THE MAGAZINE OF THE WORLD’S SHIPMANAGEMENT COMMUNITY ISSUE 32 JULY/AUGUST 2011

COVER STORY FIRST PERSON

14 Admiral Robert Mental Health J. Papp Since assuming the role of Commandant of the US Coast p60 Combating Guard on May 25th 2010, Admiral Robert J. Papp has drawn on over 36 years of seafarer Homeland Security experience depression to deal with unique challenges SHIPMANAGEMENT FEATURES 17 Executive Stress Numerous studies have claimed to display direct links between extensive business travel and negative health implications

8 STRAIGHT TALK - Protecting that spark of recovery 18 How I Work SMI talks to industry achievers and asks the question: How do NOTEBOOK you keep up with the rigours of the shipping industry? 10 Beatings and pirates as young Protection Committee to reduce emissions from international shipping as 11 - the human cost of Somali 51 Insider Piracy 11 Long-lost painting of Canadian Ashok Sabnis, Managing The human cost of Somali piracy has been Arctic to go under the hammer Director of Goodwood Ship laid out for all to see in a new report which Management shows 4,185 seafarers were attacked A long-lost painting of the Canadian Arctic last year by one of the greatest early Arctic 52 On My Mind explorers, Admiral Sir George Black, is to Raajeev Singh, Managing 10 V.Group in $520 million buy- go under the hammer Director, Sovereign Ship Managment out deal 12 UK shipping competitivness is V.Group, parent company of V.Ships – under threat warns Moore provider of shipmanagement and related Stephens services to over 1,000 vessels, has MARKET SECTOR announced a buy-out deal with institutional Accountant and shipping adviser, Moore investor OMERS Private Equity Stephens, has welcomed the UK government’s decision to issue 44 Information overload? 10 Scan and your’re connected consultation papers on statutory residence Whether easing the paperwork and the taxation of non-domiciliaries burden at all levels of Those eagle-eyed amongst you will have personnel, streamlining noticed we have printed a new QR bar operations or improving safety code on the front cover of your favourite 12 InterManager charity team and accident prevention shipping industry magazine braves torrential rain to raise strategies, management 48 funds 11 Industry welcomes mandatory software is a vital tool in the “We did it!” – that’s the triumphant ship manager’s quest for IMO energy efficiency measures message from InterManager Secretary workforce optimisation 76 The industry has embraced new measures General Captain Kuba Szymanski after his by the International Maritime team completed the gruelling 24 Peak 54 Riding the waves of 32 Organization’s (IMO) Marine Environment Challenge change Managers and owners yet to 67 engage with digital 21 NEWBUILDING navigational technologies will face a curt wake up call when the mandatory carriage of 38 Long-term view permeates more confident liner sector electronic chart display and 65 A high degree of design added-value has been a major factor in the South Korean information systems (ECDIS) shipbuilding industry’s emergence as a premier supplier of large containership tonnage comes into force from 2012 89

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 5 REGIONAL FOCUS SHIP REPAIR 24 Weathering the 34 Singapore shows its offshore credentials electrical storm Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp According to press reports, the Marine, has recently signed a long-term alliance contract with Cyprus Central Bank governor Canada’s Teekay Marine Services, Athanasios Orphanides has already warned the political leadership, including President BUSINESS VIEWPOINT Demetris Christofias, that it must instigate immediate cost- 58 Healthy demands at sea cutting measures if it is to avoid The balance of the scales in terms of welfare is about to be tipped going cap-in-hand to the EU firmly in the seafarer’s favour when the Maritime Labour for a bailout Convention (MLC 2006) comes into force

