem Melikoğlu was born in 1964 in Istanbul. After completing his education in the Private German High School of Istanbul, he grad- Atilla ÇİFTÇİGÜZELİ uated from Istanbul Technical Deputy Chairman of the University, Department of Naval Board Architecture and Marine Engi- He was born in 1951 in Kilis. neering in 1988. He has good He graduated from Istanbul command of German and Eng- Technical University, Maritime Halim METE lish.He worked as the EMEA Faculty in the 1974-1975 Aca- Treasurer representative of ExxonMobil for demic Year. He is a member of over 21 years in Health, Safety, TMMOB Chamber of Marine He was born in 1948 in Rize. He Environment and Security areas, Engineers. Until 1988, he served completed his higher education then served as a senior executive as the Marine Chief Engineer in Istanbul University, Faculty of Prof. Dr. Hakan AKYILDIZ in OMV Petrol Ofisi Company in D.B. Deniz Nakliyatı T.A.Ş. Economics. He is the President Member and TANAP Natural Gas Pipe- and Chairman of the New Con- of Mete Kardeşler Group of line Project. He worked on sys- akan Akyıldız was born in 1965 in struction Control Committee Companies, and a partner in H tem installations for collection Istanbul. In 1987, he graduated from in Türkiye Gemi Sanayi A.Ş. nearly 15 companies within of waste oils in Petder created ITU, Faculty of Naval Architecture He worked as a specialist sur- and outside the group. Apart by the leading oil companies in and Ocean Engineering as a Naval veyor between 1988 and 1996 from his profession, he served our country, served as a member Architect and Marine Engineer. He in TURK LOYDU. He served in the management of many of the board, chaired the OHS received his M.Sc. in 1989, Ph.D. in as a Vice-Chairman in 2012 institutions and organizations Commission in Petder and the 1999, and started his academic ca- and 2013 in the Turkish Asso- related to both his sector and Chamber of Naval Architects, reer as a faculty member. Prof. Dr. ciation of Ship Industrialists. He various social topics. He takes and hosted the OHS-themed Hakan Akyıldız continues his aca- is one of the founders of Defav active roles in the boards of weekly radio programs called demic and administrative studies as Foundation and chaired the numerous foundations and “Testi Kırılmadan” on Açık Ra- the Head of Shipbuilding and Ocean foundation from 2002 to 2004. institutions, primarily the Union dio between 2011 and 2012. He Engineering Department at ITU. He served as a Council Mem- of Chambers and Commodity supports the education of young Prof. Dr. Hakan Akyıldız has taken ber in the Chamber of Shipping Exchanges of . He is students through his Occupa- part in many academic and com- between 2009 and 2013. He is currently the Vice-President of tional Health and Safety lectures mercial projects, and has numerous currently a Council Member in TOBB. He is a Council Member in Istanbul Technical University academic publications as a result Istanbul Chamber of Industry. in IMEAK Chamber of Shipping. and professional seminars in var- of these studies. He has also served Since 1996, he has been serv- He is married with three children ious universities. Cem Melikoğlu as a delegate of TURK LOYDU at ing as the Chairman of the Ex- and five grandchildren. was elected by the TURK LOY- different times. Along with his aca- ecutive Committee of Istanbul DU Foundation Board as the demic and administrative duties and Shipyard. Chairman of the Board of TURK studies, he carries out projects in dif- LOYDU Foundation in 2015 and ferent disciplines as well. Prof. Dr. 2017, and continues to serve as Hakan Akyıldız speaks English the Chairman. 06 Gürsel YILDIZ Member He was born in 1967 in Ardahan. In 1989, he Mehmet Akif EROĞLU completed his undergrad- Member uate education in Istanbul Technical University, Fac- He graduated from An- ulty of Naval Architecture kara University, Faculty Atilla OKSAY and Ocean Engineering, of Political Sciences, De- Member then received his Master’s partment of Internation- Degree from the Ship- Atilla Oksay was born in al Relations in 1991. He building Program of Grad- 1972 in Ankara, and grad- started his career in 1992 uate School of Natural And in the Undersecretariat of Gürsel GÜRÇAY uated from Istanbul Uni- Applied Sciences. In 1991, Treasury. Between 1992 Member versity, Faculty of Political he received welding en- Sciences, Department of and 2007, he took part as gineering education for 6 Gürsel Gürçay graduated Business Administration the bank examiner during months in Japan, and had from Kadıköy Anatolian in 1994. Oksay started bank audits and consoli- the chance to examine the High School in 1988, and his career in 1995 as a re- dated financial structure Japan shipbuilding tech- audits of their affiliates Ferhat ACUNER Yıldız Technical Univer- searcher in the Association nology during that period. such as banks, financial Member sity, Department of Naval of Insurance, Reinsurance, Between 1989 and 1995, Architecture and Marine and Pension Companies institutions, and insurance he worked as a Chief Clerk Ferhat Acuner was born in Engineering in 1995. In of Turkey, and worked as a companies. Eroğlu com- in the Design Department 1966. He graduated from 1995, he started working specialist, technical group pleted his MBA at the Illi- of Türkiye Gemi San. A.Ş. Istanbul Technical Univer- as a Ship Repair Officer assistant manager, and nois University in Chicago, Camialtı Shipyard, then sity, Department of Naval in Torgem Shipyard, and technical unit manager USA, between 2004 and completed his military Architecture and Marine until 2002, he worked as within this association. He 2006. Afterwards, he was duty as a reserve officer Engineering in 1991. Be- a Service Engineer in Nis- participated in trainings in appointed as the “Head of in the Taşkızak Shipyard tween 1994 and 2010, he san Otomotiv A.Ş., and various insurance branch- Department” in BRSA. In Command. Between 1997 served as the Company as a New Construction es, and instructed short 2009, he joined the found- and 2000, he served as the Partner and Manager in Control Engineer in Tem- term courses in the field ing team of Ziraat Life and Ship Department Manag- Fast Denizcilik, İnşaat ve mar Denizcilik and Selay of insurance at universi- Pension Company as the er in Gemak and Torgem Ticaret Ltd. Şti. Between Denizcilik companies, re- ties. He has various papers Assistant General Manage- Shipyards, and between 2007 and 2008, he served spectively. Between 2002 presented in sectorrelated ment of Financial Affairs. 2000 and 2007, in RMK as the General Manager and 2006, he made com- meetings and seminars, as In 2010, he was appointed Marine Shipyard. Between of Düzgit Group of Com- mercial and special pur- well as articles published in as the General Manager of 2007 and 2015, he worked panies. Between 2009 and pose ship designs and con- relation to insurance busi- the company, and the Gen- as Shipyard Manager of 2014, he worked as the tracting activities in ATG ness. Oksay was appointed eral Manager of Ziraat In- Yardımcı Group, and since Powership Program Coor- Mühendislik Gemi İnşa as the Assistant Secretary surance Company in 2012. 2015, he has been a mem- dinator of Karadeniz Hold- San ve Tic. Ltd. Şti., where General of the Association Eroğlu has been serving ber of the Academic Staff ing A.Ş., and since 2014, he was a founding mem- of Insurance and Reinsur- as the Secretary General in ITU, Faculty of Naval he has been the General ber. In 2006, he founded ance Companies of Turkey of the Insurance Associa- Architecture and Ocean Manager of Navtek Deniz Güray Mühendislik to on 03.10.2011. He contin- tion of Turkey (TSB) since Engineering to support the Teknolojisi A.Ş. Between manufacture piping sys- ues to serve as a member in May 2015. He is currently collaboration between the 2015 and 2016, he served tems, and Pastem Gemi the boards of TURK LOY- a member of TARSIM, University and Industry. as the Vice-Chairman of İnşa San. ve Tic. Ltd. Şti. to DU Foundation, Turkish DASK, Arbitration Board, He is currently working as the Board of Directors operate in piping system Motor Insurers’ Bureau, and has CPA and Indepen- the Manager of New Ship- of TMMOB Chamber of surface preparation and and OSEM Sertifikasyon dent Audit certificates. building Department in Turkish Naval Architects phosphating works, and A.Ş. He is married with Kuzey Star Shipyard. and Marine Engineers. he is currently continuing one child. He has good command of his activities in these com- English. panies. 07 Cem MELİKOĞLU Chairman of the Board of Turk Loydu Foundation

08 “Turk Loydu continues its journey by overcoming challenging obstacles one by one.”

Considering important events in 2018, we have seen the trade wars started against Russia, China and Iran by the United States, the introduction of various protective measures in the global economy and the foreign trade regressions that negatively affect the freight rates, and in general, foreign policies used as a weapon on economies. Due to the impact of developments encountered in the world economy, it has been a difficult year for the maritime sector that provides nearly 90% of the logistics services for these trade operations. The slowdown in the marine defence industry projects in our country compared to the previous years and the fact that the orders did not reach the desired levels in the newly built commercial vessels unfortunately had negative effects on the shipbuilding industry and subordinate industry.

Despite all such negative developments in 2018, important steps were taken for the development of the sector with the support activities carried out under the leadership of the Ministry of Transport and Infrastructure, and Turkish maritime industry continued its development on a macro scale. The sector reached an economic size of approximately USD 2.5 billion with the infrastructure investments related to the maritime industry, and the Turkish marine trade fleet continued to develop and reached 28.6 million DWT in terms of carrying capacity. In addition to works aimed at growth of the maritime sector, regulations were made for transfer of boats that navigate in Turkish territorial waters and marinas and are owned by Turkish citizens to Turkish flag. As TURK LOYDU, we maintained our support for all efforts made for our country and flag, and we worked to spread our cooperation with the Ministry of Transport and Infrastructure to new areas.

As TURK LOYDU, we continued our growth in the maritime sector in 2018 and managed to increase the number of ships registered to our class in both number and tonnage. While increasing the number and tonnage of ships, we carried out various works in order to increase the type of ships in our fleet, in order to show more presence in our strategic areas. In this context, Turkey’s first drilling ship Fatih began to serve under TURK LOYDU class. Scope of the protocol executed with the Ministry of Transportation and Infrastructure has been extended, upon which agreements have been executed for classification of energy production ships that are pride of Turkey. We will continue our works in line with the localization and nationalization targets of our country.

Our experience and competence that started with MILGEM Project on naval ships, are increasing each day, and we are fulfilling this valuable duty assigned to TURK LOYDU by Undersecretariat of Defence Industries and our Navy, with national consciousness and pride. Being positioned among the most experienced organizations in the classification of military ships in the world as a result of, giving class certificates to nearly 150 military ships until now is a source of pride for TURK LOYDU. We continue our efforts to consolidate our existing leadership in naval ship projects and improve our cooperation 09 ANNUAL REPORT | 2018

with the Directorate of Defence Industry and shipyards in the ranking 9th among the class societies in the world. We showed new projects. better performance than most IACS member organizations, thanks to this performance level. However, more importantly, We continue our efforts in line with the progress plans made we have contributed to the protection of white flag status of the for achieving one of the biggest strategic targets of TURK Turkish flag at the highest level. Undoubtedly, the fact that no LOYDU - becoming an IACS member - the Association of vessel has been detained due to an omission of TURK LOYDU International classification Societies - and an entity recognized since 2015 is a development that increases our success. by the European Union. The IACS criteria integrated into our systems have now become TURK LOYDU criteria and the Considering our Industrial and Certification activities in 2018, quality of the services provided has been improved to world energy, we continued providing services by extending our quality. TURK LOYDU continues its journey by overcoming domestic and international geographical field in parallel with challenging obstacles one by one. our service range particularly including energy, construction, mining, chemicals, transportation and logistics sectors. Our As a result of works we carried out in 2018, TURK LOYDU steel structure inspection services grew by 200% compared undersigned an important accomplishment for Turkey in the to the previous year. In 2018, we implemented many projects International Maritime Organization (IMO). TURK LOYDU’s including various steel structures, bridges, stadiums, hospitals, Class Rules were approved at the 100th session of the Maritime aircraft maintenance hangars, industrial facilities and various Safety Committee, one of the most important committees of types of civil structures, particularly including Çanakkale IMO. TURK LOYDU was the first organization outside IACS Bridge and the new İstanbul Airport. whose rules were verified by IMO. We made “IACS + TURK LOYDU” phrase take place in IMO literature. Thus, we have We obtained “Nuclear Structure Inspection Body Authorization” been one of the very few organizations in the world that have from TAEK in accordance with provisions of the Regulation been certified by IMO to make new construction classifications on Inspection of Nuclear Power Plants, in order to provide of Tankers and Bulk Carriers over 150 meters. With this compliance inspection services for safe installation and competence, we are aiming for classification of more new operation of nuclear power plants in our country particularly construction commercial vessels in the upcoming years. including Akkuyu Nuclear Power Plant in accordance with the applicable legislation and standards. This authorization allows Another important achievement of TURK LOYDU in 2018 has us to provide our services to nuclear power plants that will be been the maintenance of our position in the ”High Performance” strategic energy source for our country, with TURK LOYDU category in the last 12 years based on Paris MoU evaluations and assurance. We have started to provide a wide range of training, 10 inspection and certification services from infrastructure to signalization, driver training, TSI certification, in the railway sector that has been included in our service range in the previous period.

TURK LOYDU will further strengthen its brand value, diversify the product range, and become a reputable brand in our country and in the region by offering many innovative and technological services as well as compliance assessment and technical expertise services as per requirements of the sector in accordance with our strategic objectives.

In parallel with the expansion of the activity area, TURK LOYDU Foundation contributed to research and development, scholarships, and increased contributions to conferences and academic events, training of technical staff, and technical works performed in the international platforms for safety of life and property, climate change and protection of the environment.

In 2018, TURK LOYDU Foundation continued with its non-refundable scholarships and educational grants for undergraduate and graduate students studying at higher education institutions. We aim to fulfil our social responsibility by contributing to the areas where we operate and our country’s beneficial human resources through our unrequited scholarship and educational grant supports.

We can use digitalization to leverage high-tech production Founded by TURK LOYDU Foundation and restructured in and service, create high added value and increase our global 2017, TL Teknik ARGE ve Tasarim Ltd. Sirketi successfully competitiveness. Digital transformation is not a goal, but it is a continued with technical consultancy services in maritime tool for development-oriented sustainable economy. We have a and onshore operations in 2018 thanks to the support of 57 chance to catch up with advancing global technologies in this years of experience of Turk Loydu, in addition to research and period. We should use this chance in the best way possible. development operations. In addition, the European Union supported NEO-COL and SEAMAP projects have been As a country, we must increase the share allocated for R&D completed and SKILLSPATH and MARED projects are being from GDP; we must already design the new economic, social carried out with high performance. Our company TL Teknik and public life they will create instead of merely producing and ARGE ve Tasarım Ltd maintains its successful growth rate and using such technologies. We believe that the real agenda of our is moving towards becoming our second important company country should be a digital transformation from A to Z. We which provides useful and added value services to our country should keep in mind that digitalization is not a luxury but a under the roof of our Foundation. necessity. A new world is being built “where we can survive through I would like to express my deepest gratitude to all staff change and transformation rather than following an members of TURK LOYDU who worked hard relentlessly introverted approach”. It appears that we need to talk about and undersigned excellent accomplishments in 2018, and I facts, offer solutions and develop a common wisdom and vision hope 2019 brings success and happiness to our country, TURK in order to make Turkey a strong and leading country in the LOYDU Foundation and companies as well as all esteemed world. Steps should be taken to develop new and even higher stakeholders. targets by improving our steps taken towards localization and nationalization. We must also strive to increase the use Cem MELİKOĞLU of high technology in all areas while fulfilling our tasks. Chairman of the Board of Turk Loydu Foundation 11 Lütfü We are shaping the future SAVAŞKAN of Turk Loydu in the General Manager and Chairman of the Board of Directors, Digitalized World Türk Loydu Uygunluk Değerlendirme Hizmetleri A.Ş.

Following a difficult year for both Turkey and the World, delivered, TURK LOYDU took a role in nearly 150 national we are happy to close 2018 in accordance with our targets. and international military projects, and accumulated expertise We successfully completed 2018 by completing the ongoing and knowledge that will create great value for our business. projects and adding new services that will accelerate the scope Our employees will create new works by transferring their vast of our work. experience to new projects which are of great importance for the security of the Turkish Nation. As TURK LOYDU team, we are striving to create a unique structure that will draw attention with success, follow We continue our efforts to consolidate our existing leadership technological advancements closely, creating innovative in military ship projects and improve our cooperation projects, despite the challenging business environment. Based with the Directorate of Defence Industry and shipyards in on this understanding, our priority is to provide fast, customized connection with the new projects. In this process, along with and high-quality service to our customers and stakeholders. the military ship classification activities that are performed jointly with the Directorate of Defence Industry for nearly 20 We managed to improve our shipbuilding portfolio in 2018 years; collaboration between TURK LOYDU and Directorate within the scope of our maritime services. In both contexts, of Defence Industry has been underpinned with the signing we signed new projects and successfully maintained projects Memorandum of Understanding covering consultancy and that were already signed and initiated. Taking part in many R&D services on 12 June 2018. projects considered as the pride of our country gives us strength in our efforts. At the last point of the journey in connection TCG Anadolu Project, a good indicator of our classification with the military ship building that starts with TCG Yarbay activities and expertise level of our staff and will be launched Kudret Güngör that was put into service in 1996 and extends in 2019, strengthened the position of TURK LOYDU as a to the gigantic project to be named TCG Anadolu when reliable, transparent and independent stakeholder in military

12 and civilian projects and increased out hopes for the future. slowing down both in Turkey and many countries around the The last 4 units of the Hercules series High Speed Boats for World. In 2018, a classification agreement was signed for two which building operations and classification procedures military training ships that will be built by Adik Shipyard for started in 2014 with the collaboration of TURK LOYDU and meeting the demand of Naval Forces. Military student Ares Shipyard have been delivered and the project has been training ships that are planned to be completed within 3 years completed successfully. The largest ship of the series, the 150 will have a special importance for TURK LOYDU, which is Hercules Open Sea Patrol Ship, has been recognized with the preparing to take part in many projects abroad. World’s Best Award in the segment by the Work Boat World Magazine of Australia and this recognition made us very proud. In 2018, Asfat A.Ş. has been founded for serving the global defence industry and contributing to the economy, by using Building operations for Emergency Response and Diving opportunities and capabilities of 27 Military Factories and 3 Training Vessels for which classification agreements were Military Shipyards associated with the Ministry of National executed in 2017 and Logistics Support Vessels due for delivery Defence and MILGEM agreement was executed in 2019 are continued successfully under supervision of TURK between Asfat A.S. And Pakistan Ministry of Defence Production LOYDU. for building 4 ships in total among which two will be built in Istanbul Military Shipyard Command and the other two will be In 2018, an agreement was signed between TURK LOYDU built in Pakistan Karachi Shipyard. The classification services and Sefine Shipyard in connection with the Classification of the project, which is expected to start in the first quarter of Services for Sea Supply and Combat Support Ship. Our vessel 2019, will be performed by TURK LOYDU. We are waiting for will serve as a platform capable of performing fuel, water, food, this large-scale and challenging project with great excitement. spare parts, medical materials and ammunition supply with We would like to take this opportunity to commemorate our underway replenishment method for warships of Turkish Naval former Chairman Prof. Yucel Odabasi with respect for his Forces Command. contributions for the commencement of MILGEM Project with TURK LOYDU and we would like to thank Naval Forces We continue with military ship classification services without Command and Directorate of Defence Industry that ensured

TCG ANADOLU

13 ANNUAL REPORT | 2018

improvement of our defence technologies and military ships by the lowest rate of arrest thanks to diligent efforts displayed supporting TURK LOYDU since the beginning of this project. in 2018together with the Ministry of Transportation and In 2018, we successfully completed many projects for merchant Infrastructure. According to the performance evaluations made ships as well as new construction projects for Defence Industry by Paris MoU, TURK LOYDU has maintained its position in and we signed agreements for new projects. The last two ships the “High Performance” category for the last 12 years and it has of the project for 4 passenger ships that were built for using in been another happiness to witness that no arrest attributable to Istanbul Strait by Dentur Avrasya Company under the TURK us was made since 2015. LOYDU class have been delivered and they started services for locals of Istanbul as planned. In 2018, in the field of Industry and Certification, we continued our activities by expanding our services in construction, Another project that excited us in 2018 was the “Zero-Emission mining, manufacturing industry, transportation and logistics Tugboat” project. The classification process of the project for sectors including power plants, steel and reinforced concrete which agreement was signed in October, was started at TK structures. Tuzla Shipyard. The project, where Li-ion batteries are used as the main power supply, falls into a class with very few examples Our steel structure inspection services grew exponentially in the world. with the activities carried out at Çanakkale Bridge and the new Istanbul Airport. In addition to steel construction inspections In 2018, we increased the number and tonnage of vessels in the carried out in our country, we also provide services for many TURK LOYDU register and improved the average fleet age. By mega projects abroad. the end of 2018, the number of vessels registered under TURK LOYDU increased to 610. By the end of 2018, we managed Projects we carried out in 2018: Siempel Camp American MDF to increase the total tonnage of the ships under our class to Factory, Industrial Plant built for Lithuania, Expo 2020 Dubai 941,923 GRT. Subway for which production was made in China, Erdemir Galvanization Plant, THY Aircraft Maintenance Hangar built As we increased the number and tonnage of the ships in in the New Istanbul Airport and inspection services for Kartal service, we also worked to increase the types of ships in our State Hospital. fleet. Fatih,Turkey’s first drilling ship that has a length of 229 metres, began to serve under TURK LOYDU class. We initiated We are providing inspection services for Mersin Akkuyu classification process for another ship that is identical to this Nuclear Power Plant with the authorization granted by Turkish special ship and was added to our country’s assets by TPAO. Atomic Energy Authority for the purpose of compliance Upon extension of the authorization protocol made with the assessment services aimed at safe installation and operation of Ministry of Transport and Infrastructure, Karpowership that nuclear power plants in our country. As a national organization, owns the world’s only energy ship fleet, will use classification we make diligent efforts in connection with services for nuclear services for Integrated Floating Power Plants flying Turkish power plants that will open new horizons in meeting energy flag. As the range of the ships in our fleet is increasing each needs of our country. In addition to nuclear power plants, we day, we also worked to make our staff qualified according to offer industrial inspection services for conventional power new technologies, new types of ships and international rules plants, thermal power plants, wind turbines, chemical and which are becoming more complex every day. In this context, petrochemical plants and pipelines. we started activities to enrich our human resources by adding experienced and professional colleagues and lecturers who Considering the rail systems for which we started providing have taken part in the most important class societies in the services in the recent years, we offer wide range of services world. I believe this activity will have very important outcomes from rail system infrastructure and signalization to training throughout the organization. I sincerely believe that TURK and certification in many ongoing projects in our country. LOYDU will be the centre of attraction for everyone in the sector in the future and will be in a special position on the We take a role in committees of Defence and Aerospace Cluster international platform. Association for the purpose of improving the capacity and capabilities of the sector within the scope of works aimed at The position of Turkish flag in Paris MoU- White List that increasing the use of domestic products and services in defence was earned with great efforts by Turkish maritime sector has industry investments. We aim to ensure that certification been maintained, Turkish flagged ships closed the year with requirements of the defence industry are met by TURK

14 LOYDU that is a national certification body. As the first stage For the purpose of these projects, which we will share with of the process of extending the services of the Industry and the sector in more detail in 2019, works have been started to Certification Sector within the scope of the defence industry, establish a sector-oriented R&D Design and Excellence Centre. we completed our first training for the Quality Management System Standard for Aviation, Space and Defence Entities. In We strive to contribute to our efforts related with the national this context, we are also working to extend our activities in technology and take a leading role in the areas we serve. 2019. I would like to take this opportunity to thank all colleagues for In this rapidly changing and renewed world of technology, we their efforts in fulfilling their duties with care for improving and attach great importance to research and development activities maintaining services we provide as TURK LOYDU. to provide better and new services to our customers and stakeholders. The Seamap and Neo-Col projects supported by We would like to express our gratitude to all our customers and the European Union and carried out in cooperation with the TL stakeholders who support us with the trust they place in TURK Teknik Arge ve Tasarim Limited Sirket, which is an affiliate of LOYDU and wish that the new year to bring success to all of us. TURK LOYDU Foundation, continue successfully.

