Marine Response ALLIANCE
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Wreck Removal The Commercial Dimension Presented by Jason Bennett COMMERCIAL DIRECTOR March 20th , 2013 Associate Members’ Day 1 The Commercial Dimension . Historical Development . Current Drivers . Commercial Response . Rising costs, Representation and Accountability. Where’s the Risc? 2 Historical Development 3 Historical Development . A walk along the beach . Cox & Danks . Obstruction Removal 4 Historical Development Cox & Danks . New methods . 1924 -1939 (inc Metal Industries) . SMS Hindenberg . 26,600 ton Displ. 210m LOA . Largetst lif . SMS Derfflinger . 45m (1939) . Bought from Admiralty . Speculative for scrap . Cox & Danks: Loss £300,000 (current) 5 Historical Development Obstruction Removal . Wreck Removal Order . Liability Insurer . Scrap income? 6 Fedra – 2008 7 Fedra . As a result of a very severe storm the 64,000 DWT Bulk Carrier Fedra was driven ashore at Europa Point Gibraltar . Within hours she broke at the number 6 cargo hold separating her bow from her stern. As Titan was in Gibraltar removing the wreckage of the New Flame, the team mobilized to the wreck site and took a leading role in saving the lives of the crew by lifting them from the wreck to the land utilizing a mobile crane specially mobilized for the task. Within a few days the team determined that the bow could possibly be refloated but the stern was destroyed. Titan was contracted to remove the fuel oil, refloat the bow and remove the accommodation from the stern before the winter storms destroyed them. Over the next few weeks the fuel was removed but efforts to remove the bow and accommodation were slowed by political problems concerning disposal of the bow and the accommodation. These problems were cleared just prior to the year’s end. This led to the contract being successfully completed by mid January 2009. 8 Jane – 2008 9 Jane . 4,643 gross ton General Cargo ship grounded in the surf zone outside Isohama port, Japan as a result of heavy weather. As a result of the grounding and subsequent damage, the vessel's cargo holds and machinery spaces flooded. Titan was hired by underwriters to remove cargo, potential pollutants, and the hull. Following mobilization of personnel and equipment from it Singapore station, Titan undertook surf zone diving operations with the support of a jack-up barge to tackle the removal of cargo, potential pollutants, and sand. Subsequently, Titan installed total of 12 hydraulic linear pullers on the beach and connected them to the vessel's hull to provide a total force of approximately 3,600 tons. The vessel was successfully pulled to the shoreline in two pieces where it was handed over to a local steel recycling company. 10 Princess of the Stars – 2008 11 Princess of the Stars . A 23,824 ton ferry with capacity for 1,992 passengers capsized in heavy seas while carrying hazardous cargo, and over 700 passengers and crew. Titan was contracted to remove the hazardous material and the bunker fuel on board. Titan used an ROV to locate each container carrying the hazardous material and retrieved with divers wearing chemical protective suits. 12 Superferry 14 – 2004 13 Superferry 14 .Superferry 14, a 10,181 gross tonnage passenger ferry laden with 3,700 tons of cargo, was enroute to Bacolod City from Manila when it sustained a fire near Corregidor. .The vessel sank and came to rest at the seaward limit of Sisiman Bayon, lying on its starboard side in 12 meters of water and at a 70 degree list . .Titan was awarded the wreck removal contract and immediately sent over a salvage team and a comprehensive array of portable salvage equipment, including pumps, diving equipment, heavy rigging and Titan's linear chain pullers. .With the pullers in place and rigging completed, the vessel was up-righted within 2 hours and lightering operations commenced. The vessel was successfully refloated without incident and returned safely to its owners safely. 14 Costa Concordia Costa Concordia 2012 Italy 15 Current Drivers 16 Current Drivers . Pollution & the Environment . Actual . Potential . Early state intervention . pressure - timely action . continuity . The BIG picture 17 Commercial Response 18 Commercial Response Run 161 M/V SUPERFERRY 14 . Extended “Emergency Response” Grounded to frame 192 (bulbous bow) - TCG 1.36 REFLOATING SEQUENCE Pumping sequence as attached. C & D decks combined and pumped together. Void #6 Port & Stbd combined with E Deck and pumped together. E.R., Aux Mach Room and Shaft Room combined and pumped together. 100000 Block #1 Block #2 Block #3 Block #4 Block #5 30 Void #10 C & D decks Forepeak Steer. Gear Engine Stbd WBT #1 Ctr Rm. Room, Void #5 Void #2 Ctr Void #11 Ctr Aux. Mach. 25 80000 Stbd Room Heel Tk and Shaft Stbd 20 ) 60000 15 List + Stbd 43200 , 10 40000 Metric Tonnes . Metres / Degrees Trim + aft The Grey period ( 5 20000 0 . Caretaker (Divide by 100 for required force to maintain 10 degrees) 0 -5 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 Stage Displ GR Load List Trim Depth 1 2 3 4 5 "A" deck "C" deck 27.1 "D" deck 25.4 "E" deck 23.7 CG 22.8 20° 5 5.6 16.0 7.8 19 Commercial Response . Performance Driven . Timely . Cost plus . Contractual changes : . New Flame . BIMCO embodiment: BIMCO Wreck Series 2010 20 Commercial Response . Further Evolution . Project Management . Construction – v – Wreck Removal . BIG • Art & Science 21 Commercial Response .LOF with SCOPIC: extended .Composite Agreements: use; .Day rate . “Caretaker” . .BIMCO Wreckhire Lump Sum Elements .BIMCO Wreckfix .BIMCO Wreckstage .Non -Standard Form of Salvage Agreement 22 Rising Costs 23 Rising Costs . Bottom Line Cost to Insurers . Cashflow Requirements . Bidding . Process . Cost of bidding! 24 Rising Costs Financial Stability . Crowley privately owned with annual revenues in excess of $1.8 billions . In business over 120 years . Titan undertook and completely financed the largest LOF salvage project in history, the APL PANAMA. MRA : partners have an annual turnover in excess of USD 5 Billion. MRA: other members’ parent companies are publicly traded on the NYSE and have a market cap in excess of USD 25 Billion. Investment Programs . Leaders in their respective fields of operations and this has been achieved by having the best trained people operating the best equipment. Aggressive investment in their business lines with regular new building and equipment renewal plans. Titan’s philosophy since the very beginning has been to own the best portable equipment and maintain it to the highest standards. 25 Questions 26 .