Class Societies are now obliged to invest in digitalization in Lütfü SAVAŞKAN maritime and industrial sectors that rapidly change shape with digital technologies and innovative developments; adapt General Manager and Chairman of the Board of Directors, Türk Loydu Uygunluk Değerlendirme Hizmetleri A.Ş. to and even lead the improvements. As TURK LOYDU, we closely follow developments and try to shape our future. In parallel with the digitalization processes in all sectors we serve, we are conducting innovative surveys to increase the ability of remote surveying tools, virtual reality applications and training capabilities.

15

MARINE SECTOR ANNUAL REPORT | 2018

MARINE SECTOR

We believe that Turkish maritime sector will cross rough seas and reach to calm ports in 2019. As Turk Loydu Maritime Sector, we will continue supporting our stakeholders by working harder during this period.

2018 has been a challenging year for the global trade and maritime sector that serves as a driving force for the global trade. Especially with global trade wars we experienced since the second half of the year and slowdown encountered with Turkey’s imports and exports that were affected from this situation, we witnessed decline in marine trade, transportation sectors and port operations. In addition, our country’s shipbuilding sector and shipbuilding industry were adversely affected by the decrease in defence industry projects in our country compared to the past and the failure in achieving the desired levels with the new merchant shipbuilding orders. The fact that the average ship operating costs are higher than 2017 and the freight market remained at low levels during substantial part of 2018 have created additional cost pressure on the ship owners.

As TURK LOYDU, we continued our growth in the maritime sector in 2018 and managed to increase the number of ships registered to our class in both number and tonnage. By the end of 2018, the number of vessels registered under TURK LOYDU increased to 610. We managed to increase the total tonnage of the ships under our class to 941,923 tons. Together with these developments, we made efforts to reduce the average age of our fleet and increase the types of ships in our fleet.

18 Okan ÇETİN Director Marine Sector

19 ANNUAL REPORT | 2018

As the awareness on protection of the environment increases providing classification services to Turkish Navy and other in the world, new rules and regulations are introduced in the naval ships in different types and sizes. maritime sector. Many recent regulations, such as new emission control zones, low sulphur fuel requirements, ballast water In 2018, 4 new built military ship projects were completed and convention, MLC 2006, Monitoring Reporting and Verification the classification process of several important military ships, regulations, created changes in the maritime sector with including TCG ANADOLU, was successfully continued. The significant impacts. Cyber security concerns also increased last 4 of the Hercules series high speed boats, a project that was with the digitalization and increased use of technology at sea. carried out with the cooperation of TURK LOYDU and Ares All these developments resulted in higher costs of average ship Shipyard, were delivered to Qatar Coast Guard Command in operating costs, causing cost pressures on shipowners and 2018 and the project was completed. ship operators. This impact, partially experienced in 2018, is expected to increase its strength, especially in 2019. An agreement was signed between TURK LOYDU and Sefine Shipyard in the end of 2018 in connection with the Classification We continue our efforts with all the strength we have within Services for Sea Supply and Combat Support Ship. The Naval the framework of plans made for achieving one of the biggest Supply and Combat Support vessel will be able to supply fuel, strategic targets of TURK LOYDU - becoming an IACS member water, food, spare parts, medical equipment, ammunition to - the Association of International Class Societies - and an entity marine vessels owned by Naval Forces Command. recognized by the European Union. Due to the membership criteria changed in the end of 2017, we intend to conclude the We continue our activities in many countries around the world delayed membership process in a short period of time. The in the field of military ship classification. The classification quality of the services increased in accordance with all IACS agreement for military training ships to be constructed by Adik standards that were into our systems during the membership Shipyard for meeting requirements of Qatar Navy was signed in process. 2018 and the project is expected to be completed in 2021.

On 1 October 2017, IACS updated its membership criteria A classification agreement has been executed between Pakistan and identified it as a prerequisite for verification by the IMO Defence Production Ministry and Asfat A.S. that was founded Maritime Safety Committee (MSC) that the class rules for under the command of the Ministry of National Defence, for 4 member organizations and members of the class societies MILGEM among which two will be built in Istanbul comply with IMO’s Goal Based Building Standards (GBS). GBS, Military Shipyard Command and two will be built in Pakistan. which entered into force on 1 January 2012, requires that all oil We continue with our activities without slowing down in order tankers and bulk carriers over 150 meters or more constructed to extend leadership of TURK LOYDU in the field of military on 1 July 2016 or later must comply with the relevant structural ships. requirements of the standard. On March 27, 2018, TURK LOYDU applied to IMO with the support of the Ministry of Building operations for Emergency Response and Diving Transport and Infrastructure and requested class rules to be Training Vessels that are built under class of TURK LOYDU verified within the scope of GBS; passes all inspection with and Logistics Support Vessels due for delivery in 2019 are extraordinary performance and obtained right for submission continued successfully under supervision of TURK LOYDU. to IMO MSC Committee. The final decision on the verification of the TURK LOYDU class rules was made with great majority We have successfully delivered many new shipbuilding projects of votes by IMO during the 100th session of the Maritime Safety and signed new projects within the scope of merchant ships. Committee held at the IMO Headquarters on 4 December 2018, The last two boats of 4 passenger boats belonging to Dentur and compliance of TURK LOYDU within the scope of GBS has Avrasya that started to serve in Istanbul Strait, were delivered been approved by IMO. As a result, TURK LOYDU’s rules for and put into service. the construction of tankers and bulk dry cargo ships above 150 m are overcoming impossible barriers one by one as the first “Navtek TK NB02” that is considered as an innovative non-IACS member class society having rules approved by IMO. and important project for TURK LOYDU and for which classification process was initiated in 2018 is classified as battery TURK LOYDU successfully completed the classification powered marine vessel that is very rare around the world as services of more than 150 military ships with its 20 years of it uses Liion batteries as power supply. Ro-Ro passenger ship experience in this field and in 2018, it successfully continued named ‘Gelibolu’ that has been included in Gestas fleet upon 20 completion of shipbuilding and classification process in Aksoy assets by TPAO, into TURK LOYDU class. Gelibolu Shipyard in 2018 took its place among TURK LOYDU class large passenger ships with a length of 88 metres. We signed a protocol with the Ministry of Transport and Infrastructure to classify integrated floating power plants of Classification services for Ilhan Yilmaz 3 New type fishing Karpowership, owner of the only energy production fleet boats that were built in Ustamehmetoğlu Shipyard have been in the world, with Turkish flags. Pursuant to this protocol, completed in 2018. The ship that is the largest fishing vessel classification services will be provided for new Turkish flagged with a length of 50 meters and a width of 17 meters, has been vessels in the fleet. put into service. According to the performance evaluations performed by Paris Cebi Meleksu Ro-Ro Passenger Ship built in Trabzon Cebi MoU, one of the most important performance indicators for Shipyard with a length of 90 metres and with of 22 metres, service vessels and the world’s first and most important Port for which classification services agreement was signed on State Control regime, TURK LOYDU maintained its position December 2018 will be the largest cargo carrier built in the in “High Performance” category in 2018. The fact that we did Eastern Black Sea Region. not experience an arrest attributed to us since 2015 has also been a source of pride for us. Increases have been observed with material and product certification projects in quality and quantity with the increase Even though global developments in the world, trade and of new construction projects carried out within the scope of customs wars, raw materials and energy need directly affect TURK LOYDU class services. Type approval certification maritime sector, we are hopeful about 2019. Data from the end contracts for new types of diesel engine manufacturers such of the previous year indicates that this year is expected to be a as MTU, Wartsila, Mitsubishi, Scania, Yanmar and Volvo that better year than 2018. Markets will be more dynamic with the are the world’s leading machinery manufacturers, continue in balancing of the new shipbuilding orders and scrapped ships, 2018. Type approval certification projects have been completed works aimed at renewal of Turkish coaster fleet, execution and type approval certificates have been released for companies of Ballast Water Agreement and expected increase in scrap such as Caterpiller, Tenmat Ltd, Scania, Baudouin, Shanghai tonnage for old marine vessels due to this rule, new regulations Diesel and Jotun Boya that produce some products that are the to be introduced in connection with SOX-NOX on flue gasses, most preferred products in the maritime sector. Tier 3 etc.

In 2018, we increased the number and tonnage of the vessels In 2019, the Turkish maritime sector will be supported more, in the TURK LOYDU register and improved the average fleet and especially the substandard ships will be withdrawn from age and we carried our works to increase the types of ships in our waters and the Turkish flag fleet will be renewed and our fleet. Fatih,Turkey’s first drilling ship that has a length of extended. We believe that Turkish maritime sector will cross 229 metres, began to serve under TURK LOYDU class. We rough seas and reach to calm ports in 2019. As TURK LOYDU initiated classification process for inclusion of another ship that Maritime Sector, we will continue supporting our stakeholders is identical to this special ship and was added to our country’s by working harder during this period. 21 ANNUAL REPORT | 2018

MARINE SECTOR

NEW SHIP BUILDING DEPARTMENT DEFENCE INDUSTRY PROJECTS Our organization classified many different types of ships, TURK LOYDU successfully completed the classificationservice and successfully maintained its experience in 2018 through of more than 140 navy ships with nearly 20 years of experience in classification services offered for various types and sizes the classification of navy ships. In 2018, 4 new building projects owned by Turkish Navy Forces Command, local and foreign were completed and the classification processes of important shipowners since its formation. Below Table 1 and 2 shows navy ships, including TCG ANADOLU, still continue. distribution of 28 ships by types which classification process was completed and 18 ships by types which new building Military Projects Completed in 2018 agreements were signed in 2018. ARES HERCULES FINALIZED

Naval Ship - 4 Passenger Ship - 3 Tanker - 1 Fishing Vessel - 1 In October and July 2018, last 4 boats have been completed Dredger - 1 Work Boat - 7 Utility Vessel - 3 Pontoon - 8 within the scope of 17 Hercules series high-speed boat projects which building and classification activities were performed by TURK LOYDU and Ares Shipyard since 2014.

2 Hercules 150 type and 2 Hercules 110 type patrol boats built according to TURK LOYDU Navy Ship Rules and started operating in Qatar Bay and oceans.

Ares 150 and 110 Hercules coastal safety ships which have been completed in Ares Shipyard Antalya Free Zone built for Qatar Ministry of Interior Affairs are the largest composite-hull ships Table 1; distribution of 28 ships by types which classification process was completed ever built in Turkey, and their length and breadth are 48 and 34 in 2018. metres and 9 and 8 metres, respectively. Naval Ship - 3 Passenger Ship - 1 Tanker - 1 Ro-Ro Cargo Ship - 1 Tug - 1 Yacht (Sailing) - 4 Utility Vessel - 1 Pontoon - 6 2 pieces 150 Hercules and 2 pieces 110 Hercules type high- speed boats were delivered to the Qatari authorities and Ares 150 Hercules 35 has been recognized as open sea patrol ship with the highest speed in the world with maximum speed of 35 nautical miles.

Ares 150 Hercules with technical specifications below was built with high comfort and luxury even though it is a navy project, and interior design of the ship can compete with luxurious hotel rooms. Vessel has gained appreciation of authorities from Qatar with top class materials equipped through VIP cabins, Table 2; distribution of 18 ships by types which new building agreements were signed recreation halls and to the bridge. in 2018. 22 ARES 150 HERCULES

Ares150 Hercules Offshore Make/Model Patrol Vessel (OPV) MARINE SECTOR LOA 48.09 m Beam 8.95 m Draught 1.78 m Displacement 275 tons (full load) Maximum Speed 35 knots Range 800 Nm 3 X MTU 16V 4000 M63L Main Engines Diesel Engines 3 X Rolls Royce S71-4 Water Jets patching/ rivet, etc.), lifting balloon/ floating pontoon use, Water Jets deep water diving, pressure room operation and treatment 2 X CAT C7.1 118kW 2018 | REPORT ANNUAL Generators methods, remotely controlled underwater robot operations. Diesel Generator Sets In addition, it will be able to carry out trainings of modern Military Projects Continues in 2018 dive and rescue systems that are new to the inventory and will have the characteristics of rescue diving and emergency BUILDING OPERATIONS FOR response in case of accidents in Marmara Sea and coastal EMERGENCY RESPONSE AND DIVING waters. TRAINING BOATS CONTINUE UNDER COUNT DOWN FOR ADDITION OF TURK LOYDU CLASS LOGISTICS SUPPORT SHIPS TO THE Subject to the classification agreements executed on 29 NAVY FLEET November 2017, shipbuilding operations for two Emergency Response and Diving Training Ships (ACMB) were Within the scope of new building agreement signed in 2015 undertaken by DESAN Deniz İnşaat San. AS. And building with Selah Shipyard for 2 Logistics Support Ships, each operations continued in 2018. having a cargo carrying capacity of 6 thousand DWT and featuring capability of meeting fuel requirements combat Upon completion of Emergency Response and Diving elements and fuel tanks on the shore, Classification activities Training Boots that are built under Turk Loydu class, they and tests for TCG YZB Gungor Durmus and TCG UTGM will be used by the Naval Forces Command for diving Arif Ekmekci Logistics Support Vessels continue, and trainings and emergency diving operations in Marmara Sea, building operations and issue class certificates for these 2 rescue diving, various underwater repairs (welding/ cutting/ vessels planned to be completed in 2019. 23 ANNUAL REPORT | 2018

In addition to having a length of 106.51 metres, breadth of 16.80 metres and fuel carrying capacity of 6150 tons and a heliport as well as speed of 12 nautical miles (22 km/ hour), logistics ships will successfully complete the tasks of supplying food, water, clothing, equipment, ammunition, fuel and construction materials for operation forces; carrying personnel, equipment and devices; providing logistics support such as medical aid, equipment, tools, ship repair- maintenance and meeting logistics requirements of the navy forces in overseas navy bases. In addition, the logistic ships are built to have a small operating room which allows for surgical intervention. Logistic support ships will be able to transport navy forces and materials to anywhere in the world and bring them to the desired location as soon as possible, with the ability to operate in shallow waters and carry tons of weight.

TCG ANADOLU, SOURCE OF PRIDE FOR TURKISH DEFENCE INDUSTRY, CONTINUES AT FULL SPEED In 2015, the classification agreement of Multi-Purpose Amphibious Assault Ship (TCG ANADOLU) was signed between TURK LOYDU and Sedef Shipyard and in 2018, while the classification activities of the Multi-Purpose Amphibious Assault Ship (TCG ANADOLU) continueing without slowing down, significant progress were experienced such as On the other hand, heliport of TCG YZB Gungor Durmus productions of blocks and erection of blocks on dry dock were Logistics Support Ship will have the structure and equipment finalized in the first half of the year. required for take-off during night and day and landing of general purpose helicopters of 15 tons. TURK LOYDU pays great attention to work harmonized with Sedef Shipyard and other stakeholders for this gigantic project This platform is the first platform to carry the highest tonnage among aircraft carriers which is considered as the last point in helicopter among the support ships in the Turkish Navy the development of the Turkish Defence Industry. inventory. The first ship of the series launched in 2016 is named after SAT Commando Lieutenant Gungor DURMUŞ The Multi-Purpose Amphibious Assault Ship (TCG who martrised during drills. Works and tests related with the ANADOLU) is expected to be completed in 2021. Upon delivery of TCG YZB. Gungor Durmus Logistics Support Ship completion and finalization of classification services in 2021, (A-574) continue at full speed. it will be able to be operated in the Aegean, Black Sea and Mediterranean operation areas, and Indian Ocean (north of the TCG UTGM Arif Ekmekci Logistics Support Vessel (A-575), Arabian Peninsula, west of India) and Atlantic Ocean (west of which is the second one of the logistic support vessels that is Europe, north-west of Africa) when required. named after martyr SAT Commando Senior Lieutenant Arif Ekmekci who was lost during 1993 Sea Wolf Drill and found Multi-Purpose Amphibious Assault Ship TCG ANADOLU after 15 years, has been launched with a ceremony organized on will be capable of carrying fully-equipped battalion by up to 8 July 2017 and the relevant tests have been started. 46 Altay tanks and mechanized support vehicles under full 24 MARINE SECTOR

TCG ANADOLU

protection from air and sea- in other words, without main base Technical specifications of TCG ANADOLU: support- to crisis areas; it will be able to join landing operations Length: 231.82 m with landing vehicles carried in its pool and it will have a flight deck that allows operations during day and night with the Flight deck length: 202 m heaviest NATO helicopters and rotating rotor Osprey aircraft Width: 32 m in its inventory. Height: 58 m 2018 | REPORT ANNUAL Maximum Speed: ~ 21 knots (at full load) In addition, TCG Anadolu will have a platform that allows opeartions with full capacity in the heaviest sea and air Continuous Economic Speed: 16 knots conditions with aircraft of various types and sizes including Range: 9.000 nm our national pride ATAK helicopters. Republic of Turkey will Navigation Time: 30 days (without logistics support) be able to change its regional power transfer capability into Service Life: 40 years a medium-scale global power transfer capability with TCG Maritime Feature Anadolu that allows full-time operation of 19 tactical aircraft such as F-35Bs which are capable of taking off in the short range Flying unity operations at Sea State 5 and landing vertically. Loading and unloading operations at Sea State 4

TCG Anadolu will have an infirmary/ hospital with minimum Flight Deck: 5.440 m2 (6 landing points, suitable for capacity of 30 beds including an operating room, X-ray the landing on platforms up to maximum weight of 35 machines, dental treatment units as well as intensive care and tons) infection rooms in order to perform natural disaster response tasks, and it will take a role in humanitarian aid operations. Hangar Area: 900 m2 (F-35B, S-70B, AW-149, CH- 47, etc.) Having largest sea platform in Turkish Navy’s inventory The Dock Area: 1.165 m2 (4 x LCM or 2 x LCVP) Multi-Purpose Amphibious Assault Ship TCG ANADOLU, Heavy Cargo Garage: 1.410 m2 (Tank, AAV, TEU will be built with a length of 231 metres and weight of 27.436 Container, etc.) tons at full-load displacement. 25 ANNUAL REPORT | 2018

DİMDEG

Projects Signed in 2018 UNDERWAY REPLENISHMENT AND For TURK LOYDU which has gained great experiences and COMBAT SUPPORT SHIP DIMDEG IS achieved success with classification services provided to more than 140 navy ships, DIMDEG is defined as source of pride for ON THE WAY being the largest support ship built for Turkish Navy Forces, In December 2018, an agreement was signed between and classification services is planned to be completed in 2023. TURK LOYDU and Sefine Shipyard in connection with the UNDERWAY REPLENISHMENT AND Classification Services for Underway Replenishment and Combat Support Ship (DIMDEG). COMBAT SUPPORT SHIP GENERAL SPECIFICATIONS DIMDEG will have a capacity to meet fuel, water, food, spare parts, medical equipment, ammunition requirements of combat Vessel will be able perform ships owned by the NavyForces Command through underway various tasks including replenishment method. Amphibious Missions in Mediterranean Sea (Mid Built for the purpose of performing tasks such as supporting Adriatic) and , Eastern the peace, inspection at sea, natural disaster relief, search and Task Areas Mediterranean, RedSea, rescue, performance of operations for evacuation of noncombat Gulf of Aden, Basra, East elements and maintaining logistics support activities (meeting African Seas, Indian Ocean fuel/ water requirements at sea/ port, replenishment of fuel and others where necessary tanks, transfer of fuel between fuel tanks, etc.) in order to meet In addition to Eagean and requirements of the Naval Forces Command, DIMDEG with Blacksea. a length of 195 metres and approximate weight of 22,000 tons Max Speed Min.24+knots will be the largest support ship of our Navy Fleet. In addition to Service Speed Min 14 knots replenishment capabilities, DIMDEG will be able to perform the Duration of Navigation Min. 30 days duty of Command Control Ship during offshore and overseas operations performed with combat ships such as MİLGEM and Navigation Distance Min. 4500 NM LHD. Economical Lifespan Min 30 years Number of Crew 186 person DIMDEG will be built by the Sefine Shipyard based on local "CODOG-E (Combined design project. In addition, many local defence industry Main Propulsion System diesel or gas turbine-Electric)" companies such as ASELSAN and HAVELSAN are planned to be involved in this project. LOA, Breadth 194.8 m , 24.4 m 26 TWO TRAINING SHIPS FOR QATAR Other Developments Experienced in NAVY FORCES Defence Industry in 2018 TURK LOYDU continues to provide classification services On 17th of January 2018, Asfat A.Ş. (Askeri Fabrika ve with two navy training ships (Cadet Training Ship) that will Tersane Isletme Anonim Sirketi) has been founded in be built in ADIK Shipyard. New-building ship classification order to serve to the global defence industry with National agreement of these ships for the Qatari Navy was executed in Turkish facilities and contributing to the economy, by using mid-2018 and training ships in 90 metres length planned to opportunities and capabilities of 27 Military Factories be built the with practical and theoretical training facilities and 3 Military Shipyards associated with the Ministry of for students and instructors. National Defence. Having authority to execute “Interstate Agreements”, Asfat A.S. signed an agreement with Pakistan In addition, navy training ships equipped with medium-size Defence Production Ministry for 4 MILGEM Corvettes heliport are expected to have a capability to perform offshore among which two will be built in Istanbul Military Shipyard patrolling duties. Navy student training ships for which Command and the other two will be built in Pakistan classification services are planned to be completed within Karachi Shipyard. The classification services of the project, 3 years, will have a special importance for TURK LOYDU which is expected get start in the first quarter of 2019, will be within the scope of navy projects bulit for Qatar Naval Forces. performed by TURK LOYDU. MARINE SECTOR In addition to navy ship classification activities that are performed together with the Directorate of Defence Industry for nearly 20 years; a Memorandum of Understanding covering training services, consultancy and R&D services was signed on 12 June 2018.

TURK LOYDU ASSURANCE FOR POLICE PATROL BOATS First armed Police Boats of Turkey built in Izmir by

Gozuyilmaz Muhendislik Ltd. in order to be delivered to 2018 | REPORT ANNUAL Yalova and Kırklareli provinces under Turk Loydu class.

The boats built under the TURK LOYDU class are made of HDPE which is a special high-density thermoplastic material. Boats do not require poisonous paint and maintenance due to this special material also do not require docking during their lifetime. FLOATING DOCK CLASSIFICATION The first armed Police Boats of Turkey have been launched AGREEMENT WAS SIGNED in Izmir Command Shipyard and docked in Pasaport Contract of Floating Dock of 10,000 tons was tendered Pier in order to execute navigation tests and acceptance to HAT-SAN Shipyard by MSB General Directorate of procedures within the scope of the agreement signed with Shipyards via ASFAT A.S in order to meet the requirement General Directorate of Security. of Navy Forces Command and its classification services are performed by TURK LOYDU. Boats which are equipped with automatic machine gun, night vision system, special projector system, cutting- Project agreement was signed in October 2018 and it will be edge navigation and electronic control systems, designed one of the largest floating docks ever built in Turkey with a to perform inspection, surveillance and patrol operations length of 175 metres and breadth of 42 metres. Classification in accordance with the requirements of the police forces. Services of NB12, having a lifting capacity of 10,000 tons are Boats with 2x450 HP supplied with FPT machines can planned to be completed in 2019. reach 24 nautical miles per hour. 27 ANNUAL REPORT | 2018

COMMERCIAL PROJECTS MEHMET AKİF STARTED OPERATIONS Project Completed in 2018 “MEHMET AKİF” which is completed in Arkadas Shipyard, is suitable to transport oil and fuel with a flash point higher than NEW TYPE SHIPS OF DENTUR EURASIA 60 degrees and is 56 meters long and has 10 meters beam. In COMPLETED UNDER TURK LOYDU the beginning of 2018, TURK LOYDU finalized classification CLASS process for Mehmet Akif which has been put into service as an The last two ships- Besiktas and Kabatas- of the projects of 4 oil product tanker. passenger boats that were built in order to operate in Istanbul Strait by Dentur Avrasya Company under the TURK LOYDU class started services as planned.

The projects initiated upon signing of agreement in 2015, stand out with different and innovative boat design as well as the environment-friendly features, among similar boats operating on the same route. Boats that were put into service in the Bosphorus Uskudar - Besiktas - Kabatas and Eminonu - Bebek gained great appreciation of citizens. Silent, new generation, environment-friendly engines with low emission rate are used in the new generation boats with modern lines that are designed in accordance with Istanbul’s silhouette, in order to reduce adverse impacts of traffic on the environment and increase the amount of sea transport percentage by ensuring effective use of sea which is defined as the natural asphalt of Istanbul.

According to the results of model tests conducted in Poland FISHING BOAT ILHAN YILMAZ 3 IS AT for these projects that have great importance on the design SERVICE and safety, new ships with high manoeuvrability achieved 54% fuelsaving thanks to the special hull form used for the first time Classification services has been completed in 2018 for fishing in the world, and capable of navigating 40% faster compared to boat Ilhan Yilmaz 3 that is built in Ustamehmetoğlu Shipyard the existing ships. since 2016, and its propulsion system consists of 3 conventional steering gears that are powered by 6 generators beyond ordinary. The ship provides transport without barriers thanks to the Having interconnection between steering engines, Ilhan Yilmaz passenger platform with special design implemented for the first 3 strengthened the manoeuvre and fishing capabilities with a time in Turkey in order to facilitate boarding and disembarking tunnel thruster . In addition to being recognized as the largest of physically disabled passengers also it has special parking fishing boat with breadth of 17 metres that was ever built for areas for bicycles. a Turkish shipowner, Ilhan Yilmaz 3 is equipped with shock freezing, cooling and ice machines for fish caught. GELİBOLU NB.50 RO-RO PASSENGER SHIP HAS BEEN COMPLETED Ro-Ro passenger ship named ‘GELİBOLU’ included in Gestas fleet upon completion of building and classification services in Aksoy Gelibolu Shipyard stands out with a capacity of 110 vehicles and 576 passengers and 5 propellers that can navigate at 14 knots speed.

Thus having fast navigation speed and manoeuvrability, ship can carry more vehicles thanks to the mezzanine deck on the vehicle deck besides, it took place with a length of 88 meters among the other large passenger ships which are classified by TURK LOYDU. 28 Projects Agreements Signed in 2018 NAVTEK TUG - BATTERY SUPPLIED ZERO-EMISSION TUGBOAT Designed by NAVTEK and having a length of 19 metres and breadth of 7 meters tugboat named “TK NB.02” production has been started in TK Tuzla Shipyard under control of TURK LOYDU. The project is within ships which has very few examples in the world since Li-ion batteries are used as the main power supply. The main power supply is divided into two in order to ensure to comply with redundancy requirements. Innovative project TK NB.02 is equipped with 1 emergency generator. Charging of batteries is planned to be carried out with the power supplied from the shore via two supply connections from the shore and two supply connections on board, and main switchboards will be

supplied with separate connections on board. MARINE SECTOR

ÇEBİ NB.06 (MELEKSU) RO-RO passenger ship were created by Ayden; it has 400 passenger PASSENGER SHIP IS THE LARGEST IN capacity, single vehicle deck, conventional propulsion system EASTERN BLACK SEA REGION with two steering gears. Cebi Meleksu Ro-Ro Passenger ship with a length of 90 Meleksu has a capacity of 35 Trucks while service speed is metres and breadth of 22 metres will be built in Trabzon Cebi set as 14 knots. Planned to be operated between Istanbul and Shipyard; TURK LOYDU classification services agreement Bandirma, Meleksu will be the largest cargo carrier ship built was signed in December 2018 and completion date is in the Eastern Black Sea region. Building and classification targeted as 2019. The design and calculations of the Ro-Ro services of the ship are planned to be completed in 2019. ANNUAL REPORT | 2018 | REPORT ANNUAL

29 ANNUAL REPORT | 2018

MATERIAL, PRODUCT AND COMPANY CERTIFICATION In 2018, 565 certification process have been completed and Increases have been observed in material and product 180 new contracts have been signed for Material, Product and certification projects’ quality and quantity with the increase Company Certification. The table below shows the distribution of new construction projects carried out within the scope of of certification projects finalized and new agreements signed in TURK LOYDU class services. 2018 by types.

Table 3; distribution of certification projects finalized and new agreements types signed in 2018

Projects to be continued in 2019 Projects completed in 2018 certificate procedures

250

201 200

148 150

100 90

64

50 45 46

18 19 22 18 19 8 6 5 5 6 2 4 4 5 4 1 2 2 0 EIAPP Test Certification Test Type Approval Inıtial Approval Type Product Certification Product Material Certification Material Type Approval Renewal Renewal Approval Type Service Supplier - Inıtial Bollard Pull Certification Bollard Type Approval Extension Approval Type Service Supplier - Renewal Manufacturer Approval - Inıtial Approval Manufacturer Manufacturer approval - Renewal - approval Manufacturer

While type approval certification for many new products approval certification extension activities were performed. were successfully completed by TURK LOYDU in 2018, type Type approval certifications have been completed and type renewal certifications were continued for existing product approval certificates have been released for companies such ranges that already have type approval. as Caterpiller, Tenmat Ltd, Scania, Baudouin, Shanghai Diesel and Jotun that produce products that are the mostly preferred TURK LOYDU type approval certificates that are valid for in the maritime sector. many models of the world’s leading manufacturers of diesel engine such as MTU, Wartsila, Mitsubishi, Scania, Yanmar In 2018, number of companies holding type approval and Volvo, were continued in 2018 and some new types certificates issued by TURK LOYDU has been increased by 28 and models of these manufacturers have been included and this number reached to 89 including companies registered in the scope of type approved products upon which type out of Turkey. 30 Table 4; distribution of type approval certificates by material/ equipment types

20

15

10

5

0 Rope Resin Chain Valves Cables Others Anodes Steel Plates Steel Switchboard Compressors Diesel Engine Doors/Hatches expansion joint expansion Reduction Gears Reduction Pipe and Fittings Windows/Scuttles Fabrics / Furniture Fabrics Electrical Equipment Electrical Welding Consumables Welding MARINE SECTOR

In 2018, product certification projects were initiated manufactured by MTU Company in order to be emound to and continued with the world’s leading equipment TVEG project, gear boxes manufactured by Renk Company, manufacturing companies. CPP system manufactured by Andritz Hydro GmbH, water jets manufactured by Rolls-Royce Company used in Ares These projects particularly include Tunnel Thruster Shipyard projects can be shown as examples for product manufactured by Brunvoll AS within the scope of LHD certification projects. project, Generator Sets produced by Navantia Company, Anti-Rolling system produced by Fincantieri SpA, and the As in previous years, certification projects were continued POD System produced by Siemens AG for which product in 2018 with the manufacturer companies located in many certificates were successfully issued by Turk Loydu. parts of the world. We took firm steps towards becoming

aglobal class society by signing 138 certification agreements 2018 | REPORT ANNUAL Z type propulsion system used in tugboats built for Coastal with 21 countries in 2018. The table below shows distribution Safety by Wartsila Propulsion Company, diesel engines of number of certification agreements signed with foreign manufactured by Wartsila Italy S.p.A, diesel engines manufacturers, by countries.

Table 5; distribution of number of certification agreements signed with foreign manufacturers, by countries

35

30

25

20

15

10

5 Italy Spain China Serbia Tatvan France Poland Austria Finland Norway Sweden Belgium Slovenia Germany Singapore Macedonia Switzerland South Korea Netherlands Czech Republic Czech

31 ANNUAL REPORT | 2018

IMPORTANT SUPPORT TO NATIONAL SUBORDINATE SHIP BUILDING INDUSTRY

Turk Loydu Type Approval Certificate of Alarm Monitoring and Control System produced for the first time in Turkey by Hakan Elektrik ve Otomasyon, in order to be mounted to vessels of Dentur Avrasya operating in Istanbul Strait has been issued and delivered during the ceremony held in the head office of TURK LOYDU on February 2018.

Standing out with the support provided to Turkish shipbuilding industry, TURK LOYDU continues to make a distinguished name with the services provided to the national supplier companies. It has been declared that Alarm thank TURK LOYDU for the continuous support provided Monitoring and Control System produced with national during these processes. resources and national software for the first time in Turkey by Hakan Elektrik became entitled to obtain TURK LOYDU Cem Melikoğlu, Chairman of the Board of Directors of Type Approval Certificate. TURK LOYDU Foundation, congratulated Hakan Elektrik ve Otomasyon that manufactured Alarm Monitoring and The Company stated that they will use advantages of holding Control System for which Type Approval Certificate was TURK LOYDU Type Approval Certificate not only in the delivered and stated that TURK LOYDU will always continue domestic market but also in export projects and that they supporting Turkish Shipbuilding Industry.

32 “As TURK LOYDU, we provide ultimate support for indigenization thrust of our country; we strive to increase brand value of our country by certifying products of national producers in accordance with the required standards” ANNUAL REPORT | 2018

SHIPS IN SERVICE

TURK LOYDU Ships in Service Department increased gross 675.000 tonnage of its fleet by 13% in 2018 and in total, it achieved a level of 941,923 GRT. 450.000 The number of vessels in the fleet of TURK LOYDU is 610, the fleet diversity has been increased as a result of the class transfer 225.000 processes performed during the year.

In 2018, in addition to periodical surveys of the marine vessels 0 in TURK LOYDU fleet, we successfully performed mandatory surveys and certification services in accordance with Authority Republic of Republic Delegation Agreements signed with flag states within our authority. Turkey Panama Turkish Moldova Cook Islands Mongolia Azerbaijan Tuvalu and Vincent Saint the Grenadines The Republıc Palau Niue Vanuatu Malta Island Marshall Qatar of States United America 34 19,80

19,60

19,45 19,51 19,44 19,40 19,37 19,38 19,39 19,32 19,30 19,20 19,19 19,23 19,17 19,10

19,00 19,02

18,80

18,60

615

610 610 608

605 604 603 602 601 601 602 600 599 597 598 595 595 596 MARINE SECTOR

590

585

990.000

941.923 940.000 942.254 928.711

890.000 873.885 862.879 861.849 857.779 869.841 854.497 853.335 849.137 840.000 ANNUAL REPORT | 2018 | REPORT ANNUAL 831.260 827.517

790.000

740.000

300000

250000

200000

150000

100000

50000

0 General Cargo Ship Cargo General Dock Floating Ship (Vehicles) Passenger/Ro-Ro Bulk Carrier Ship Passenger Drilling Ship Ship Cargo Ro-Ro Tug (Function Unknown) Pontoon Tanker Chemical/Products Tanker Products Lpg Tanker Ship Training Vessel Survey Research Disposal Vessel Waste Motor Hopper, Vessel Crane Ladder Dredger Bucket Tanker Crude/Oil Products Boat) Fish Carrier (Well Live Asphalt/Bitumen Tanker (Unspecified) Dredger Yacht Build Ship Of Primitive Wooden (Sailing) Yacht Fishing Vessel Jack Up Support Platform, Vessel Oil Recovery Ship Fish Factory Suction Dredger Supply Vessel Non Propelled Vessel, Crane Vessel & Rescue Search Pilot Vessel Vessel Patrol Backhoe Dredger Vessel Passenger Sailing Vessel Non Propelled Hopper Barge, Boat Crew Mooring Vessel Submersible Vessel Utility Ship, Inland Passenger Waterways

35 ANNUAL REPORT | 2018

CONDITION SURVEYS CLASS TRANSFER WAS PERFORMED FOR FATIH “THE FIRST DRILL SHIP OF In 2018, in addition to the periodical surveys, pre-purchase TURKEY surveys were successfully carried out by TURK LOYDU’s professional personnel. Fatih, the first drill ship of Turkey that was built in South Korea in 2011, is considered as the 6th generation and it is equipped As a result of the survey and report prepared, reporting was with state-of-the-art technology. made in connection with general conditions of the existing systems and whether the ships built in accordance with the Having a length of 229, marine vessel Fatih has capability of international rules. drilling under very high pressure in a depth of 12,000 m.

TURK LOYDU CLASS ENTRY AND The fact that TURK LOYDU is preferred as the second class in the auditing and certification of the ship equipped with PERIODICAL SURVEYS OF MARINE dynamic positioning technology is an indication of trust in VESSELS AND FLOATING DOCKS us. Marine vessel Fatih has a special value in TURK LOYDU fleet thanks to its technological features, type and function. As Transfer of Class (TOC) allows TURK LOYDU to transfer TURK LOYDU family, we are honoured to provide services to of marine vessels and floating docks into class from one of our national drill ship. members of the International Association of Class Societies (IACS) or non IACS classed. Length of 229 metres

Drilling depth of 12 thousand 120 m

Gross tonnage of 51 thousand 283

TURK LOYDU CLASSED LPG Tanker M/T HAPPY Gas plays an important role in ship industry world ; as both cargo and ship fuel. The M / T Happy LPG tanker, which is under the management of Moonlight Energy CO., Has been included in the TURK LOYDU class in 2018. This situation has increased the diversity of vessels in the fleet of TURK LOYDU and has had a positive effect on the development of the surveyors and gaining qualifications. Happy is a LPG Tanker built in 1993 and currently flying the Mongolian flag.

36 FATIH NATIONAL DRILL SHIP MARINE SECTOR ANNUAL REPORT | 2018 | REPORT ANNUAL

37 ANNUAL REPORT | 2018

for passenger ships. Preliminary controls were made as to whether the ship was built in accordance with class rules and international rules, flag state was contacted actively to determine mandatory rules and they were implemented successfully to change class notations of the marine vessels and operation in international waters was made possible. External surveys (PSC) were performed to check international compliance of marine vessels and they were found successful.

MARINE WARRANTY SURVEY SERVICES TURK LOYDU provides Marine Warranty Survey Service for operation such as offshore rigging and transfer of large structures such as column and deck segments of offshore structures, bridges, etc. In this context, the design drawings presented to CLASS TRANSFER WAS PERFORMED us are examined in terms of strength and safety; all designs FOR M/V GULMAR (BULK CARRIER) related to the loading, transportation and on-site equipment process are checked and risk assessment is carried out. For this Class transfer of M/V Gulmar Bulk Cargo ship was performed purpose, a Marine Warranty Survey Agreement was signed in 2018, the ship is operated by Gulnak Denizcilik Nakliyat and between DSLY Adi Ortakligi and TURK LOYDU regarding Ticaret A.S. Following the transfer, bulk carrier type marine the Çanakkale Bridge Project. Surveys have been initiated in vessels formed 9.1% of TURK LOYDU fleet. 2018 and at present, they are continued in accordance with the agreement. INCREASE IN CLASS TRANSFERS OF FLOATING DOCKS COMPULSORY SURVEY AND There are 35 floating docks in Tuzla, Yalova and Zonguldak. In CERTIFICATION SERVICES OF YACHTS 2018, the number of docks in the fleet has been increased to 11 In addition to the class surveys and compulsory surveys of upon class transfer of 5 floating docks. yachts, the technical consultancy services started to make TURK LOYDU a preferred class society in connection with classification of yachts.

MANAGEMENT SYSTEM AUDITS AND CERTIFICATIONS (ISM, ISPS, MLC2006) MLC 2006: covers employment agrements of seamen and obligations of maritime companies under such agreements, working hours, health and safety, living spaces, living standards and other matters concerning welfare of seamen within and extensive scope.

Effective implementation of conditions on scope of ship surveys under MLC 2006 that entered into force on 20 August CLASS ENTRY SURVEYS OF PASSENGER 2013, in marine vessels with TURK LOYDU class is of great SHIPS importance for maintaining the high-performance position of TURK LOYDU in Paris MoU performance list. Works and surveys required in connection with international operation of passenger ships that are operated in national Safe operation of ships is ensured as a result of MLC2006 waters especially in the Aegean Region were completed surveys carried out by TURK LOYDU’s expert auditors and and international class and official certificates were issued performances are increased during Port State Surveys. 38 In 2018, TURK LOYDU continued to provide services conducted by TURK LOYDU. Certificates issued for Sanmar related to the approval of companies and ships in compliance Denizcilik’s tugboats were delivered in a ceremony held in with ISM Code requirements, approval of ship security TURK LOYDU headquarters in 2018. plans, ship security verification and issuance of international certifications. Carrying out tugboat and pilotage operations within administrative borders of 7 different Port Authorities in Turkey and in 3 different foreign countries, Sanmar Denizcilik chose for TURK LOYDU for the certification of ISM Code Safe Management System established for the purpose of providing services at global standards with its modern tugboat fleet, ensuring safety of life and property and protecting the environment.

MLC2006 CERTIFICATION FOR TUGBOATS OF THE GENERAL DIRECTORATE OF COASTAL SAFETY MARINE SECTOR Conformity certification services of 9 tugboats above 500 GT SANMAR DENIZCILIK ISM CODE under operation the General Directorate of Coastal Safety were successfully carried out within the scope of MLC 2006. CERTIFICATION 4 tugboats operated in Petkim Aliaga facilities of Sanmar In this context, MLC 2006 Certificates, the documents Denizcilik, one of the leading tugboat manufacturers and required for the tugboats to work internationally, were operators in the world, have been granted ISM Code Safe delivered to the General Directorate of Coastal Safety after Management System Certificate upon passing audits successful completion of surveys. ANNUAL REPORT | 2018 | REPORT ANNUAL

39 ANNUAL REPORT | 2018

PORT STATE CONTROLS three-year period covering 2015-2017 and revised in the website of Paris Port State Control Memorandum of Understanding Marine vessels under TURK LOYDU class recorded a historical (MoU), TURK LOYDU ranked among the top 9 “High success with a 3.91% detention rate in the 2018 during surveys Performance” class societies in the list where it appeared for the of the Paris Port State Control Memorandum. One of the last 12-year period. important factors that allowed achievement of this rate is the continuous monitoring of the ships in our fleet and thus achieving high standards. All findings obtained during port Positioned at the 9th rank in the High Performance Table of state surveys and data obtained during investigation processes Paris MoU, TURK LOYDU left many reputable class societies were analysed within the scope of monitoring activities, and as well as some assertive IACS (International Association corrective and preventive actions are taken for marine vessels of Class Societies) members behind with its high quality in our fleet. standards and superior service performance, it proved its position as High Performance Class Society in Paris MoU to 35 target marine vessels were identified in the beginning of the rest of the world. Paris Port State Control Memorandum of 2018 and non-programmed survey was performed about these Understanding is recognized as one of the world’s first and most marine vessels during 2018 in order to improve our fleet’s important port state control regimes, which oversee compliance performance during port state controls and pre-determining with international rules in many areas such as safe management the problems that may be experienced. These ships achieved of marine vessels, safety of life and property at sea and marine successful results during port state controls that were performed pollution. Marine vessels in the fleet of TURK LOYDU are in 2018. subjected to less frequent surveys in the ports of Paris MoU member states as a result of the experience and expertise of Improvement action were taken in connection with Fleet TURK LOYDU in connection with port state controls and its Monitoring and Port State Control Procedures for the purpose announcement as “High Performance” organization by Paris of improving the success rate based on the feedback received MoU. as a result of evaluations made during the year, and active monitoring of marine vessels were initiated based on additional An Intensive Audit Campaign was organized within the scope of criteria. Leaving many competitors behind in the Authorized Marpol Annex VI (air pollution) by Paris and Tokyo Port State Economic Operators Performance Table that is prepared based Control Memorandum of Understanding. TURK LOYDU and on results of surveys performed on marine vessels in the last the Turkish Maritime Administration provided preliminary

40 inspections and preparations for supporting the campaign. we were able to improve the quality of the ships in our Employees of TURK LOYDU Port State Controls fleet by taking corrective and preventive actions in order Department provide information and issue warnings for to eliminate the shortcomings. In addition, the Port State the fleet by preparing bulletins and analysis reports in Controls Booklet was prepared, providing information on addition to fleet monitoring. Statistical works and analyses items that the ship personnel could self-inspect before they were performed on surveyed and arrested marine vessels in commencement of the port state controls. This allowed the 2018 within the scope of PSC Annual Report. As a result, ships in our fleet to get ready before the inspection. TURK LOYDU RANKED 9TH IN PARIS MOU MARINE SECTOR

TÜRK LOYDU TL 525 1 16 5 -100 TÜRKTURK LOYDU TLTL 487525 10 1615 54 -1.60-1.00 ANNUAL REPORT | 2018 | REPORT ANNUAL

41 ANNUAL REPORT | 2018

PLANNING, APPROVAL AND ENGINEERING SERVICES Plan Approval and Engineering Division operating in the Maritime Sector consists of Hull and Stability Department, EMachinery and Electrical Installation Department and Statutory Department Activities of the department include control and approval of hull, machinery and electrical plans for the purpose of classification of all types of military and commercial marine vessels and marine structures that will be transferred to TURK LOYDU class as well as new marine vessels to be built under supervision of TURK LOYDU; control and approval of plans that are basis to type and product approval certificates of military and commercial ships; control and approval of hull, machinery and electrical plans on behalf of Flag States; review and approval of theoretical calculations marine vessels (stability, damage stability, longitudinal strength, grain loading, freeboard, etc.); structural design analysis of lifting equipment and local structures by using finite elements method; control and approval of Multipoint Mooring System plans for tankers; verification of the International Energy Efficiency certification (EEDI) technical files; structural analysis of propulsion system for vibration (torsion, bending and shaft lining, etc.); document reviews within the scope of Marine Warranty surveys and risk assessment services.

In 2018, hull, machinery, electrical installation and stability calculations were approved in accordance with TURK LOYDU Military Ship Rules in connection with TCG Anadolu-LHD- Multi-Purpose Amphibious Assault Ship, TCG Utgm Arif Ekmekci- LDG- Logistics Support Vessel built under supervision of TURK LOYDU, LCM class Mechanized Landing Ships, ACMB Emergency Response and Training Boat and I Class .

In 2018, plan approval and engineering services were provided for the international voyages of the vessels which will make a voyage to the Greek Islands.

Towards the end of 2018, 10,000-ton military Floating Dock agreement was signed, and planning control service was commenced.

1915 Canakkale Bridge Marine Warranty Survey (MWS) agreement was made and plan control services were commenced. multi-point mooring systems for tankers so, terminals with Multipoint Mooring System can obtain class report. Pursuant to instructions issued by the administration, approvals were commenced for plans in connection with Processes on the International Energy Efficiency certification

42 MARINE SECTOR ANNUAL REPORT | 2018 | REPORT ANNUAL

aimed at regulations of the International Maritime year. For the purpose of plan approval, projects except for Organization for improving energy efficiency in “Restircted” and “Confidential” documents of military internationaltransport, and verification of Energy ships and all commercial projects and certification projects Efficiency Design Index files were continued during the are approved via EPAS.

43 ANNUAL REPORT | 2018

HISTORICAL SUCCESS OF TURK LOYDU IN IMO TURK LOYDU, undersigned an important accomplishment for Turkey in the International Maritime Organization (IMO). TURK LOYDU’s Class Rules were discussed at the 100th session of the Maritime Safety Committee, one of the most important committees of IMO, and Turk Loydu was approved in accordance with the GBS (Goal Based Ship Construction Standards). TURK LOYDU was the first organization outside IACS whose rules were verified by IMO.

According to the International Maritime Organization’s (IMO) implementation of the GBS, the rules of the relevant body must be inspected and verified by the IMO in order to classify the newly built Oil Tankers and Bulk Carriers over 150 meters or more. Until the present date, only IACS members were authorized within the scope of GBS.

On March 27, 2018, TURK LOYDU applied to IMO with the support of the Ministry of Transport and Infrastructure and Is GBS required to become a member of IACS? requested class rules to be verified within the scope of GBS; The Association of International Association of Class Societies passes all inspection with extraordinary performance and (IACS) has updated its membership criteria on 1 October obtained right for submission to IMO MSC Committee. 2017 and introduced a prerequisite for verification, requiring that existing members and class societies intending to become The final decision regarding the verification of TURK LOYDU a member should be verified in accordance with GBS (Goal class rules was made in the Maritime Safety Committee meeting Based Ship Construction Standards). that was held at IMO Headquarters on 3 December 2018. It was made by majority of the vote of members and IMO approved TURK LOYDU is the only non-IACS member organization the compliance of TURK LOYDU within the scope of GBS. with Classification Rules approved by IMO MSC; therefore, it met the most important criteria for IACS membership and As a result of the joint efforts of the Ministry of Transport covered a long distance on the way to become a member. and Infrastructure and TURK LOYDU became the first non- IACS member class society approved by IMO in connection with rules on building tanker and bulk cargo ships above 150 RULE DEVELOPMENT AND STATUTORY m in the historical MSC 100 session of IMO. This success has LEGISLATION once again revealed the importance of joint efforts as well as reputation and effectiveness of the Administration. In 2018, Rule Development and Statutory Legislation Division continued to revise TURK LOYDU’s rules and applications What is GBS (Goal Based Ship Construction Standards)? in accordance with the amendments in international and The Maritime Safety Committee (MSC) meeting of the national rules. Long term rule development projects of International Maritime Organization was held in May 2010. Naval Ships and Passenger Craft in cabotage service were GBS standards were accepted in the Annual Meeting. These rules also continued and a new long term project for the revision that entered into force on 1 January 2012, requires that all oil and development of Offshore Units was initiated under the tankers and bulk carriers over 150 meters or more constructed coordination of this divison in the end of 2018. on 1 July 2016 or later must comply with the relevant structural requirements of the Goal Based Ship Construction Standards. TURK LOYDU revises its rules at least twice a year in Classification rules for bulk carriers and oil tankers of class societies accordance with the amendments in international rules, must be surveyed and verified by MSC under the International standards and feedbacks received from the sector. Following Maritime Organization in accordance with GBS standards. rules were revised and published in 2018:

44 Classification and Surveys PART A Chapter 1 – Hull Chapter 2 - Material Chapter 3 – Welding PART B Chapter 4 - Machinery Chapter 5 - Electrical Installations PART C Chapter 7 - High Speed Vessels Chapter 9 - Rules for Construction and Classification of Yachts Chapter 10 – Liquefied Gas Tankers Chapter 35 - Tentative Rules for Ships Less than 500 GRT Chapter 36 - Offshore Service Vessels PART D Chapter 78 - Rules for Classification of Ships Using Gases MARINE SECTOR or Other Low-Flashpoint Fuels PART E Chapter 101 – Naval Ship Technology, Classification and Surveys Chapter 104 – Naval Ship Technology, Propulsion Plants

In addition to these rules, two additional rules were also SSE5 sub-committee meetings and IMO MSC 99, 100 and revised. MEPC 72, 73 main committee meetings. TURK LOYDU also continued its participation to INSA (International Amendments to the international rules, Fuel Consumption Naval Safety Association) which develops Naval Ship Code (ANEP-77) and Naval Code with an aim of

Data Collection System that is particularly important in 2018 | REPORT ANNUAL 2018, finalized 2020 sulphur limit practice, amendments setting requirements of safety of life and its equipment of to rules of TURK LOYDU and other developments were naval ships in peace conditions in a goal based manner. Turk announced in 16 newsletters prepared for the maritime Loydu maintained its contributions to “Chapter III Stability sector. WG and Chapter VI Fire correspondence WG” INSA working groups in 2018. TURK LOYDU is also one of the TURK LOYDU maintained research and development member of NSCA (Naval Ship Classification Association) activities in 2018 and two project applications were constituted by seven class societies operating in the naval accepted within the scope of Europe Union Erasmus+ field.constituted by seven class societies operating in the (MarED, Maritime Education for Energy Efficiency, naval field. SKILLsPATH, Skills beyond the Seas). In addition to these new projects, in 2018, TURK LOYDU continued the NEO- COL and SEAMAP Erasmus + projects.

MEETINGS AND VISITS TURK LOYDU actively participated in international meetings, particularly the International Maritime Organization (IMO) Meetings, in 2018 and continued to inform the sector with its preliminary and final meeting reports and newsletters. In 2018, TURK LOYDU representatives were participated the IMO PPR 5, SDC 5,

45

INDUSTRY AND CERTIFICATION SECTOR ANNUAL REPORT | 2018

INDUSTRY AND CERTIFICATION SECTOR

In 2018, we continued providing services by extending our domestic and international geographical field in parallel with our service range particularly including energy, construction, mining, chemicals, transportation and logistics sectors.

In parallel with the rapid change in technology and digitalization, the relative increase in the standard of living and the reliability of the products and services in line with the increasing consumer expectations gained more importance than ever. In the beginning of the 2000s, more in house certification processes were applied to ensure product safety, and nowadays conformity assessment bodies play a role in conformity assessment without any discrimination between sectors. Each day, the standards in the voluntary area are replaced by the legislations taking standards as reference, and the evaluation criteria become more conservative. There is only one objective for this process of change: Offering safe products to end users.

Despite the positive developments in the sector, the stagnation in the global economy, decline in growth figures from two digits to single digit compared to the same period of the previous year, increase in competition and the violation of trademark rights with counterfeit products despite legal regulations, and serious hazards of unsafe products in terms safety of life and environment affect all aspects of our life. The acceleration of the e-commerce volume with digitalization makes it inevitable to take effective measures to combat counterfeit products. The reason why the conformity assessment should be carried out by independent organizations is clearly stated in the following research results.

48 Ayfer ADIGÜZEL Director, Industry and Certification Sector

49 ANNUAL REPORT | 2018

Inspections performed by CEOC and IFIA on 800 samples from electrical devices offered in US market in 2016 (hair dryer, shaving machine, tablet, drone, etc.) that should bear CE-mark showed that on average, 80% of the producers (87% for tablets, 92% for drones) do not meet the applicable standard requirements, and 16% of nonconforming products pose risk for life. In other words, very significant proportion of the products offered to the market based on manufacturer’s declaration are not in line with product standards and they are life-threatening. Market surveillance and audits will also make the need for the conformity assessment sector more visible as a result of conscious customer preferences.

Despite shrinkage in the economic figures in the world and in our country, we have carried out intensive efforts in 2018 with all our team members in order to reach our goals without compromising our quality in accordance with TURK LOYDU brand value which reached to 57 years we as an industry sector have carried. We continued our efforts to ensure that the TURK LOYDU brand, one of the first in our country in the field of conformity assessment, reach a wider customer base. We focused on promotion and sales activities in order to ensure the effective promotion of our services to the sector.

For the purpose of our digitalization project that was initiated in order to improve our business processes, we started to produce reports and documents in electronic environment to ensure that our customers can access their reports and documents in a fast and reliable environment. Upon completion of the project, we will ensure that all We aim to increase the competencies of our managers on a relevant reports are submitted to our customers in electronic wide range of topics at the end of the nine-month project environment upon completion of the relevant works. In 2019, implemented with competent trainers and mentors. We we will continue our digitalization efforts at the same rate. already started getting good outcomes. We will continue our project in 2019. We initiated the “Lean Management” project that focuses on respect to people and continuous development in order Services included to our portfolio in 2018 are as follows: to create value from the point of view of our customers, eliminate the costs arising from the non-necessary business We, as TURK LOYDU, were recognised by the National processes, and produce services in a faster and more Safety Authority as an Assessing Entity to perform conformity convenient conditions. The project we initiated with the Lean assessments against OTIF UTPs and as a Designated Body to Institute is an important and long-term project that will turn perform conformity assessments against national technical change process of our company into a transition process. rules for the rolling stock sub-system. We are maintaining our activities with the effort and active participation of all colleagues. We will continue our project We have started to provide a wide range of training, inspection in 2019. and certification services from infrastructure to signalization, locomotive driver training, TSI certification, in the railway Another critical business goal in transforming our journey of sector. change into achievement of consistent position was to train effective leader. For this purpose, we started the “Leadership” We obtained “Nuclear Power Construction Inspection Body training project with a corporate company for our managers. Authorization” from TAEK on 16.03.2018 in accordance 50 with provisions of the Regulation on Inspection of Nuclear Power Plants, in order to provide conformity assessment (test, In 2018, we continued providing services by extending our inspection and certification) services for safe installation and domestic and international geographical field in parallel with operation of nuclear power plants in our country particularly our service range particularly including energy, construction, including Akkuyu Nuclear Power Plant in accordance with mining, chemicals, transportation and logistics sectors. the applicable legislation and standards. For this purpose, conformity assessment activities related with Akkuyu Nuclear Our steel structure inspection services grew by 200% Power Plant Project Western Cargo Terminal are carried out compared to the previous year. In 2018, we implemented by our competent team. many projects including various bridges, stadiums, hospitals, aircraft maintenance hangars, industrial facilities and various We continue providing services by adding professional types of civil structures, particularly including Çanakkale groups for construction sector to the scope of authorization Bridge. Our projects include Siempel Kamp American MDF “Authorized Certification Body” we received from the Factory, Industrial Plant built for Lithuania, Expo 2020 Vocational Qualification Authority (MYK). In addition, each Dubai Subway for which production was made in China, year, we carry out the personnel certification of approximately Erdemir Galvanization Plant, THY Aircraft Maintenance 2,000 employees working in welded manufacturing with Hangar built in the 3rd Airport and inspection services for TURKAK personnel certification accreditation. In 2018, with Kartal State Hospital. Our construction supervision services MYK authorization and TURKAK accreditation, we certified grew by 100% compared to the previous year. Other projects 3200 persons who successfully passed exams. In 2019, we will subject to important compliance assessments include the continue to extend the range of personnel certification and 3rd Airport, North Marmara Highway Project (Kurtköy- geographic area. Kınalı section including YSS Bridge) and Mazıdağı Etibakır 51 ANNUAL REPORT | 2018

Fertilizer Production Complex. In 2018, we continued our platforms. In 2018, improvement visits, accreditation and copper mine extraction and processing plant control services monitoring audits were performed in 149 chambers and in the facilities built in Kastamonu Hanonu for Acacia Maden commodity exchanges and training was organized in 11 Isletmeleri A.S. chambers and commodity exchanges. In parallel with the accreditation project, management systems certification audits For the construction of the projects having high budget (ISO 9001, ISO 14001, ISO 10002, ISO 27001) were performed and long design life starting from the design control and in Chambers and Commodity Exchanges and 61 Chambers verification phase which is the first stage of the assessment and Commodity Exchanges were certified by Turk Loydu. to the final stage of the inspection against the requirements of the specification, our goal is to ensure the realization of The number of certified companies within the scope of the reliable products and facilities for investors, contractors, management systems consisting of quality, environment, operators and insurance companies along the chain extends occupational health safety, information security, energy to the end user. management, customer complaint management standards increased to 251 and services were provided to companies in a We have been providing services with our competent auditors wide range of sectors from chemicals to energy, construction since 2004, in the project for Accreditation of Chambers and and education. Gebze Technical University, Hasan Kalyoncu Commodity Exchanges that was initiated in 2002 by TOBB University, Antalya Bilim University and Yildiz Technology in line with the goal of branding Chambers and Commodity Development Zone in Yildiz Technical University are some of Exchanges in the local, regional, national and international the organizations certified in 2018.

52 the technical developments in our service area to our business processes and our stakeholders in the industry.

We took a role in committees for localization efforts under the umbrella of Defence and Aerospace Cluster Association- SAHA Istanbul where we are member and that takes a catalyser role for improving capabilities of the sector in increasing local products’ share in defence industry investments. Our goal is to take a role in solution of the aerospace industry certification requirements of our country, together with the national certification bodies. As the first phase of the process, we organized our first training about the Quality Management System standard for AS 9100:2016 Aerospace and Defence Organizations. We had the opportunity to give information on our service range to actors in the sector by participating in Saha expo fair and conference event organized by SAHA Istanbul. Our aim is to ensure that training and conformity assessment needs of the defence industry are met within the national boundaries without any security risk.

In addition, we attended various sectoral fairs particularly including 5th Nuclear Power Plant Summit and Highways, Bridges and Tunnels Fair. We also visited many sectoral fair organizations as a visitor to follow the developments in the sector. In 2019, with our confidence in our business culture and goals in line with our strategic objectives, we are aiming to strengthen brand value of Turk Loydu further, increase the range of our products, extent the market and maintain conformity assessment services required by our sector and work towards our goal of becoming a power in our country and region by We continued our efforts in 2018 to develop international offering innovative services. cooperation in line with our goal of becoming a power in the region in industrial conformity assessment services. We owe continuous diversification and improvement of our International Confederation of Inspection and Certification conformity assessment services to our qualified human resources, Organizations (CEOC International) where we are a member customer-driven digitalization, accelerated business processes, merged with the International Federation of Inspection making investments necessary for continuous improvement, Associations (IFIA) that provides services at global scale, and most importantly, trust placed by our customers. and formed Testing, Inspection Certification Council (TIC Council)that is a new international organization representing On this occasion, I would like to thank all colleagues for third party verification, in order to penetrate potential markets maintaining the sense of commitment at the highest level and closely follow sectoral developments in the international with the righteous pride of being a TURK LOYDU employee, market of conformity assessment. TIC Council formed in working diligently and showing effort and confidence towards Brussel upon merger of global TIC sector organizations, IFIA achieving our goals. and CEOC during extraordinary general assembly meeting we attended on 13 December 2018 became the representative of 90 I would like to express my gratitude to our customers and member companies and organizations operating in the field of stakeholders who have strengthened us, contributed to our testing, inspection and certification on a global scale. By taking development and showed support in addition to the trust they an active role in the technical committees of the umbrella placed in brand value of TURK LOYDU, and I hope we continue organizations that we are a member of, we are able to transfer producing together in the new year.

53 ANNUAL REPORT | 2018

INDUSTRY AND CERTIFICATION SECTOR

STRUCTURAL CONFORMITY in accordance with the standard legal requirements and ASSESSMENT SERVICES specifications of customers. Inspections for concrete, electrical installations, welded productions, fire production systems, TURK LOYDU carries out production, installation and heating/ cooling/ air conditioning (HVAC) systems of steel, periodical inspections of structures and provides third party concrete and composite structures such as airports, residences, control services for industrial facilities as accredited Type sports complexes, stadiums, shopping malls, business centres, A Inspection Body in accordance with ISO/IEC 17020 as cultural centres, skyscrapers, platforms used in oil and natural well as Regulation on Design, Calculation and Building gas production, are carried out by experienced inspectors of Principles for Steel Structures and specifications of customers. TURK LOYDU. Important projects we carried out in 2018 It offers turnkey delivery control and certification services within structural control services are shared below. 54 TAI-TUSAŞ LOGISTICS WAREHOUSE THY ISTANBUL AIRPORT SUPPORT AND OFFICE BUILDING PROJECT FACILITIES CONSTRUCTION TAI-Tusaş Türk Havacılık ve Uzay A.Ş. Logistics Warehouse Inspection services are provided for air-ground personnel and Office Building project is built in an area of 16,600 sqm access building, operation centre, maintenance and repair in Ankara Kahramankazan within the scope of TAI central workshops for ground services devices and equipment, campus expansion project. catering building, cargo building, daily maintenance hangar, heavy maintenance hangar, repair and maintenance The project covers a total of 1,500 tons of steel production workshop for cargo loading equipment, energy centre and assembly’s conformity assessment; steel construction building, battery charging and defrosting stations and some technical specifications and EN 1090-2 standard are administration buildings of Turkish Airlines that are built in implemented by TURK LOYDU according to EXC-3 class. an area of 700000 sqm in Istanbul Airport.

Conformity assessment is carried out at all stages of The project covers a total of 20,000 tons of steel production manufacturing and assembly starting from the material and assembly’s conformity assessment; steel construction procurement process according to the Inspection and Test technical specifications and EN 1090-2 standard are Plan (ITP) specific to the pre-production project. implemented by TURK LOYDU according to EXC-3 class. INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY

Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project. ANNUAL REPORT | 2018 | REPORT ANNUAL

SPECIFIC DETAILS SPECIFIC DETAILS

Client Haldız İnşaat Client Yüksel Proje

Location Ankara, Turkey Location Istanbul, Turkey

Inspection of steel construction Inspection of steel construction Scope of Inspections Scope of Inspections production and assembly production and assembly

Period 2018 - ongoing Period 2018 - ongoing

Project Tonnage 1.500 ton Project Tonnage 20.000 ton

Inspection Standard EN 1090-2 EXC 3 Inspection Standard EN 1090-2 EXC 3

55 ANNUAL REPORT | 2018

ZİRAAT TOWERS PROJECT Ziraat Towers project, built on an area of 426000 sqm in Ataşehir Finance Centre, Istanbul - Turkey consists of two 46 and 40-storey towers where commercial, retail and banking services will be provided. The project covers a total of 6,000 tons of steel production and assembly’s conformity assessment; steel construction technical specifications and EN 1090-2 standard are implemented by TURK LOYDU according to EXC-3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Test Plan (ITP) specific to the pre-production project.

SPECIFIC DETAILS

Employer Kalyon İnşaat

Location Istanbul, Turkey

Inspection of steel construction produc- Scope of Inspections tion and assembly

Period 2018 - ongoing

Project Tonnage 6.000 ton

Inspection Standard EN 1090-2 EXC 3

HASAN KALYONCU UNIVERSITY AMFITORIUM PROJECT

Designed for multi-purpose use and built on the campus of Hasan SPECIFIC DETAILS Kalyoncu University, Gaziantep, the project will have a capacity of 3500 persons and will be the new symbol of the campus. The Employer Hasan Kalyoncu University project covers a total of 600 tons of steel production and assembly’s Location Gaziantep, Turkey conformity assessment; steel construction technical specifications Inspection of steel construction Scope of Inspections and EN 1090-2 standard are implemented by TURK LOYDU production and assembly according to EXC-3 class. Conformity assessment is carried out Period 2018 - ongoing at all stages of manufacturing and assembly starting from the material procurement process according to the Inspection and Project Tonnage 600 ton Test Plan (ITP) specific to the pre-production project. Inspection Standard EN 1090-2 EXC 3 56 INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY

rd ISTANBUL (3 ) AIRPORT PROJECT SPECIFIC DETAILS Istanbul Airport Project started in 2013 will be the world’s Employer IGA Consortium largest airport with 76.5 km2 surface area, passenger terminals with passenger capacity of 200 million and 6 Location Istanbul, Turkey 2018 | REPORT ANNUAL runways, when it is completed. Third Party Inspection of Steel Roof Scope of Inspections and Facade

In the first part of the project that consists of 4 phases, TURK Period 2016 - ongoing LOYDU performs production inspections, installation EN 1090-2 EXC 3, IGA technical Inspection Standard inspections and inspections on compliance to technical specifications specifications in connection with the international terminal Investment Cost EUR 22 billion 152 million building, port buildings, ATC tower, statesmen guest house, entrance gate and all roof and facade systems of the airport mosque.

In 2018, our organization inspected load-bearing steel works of the terminal building facade, roof and facade works of terminal building, port 1, port 2, port 3, port 4, port 5, ATC tower, statesmen guest house, entrance gate and airport mosque and works will be continued in 2019.

Known as one of the largest projects of our Republic’s history, Istanbul New Airport is designed and implemented as a model-setting project with ground-breaking innovations not only for Turkey but the rest of the world.

57 ANNUAL REPORT | 2018

NORTHERN MARMARA HIGHWAY PROJECT The European part of the Northern Marmara Highway Project extending from Akyazi junction to Kinali consists of three sections (Section 1 Kinali-Yassioren, Section 2 Yassioren-Odayeri and Section 3 Habibler-Hasdal). There is a highway of 71 km, access roads of 10 km, junction branches of 91 km, 13 viaducts, 32 bridges, 3 tunnels, 20 overpasses, 36 underpasses and 78 culverts 1915 ÇANAKKALE BRIDGE PROJECT within the scope of the project. Malkara-Canakkale Highway Section including 1915 Canakkale Bridge and access routes will be the longest suspended bridge of TURK LOYDU performs conformity assessment of the world with approximately 103 kilometres of highway and prestressed precast beams production, installation and reverse 2 thousand 23 metres of span. Inspection of a total of 30,000 deflection inspections in accordance with Highways Technical tons of pile pipes production was performed in accordance with Specifications; conformity assessment of steel bridge beam EN 10219 standard. TURK LOYDU inspects the production production and installation in accordance with steel structures of 6000 tons of steel structures in accordance with EN 1090-2 technical specifications and EXC3 class of EN 1090-2 standard. standards and EXC3 class and performs conformity assessment Conformity assessment is carried out at all stages of manufacturing of main cable production made in China, in accordance with and assembly starting from the material procurement process customer’s technical specifications. according to the Inspection and Test Plan (ITP).

SPECIFIC DETAILS SPECIFIC DETAILS

Employer DLSY JV Employer KRP Otoyol İnşaatı

Location Çanakkale, Turkey Location Istanbul, Turkey

Inspection of underwater pile pipes, dry Scope of Inspections Pre-stressed precast and steel bridge beams Scope of Inspections dock pile pipes, shaft, anchorage frame, main cable production Period 2018

Period 2018 - ongoing Highway Technical Specifications, EN Inspection Standard Inspection Standard EN 1090-2 EXC 3, IGA technical specifications 1090-2 EXC3

Investment Cost TRY 10 billion 355 million Investment Cost TRY 8 billion

58 ERDEMİR 2nd GALVANIZING LINE KÖMÜRHAN BRIDGE PROJECT The project consisting of “Cable-Stayed New Komurhan In total, 3,000 tons of steel is produced and assembled in the project Bridge” and Tunnel production allowing passage over and conformity assessment is carried out by TURK LOYDU at all Karakaya Dam Lake (Euphrates River) along Malatya- stages in accordance with the EN 1090-2 standard EXC-3 class. Elazig State Highway is project for building a new road with 2x2 lanes and total length of 5155 m. This project will allow building of a modern state highway consisting of a new bridge with total length of 660 m and a tunnel with approximate length of 2.4 km in parallel to the existing low-standard road with 1x1 lane (low Kurp diameter, a lot of road bends). The new Kömürhan Bridge within the project will be a “Cable Stayed” bridge as described in the international literature.

The conformity assessment of approximately 20.000 tons of steel production and assembly is performed by TURK LOYDU in accordance with EN 1090-2 EXC.4. INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY

SPECIFIC DETAILS SPECIFIC DETAILS

Employer Partner Teknik Employer Yüksel Proje

Location Karadeniz Ereğli, Zonguldak, Turkey Location Malatya, Turkey

Inspections for Technological Steel Inspections for Technological Steel Scope of Inspections and Main Building Steel Construction Scope of Inspections and Main Building Steel Construction Production and Installation Production and Installation

Period 2016 - ongoing Period 2016 - ongoing

Project Tonnage 3.000 ton Project Tonnage 20.000 ton 2018 | REPORT ANNUAL

Inspection Standard EN 1090-2 EXC 3 Inspection Standard EN 1090-2 EXC 4

Investment Cost EUR 50 million Investment Cost TRY 200 million

59 ANNUAL REPORT | 2018

GİRESUN ÇOTANAK STADIUM PROJECT ÇORUM STADIUM PROJECT Giresun Cotanak Stadium built by TOKİ has a capacity of Corum Stadium built by Corum Municipality has a capacity 22.000 spectators. The project covers a total of 3,500 tons of 15.000 spectators. The project covers a total of 2,800 tons of steel production and assembly’s conformity assessment; of steel production and assembly’s conformity assessment; steel construction specifications and EN 1090-2 standard steel construction specifications and EN 1090-2 standard are are implemented by TURK LOYDU according to EXC- implemented by TURK LOYDU according to EXC-3 class. 3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the material Conformity assessment is carried out at all stages of procurement process according to the Inspection and Test manufacturing and assembly starting from the material Plan (ITP) specific to the pre-production project. Precast procurement process according to the Inspection and Test Plan manufacturing inspections are also carried out within the scope (ITP) specific to the pre-production project. Onsite installation of conformity assessment. Onsite installation works are planned works are planned to be completed in April 2019. to be completed in March 2019.

SPECIFIC DETAILS SPECIFIC DETAILS

Location Giresun, Turkey Location Çorum, Turkey

Employer Siyah Kalem Employer Çakır İnşaat

Ground Grass Host Çorum Belediyespor

Seats Full-scope seat installation Ground Grass

Capacity 33.000 Flooring Type Natural Grass

Total Construction Area 120 decare Seats Full-scope seat installation

Construction Period 24 Month Capacity 15.000

Project Tonnage 3.500 ton Total Construction Area 72 decare

Project Tonnage 2.800 ton Inspection of Precast Grades, Electrical Installations, HVAC, Concrete structure WPS-PQR Welder Certification Scope of Inspections production and installations in Scope of Inspections Inspection of steel production and accordance with applicable standards assembly in accordance with the .and ITP relevant standard and ITP

Period 2018 - ongoing Period 2018 - ongoing

Inspection Standard EN 1090-2 EXC 3 Inspection Standard EN 1090-2 EXC 3

Investment Cost TRY 180 million Cost TRY 80 million

60 INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY

ADANA STADIUM PROJECT SPECIFIC DETAILS Adana Stadium built by TOKİ has a capacity of 33.000 spectators. The project covers a total of 3,500 tons of Employer Alkataş - Ilgazlar steel production and assembly inspection services; steel Location Adana, Turkey 2018 | REPORT ANNUAL construction technical specifications and EN 1090-2 Ground Natural grass standard are implemented by TURK LOYDU according to EXC-3 class. Conformity assessment is carried out at all Seats Full-scope seat installation stages of manufacturing and assembly starting from the Capacity 33.000 material procurement process according to the Inspection Total Construction Area 102 decare and Test Plan (ITP) specific to the pre-production project. Dimensions 105m x 68m

Handicapped Tribune Available

Camera System Available

Construction Period 18 Months

Project Tonnage 3.500 ton

Inspection of steel construction Scope of Inspections production and assembly

Period 2018 - ongoing

Inspection Standard EN 1090-2 EXC 3

Cost TRY 106 million

61 ANNUAL REPORT | 2018

SPECIFIC DETAILS

Employer Sertka İnşaat

Location Hatay, Turkey

Ground Grass

Flooring Type Natural Grass

Seats Full-scope seat installation

Capacity 25.000

Total Construction Area 160 decare HATAY STADIUM PROJECT Construction Period 18 month Hatay Stadium built by TOKİ has a capacity of 25.000 spectators. Project Tonnage 2.700 ton The project covers a total of 2,700 tons of steel production and WPS-PQR, Welder Certification Inspection of steel production and assembly’s conformity assessment; steel construction specifications Scope of Inspections assembly in accordance with the and EN 1090-2 standard are implemented by TURK LOYDU relevant standard and ITP according to EXC-3 class. Conformity assessment is carried out at all stages of manufacturing and assembly starting from the Period 2018 - ongoing material procurement process according to the Inspection and Inspection Standard EN 1090-2 EXC 3 Test Plan (ITP) specific to the pre-production project. Onsite Cost TRY 118 million installation works are planned to be completed in June 2019.

AUTOLIV PROJECT SPECIFIC DETAILS SPECIFIC DETAILS TURK LOYDU performs inspections of steel structure Employer Bakırküre production and installations of the new facilities built in a total area of 31900 sqm in TOSB by Autoliv, a Swiss automotive Location Izmit, Turkey Inspection of steel construction safety systems producer that is one of the largest in the world, in Scope of Inspections production and assembly accordance with technical specifications for steel structures and EN 1090-2 standard, EXC3 class. Period 2018 - ongoing Project Tonnage 1.100 ton

Inspection Standard EN 1090-2 EXC 3

62 INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY

1785 ANNUAL REPORT | 2018 | REPORT ANNUAL

BUILDING MATERIALS (305/2011/EU Construction Products Regulation)

In Turkey and EU countries, it is mandatory to offer “CE” The certification bodies should be authorized as Notified marked products to the market in accordance with 305/2011/ Bodies in accordance with 305/2011/EU Construction EU Construction Products Regulation applicable in the field Products Regulation and published on the EU official of building materials. Organizations should establish a factory website (NANDO) and must be authorized as an accredited production control system in line with the applicable standard organization in accordance with EN ISO/IEC 17065 and manufacture products in accordance with this system, and standard. they should be certified by a Notified Body in order to offer CE-marked products to the market. Certified organizations TURK LOYDU was published as Notified Body in the EU can demonstrate that their products are safe and manufactured official website (NANDO) under the identification no. 1785 in accordance with the applicable harmonized standard. in accordance with 305/2011/EU Construction Products Regulation, and it is TURKAK Accredited Organization in Manufacturers producing structural metal products and accordance with EN ISO/IEC 17065 standard and it performs auxiliary members are subject to conformity assessment by the Factory Production Control Certification activities for Notified Body in accordance with the applicable harmonized steel and aluminium structure manufacturers, steel profile standard. In the event of conformity, a Factory Production producers, welding consumables, mechanical fasteners, Control (FPC) certificate is issued and the manufacturer is rolled steel plate manufacturers, with its experienced and permitted to use CE mark. competent staff members. 63 ANNUAL REPORT | 2018

Certified organizations can be found at: http://www.turkloydu.org/tr-tr/musteri-bilgilendirme-sistemi/belge-sorgulama/yap%C4%B1-malzemesi-yonetmeligi- kapsam%C4%B1nda-belge-sorgul.aspx

TURK LOYDU provides Factory Production Control Certification service for the products and standards specified in the table below in accordance with 305/2011/EU Construction Products Regulation.

305/2011/EU Construction Products Regulation Product Standard AVCP system: System 2+ Structural metallic products and ancillaries : EN 10025-1 Structural metallic sections/profiles: hot rolled, cold formed or otherwise produced sections/profiles with various shapes (T, L, H, U, Z, I, channels, angle, hollow, EN 10210-1 tubes), flat products (plate, sheet, strip), bars, castings, forgings made of various EN 10219-1 metallic materials, unprotected or protected against corrosion by coating (to be EN 15048-1 used in metal structures or in composite metal and concrete structures). EN 15088

Structural metallic products and ancillaries: Structural metallic construction members: finished metallic products such as trusses, AVCP system: System 2+ girders, columns, stairs, ground piles, bearing piles and sheet piling, cut to size sections EN 1090-1+A1 designed for certain applications, and rails and sleepers. They can be unprotected or protected against corrosion by coating, welded or not. (for uses in work’s frames and foundations).

Structural metallic products and ancillaries: AVCP system: System 2+ Welding materials (for uses in structural metallic works). EN 13479 Structural metallic products and ancillaries: AVCP system: System 2+ Structural connectors: metallic rivets, bolts (nuts and washers) and H.R. bolts (high EN 14399-1 strength friction grip bolts), studs, screws, railway fasteners (for uses in structural metallic works).

EN 15085-2 AND ISO 3834 WELDED welded production and described the relevant quality PRODUCTION CONFORMITY conditions. Organizations with ISO 3834 certification can prove that their welded products meet the quality requirements CERTIFICATION under international standards. International standards such A wide range of products are manufactured in many sectors as EN 15085-2, EN 1090-2 require the application of ISO 3834 with welded fastening method. Welding process has an standard requirements. important effect on final product safety, production cost and quality. In the event that the welded manufacturing process EN 15085 standard defines the welding process of railway and control phases of the organizations are inspected and vehicles and components and the EN 15085-2 certification approved, it is very important to complete the certification of the production, repair and revision of railway vehicles process and an important competition advantage is gained and components shows that their welded production meets when conformity to the relevant requirements is certified. the requirements specified in international standards. Certification bodies providing certification services under ISO 3834 standard is prepared for the companies that perform ISO 3834 and EN 15085-2 standards should be authorized as

64 accredited certification bodies in accordance with ISO/ IEC activities in accordance with EN 15085-2 and ISO 3834 17065 standard. TURK LOYDU has been recognized as series standards. TURK LOYDU performs certification Accredited Certification Body by TURKAK in accordance services for products listed in the table below, in accordance with ISO/IEC 17065 standard and it performs certification with ISO 3834 and EN 15085-2 standards.

Product Standard Quality requirements for the fusion welding of metallic materials - Part 2: EN ISO 3834-2 Comprehensive quality requirements

Quality requirements for the fusion welding metallic materials - Part 3: EN ISO 3834-3 Standard quality requirements

Quality requirements for fusion welding of metallic materials - Part 4: EN ISO 3834-4 Elementary quality requirements Railway applications - Welding of railway vehicles and components - Part 2: EN 15085-2 INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY Quality requirements and certification of welding manufacturer

Certified organizations can be found at: https://turkloydu.org/tr-tr/musteri-bilgilendirme-sistemi/belge-sorgulama/iso-3834-belgesi-sorgulama.aspx https://turkloydu.org/tr-tr/musteri-bilgilendirme-sistemi/belge-sorgulama/en-15085-belgesi-sorgulama.aspx ANNUAL REPORT | 2018 | REPORT ANNUAL

65 ANNUAL REPORT | 2018

AD 2000 MERKBLATT HP0, AD 2000 certificate is 1 year, and the audits are repeated at the end of the MERKBLATT W0 AUTHORIZED validity period for the purpose of recertification. MANUFACTURER CERTIFICATION INDUSTRIAL PLANT INSPECTION AD 2000 Merkblatt is an improved standard for the design and manufacture of pressure equipment. It covers assessment of technical documents, test reports, operating and testing MAZIDAĞI FERTILIZER PRODUCTION procedures, and inspection of plant conformity and adequacy, COMPLEX PROJECT definition and traceability, personnel competence and conformity, proper performance of the necessary tests and There is a phosphoric acid plant, sulphuric acid plant, ammonia inspections, conformity of the equipment, raw materials and plant, DAP plant and leaching facilities within the scope consumables used. of Fertilizer Production Complex project build in Mardin Mazıdağı by Eti Bakir A.S. Certified organizations gain advantages in terms of product safety, customer satisfaction, preferability and competitive power in the local and global markets.

TURK LOYDU provides HP0 services for products and W0 certification services for product components within the scope of AD 2000 Merkblatt.

In 2018, services were provided to Gedik Döküm ve Vana San. Tic. A.Ş., Edkosan Çelik Dövme San. ve Tic. Ltd. Şti., Öztürk Model Döküm Metal Makine Sanayi İthalat İhracat Tic. Ltd. Şti., Ankasan Makine Model Döküm Çelik Konstrüksiyon Sistemleri Nakliye San. ve Tic. Ltd. Şti. ve Faf Döküm San. ve Tic. A.Ş. Certificates are valid for 3 years and periodical inspections are performed on annual basis and new certification audits are performed in the end of 3-year period.

AUTHORIZED MANUFACTURER CERTIFICATION An organization proves the competence of plant, personnel, equipment and processes, conformity to quality requirements Completed in 2018, the project will have annual fertilizer and performance of production under controlled condition production capacity of 750,000 tons, and mineral separation, with Authorized Manufacturer Certification. precious metal extraction and phosphoric and sulfuric acid, ammonia sales will be performed in addition to fertilizer TURK LOYDU provider Authorized Manufacturer Certification production. service in order to determine conformity of production places, plants, personnel, machinery-equipment, quality control Inspection and conformity assessment and 3rd party inspection processes and practices. Authorized Manufacturer Certification services are provided for equipment production, steel and verifies qualification of the audited organization’s production, pipe productions within the scope of the project. The project equipment infrastructure and personnel, and shows that quality having an investment value of TRY 1 billion 90 million was requirements are met. commenced in July 2015 and when the plant is commissioned, it will have a capacity of producing 437 thousand 760 tons/ year In 2018, services were provided to Wenta Isi Teknolojileri concentrate phosphate; 75 thousand tons/year ammonia; 650 A.S., Ozmaksan Isi San. Ve Tic. A.Ş., Selnikel Isıtma ve Klima thousand tons/year sulphuric acid, 150 thousand tons/ year Cihazları San. A.Ş., Arme Endüstriyel Mekanik Makine San. ve phosphoric acid; 325 thousand tons/ year phosphate fertilizer Tic. Ltd. Şti., Teta Krom Çelik Sanayi Ltd. Şti. The validity of the and 690 thousand tons / year pyrite and iron ash. 66 INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY

ACACIA GÖKIRMAK BAKIR MINE equipment, are currently continued. In addition, waste PROJECT storage facility construction and excavation activities in the quarry area continue as planned. During the total mine life, Gökırmak Copper Mine Project developed by Acacia 1.28 million tonnes of concentrate production is targeted,

Maden İşletmeleri A.Ş. is located in Hanonu district, and the project is planned to last 12 years. 2018 | REPORT ANNUAL Kastamonu province. Within the scope of Gökırmak Copper Mine Project, it is aimed to start the ore production Project specific Inspection and Test Plan is developed and to continue the production of concentrated ore in and 3rd party inspection services are provided before 2019. It is planned to produce 2,000,000 tons of copper production and installation of construction works, maps, ore per year within the scope of the Gökırmak Copper factory production, equipment, pipe installation and tanks Mine Project. In this context, construction and installation and steel structures. activities of the plant that will operated with modern

POWER PLANT INSPECTION

AKKUYU NUCLEAR POWER PLANT PROJECT Turk Loydu Uygunluk Degerlendirme Hizmetleri A.S. obtained “Nuclear Structure Inspection Body Authorization Certificate” on 16.03.2018 in accordance with Turkish Atomic Energy Authority Law No. 2690 and Regulation on Structural Inspection of Nuclear Power Plants. For this purpose, activities related with Akkuyu Nuclear Power Plant Project Western Cargo Terminal are carried out by our organization. 67 ANNUAL REPORT | 2018

RISK ASSESSMENT TURK LOYDU will provide the following services within the • Lopa analysis; scope of Safety Report and BKOP inspection/ reporting services in • Functional Safety (SIS, SIL, SIF and ESD design); accordance with the Regulation for prevention of major industrial • Inspection of the Safety Management System; accidents and mitigation their adverse impacts (Seveso Directive). • Analysis of results and assessment of Individual and Social Risk (F-N CURVE); • Inspection of the classification of hazardous chemicals (in ac- • Modelling (Brezee) cordance with CLP); • Preparation of Safety Report. • Chemical Exposure assessment (ILO COSH method); • Classification of explosive environment within TEXA and preparation of Explosion Protection Document; PERSONNEL CERTIFICATION • P&ID drawing and controls; TURK LOYDU generates complete solutions for require- • Process Hazard Analysis (HAZOP); ments of customers with its constantly renewed dynamic • Identification and grouping of dangerous equipment within the structure and professional personnel in parallel with chang- process (Dow FEI index); ing design and production standards and ever-evolving tech- • Safety-based maintenance (RCM) review; nology. In this context, personnel certification services are • Analysis of Risk Based Inspection methods (RBI); provided for welded production processes in a wide range of • Investigation of the root cause and result analysis of major acci- sectors including pressure vessel production, steel structures, dent scenarios with BOW TIE; energy sector, defence industry, etc. 68 INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY ANNUAL REPORT | 2018 | REPORT ANNUAL

TURK LOYDU certified 1784 welders in 2018. TURK LOYDU certified 3020 staff members in total in 2018. The distribution of the last six years is shown in the graph below.

Personnel Certification

69 ANNUAL REPORT | 2018

PROFESSIONAL COMPETENCE CERTIFICATION Pursuant to the additional article (1) included in the Law No. 5544 on 23.04.2015, MYK Professional Competence Certification was made mandatory on 26.05.2016 for professions that are dangerous or very dangerous professions and included in the communiques published by the Ministry of Labour and Social Security (now known as, Ministry of Family, Labour and Social Services).

TURK LOYDU Uygunluk Degerlendirme Hizmetleri A.Ş. is an accredited certification body conducting inspection and certification activities in accordance with national requirements As a Certification Body Authorized by Vocational Qualifications of the Vocational Qualifications Authority (MYK). Authority, TURK LOYDU issued 1236 professional qualification Exams and certification activities are carried out in our exam certificates in 2018. centre and customer facilities in connection with the relevant national qualifications.

Metal Sector 11UY0014-3 Aluminium Welder 11UY0010-3 Steel Welder 11UY0016-4 Welding Operator 11UY0033-3 Natural Gas Steel Pipe Welder 11UY0013-3 Industrial Pipe Fitter

Construction Sector 12UY0056-3 Scaffolder 11UY0011-3 Timber Mould Worker 12UY0054-3 Sheetrock Worker 11UY0012-3 Rebar Fitter 16UY0253-2 Construction Worker

70 “Certificates are issued to an average of 3000 persons on annual basis in order to increase employment of qualified and certified labour force, increase the offering of products and services with increased quality, improving the living standards.” ANNUAL REPORT | 2018

INDUSTRIAL CERTIFICATION PRESSURE • NDT applications and evaluation in welded joints EQUIPMENT • Final inspection and hydrostatic pressure testing • Inspection and approval of the product’s technical file • Document issuance PRESSURE EQUIPMENT Boiler, pressure vessel and industrial product certification As of July 2016, our authorization within the scope of 2014/68/ activity is carried out for many years within the scope of EU Pressure Equipment Directive was suspended in connection “Product Certification” that is one of the main branches of our with CE conformity assessment services for pressure equipment. conformity assessment services. As of 08.06.2018, the Regulation on Authorization has been published again on the Notified Bodies page and at present, our Conformity assessment and certification of products are carried services in this field are maintained without any interruption. out in accordance with the EU’s new approach directives in case In addition, within the scope of cooperation made, π mark of CE-mark requirements. For product groups or markets where conformity assessment services are provided within the scope CE marking is not compulsory, “Product Certificate” is issued of Transportable Pressure Equipment Directive (TPED) by implementing TURK LOYDU procedures and guaranteeing (2010/35/EU) for which national Approved Body authorization the design, production, installation and commissioning has not been made in our country. Services are provided to processes. Selnikel Isitma ve Klima Cih. San. A.Ş., Cazgır İnşaat Isı Sist. Tic. ve San. A.Ş., Cryocan Basınçlı Kaplar End. Tesisler San. Ve Tic. LTD. ŞTİ., Yakut Kazan Makina İml. ve Müh. San. İth. İhr. Dah. Tic. LTD. ŞTİ., Isı Teknolojisi Makina Sanayi ve Tic. A.Ş., URT Mühendislik Basınçlı Kaplar Mak. San. Tic. Ltd. Şti.

FIRE PROTECTION SYSTEMS The conformity assessment of the fire protection systems is one of the activities that is gaining importance in industrial and domestic structures, and TURK LOYDU performs conformity assessments in this field as accredited Type A Inspection Body in accordance with ISO/IEC 17020 standard. Hot Steam Plant G Module Assembly Certification Service

Unless otherwise specified, boilers (steam boilers, hot water boilers, hot oil boilers etc.) are certified according to EN 12953, EN 12952, EN 303, TS 497 standards.

Unless otherwise specified, pressure vessels (LPG, LNG, air, nitrogen, oxygen tanks, etc.) are certified upon inspecting in accordance with AD 2000, EN 13445, ASME Sec.VIII Div. 1 etc. standard.

Main inspection phases for product certification can be summarized as follows:

• Inspection and approval of design and strength calculations Design, hydraulic calculations, installation controls, • Conformity inspection of materials and certificates performance and function tests are performed in accordance • Conformity inspection of welder certificates with “Regulation on Fire Protection of Buildings” and other • Conformity inspection of welding procedure (WPS, PQR) applicable standards. “System Approval Certificate” is issued by approvals TURK LOYDU in case the system is found compliant. Systems • Intermediate production inspections (inspections for cutting, that are mainly evaluated in the field of fire protection are assembly, welding procedure approvals, size, etc.) summarized below:

72 • Water, foam, automatic gas fire extinguishing systems Inspections are carried out by expert planning and control • Smoke evacuation and escape stairs pressurization systems engineers and special Intergraph e-tank computer program • Detection, alarm, emergency lighting systems is used. Special design analyses are carried out by applying • Fire water storage tanks SAP-2000 and ANSYS finite element method. • Evaluation of fire scenarios Inspections performed within the scope of Storage Tank A large number of projects were carried out by TURK Production Inspections are as follows: LOYDU in the field of conformity assessment of fire protection systems in 2018 and some of the prominent ones • Material, manufacturing and assembly inspections based are listed below: on approved project • Inspection of welders’ certificates Turkcell Bilgi İşlem Merkezi, Hilton İzmir, Mercedes Benz • Inspection of welding procedure approvals (WPS & PQR) Türk A.Ş. fabrikaları, Balıkesir Büyükşehir Belediyesi, İçdaş. • Inspections during pre-fabrication (bending, etc.) at the factory STORAGE TANKS • Verticality, diameter, ovality inspections of tanks • Visual inspection TURK LOYDU performs periodical inspections of produced,

• Evaluation of NDT applications and reports SECTOR AND CERTIFICATION INDUSTRY installed and serviced tanks within the scope of API 650 and • Final inspection and tests API 653 and new tanks in connection with storage tanks • Issuance of certificate for the storage tank above the ground with its professional staff members under the umbrella of accreditation in accordance with ISO/IEC 17020 standard and “API 650 Authorized Inspection Agency” competence about atmospheric storage tanks above the In 2018, conformity assessment was performed for 8 ground. In the process of design inspections, compliance of storage tanks with capacity varying between 45 m3 and 600 storage tanks to API 650 standard is inspected in consideration m3. BP Gaz, Kansai Altan are some of the companies that of earthquake calculation, wind and snow load calculations. received services. ANNUAL REPORT | 2018 | REPORT ANNUAL

73 ANNUAL REPORT | 2018

RAILWAY TURK LOYDU received “Assessment Organization” authorization Upon signing a protocol on 6 February 2018, TURK LOYDU for performing certification and assessment activities within was granted “Designated Body” (De-Bo) authorization the scope of “COTIF, Authorized Operator” for the purpose of for the purpose of evaluating, reporting and certifying assessing international competencies of railway vehicles, from railway vehicles in accordance with national requirements. General Directorate of Railway Regulations that operators TURK LOYDU is also authorized as “Assessing Entity” for as National Safety Authority and Sector Regulator under the the purpose of conformity assessment in accordance with command of the Ministry of Transportation and Infrastructure. Uniform Technical Prescriptions prepared by the International

74 TURK LOYDU’s Railway Activities In line with the vision of expanding the scope of services provided by TURK LOYDU within the Industry and Certification Sector, in the recent years, certain efforts are displayed for more than a year for the purpose of showing presence in the railway sector that takes the highest share from the budget of the Ministry of Transport and Infrastructure.

Consultation with both the relevant public authorities and agencies and private companies producing services or products for the railway sector, and effort was made for creating awareness on this matter in order to inform about works and existing services of TURK LOYDU. INDUSTRY AND CERTIFICATION SECTOR AND CERTIFICATION INDUSTRY ANNUAL REPORT | 2018 | REPORT ANNUAL

Intergovernmental Organisation for International Carriage by Rail (OTIF) where our country is also a member. Accordingly, it is foreseen to reduce the dependence on foreign countries in the process of approval of railway vehicles in the upcoming period. At this point, TURK LOYDU will continue to take responsibility for increasing localization in the ”Certification” services that our country needs in strategic sector particularly including the railways.

75 ANNUAL REPORT | 2018

MANAGEMENT SYSTEMS annual basis upon verification by verifying entities. Verification CERTIFICATION was performed for emission reports pertaining to 2015-2016- 2017 in this field for which we carry out activities for 2 years. TURK LOYDU provided certification services in many sectors Verification works were carried out in various sectors such such as chambers of commerce and industry, commodity as energy, iron-steel, ceramics, lime, cement, glass, chemistry exchanges, local administrations, education, shipbuilding, sectors within the scope of our authorization certificate. In maritime, machinery, metal, chemicals, transportation and addition, verifying entity accreditation was received for green engineering services in connection with certification of gasses from TURKAK in accordance with TS EN ISO 14065. management systems. In 2018, approximately 40 verification reports were submitted Standards used for certification activities in 2018: by TURK LOYDU to the Ministry of Labour and Urbanization • ISO 9001 Quality Management System within the scope of voluntary green gas verification works • ISO 14001 Environmental Management System in accordance with ISO 14064. The graph below shows the • OHSAS 18001 Occupational Health and Safety Management sectoral breakdown of verification activities. System • ISO 10002 Customer Satisfaction Management System • ISO 27001 Information Security Management System Project Density Map by Scope • ISO 50001 Energy Management System

VERIFICATION OF GREENHOUSE GAS EMISSION REPORTS Greenhouse gas emissions verification works commenced upon adoption of the Regulation on Monitoring Greenhouse Gas Emissions by the Ministry of Environment and Urbanization (CSB). The facilities carrying out the activities listed in the Annex-1 List of the Regulation are obliged to prepare greenhouse gas emission reports and submit them to the Ministry of Environment and Urbanization (MoEU) until 30 April on

76 ISO 27001 INFORMATION No. 29217 of 26.12.20214, ISO 27001 information security SECURITY MANAGEMENT SYSTEM management certificate obtained from TURKAK accredited CERTIFICATION organizations has been made compulsory. In 2018, TURK LOYDU performed certification activities in ISO 27001 Certificate facilitates customs clearance procedures. organizations that are within the scope of Economic Operator ISO 9001 and ISO 27001 certificates are required for the Authorization and electricity production, distribution and institutions that will submit Authorized Economic Operator natural gas distribution companies within the scope of EMRA application in accordance with the Regulation on Facilitation Licencing regulation for the purpose of ISO 27001 Information of Customs Procedures promulgated in the Official Gazette on Security Management System certification. 10 January 2013 and amended and promulgated on 21 May 2014. ISO 27001 information security management system covers the entire industry from small-scale to big-scale organizations, TOBB CHAMBERS AND COMMODITY production to service and public sector to private sector. This EXCHANGES ACCREDITATION SYSTEM standard is required especially in sectors such as energy, finance, health, public, logistics, customs clearance, export, Chambers / Commodity Exchanges Accreditation System is import, telecommunication and information technologies a model developed in consideration of the system of the British where protection of information is of great importance. Union of Chambers and Eurochambers including opinions SECTOR AND CERTIFICATION INDUSTRY on German Chambers System, within the framework of ISO 27001 Certificate is mandatory for EMRA (Energy ARCHIMEDES and collaboration of Eurochambers -TOBB Market Regulatory Authority) License. In the amendments within the scope of “Turkish Chamber Improvement made by EMRA in the Electricity Market License Regulation, Program” for the purpose of improving service quality of Natural Gas Market License Regulation and Petroleum Market chambers and exchanges under umbrella of The Union of License Regulation upon promulgation in the Official Gazette Chambers and Commodity Exchanges of Turkey (TOBB). ANNUAL REPORT | 2018 | REPORT ANNUAL

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ISO 9001 QUALITY MANAGEMENT PARTICIPATION TO MEETINGS AND SYSTEM CERTIFICATION AT TECHNICAL EVENTS UNIVERSITIES “Higher Education Quality Assurance and Higher Education PARTICIPATION TO the 58th GENERAL Quality Committee Regulation” on establishment of a quality ASSEMBLY OF CEOC INTERNATIONAL assurance system at higher education institutions, internal and AND TIC COUNCIL external evaluation processes, principles and procedures of th working for Higher Education Quality Committee has been 58 CEOC International General promulgated in the Official Gazette No. 30604 of 23.11.2018. Assembly and Technical Committee Meetings were held on 09-12 June 2018 in Lisbon. CEOC International is a non-profit sector organization with 29 independent inspection and certification bodies from 19 countries and TURK LOYDU is one of its members. Industry and Certification Sector Director Ayfer Adıgüzel and Business Development Department’s Director Mehtap Karahallı Özdemir attended the 58th. General Assembly and meetings in addition to approximately 100 delegates representing 30 members from 18 countries. On the first day of the General Assembly, CEOC International members voted in favour of the proposal for merger between CEOC International and IFIA. Pursuant to the regulation, higher education institutions are obliged to ensure that the internal and external quality assurance On the second day, governing bodies were elected. CEOC and system is created for implementing in its own institutions and IFIA organizations also including TURK LOYDU, merged internal and external evaluation processes are carried out in line with the principles to be established by the Committee. Higher education institutions have an internal evaluation processes that are integrated with strategic plan, annual performance program and annual report. Higher education institutions that do not have the obligation to prepare these reports carry out all activities including education, research and social contribution activities integrated in accordance with vision, mission and strategic objectives and quality assurance systems.

ISO 9001 Quality Management System that is a very important product and service based standard forming basis to institutionalization and implemented by many organizations today is selected and implemented as model in many universities for internal quality assurance system that must be created as a requirement of ISO 9001 Quality Management System, “Higher Education Quality Assurance and Higher Education Quality Committee Regulation”.

In 2018, TURK LOYDU carried out training and certification activities at universities as was carried out in the previous years. In 2018, services were provided to Gebze Technical University, Hasan Kalyoncu University, Antalya Bilim Universities and Yıldız Technical University, Yıldız Technology Development Zone Technopark in connection with ISO 9001 certification. 78 and established the International Testing Inspection the 5th International Nuclear Power Plant Summit and Fair Certification Council (TIC Council). CEOC is an EU- held on 6-7 March 2018 at Pullman Istanbul Convention based organization representing the leading companies in Centre. Prominent names in nuclear industry worldwide as the Testing, Inspection and Certification sector, and IFIA is well as TURK LOYDU and TUV NORD Germany- strategic the International Association of Inspection Organizations partners in nuclear energy- participated in the summit with a serving on a global scale. The international TIC Council stand they opened for promotion. formed with the merger is expected to be globally influential and lead many organizations that provide independent Organized by Nuclear Engineers Associations, the Summit third-party verification services. brought Turkish companies together with nearly 100 companies steering the nuclear industry from countries Formed with the merger of IFIA and CEOC - global test and such as South Korea, France, Germany, Russia, Japan, inspection sector organizations- during the extraordinary China and Finland and it served as a platform to develop general assembly organized on 13 December 2018 and commercial collaborations and share the latest technological attended by Industry and Certification Sector Director Ayfer developments. The 5th International Nuclear Power Plants Adıgüzel and Foreign Relations Manager Mehmet Avcı, Summit and Fair was also attended by the international Brussels based TIC Council, will be the voice of more than companies operating reactors and building power plants and

90 member companies and organizations operating in the organizations that want to take a role in nuclear projects in SECTOR AND CERTIFICATION INDUSTRY field of test, inspection and certification at global scale. Turkey, the Middle East and Africa. Throughout the event, Turkish firms became acquainted with opportunities related PARTICIPATION TO the 5th to nuclear industry through the Nuclear Trade Matching INTERNATIONAL NUCLEAR POWER Platform.

PLANT SUMMIT AND FAIR The event started with opening speeches of Dr. Erol Cubukcu, TURK LOYDU and TÜV NORD Germany participated in Chairman of Nuclear Engineers Association and the President ANNUAL REPORT | 2018 | REPORT ANNUAL

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of the International Nuclear Power Plants Summit; Jonathan PARTICIPATION TO SAHA ISTANBUL Cobb, Senior Communication Manager of the World Nuclear DEFENCE AEROSPACE CLUSTER Association; Henri Paillere, OECD Nuclear Development Unit President and Aykut Tor, Project Manager at Ronesans Industry ASSOCIATION’S COMMITTEE MEETINGS Facilities Nuclear Department. In the fair venue of the event, Taking the ideal of increasing TURK LOYDU opened a joint stand together with TUV Nord national production capabilities that is a strategic partner in nuclear energy, and provided and capacity as a start point, information to visitors on conformity assessment activities that in 2018, we attended meetings are aimed at guaranteeing quality, occupational safety, rules, of Test and Certification standards and regulations, conformity of products, systems and Committee and Test and facilities in accordance with the legislation for the purpose of Certification Sub-Committee ensuring safety of nuclear plants and assuring criteria specified (AS 9100 Certification) as a in the relevant specifications. member of SAHA Istanbul- Defence and Aerospace Cluster Association- largest cluster of PARTICIPATION TO HIGHWAYS, Turkey founded with the initiative of 27 founders on March BRIDGES AND TUNNELS FAIR Highways, Bridges and Tunnels Fair organized for the third time this year by Turkish National Committee of Roads that provides communication and cooperation between public ins- titutions, private sector and universities, was held in Istanbul Congress Centre on 03-06 October 2018.

To bring together the stakeholders of the road transport sector and to share information on projects, this year 160 companies and more than 7,000 visitors attended the fair organized by the Ministry of Transport and Infrastructure, with the technical support of the General Directorate of Highways and the Inter- national Roads Federation. TURK LOYDU’s participated the fair by opening a stand and visitors were informed about TURK LOYDU and its activities.

80 2015 for the purpose of steering, providing information to and guiding companies in aerospace industry and accommodating 308 member companies and 11 universities today.

PARTICIPATION TO SAHA EXPO FAIR TURK LOYDU participated in SAHA EXPO 2018 Defence and Aerospace Industry Fair held on 13-15 September 2018 at Istanbul Expo Centre.

Planned to be organized biannually starting from 2018 under management and responsibility of SAHA Istanbul Defence and Aerospace Cluster Association, SAHA Expo 2018 Defence and Aerospace Industry Fair showed as a platform to showcase products of companies designing, developing and producing the most contemporary platform sub-systems

and components that will be used in the defence, maritime SECTOR AND CERTIFICATION INDUSTRY and aerospace industry. Participated by 135 companies, the fair received great interest from visitors.

PARTICIPATION TO TUCSAMARK TECHNICAL COMMITTEE MEETINGS AND GENERAL ASSEMBLY THe presentation of TUCSAMark V4 Certification Model for which works

were carried out for one year was made to TUCSA General 2018 | REPORT ANNUAL Assembly members on 15 February 2018. TUCSAMARK was created as an integrated management system model that performs quality, environment, HSE, process, HR and capacity adequacy measurement of steel designers, manufacturers and all contractors in the supply chain. The auditors of our company will participate in this project with the cooperation agreement signed with TUCSA and they will provide access to all stakeholders in the steel industry in addition to commercial advantages.

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TRAINING SERVICES ANNUAL REPORT | 2018

TRAINING SERVICES

In 2018, TURK LOYDU continued with training services 1.Management System Trainings performed in consideration of the requirements of sectors 2.Maritime Trainings (Maritime, Ship and Yacht Building, Production, Energy, 3.Transportation/Logistics Training (including DGSA-Dangerous Transportation, Logistics, Defence Industry, etc.) where we Goods Safety Advisor- and trainings within the scope of IMDG Code) offer services, by adding new training subjects. 4. Trainings on Industrial Activities 5. Trainings for Institutional and Individual Development TURK LOYDU aims to be a pioneer in the trainings for the sectors in which it operates, by combining its ability to offer Our trainings are provided by professional and experienced innovative trainings and make sectoral collaborations. instructors and training curriculum is constantly improved and developed with feedbacks received after trainings. At the end of Our trainings are planned as open trainingsopen to general our training, TURK LOYDU gives a certificate of achievement participation trainings organized upon request of companies or participation. For some trainings (TMGD trainings, and organizations and trainings organized upon request of trainings under IMDG code, and Maritime Surveillance Officer trainings can be listed in 5 groups. Trainings), completion certificates are issued. 84 TURK LOYDU; is capable of solving training requirements • EN ISO / IEC 17065 Conformity Assessment- Information of stakeholder sectors by offering ideal conditions with 5 Training on Conditions for Product, Process and Service training rooms including one room with computers, and Certifying Bodies a Conference Room. Trainings were provided under 59 different titles in 2018. Industrial Activities • Trainings within the scope of calibration applications Total number of trainings provided: 97 trainings (General Metrology; Measurement Uncertainty; Calibration Total Training Participants: 1.319 persons of Pressure Gauges and Pressure Transducers, Calibration of Temperature Gauges, Calibration of Weighing Instruments) NEW TRAINING TOPICS IN 2018 • ISO 14046 Water Footprint; Principles, Requirements and In the sectors in which we provide services, we aim to Guidance and Documentation Training increase the diversity of the trainings provided by taking • Iron-Steel Scrap Quality and Standards Information into account the new trainings that may be needed within Training the framework of new developments, and especially in 2018, new trainings were planned and provided on management Transportation/ Logistics/ Maritime systems, industrial, transportation, logistics and maritime, Activities TRAINING SERVICES institutional and individual development fields. • Awareness Training on Lashing and Securing of Materials and Equipment in Ships An important part of our vocational and technical training • Information Training on International Convention on Safe activities, we provide information to KOSGEB member Containers (CSC Code) companies for taking KOSGEB aids into consideration in • Training on Stability of Military Ships connection with out trainings. The relevant information about the subject is posted on our website. MARITIME SURVEILLANCE OFFICER TURK LOYDU; obtained “Maritime Surveillance Officer Training Organization Authorization Certificate” on 25 September 2017 in addition to IMDG Code Trainings

Organization Authorization Certificate obtained in 2011 and 2018 | REPORT ANNUAL DGSA Trainings Authorization Certificate obtained in 2014, it is capable of providing all “Maritime Surveillance Officer Trainings” within the scope of the applicable Directive (Directive on Authorization of Surveillance Companies that Offer Surveillance Services on Dangerous Cargo- amended with Minister Approval No. 57300 on 13 July 2017) in addition to trainings within the scope of IMDG Code.

The aforementioned directive came into force in 2017 and NEW TRAININGS IN 2018 the relevant training organizations and interested parties were informed that the relevant directive will be reviewed Management Systems and revised with the announcement made on 27.12.2017 • ISO 45001: 2018 Occupational Health and Safety by the Ministry. Maritime Surveillance Officer trainings Management System Trainings (Information, Internal within the scope of carrying dangerous goods could not be Auditor, Standard Transition) offered as directive revisions are not completed. As TURK • AS 9100: 2016 Quality Training for Aerospace and Defence LOYDU, we planned and carried out the following trainings Industry Organizations (Information, Internal Auditor, for the relevant employees of the transport and surveillance Revision Transition, Documentation and Implementation) companies that were started independently from these • IRCA approved ISO 50001: 2011 Energy MS Lead Auditor trainings. Training

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• IMDG Code General Awareness and Function-specific Trainings and Refresher Trainings • Draft Survey Calculation Information Training • Loading Safety, Safe Stowing and Lashing Calculations Training in Road and Sea Transportation • Training of Code of Practice for Packing of Cargo Transport Units (CTU Code) • Training on the Safe Execution of Fumigation Operations within the Scope of CTU Code • Bulk Cargo Sampling and Preparation Training • Transport and Marine Insurance Losses Training

DANGEROUS GOODS SAFETY ADVISER (DGSA) TRAININGS Pursuant to the first four paragraphs of the Provisional Article the aforementioned Communiqué, it became mandatory for Dangerous Goods Safety Adviser Trainings are carried out the enterprises that are included in the scope of the above- within the scope of the authorization certificate received mentioned scope to employ DGSA or receive DGSA service from the Ministry of Transport, Maritime Affairs and from a DGSAO as of 1 January 2018. Communications (now called Ministry of Transport and (1) Stations dealing with retail sales of fuel, LPG, CNG and LNG Infrastructure) in 2014. DGSA Communique published stations, as well as enterprises selling LPG and CNG tubes; on 22.05.2014 has been amended by the Official Gazette of (2) Port facilities engaged in activities related to the transport 19.04.2017. These amendments are fundamental amendments and temporary storage of dangerous goods, and substantial amendments were made on matters such as (3) Transport of Dangerous Goods by Road with Transport such as condition of being DGSA, training hours and serving as Authorization Certificate according to the Road Transport DGSA. Training and examination rights of DGSAs and DGSA Regulation candidates other than science and engineering areas are still Transport companies only carrying out transportation within continuing except for science and engineering graduates who the scope of the Regulation, received DGSA training before 19.04.2017, have right to take (4) Public institutions and organizations. exam or completed the training. Discounts are provided to Chamber members in connection with training fees under the protocols previously made with members of UCTEA Chamber of Chemical Engineers, UCTEA Chamber of Environmental Engineers and UCTEA Chamber of Naval Architects and Marine Engineers. In 2019, protocols will be made with the other Chambers and Associations that can request for similar discount conditions for their members.

TRAINING ORGANIZED DGSA Training within the scope of ADR This communique provides that organizations taking a role in the chain of dangerous goods transport, shipping, packaging, (64 hours) loading, filling and discharging such goods and transportation • 8 hours per week, training period of 8 days including weekends companies are obliged to employ at least one “Dangerous Goods and working hours (pursuant to amendment in the communique, Safety Adviser” (DGSA) or receive services from Dangerous receivers of DGSA Training within the scope of ADR are obliged Goods Safety Advisory Organization (DGSAO) by specifying to receive theoretical and practical fire training of 8 hour in temporary exemptions and deadlines. The obligation to recruit addition to DGSA Training. In this case, total training period is DGSA or receive services has been put into effect as of 30 June 9 days.) 2015 for many relevant organizations within the scope of the • Training period of at least 13-14 days in total, 8 hours out of working legislation. hours between 5 p.m. or 6 p.m. And 9 p.m., and at weekends (4 days).

86 Dangerous Goods Safety Adviser current DGSA exams) must be passed successfully. DGSAs (DGSA) Training within the scope of should plan to take the renewal examinations by taking IMDG Code and RID (42 hours) into consideration the certificate renewal rights granted to them. This training is organized for those who have received • DGSAs will not be required to receive refresher training DGSA Training within the scope of ADR. The training for the ADR, RID and IMDG Code Agreements valid for is provided for both transport modes (sea and railway) as the year in which they are trained. Refresher trainings of an additional training of 21 hours. Training duration is at the TMGDs will start from the year of publication of the least 6 days in total. After the training, it is necessary to take relevant agreement or the next version of the code. DGSA certification exams which are held for both modes • In the year of the publication of the new version of the of transport, similar to the DGSA Certification exams ADR, RID and IMDG Code applicants whose certificate organized by the Ministry of Transport and Infrastructure period has expired will have to take the refresher training (UDHB). The prerequisite for participating in the IMDG for that year before entering the renewal exam. Code and the DGSA Certification Exam under the RID is to receive DGSA Training under the code of IMDG Code and Other trainings within the scope of transportation/ RID and DGSA Certificate under ADR. logistics in connection with Transportation of Dangerous

Goods are described below. Some of these trainings are TRAINING SERVICES Dangerous Goods Safety Adviser open to general participation or provided to organizations (DGSA) Refresher Trainings (16 hours and institutions upon request. A part of these trainings for each of ADR, IMDG Code and RID) is offered to organizations and institutions solely upon request. Pursuant to Article 21 of the Communique on Dangerous Foods Safety Consultancy that was promulgated in the • Information on Transportation of Class 1 (ADR/ IMDG Official Gazette No. 29007 of 25.05.2014 and amended with Code/ RID) Explosive Substances the Official Gazette No. 30043 of 19.04.2017, Refresher • Information on Transportation of Radioactive Substances Trainings of Dangerous Goods Safety Adviser (DGSA) should (ADR/ IMDG Code/ RID) be started from 01.01.2019 in accordance with paragraph 6, • Loading Safety in Road and Sea Transportation temporary article 2 under the same Communique. • Information Training on EN 12798: 2007 Road, Rail

and Domestic Sea Transportation - Quality Management 2018 | REPORT ANNUAL The following points are expected to be taken into account in System Requirements for Completing ISO 9001 for Safety the implementation of refreshment trainings. in Transport of Dangerous Goods.

• DGSA Refresher trainings will be given by the training institutions authorized by the Ministry (UAB) to give DGSA CHEMICAL EVALUATION EXPERT training. (CEE) TRAININGS • Refresher training will cover national legislation and ADR, RID and IMDG Code amendments. Approval of the training program was obtained with the letter • All DGSAs will be required to receive training in the year dated 03.12.2018 that was issued the Ministry of Environment during which new version of ADR, RID and IMDG Code and Urbanization for the purpose of organizing Chemical Agreements are released (i.e., 01.01.2019- 31.12.2019 for Evaluation Expert Trainings. ADR and RID and 01.01.2020-31.01.2020 for IMDG Code). • DGSAs who do not receive DGSA Refresher training Pursuant to the Regulation on Registration, Evaluation, within the required time period will not be able to take Permission and Restriction of Chemicals that was promulgated the DGSA Certificate renewal exams. In accordance with on 23 June 2017 by the Ministry of Environment and the Communiqué, candidates who do not receive refresher Urbanization and entered into force on 23 December 2017 training are required to take DGSA Training again after the (KKDIK Regulation), activities such as Chemical Safety certificate expiry date and take DGSA Exam. Evaluation, issuance of Chemical Safety Report (CSR) and • DGSA refresher trainings should be received before the Safety Data Sheet (SDS) is performed by Chemical Evaluation end of the DGSA certificate validity period (five years) and Experts (CEE). In addition, the files prepared for the registration DGSA certification renewal exams taken (as well as the of chemical substances should also be examined by the CEE.

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Persons who received training on training subjects specified • Requirements for the preparation of a safety data sheet (SDS) in Annex 18 to KKDIK Regulation and competence certificate • Preparation of the registration file from an organization accredited by TURKAK for the purpose of certification of personnel about CEE, and persons who worked for at least 10 years in connection with the management of chemicals at the Ministry (Ministry of Environment and Urbanization) are defined as “CEE” under the Regulation.

A Chemical Evaluation Expert is expected to make the following evaluations: • Physical and chemical hazard evaluation, • Evaluation of hazards to human health, • Environmental hazard evaluation, • Evaluation of persistent, bioaccumulative, toxic or very persistent, very bioaccumulative properties of chemicals, • Evaluation of exposure to chemicals, • Risk assessment and characterization ONGOING TRAININGS 2018, an informal training program was made for Chambers Those who want to take the CEE certification exam to be and Commodity Exchanges operating under of Turkey Union of conducted by an institution accredited by TURKAK after the Chambers and Commodity Exchanges. Trainings were provided training, should meet the following conditions as first priority on many management systems (ISO 10002, ISO 14001, ISO/ provided that they receive CEE Education for 64 hours. IEC 27001 etc.) particularly including ISO 9001:2015 Quality a) Degree from undergraduate departments/ programs of Management System. In addition, our industrial trainings, Science/ Science and Literature Faculties or Engineering maritime trainings, trainings in the fields of transportation and Faculties related with chemistry, biology or environmental logistics have also attracted great attention from the sectors and sciences; or participants for which we offer various services. b) master’s or doctoral degree on chemistry; or c) Degree from other undergraduate departments of universities General information about ongoing trainings is provided and proof on 5 years of experience in the production, quality below: control or chemicals management. Training Seminars Under IMDG Code Curriculum of 64-Hour CEE Training Training seminars we commenced as of 17 September 2011 as • Management of Chemicals Authorized Body were continued in 2018 in accordance with • Regulation on Classification, Labelling and Packaging of “Regulation on Training and Certification within the scope of Materials and Mixtures the International Maritime Dangerous Goods Code” that was • Transportation and Storage of Dangerous Goods amended and promulgated in the Official Gazette No. 29601 of 22 January 2016 by the Ministry of Transportation, Maritime • Occupational Health and Safety and Communication. • Registration, Evaluation, Permission and Restriction of Chemicals Trainings we organize within the scope of IMDG Code are • Classification of substances and mixtures; classified in three different groups. Refreshment Training - by physical and chemical properties; Seminars within the scope of IMDG Code that were commenced - by toxicological properties, in 2013, are continuing. Employees subject to the Regulation - by ecotoxicological properties. and previously received IMDG Code General Awareness and • Chemicals - risk assessment about human health Function-specific Trainings must attend the Refreshment • Chemicals - environmental risk assessment Training Seminars under the IMDG Code before expiry of two • Exposure scenarios years pursuant to the applicable legislation. • Chemical Safety Evaluation (CSE), • Chemical Safety Report (CSR), 1. IMDG Code General Awareness Training Seminar (1 day)

88 2. IMDG Code Function-specific Training Seminar (3 days) Management System Information Training 3. IMDG Code Refreshment Training Seminar (1.5 days) Information and Internal Auditor trainings were provided in 2018 within the scope of the standard revision trainings and 2015 standards as the standard within the scope of ISO 9001 and ISO 14001 were revised in 2015. Similarly, information, internal auditor trainings, integrated management systems trainings were provided within the scope of ISO 45001: 2018 standard that was released in 2018 for amendment of OHSAS 18001 OHSMS standard.

IMDG Code General Awareness and Function-specific Trainings must be received together and their duration is 4

days. The Regulation defined a training headline including TRAINING SERVICES the subjects within the scope of previous Function-specific Training under the headline of Safety Training specified in the legislation enacted in accordance with IMDG Code version 37-14. Safety Training is provided within the scope Trainings on Industrial Activities of IMDG Code Function-specific Training. • Explosion Protection Document Preparation Training • General Awareness Training on Explosion Protection Training on Management Systems • Information Training on Degasification and Gas Measurement Techniques • Information/basic and internal auditor trainings about • Information on Iron-Steel Scrap Quality and Standards ISO 9001 Quality MS (Management System, ISO 14001 • Information Training on ISO 14064 Specification with Environmental MS, OHSAS 18001 Occupational Health Guidance at the Organization Level for Quantification and and Safety MS, ISO 45001 Occupational Health and Safety Reporting of Greenhouse Gas Emissions and Removals Management System, ISO 10002 Customer Satisfaction 2018 | REPORT ANNUAL • Information on Regulation on Pressure Equipment (PED Management System, and the Integrated Management - 2014/68/ EU) and Regulation on Simple Pressure Vessels System trainings consisting of certain combinations of these (SPVD 2104/29/ EU) standards • Transportable Pressure Equipment Regulation (TPED- • ”Process Management and Improvement“ trainings 2010/35 / EU) • ISO 50001 Energy Management Systems Information and • EN 1090-2: 2018 Transition Training in Steel Structures Internal Auditor Trainings • EN 1090-2: 2018 Practitioner Training and Performance • ISO/IEC 27001 Information Security Management System Statement for Steel Structures, WPS / PQR Workshop Information and Internal Auditor Trainings • Information Training on Application of Tests for Pressure • ISO/IEC 20000 Information Technologies- Service Vessels • Occupational Health and Safety trainings • Information Training on Occupational Health and Safety in Shipyards • Information Training on Occupational Health and Safety for Working in Confined Spaces • Information on Safe Installation of Scaffolding and Safe Working on Scaffolding- Theoretical Training • Applied General Fire Training • Permit for Working at Height • Emergency Response Team Training and Emergency Evacuation Practice

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TRAININGS FOR WELDING • MLC, 2006 (ILO Maritime Labour Convention, 2006) TECHNOLOGY AND APPLICATIONS trainings: These trainings were included among our general trainings from the beginning of 2011. It is foreseen that this • Refreshment trainings with theoretical and practical sessions training will receive interest in the upcoming periods. considering the relevant standards and organized upon request • International Conventions / Codes / Standards Training for of companies in connection with various fastening/ welding Marine Terminals technologies (Plastic Welding, Electrical Arc Welding, Inert • Market Surveillance and Inspection of Products within the Gas Welding, TIG Welding, Oxy-Acetylene Welding, Hard and scope of the Recreational Craft Directive Soft Soldering, etc.) • Information and Practices on Ship Energy Efficiency • EN ISO 14731 Information Training on Welding Coordination, Management Plan Tasks and Responsibilities. • ISO 3834 Series Standard Trainings on Quality Requirements In 2019, it is planned to organize a series of general or company- for Fusion Welding of Metallic Materials specific trainings on requirements of ship operators particularly • Information Training on Welding Faults and Inspection including tanker and bunker operators, within the scope of • Training on Preparation and Approval of Welding Plans international collaboration. Trainings that will be planned in (WPS) 2019 are provided below. These trainings will be provided in English. In addition to trainings described above, Hasan Habiboglu, one of our surveyors, made a presentation on 23 October 2018 in Prof. Dr. Teoman Özalp Conference Hall in connection with “welding operations, welding procedures, non-destructive and destructive testing methods for welding production, classification practices” for students taking “Ship Production Methods” in undergraduate program of the Faculty of Naval Architecture and Ocean Engineering at the İTÜ, as was done in the previous years.

• BMSA Awareness, the RIGHTSHIP Perspective • Communication, Diversity & Teambuilding • Cyber-Security • Emergency Procedures and Response • Garbage Management Plan (GMP) TRAININGS FOR MARITIME AND • Incident Investigation and Root Cause Analysis SHIP BUILDING, MAINTENANCE AND • Management of Change • Management of Resources and Personnel REPAIR INDUSTRY • Management, Leadership & Accountability • International Safety Management System (ISM Code) Auditor • Media Response Training training: ISM Code Auditor Training is one of the criteria of • Navigational Audits DPA designation and it is a 2-day training provided by Turk • Preparation for PSC Inspections and Recommendations to Loydu since 2009. Avoid Detainable Deficiencies • Training on “MARPOL International Convention on the • Presentation, Communication & Negotiating Skills Prevention of Marine Pollution by Ships“ The training designed • Reflective Training, Learning from Incidents (LFI) and for the ship operators was improved for the ports and marine Learning Engagement Tool (LET) terminals. • Risk Assessment & Risk Management 90 • Ship Energy Efficiency Management (SEEMP) • Monitoring, Reporting and Verification (MRV) of CO2 emissions • Vetting Inspections (Bulkers) – as per Rightship Requirements (Vessel) • Vetting Inspections (Tankers) – as per VIQ / SIRE Requirements • TMSA 3 Awareness, the Oil Majors Perspective

TRAININGS/ SEMINARS FOR INSTITUTIONAL AND INDIVIDUAL DEVELOPMENT These seminars are usually organized upon request and in 2018, they were planned as trainings open to general participation. These seminars were introduced with short presentation of the instructor Mr. Oguz Saygin that was • Process Management and Improvement TRAINING SERVICES made in a seminar organized with the participation of our • Safe Behaviour, shipyards and human resources officers from other relevant • Emotional Intelligence, companies on 02 March 2018 in GISBIR Conference Hall. • Problem Solving and Decision-Making skills • Accurate and Effective Speaking Skills It was observed that these trainings are preferred as trainings • Change Management specific to companies/ organizations rather than trainings • Effective Written Communication at Work open to general participation. On the other hand, these • Developing Management and Leadership Skills trainings will be planned to be open to general participation • Strategic Thinking and Planning Skills in 2019. • Developing Coaching Skills • Beginner and Intermediate Level Excel Training Corporate and Individual Development Trainings” offered • Advanced Level Excel Training for “General Participation” or “Specific to Organizations” • Communication Techniques and Skills Training for 2018 | REPORT ANNUAL are preferred due to positive contribution provided to the Institutional Email Correspondence performance of executives and employees. Main trainings that can be provided in this scope are listed below: OFFERING TURK LOYDU TRAINING AND CONFERENCE HALLS FOR USE • Root Cause Analysis • Time management UPON EXTERNAL REQUESTS • Motivation and Stress Management Our Training Halls are offered for use within the framework of trainings, courses, meetings and similar other events organized by various organizations, institutions and companies in consideration of the requirements of the sectors where we operate.

• In 2018, our training rooms and conference halls were designated for the use of UCTEA Chamber of Naval Architects and Marine Engineers (Turkish) for software training, technical training and seminars members and students. • Our conference hall and training rooms were designated for the use of meetings and trainings planned in 2018 by the Turkish Ship Industrialists’ Association, Shipyards and other enterprises. 91

FOUNDATION ACTIVITIES ANNUAL REPORT | 2018

FOUNDATION ACTIVITIES

OVERVIEW TURK LOYDU Foundation was established in 27 February 1962 by UCTEA Chamber of Naval Architects and Marine Engnieers (Turkish), during the first general assembly meeting held in Galata Passenger Hall with the participation of 31 members including delegates of Turkish Union of Insurance and Reinsurance Companies, External Marine Voyages Association, Istanbul Chamber of Industry, Maritime Bank, Eregli Demir ve Celik Fabrikasi T.A.S., Ministry of Trade and Istanbul Technical University.

In the first General Assembly of TURK LOYDU Foundation, Chairman of the Entrepreneurs’ Standing Committee Zeyyad Parlar underlined the importance and duties of Turk Loydu as follows: “Turk Loydu will not be any different than other reputable class societies. TURK LOYDU will be based on two principles. One of them is technique and knowledge and the other one is reliability and impartiality. The principles have been designed accordingly so that the establishment does not deflect from these two ways. TURK LOYDU will endeavour to be the most reliable advisor of insurers, shipowners and motor owners, shipbuilders and repairers, relevant government authorities. TURK LOYDU will be the most favoured stakeholder of these enterprises in connection with technical matters. It will be technical and knowledgeable companion they can trust in case of any problem they may encounter.”

TURK LOYDU Foundation overcame the most important obstacle by becoming “nationally recognized classification society” in 1981 as a result of its efforts made since 60s for becoming a recognized organization. this purpose, pursuing the objective of technical improvement As the TURK LOYDU Foundation grew, more space was in maritime and industry, Turk Loydu serves to this objective needed for operations and in 1996, the foundation moved from of foundation with nearly 170 employees and representatives the Tophane building to Tuzla Shipyards Zone. Vision of TURK in various parts of the World and Turkey. LOYDU is to become the most favoured classification and certification body in the international arena with the power we The position attained today since classification of a small take from the rules, information and expertise we generate. For service ship named Camialti is very important for TURK 94 LOYDU. In a period of 55 years, TURK LOYDU achieved well classified ship fleet with nearly 1 million GT and steel an organization with international accreditations, structure inspections extending from new built ships to authorization from various flag states, high performance pipelines, refineries, storage tanks, stadiums and suspension in port state inspection statistics and high-quality standard bridges. achieving high ranks in class listings in parallel with the growth and development process. 2018 TURK LOYDU SCHOLARSHIPS In TURK LOYDU continued with its non-refundable In parallel with the expansion of the activity area, TURK scholarships and educational grants for undergraduate and LOYDU Foundation contributed to scholarships, and graduate students studying at higher education institutions. increased contributions to conferences and academic We aim to fulfil our social responsibility by contributing events, training of technical staff, and technical works to the areas where we operate and our country’s beneficial performed in the international platforms for safety of human resources through our unrequited scholarship and educational grant supports. Non-refundable scholarships and education aids are provided as monthly scholarships for a period of nine months starting from the beginning (October) until the end of the academic year (June). Non-refundable

scholarships were provided for a period of six months in ACTIVITIES FOUNDATION 2018 for 151 students in total that study in undergraduate and graduate programs in the Academic Year of 2017/2018. A decision was made to continue providing Scholarships to 90 students in total for the Academic Year 2018/2019 in accordance with our Scholarship Regulation and scholarships were provided in the last three months of 2018. In the beginning of the Academic Year 2018/2019, applications for vacant undergraduate scholarship positions were accepted within the scope of the Foundation’s Scholarship Regulation and they were accepted from higher education institutions and professional organizations for which scholarship quota

was designated. Applications received exceeded double 2018 | REPORT ANNUAL the number of designated scholarship quota and they were evaluated in accordance with Scholarship Regulation. The undergraduate scholarship applications were taken into consideration within the scope of the pre-evaluation criteria, and the required documents were requested for the validation of the information declared by the scholarship candidates. Scholarship applications for the Academic Year 2018/2019 were evaluated and 27 new scholarship students were identified, and scholarships were granted to these students in the last three months of 2018. Our Foundation granted non-refundable scholarship to 115 students in total - 100 undergraduate, 3 graduate and 12 doctoral students- in 3 months (October, November, December) in the beginning of the Academic Year 2018/2019 together with the students life and property, climate change and protection of the for which scholarship was granted in the Academic Year environment. 2017/2018 and it was approved to continue with scholarships in the Academic Year 2018/2019. For graduate and doctoral At present, we are carrying out our operations as an effective scholarship student applications, requirements of TURK class society not only in our country but in the region LOYDU are taken into consideration in connection with with modern and forward-thinking management staff and rule development, research and development and other employees each having expertise in their respective fields as operational fields. 95 ANNUAL REPORT | 2018

MEETINGS WITH OUR SCHOLARSHIP together on important projects, considering their contribution STUDENTS to the operations of TURK LOYDU. Meeting with Scholarship Students in Meeting with Graduate Scholarship Students Istanbul Hotel & Convention Centre Doctoral and Graduate students who were granted scholarships Graduate and postgraduate students that receives scholarship in the Academic Year of 2017/2018 were invited to the meeting in the Academic Year of 2016/2017 and 2017/2018 were held in our headquarters on 23 February and 9 March 2018. invited to the meeting held on 20 March 2018 in Dedeman Cem Melikoglu, Chairman of the Foundation; Gursel Yildiz, Bostancı Istanbul Hotel & Convention Centre. Approximately member of the Foundation’s Scholarship Committee; Hakan 35 scholars attended the meeting. Cem Melikoğlu, Chairman Aydogdu, Foundation’s Training Coordinator, and Dr. Bekir of the Foundation; Dr. Hakan Akyıldız, Chairman of the Sıtkı Türkmen and Doğan Öztekin, officers from TL Teknik Foundation’s Scholarship Commission and Foundation’s BoD Arge ve Tasarim Ltd. Sti. associated with our Foundation Member, Gursel Yildiz, Member of Scholarship Committee attended the meeting. and Foundation’s BoD Member and executives from TURK LOYDU Uygunluk Degerlendirme Hizmetleri A.S. Associated In the meetings, information was obtained from graduate with our foundation attended the meeting. At the beginning scholarship students about their doctoral and academic studies. of the meeting, a presentation video was shown about the Information was provided on new matters that are attached Foundation. Chairman of the Foundation and Chairman of the importance by TURK LOYDU and considered as a requirement Scholarship Commission gave information about the activities for our country. It was emphasized that all kinds of support will of the Foundation in their speeches. After the presentations, the be provided in the national and international industry and questions, opinions and comments of the scholarship students software projects during post-doctoral studies. who attended the meeting were taken and their questions were

Opinions and comments share by our esteemed scholarship answered. The meeting provided an opportunity to provide students who attended the meeting shed a very important light information on our Foundation, Companies and activities and on works and services of TURK LOYDU in the upcoming getting information about each other. It is very important to periods. We attach importance to holding similar meetings continue with similar meetings with scholarship students of the with our scholarship students, exchanging opinions with them, Foundation for the purpose of creating mutual collaboration providing them opportunity for joint studies and working opportunities. 96 PARTICIPATION IN EVENTS 10th Anniversary Event of Piri Reis Universityi Anniversary Event of Piri Reis University that was attended by Cem Melikoğlu, Chairman of the Board of Directors of TURK LOYDU was held on 8 February 2018 in T.C. Piri Reis University.

Fatih Çekirge, Gani Müjde and Necati Şaşmaz were the guests of the first session of the panel ‘Sea Love’. The event was completed with the second panel “Marine Profession: Board of Directors of IMEAK Chamber of Marine Trade, How a seaman should be?” during which Metin Kalkavan, Hizirreis Deniz, Director of Coastal Safety, Asım İlker Meşe, Chairman of the Board of Trustees of PRU, Pekin Baran, Chairman of DEFAV, Prof. Oğuz Salim Söğüt, Dean of ITU Chairman of the Board of Directors of Denizcilik A.S., Faculty of Maritime as well as delegates of marine non-profit Bülent Bostanoğlu, Retired Full Admiral and Former organizations and leading companies of the marine sector. Commander of Naval Forces, Yalçın Sabancı, Chairman ACTIVITIES FOUNDATION of the Board of Directors of Yasa Denizcilik and R. Yüksel Founded in 1995 for the purpose of supporting marine Yıldırım, Chairman of the Board of Directors of Yilport training, seamen and their families and achieved its current Holding, chat with the students under moderation of the position with the aid of supporters in line with training Journalist Abbas Güçlü. and social objectives, DEFAV also manages the student dormitory in Tuzla campus of ITU Faculty of Maritime.

54th Anniversary of Malta National Day Event Consulate General of Malta celebrated the 54th anniversary of Malta in an event held on 14 September 2018 in Istanbul Hilton Hotel with the support of TURK LOYDU. In the

event held with extensive participation, Franklin Aquilina, 2018 | REPORT ANNUAL Consul General of Malta, emphasized the 54th anniversary of Malta.

Cem Melikoglu, Chairman of TURK LOYDU Foundation, made statement about the event and stated that Malta 23rd Traditional Solidarity Event of ITU provides support for the recognition of TURK LOYDU Faculty of Maritime Graduates Social Aid by the Europe Union Commission; invites TURK LOYDU Foundation (DEFAV) to events that are organized within the scope of activities of TURK LOYDU and that they would like to improve 23rd Solidarity Event of ITU Faculty of Maritime Graduates collaborations with Malta. Social Aid Foundation (DEFAV) was organized with extensive participation on 5 May 2018 in Fenerbahce Club’s Faruk Ilgaz Facilities.

The event was attended by Cem Melikoğlu, Chairman of the Board of Directores of TURK LOYDU Foundation, Ferhat Acuner, Member of the Board of Directors of TURK LOYDU Foundation, Suat Hayri Aka, Undersecretary of General Directorate from the Ministry of Transportation, Maritime and Communication, Durmus Unuvar, General Director of Marine Trade, Tamer Kıran, Chairman of the 97 ANNUAL REPORT | 2018

Franklin Aquilina, Counsel General of Malta, stated that the 54th anniversary of Malta is very important and expressed that there is a long-lasting friendship between Malta and Turkey, and they are willing to improve and maintain this friendship.

160th Anniversary Events of Azerbaijan Caspian Shipping Company Hosted by Rauf Valiyev, Chairman of Azerbaijan Caspian Shipping Company, 160th Anniversary Events held on 24 October 2018 were attended by Cem Melikoğlu, Chairman of TURK LOYDU and Mehmet Avcı, Foreign Relations Manager. Panama’s 115th National Day Event 115th National Day Event of Panama that has the biggest ship register in the World, was held on 28 November 2018 in Istanbul St. Regis Hotel with the support of TURK LOYDU. Hosted by Andres Gregorio Nunezx, Consul of Panama in Istanbul, the night event received great interest of invited attendees. In the event attended by Cem Melikoğlu, Chairman of the Board of Directors, Luftu Savaskan, General Manager, and Mehmet Avcı, Foreign Relations Manager, Consul Nunez delivered a speech and expressed his gratitude to TURK LOYDU in the name of Panama Marine Administration for contributing to this special event and presented a painting representing traditional handicrafts of Panama to TURK LOYDU.

Honorary Class Certificate from TURK LOYDU to Kartal İstimbotu The ceremony for the delivery of the Kartal İstimbotu to the Turkish Naval Forces for exhibiting as a memorial ship was TURK LOYDU delegates stated that they would like to see held on 13 November 2018 at Tuzla Çiçek Shipyard with the that Azerbaijan shows more presence in the world’s seas participation of TURK LOYDU. Honorary Class Certificate as a Turkish Company and they will continue supporting issued by TURK LOYDU was delivered to the ship by Cem Azerbaijan Caspian Shipping Company as TURK LOYDU. Melikoğlu, Chairman of TURK LOYDU Foundation.

98 64th Anniversary of the Chamber of Chamber of Marine Trade, Salih Zeki Çakır, IMEAK Naval Architects and Marine Engineers DTO Council Chairman, Hüseyin Kocabaş, Chairman of KOSDER and other prominent names from the maritime (Turkish) sector. We participated in events for the 64th Anniversary of the Chamber of Naval Architects and Marine Engineers (Turkish) In the signing ceremony, it was underlined that Project for that were held on 15 December 2018 under the main Renewal of Coaster Fleet is one of the important links of sponsorship of TURK LOYDU. national defence industry’s targets and that it is an important project of strategic importance directly related with our Binali Yildirim, Speaker of the Grand National Assembly national interests. of Turkey delivered a speech in the event, stated that he is rd proud of TURK LOYDU’s success in IMO. Binali Yıldırım 3 Prof. Dr. A. Yücel Odabaşı Colloquium emphasized that TURK LOYDU is the only class society with The third of the colloquium series organized for Prof. rules approved by IMO among other non-IACS member class Dr. A. Yucel Odabaşı, the legendary chairman of the societies and emphasized that this is very important for the TURK LOYDU Foundation who lost his life in 2009, was growth of TURK LOYDU. organized on 15-16 November 2018 in Istanbul Technical

University Ayazaga Campus Faculty of Naval Architecture ACTIVITIES FOUNDATION and Ocean Engineering with international participation and presentations, and support of TURK LOYDU. Cem Melikoğlu, Chairman of TURK LOYDU Foundation attended the colloquium on behalf of TURK LOYDU. ANNUAL REPORT | 2018 | REPORT ANNUAL

Cem Melikoğlu, Chairman of TURK LOYDU Foundation, stated that approval of the rules of TURK LOYDU by IMO is a very important development for Turkish Maritime sector and TURK LOYDU, and expressed the righteous pride of being a class society approved by IMO.

Signing Ceremony for the Project on Renewal of Coaster Fleet PARTICIPATION TO PANELS, Signing Ceremony for the Project on Renewal of Coaster SEMINARS AND WORKSHOPS Fleet was held in WOW Istanbul Hotel with the participation of the Prime Minister Binali Yıldırım and many statesmen Workshop on Future Technologies in as well as Cem Melikoğlu, Chairman of TURK LOYDU, Merchant Ships Erkan Dereli, Chairman of Turkish Maritime Federation, Cemalettin Şevli, General Director of TRNC-Turkish “Workshop on Future Technologies in Merchant Ships” Maritime Enterprises, Tamer Kıran, Chairman of IMEAK organized by Koç University Maritime Forum (Küdenfor) was 99 ANNUAL REPORT | 2018

held in Teknopark İstanbul on 25 January 2018, Cem Melikoğlu, in the world and TURK LOYDU organized a seminar for Chairman of the Board of Directors of TURK LOYDU shipowners, operators and agencies in Izmir. Foundation, made a presentation about “Future of Marine Technologies and 2030/2050 Evolution of Marine Technologies”. In the seminar held on 4 May 2018 in İzmir Hilton Hotel, information was provided on services, activities and advantages Ship Dismantling Seminar Held in Istanbul of TURK LOYDU that was designated as authorized entity Technical University, Faculty of Maritime for survey and certification services of Panama Ship Register, Panama Maritime Administration and Panama in Turkey. Sevilay A seminar on “Ship Dismantling” was organized on 18 April 2018 with the contribution of Asli Yaldiz Oztekin, TURK Seminars organized jointly by Panama and TURK LOYDU will LOYDU Senior Research and Rule Development Engineer, be reorganized in Istanbul and some other provinces. within the scope of postgraduate class “Environmental Management in Maritime” taught by Dr. Sevilay Can in Istanbul Technical University, Faculty of Maritime. Students were provided with current information in connection with ship dismantling and waste reception facilities and applicable international agreements both in Turkey and the world.

3rd International Shipbuilding and Maritime Symposium We participated in the 3rd International Shipbuilding and Maritime Symposium (Int-Nam 2018) organized by Yıldız Technical University Faculty of Shipbuilding and Maritime on 24-25 April 2018 and sponsored by TURK LOYDU.

Aimed at improving the international collaboration between the industry and academic circles in order to contribute basic global issues related with the environment and energy, in the opening of the 2-day symposium, TURK LOYDU was presented a plaque for its support.

Turkish Shipowners’ Union Technology Conference on New Approaches in the Workshop Training for Preventing Collision at Sea The Technology Workshop organized by the Turkish Shipowners’ “Denizde Çatışmayı Önleme Eğitiminde Yeni Yaklaşımlar” Association took place on April 18, 2018 in Sheraton Grand Conference on “New Approaches in the Training for Preventing Ataşehir. During the workshop, Cem Melikoğlu, Chairman Collision at Sea” was organized on 20 November 2018 under of the Board of TURK LOYDU, gave a presentation titled on coordination of TURK LOYDU. “Place of IMO and EU in the Technological Development of Sea Transport”. In the conference held in the hall of Piri Reis Vocational and Technical Anatolian High School, “NEO-COL Navigation Cem Melikoğlu focused on organizations creating strategic Device for Prevention of Collision at Sea” Erasmus+ KA2 impacts on maritime sector during his presentation. He pointed Strategic Partnership in Professional Training Project that is out that the United Nations is the most important organization. supported by the European Union was introduced with the participation of Izmir Information Seminar Held by TURK LOYDU and Consulate General of Panama TURK LOYDU as well as project partners from Romania, Germany, Spain and Poland. A memo object was presented to in Izmir Cem Melikoglu, Chairman of TURK LOYDU Foundation, for Consulate General of Panama that has the biggest ship register the support provided to the project. 100 Naval Architecture and Marine VISITS BY TURK LOYDU Engineering Week’18 Events Visit to Cyprus Turkish Coastal Safety Panels were organized on International Sulphur Emission Rules and Flue Gas Washing Systems, Ballast Water Treatment and Ship Rescue Company Systems and Rules, Electrical Propulsion Systems in the Cem Melikoğlu, Chairman of the Board of TURK LOYDU conference room of Piri Reis University’s Preparatory Campus Foundation, visited Cemalettin Şevli, the Chairman of the on 12-13-14 December 2018 within the scope of “Marine Cyprus Turkish Coastal Safety and Ship Rescue Board at Engineering Week 18” events organized by the Chamber of his office on April 3, 2018 and exchanged views on various Naval Architecture and Marine Engineers (CNAME) under issues. main sponsorship of TURK LOYDU.

Aslı Yaldız Öztekin, Senior Research Rule Development Engineer from TURK LOYDU, and Serdar Seber attended events as panellists. CNAME presented as plaque to TURK LOYDU in the end of the panel.

Royal Institute of Naval Architecture ACTIVITIES FOUNDATION (RINA) Award for TURK LOYDU Scholarship Student An article contributed by Savas Sezen, one of the successful scholarship students of TURK LOYDU, was recognized and awarded as the best article by the Royal Institute of Naval Architecture (RINA). Visit by TURK LOYDU Delegation to the Slovak Maritime Administration Savaş Sezen received his award for the article “Backstepping Control of Nonlinear Roll Motion for a Trawler with Fin TURK LOYDU delegation, chaired by the TURK LOYDU Stabilizer” that was published in 2017 in RINA Magazine, Foundation Chairman Cem Melikoğlu, visited the Slovak during the RINA General Assembly held on 13 April 2018. Maritime Administration on August 15, 2018 and came 2018 | REPORT ANNUAL together in Bratislava to assess the recognition application of TURK LOYDU before the European Union and the relevant developments. Mr. Josef Mrkva, President of the Slovak Maritime Administration, and Captain Jan Konecny, Senior State Counselor, expressed during the meeting that they always trusted TURK LOYDU and continued to closely monitor their development and added “as the state of Slovakia, they would strongly continue to support the application of TURK LOYDU filed before the EU”.

Visit to our Embassy in Bratislava THe Embassy of Bratislava in the Slovak Republic, supporting Savaş Sezen, a graduate of the Naval Architecture and Marine the recognition of TURK LOYDU by the European Union, Engineering Department at Yıldız Technical University, was visited on August 15, 2018 and appreciations were completed his doctorate studies at the Department of Naval expressed to the Consul Birey Yılmazsoy for the strong Architecture and Marine Engineering in Istanbul Technical support provided in the diplomatic relations. The visit was University and started working as research assistant at attended by TURK LOYDU Foundation President Cem YTU. Savaş Sezen conducted studies on ship propeller Melikoğlu, Quality Manager Aydın Gürbüz and Foreign hydrodynamics and hydroacusticity, propulsion systems, fluid Affairs Manager Mehmet Avcı and information was mechanics and computational fluid mechanics. exchanged about possible sectoral employment opportunities 101 ANNUAL REPORT | 2018

in Slovakia. The Consul, Mr. Birey Yılmazsoy stated that they followed the development of TURK LOYDU and that they monitored the activities of TURK LOYDU with great pride and would continue to support TURK LOYDU in the process of wished success during the period of EU recognition. being recognized within the European Union.

Visit to Malta Visit to Azerbaijan Maritime TURK LOYDU held senior level meetings in Malta on October Administration 5, 2018 to improve the existing good relations and to discuss TURK LOYDU delegation consisting of TURK LOYDU new business cooperation opportunities with the State of Malta, Foundation Chairman of the Board Cem Melikoğlu and a member of the European Union having the largest ship register Foreign Relations Department Director Mehmet Avcı in Europe. Within the scope of the visit for the Malta Maritime visited State Maritime Agency of the Ministry of Transport, Summit 2018 activities, TURK LOYDU delegation consisting Communications and High Technology of the Republic of of TURK LOYDU Foundation Chairman of the Board Cem Azerbaijan on October 25, 2018 and had a meeting with the Melikoğlu and Foreign Relations Department Director Undersecretary Gudrat Gurbanov, Deputy Undersecretary Mehmet Avcı, had meetings with Malta Minister of Transport Shahlar Mammadov and Department Head Seymur Mirzayev. and Infrastructure Dr. Ian Borg, the Minister of Energy and During the meeting, the issues of cooperation between TURK Water Resources, Mt. Joe Mizzi, Secretary General of the Union LOYDU, the authorized organization to serve on the Azerbaijan of Maltese Shipowners and Deputy Director of the European flag vessels and the cooperation between the Azerbaijan Union Shipowners Association, Mr. Lino Vassallo and Turkey’s Maritime Administration and the future cooperation issues Ambassador to Malta, Ms. Başak Türkoğlu. were assessed.

The meeting with Malta Minister of Transport and Infrastructure, Dr. Ian Borg and the ministry officials and Malta Transport manager Mr. Ivan Sammut, was held at the Ministry building. During the meeting, Ian Borg stated that they closely 102 VISITS TO TURK LOYDU Malta, which is a member of the European Union, has registered 2170 international cruise ships representing 5% of the world’s Visit to the Association of Maritime naval trade fleet according to the latest UN UNCTAD data and Students (DÖDER) is ranked in first place among the EU member states in this field. Fuat Var, the Chairman of the Board of Maritime Students (DÖDER) and Vice Chairman Şüheda Kaya visited Cem Visit to America Based International Melikoğlu, Chairman of the Board of TURK LOYDU Foundation and gave information about the studies Chamber of Ship Engineers SNAME performed by the association and the projects of 2018. Michael Taylor, Business Development Manager of the America Based International the Society of Naval Architects and Marine Engineers (American) (SNAME) and the ITU SNAME team, made a visit to TURK LOYDU and held a meeting with the President of TURK LOYDU Foundation Cem Melikoğlu.

During the meeting, information was exchanged with regard FOUNDATION ACTIVITIES FOUNDATION to the SNAME structure and members, as well as the activities carried out with the existing members worldwide and the 3rd SNAME Turkey Reunion and wishes were made to be included in a greater number of common projects in the future.

They thanked TURK LOYDU for their contributions to the 19th National Mermaid Congress, organized by the Association of Maritime Students and among which TURK LOYDU is one of the sponsors.

Visit by IMO World Maritime University 2018 | REPORT ANNUAL (WMU) Students to TURK LOYDU International student group proceeding with their master’s degree program in Marine Safety and Environmental Management at the World Maritime University (WMU) in Malmö, Sweden under the control of the International Maritime Organization (IMO), one of the specialized agencies of the United Nations, visited TURK LOYDU MEETINGS on April 10, 2018 within the scope of their Istanbul visit schedule and received information about our activities. The 29th Ordinary General Assembly Visit to TURK LOYDU by the Consul and Sectoral Meeting of the Association General of Malta, Franklin Aquilina of Defense and Aerospace Industry Manufacturers Mhe Consul General of Malta, Franklin Aquilina, visited th TURK LOYDU on July 24, 2018 and received information THe 29 Ordinary General Assembly and Sectoral Meeting about our work. of the Association of Defense and Aerospace Industry Manufacturers, which TURK LOYDU is a member of was Consul General Aquilina expressed that they supported TURK held on April 24, 2018 in Ankara. At the event attended by LOYDU to be recognized by the European Union Commission TURK LOYDU Military Ships Coordinator Erhan Apak as and specially invited TURK LOYDU to their activities carried the representative of TURK LOYDU, presentations were out within the scope of TURK LOYDU activities. made by 11 SASAD members who are platform and system 103 ANNUAL REPORT | 2018

manufacturers with regard to sub-systems and components to TOBB Accreditation System Auditors be included within the scope of localization and nationalization Experience Sharing and Information Meeting in their short and medium term schedules as well as their present productions. Within the scope of TOBB Chamber/Exchange Accreditation System studies, an Auditor Information Meeting was held in Turk Loydu Foundation - 62nd Ordinary Tuzla on September 19-20-21, 2018 with participation of TOBB Accreditation Board Secretary Özge Karatepe and our accredita- General Assembly tion system auditors. TURK LOYDU Foundation’s 62nd Ordinary General Assembly was held at TURK LOYDU headquarters Dr. Teoman Özalp Mr. Caner Urhan, the Secretary General of Uşak Chamber of Conference Hall on April 26, 2018 with the attendance of the Commerce and Industry attended the 2nd day of the meeting Board of Directors, Sector Representatives and members of the provided information regarding the legislation and practices of press. the Chamber Commerce and Industry and Konya Commodity Exchange Secretary General, Mr. Esat Bilici, attending on the same day, provided information to TURK LOYDU auditors on the issues of Commodity Exchanges.

IMEAK Chamber of Maritime Commerce 2nd Joint Professional Committees Meeting IMEAK Chamber of Maritime Commerce 2nd Joint Professional Committees Meeting was held on December 22, 2018 at the Piri Reis University Deniz Campus.

TURK LOYDU Foundation President Cem Melikoğlu attended the meeting on behalf of TURK LOYDU, chaired by IMEAK Chamber of Maritime Commerce Board of Directors Chairman Mr. Tamer Kıran. At the beginning of the meeting, a copy of the The 62nd Ordinary General Assembly, which started with the honorary class certificate attracted attention and issued by TURK welcome speech of the Chairman of the Board of Directors of LOYDU was distributed in the memory of “Kartal” Steamboat, TURK LOYDU Foundation, Cem Melikoğlu, was completed the monument ship where the Great Leader Atatürk gave the first with presentations of the activities of TURK LOYDU Uygun- sign of the Turkish War of Independence and the certificate was luk Değerlendirme Hizmetleri A.Ş. (Conformity Assessment delivered to the Naval Forces Command last November. Services Inc.), reading and negotiation of the balance sheet and While IMEAK Chamber of Maritime Commerce Board of audit reports, acquittal of the board of directors and board of Directors Chairman Mr. Tamer Kıran expressed his gratitude to auditors as well as the presentation, negotiation and approval of TURK LOYDU for the attention-attracting memoir certificates, the year 2018 budget. TURK LOYDU Foundation President Cem Melikoğlu mentioned in his speech the importance of the Kartal Steamboat during the Equasis Editorial Board Meeting War of Independence and that TURK LOYDU was the first class THe EQUASIS Ship Information Monitoring System, to which institution, the rules of which were verified by IMO, besides IACS. TURK LOYDU is a member, was held on April 27, 2018 in Lisbon. The meeting was hosted by the European Maritime TRAINING Safety Agency. EQUASIS was founded in 1997 with the aim of Nuclear Energy Information Training in providing reliable information to the maritime sector under the leadership of the European Commission and serves as a Turk Loydu data bank that is contributed by the main organizations of the TURK LOYDU continues its operations for the sector with international maritime sector. The decisions taken by the Board various activities organized after starting to serve in the field of Editorials, to which TURK LOYDU has been a member of Nuclear Energy. In this context, information training was as a data provider since 2010, are of great importance for the provided on March 20, 2018 for Nuclear Energy Information management process of the system. Training and regarding the installation and operation of nuclear 104 power plants to TURK LOYDU management staff. Mr. Cem Reis University Waterbike Team in order to be used in the Melikoğlu, Chairman of the Board of Directors of TURK competition organized in Croatia in May 2018, where the LOYDU Foundation, TURK LOYDU Sector Directors and team has been ranked for the last three years. other managers and employees attended the training given • Financial support was given to the “Reduction of Ship by Mr. Timur Kabadayı, who has a significant knowledge of Emissions/SOx, NOx, CO2” event of ITU SNAME (the know-how in the field of nuclear energy. American Society of Naval Architects and Marine Engineers ITU Community) held on date 18.12.2018. FAIR • Financial support was provided to KTÜ Creatiny ROV Team Posidonia 2018 International Maritime Fair who participated in MATE-ROV competitions held between June 21-23, 2018. “Posidonia 2018 International Maritime Fair”, designated as • Financial support has been provided to YTU Stars of Hydro one of the most significant maritime fairs in the world was Team for the HYDROCONTEST to be organized in St. Tropez held in Athens Metropolitan Expo between the dates June on September 2-9, 2018. 04-08, 2018 and attended by TURK LOYDU Chairman of the Board of Directors, Cem Melikoğlu, General Manager of Domestic Conference and Meeting Supports: TURK LOYDU Uygunluk Değerlendirme A.Ş. and Foreign • Financial support was given to the Naval Architects and Relations Department.

Marine Engineers Summit (Career Days) event organized by ACTIVITIES FOUNDATION YTU Ship and Maritime Club on March 27-28, 2018. Two thousand companies from 92 countries and twenty-two • Financial support was provided for the 19th National thousand visitors attended the fair where TURK LOYDU Mermaid Congress, held on 26-29 April, 2018, bringing also held bilateral meetings with various flag states, class together maritime university students and enabling the follow- organizations and maritime companies. TURK LOYDU up of current technical developments and studies. delegation also attended the event organized by Mr. Yaşar • Financial support was provided for the “3rd International Halit Çevik, Turkish Ambassador to Athens, in the Embassy Eurasian Maritime History Congress” organized by Piri Reis Residence for the Turkish naval officers then in Greece to University on dates May 10-11, 2018. participate in the Posidonia Fair. • Financial support was provided for the organization of 3rd TURK LOYDU SUPPORT FOR THE YEAR International Colloquium held between the dates November 2018 15-16, 2018 by ITU Faculty of Naval Architecture and Ocean

Engineering in memory of the deceased Prof. Dr. A. Yücel 2018 | REPORT ANNUAL TURK LOYDU Foundation uses the income transferred from Odabaşı, who once served as the Chairman of our Foundation’s its own companies to the Foundation for the benefit of the Board of Directors. fields and sectors which are still active in line with the divine • Support was given to the 6th Student Workshop to be held aims and objectives of the Foundation. on October 13-14, 2018 by UCTEA the Chamber of Naval R&D Supports: Architets and Marine Engineers (Turkish) in Trabzon. TURK LOYDU Foundation also provides special R&D support Various Supports: for those who will conduct research at the post-graduate and • Financial support was provided for the furnishing of “Post- academic levels in the fields of interest required by the sectors graduate meeting rooms” of the new faculty members at ITU in which it operates. Faculty of Maritime. • Financial support was given for the attendance to the meeting • Financial contribution was given to DEFAV 23rd Solidarity of Prof. Dr. Metin Taylan, elected for the Turkish Delegation Event held on May 5, 2018. by UDHB to the IMO SDC5 (Ship Design and Construction) • Financial support was provided to the “7th National Ship and Yacht Design Competition” organized by Istanbul Exporters plan sub-committee meeting held in London between the Unions in 2018. dates January 22-26, 2018. • Financial support was provided for the traditional chamber • Financial support was given for the R&D activities of the night and the Naval Engineering Week organized by the solutions for energy and environmental issues developed by the UCTEA the Chamber of Naval Architets and Marine HYDROS Team of ITU Faculty of Naval Architecture and Ocean Engineers (Turkish) on December 14, 2018. Engineering. • Financial support was given for the Graduates of ITU • Financial support was given to the hydrofoil R&D studies Maritime Faculty (YDO) October 29, Republican Dinner and of the boat model called “Karbonat”, developed by Piri December 2018 Fish Day.

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TL TECHNICAL RD and DESIGN COMPANY ANNUAL REPORT | 2018

TL TECHNICAL RD AND DESIGN COMPANY

TL Teknik Arge ve Tasarım Limited Şirketi, which was provisions of the “directive on the issuance of coastal plant restructured in 2017, started to give importance to technical hazardous material certificate of conformity” numbered 30296 consultancy services in 2018 by receiving the support of the 56- and dated April 10, 2017, the hazardous dangerous liquid bulk year experience of TURK LOYDU in addition to its research cargo, excluding vegetable oils, holding the designation “safety and development activities. Activities were performed for - S” under column “d” titled “hazards” of the table in Section the preparation of technical specifications for the industrial 17 of the IBC Code, cannot be handles free alongside the ship facilities, due diligence, surveillance services and preparation at the facility. Such loads can only be discharged to the tanks in of technical documentation for the assembly of industrial the facility by pipelines and can be handled from these tanks to equipment, besides the services for compliance control of the the land tankers by filling them in the facility. technical specifications of ships and reporting. Pursuant to this directive; SERVICES INCLUDED IN OUR The company has been provided with supervision consultancy PORTFOLIO IN 2018 services for discharging the product from acid (sulfuric, phosphoric) loaded vessels into intermediate stock tanks for Services for the Preparation of Technical the installation of filling tanks and automation systems sulfuric Specifications and Provision of Consultancy acid and phosphoric acid tanks, piping installations, tank filling for Çelebi Bandırma Uluslararası Liman stations to ensure the loading of the products in the evacuated tanks to the acid tankers coming to the port by road and for the İşletmeciliği A.Ş. Acid Storage Facility preparation of technical specifications and construction of the Within the scope of article 15 of part 4 various and final facility in accordance with the project.

108 Provision of Storage Terminals Preparation of Documentation for Boiler Consultancy (PMC) and Inspection/ Installation at Selnikel Company Supervision Services for TPIC Turkish In the project carried out by Selnikel Company, services Petroleum Company to prepare the documentation for boilers, economizers, pipelines, tanks, steel constructions and other related During the preparation of FEED, EIA, Soil Survey, equipment has been provided within the scope of 27 T/H 20 Topographical and similar studies of Petroleum Products BAR THERMAL PLANT PROJECT, which is manufactured Storage Terminals to be established with 1 million 5 and assembled in Amylum Starch company facilities. thousand tons of storage capacity adjacent to Ceyhan Terminal owned by Petroleum Pipeline Company (BOTAŞ) consultancy and control services were given related to the relevant sub-items and topics (construction, mechanical, electrical, fire protection, legal compliance, environment, project management, etc.) for the supervision, interpretation and management of the process together with TPIC. TL TECHNICAL RD and DESIGN COMPANY DESIGN and RD TECHNICAL TL

Control for the Conformity of Ships with Provision of Safety Valves Control and the Technical Specifications 2018 | REPORT ANNUAL Consultancy Services for Petrol Ofisi A.Ş. The conformity control services of the ships named Idris-i Pressure tests, pressure set adjustment and repair services Bitlisi and Sultan Alparslan and other various application of the safety valves in Derince Mineral Oil Plant belonging and inspection boats with the technical specifications have to Petrol Ofisi A.Ş. Şti. is provided by TL Teknik Arge ve been completed and delivered. Upon the request of the Tasarım Ltd. Şti. customers, TURK LOYDU surveyors carried out inspections on the related ships and provided reports to the customers regarding the performance and due diligence of the ships as the result of the negotiations with clients, shipyard officials and ship crews and taking into account the documents and projects of the ships.

109 ANNUAL REPORT | 2018

EU PROJECTS

The EU projects continued in 2018;

SEAMAP Project This project aims to bring together all the stakeholders in the maritime sector on the same platform in the fields of sectoral workforce, career, entrepreneurship and training opportunities by providing cooperation with the organizations operating in the maritime sector. The consortium consisting of 6 partners from 5 different countries aims to gather sectoral business opportunities in line with the qualifications of all other personnel working in the maritime sector on a single platform, to realize the requirement analysis in order to increase entrepreneurship skills in the field of maritime service sector Preparation of Tank Calibration Bouclé of and shipbuilding industry, to support the qualified personnel Ships for increasing their professional skills required by the sector by developing a web-based platform that will bring together the Ship tank calibrations performed in accordance with the jobseekers and recruitment and employment organizations in relevant regulations on the final construction of the vessels the maritime sector. are carried out by using laser measurement methods and https://projectseamap.eu/ physical measurements obtained on the tank by using physical measurements, modeling methods in special software programs and real physical structure of ship tanks. The services for the preparation of calibration tanks bouclé for the cargo tanks of Kolin 4, Bit Hero, Santa Lucia and Lily PG were completed and delivered.

RESEARCH AND DEVELOPMENT ACTIVITIES

Ship Sizing and Strength Analysis Software This is project to generate a software to perform the sizing calculations of ships within the scope of TURK LOYDU Rules Volume A Section 1 - Boat Construction Rules (2018). The software is designed in such a way that users can create two- dimensional sections and curtains in any part of the ship’s length, including superstructure (curvature, corrugated screen, standard profile board, identification of user-defined profiles and openings and in similar features) if necessary, make calculations, control the results of these calculations with the rule requirements (section modules, metal sheet thickness, resistance strength modules of elements, buckling, fatigue control...) and see the critical values and the elements that exceed these values visually and numerically.

110 NEO-COL Project It is an e-learning module that connects International Regulations Preventing Collision at Sea with Modern Electronic navigation devices. The consortium consists of 6 partners from 5 different countries. A questionnaire was formed by determining the cause and effect relationship After examining 20 accident scenarios from each country. The answers from the shipmen were analyzed and the differences between the theory and the real practice were analyzed and a report was issued. A graphical user interface containing 20 accident scenarios was created and 250 questions were generated. http://neo-col.eu/ TL TEKNİK ARGE VE TASARIM LTD. ŞTİ. LTD. TL TEKNİK ARGE VE TASARIM ÇALIŞMA RAPORU | 2018 | RAPORU ÇALIŞMA

17 ANNUAL REPORT | 2018