ECOVISION 60 Getting to grips with seafarer depression A recent survey undertaken on behalf of Seafarers’ Rights International paints a grim picture about life at sea. It shows that 66 To comply or not to comply? over 96% of seafarers interviewed wanted more information about As pollution prevention strategies continue to gain prevalence across their legal rights industry, the maritime press has been keen to champion the best practice efforts of quality owners and managers who are engaging with environmental policies and requirements LIVE 68 War time wrecks: An even more serious environmental concern 78 Objects of Desire Things that make you go oooh! A purple oil slick stretching for miles across the coral Chuuk Lagoon of Micronesia is among the early, unavoidable signs of a series of environmental disasters comparable to last year’s Gulf of REVIEW Mexico catastrophe 80 Books Spies of the Balkans by Alan Furst TRADE ANALYSIS Treasure Island: Tax Havens and the Men Who Stole the World by Nicholas Shaxson 36 Specialist operators 82 Music resilient in face of mounting Stevie Nicks: In Your Dreams challenges Duane Eddy: Road Trip Specialised reefer shipping has taken something of a hammering 82 Dining over the past couple of years, with Elevem Madison Park weakened rates, increased costs, Diners at top New York restaurant Eleven Madison Park are and markets hit by the economic now kept guessing as to what will arrive at their table crisis 39 Building on tradition 82 Theatre Ghost The Musical SMI investigates as players across Lift your spirits with the hottest ticket in town! Ghost The the industry strive to carve out their Musical recently opened at the Piccadilly Theatre own slice of the Brazilian oil boom 83 Wine BUSINESS OF SHIPPING Chile’s turning up the heat on the fine wine market New World wines are standing up to be counted among the 74 AdHoc Old World offerings which have dominated our tastes for centuries Tall Ships Race adventure for UK students Inmarsat announces key appointments LRET awards £1 million to new asset maintenance centre of LIFESTYLE excellence Bureau Veritas certifies first Philippines manning agency 84 If you’re happy and you know it, clap your hands Faststream raises LNG staffing worries We are living longer; science and medicine ClassNK unveils mid-term plan have discovered cures for the ailments and DNV acquisition boosts software portfolio distemper modern life serves up. You would think we would be happier, but the signs and Voluntary onboard tests improve training standards studies point to rising gloom and disconnect

6 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011

STRAIGHT TALK

Welcome to Ship Management International

July/August 2011 Issue No. 32

www.shipmanagementinternational.com The shipping business magazine Protecting that today’s owners and managers have been waiting for Published by spark of recovery Elaborate Communications Acorn Farm Business Centre, Cublington Road, Wing, Leighton Buzzard, Bedfordshire LU7 0LB United Kingdom ustrian novelist Marie von Ebner- think seriously about how to market its way out Sales/Accounts +44 (0) 1296 682241/682051 Eschenbach was quite prophetic when of the crisis. True it needs to tackle its economy Editorial +44 (0) 1296 682356 Fax: +44 (0) 1296 682156 Ashe announced that ‘exceptions are not but the benefits of the tonnage tax system are Email: [email protected]/[email protected] always the proof of the old rule; they can also there to be sold and there to be realised. New www.elabor8.co.uk be the harbinger of a new one’. Because the companies are starting to trickle into the island Ship Management International Editorial Board suggestion now that Cyprus could head in the and they are not just the traditional Rajaish Bajpaee (Bernhard Schulte Shipmanagement) same doomed economic direction as its near shipmanagement entities, although there are Kuba Szymanski (InterManager) Nigel Cleave (Videotel Marine International) neighbour Greece, highlighted through the reports that businesses from Scandinavia and Andreas Droussiotis (Bernhard Schulte Shipmanagement) domino effect of the July 11th explosion the Far East are starting to show interest. There Dirk Fry (Columbia Shipmanagement) Sean Moloney (Elaborate Communications) beside the island’s main electricity generating are also charterers moving in, keen to take facility belies belief; especially when you advantage of the new tax rules. But the tonnage Editorial Director: Sean Moloney Deputy Editor: Helen Jauregui consider the level of optimism expressed by tax rules have been in place for many months Journalist: Samantha Giltrow the island’s maritime cluster last year after it now and still there is an acceptance that the idea Editorial Support: Debra Munford Regular Contributors: Margie Collins was granted 10 years (plus 10 years) worth of and the benefits need to be sold to a wider Michael Grey James Brewer tonnage tax exemption and a real hope-on- audience. Thomas Ország-Land Martin Conway hope that the Turkish embargo on Cypriot The marketing campaign needs to be Robert Ward flagged vessels would be lifted in a quid pro orchestrated, united and above all, it needs to Paul Bartlett Technical Editor: David Tinsley quo as Turkey negotiated to be a member of be all encompassing. Goodness knows there are Advertisement Director: Jean Winfield Research Manager: Roger Morley the European Union. plenty of other interested parties out there keen Accounts: Sarah Newman Design and layout: Michael Argles But shipping is a resilient business, we all to snap up businesses looking for a safe and Editorial contributors: know that, and the Cyprus maritime cluster is economically-friendly place to settle. It has The best and most informed writers serving the global equally as tough and as proud. But work does already been suggested that if the Greek shipmanagement and shipowning industry. need to be done to tackle the country’s debt government believes it necessary to start taxing problem; to harness the accelerating cost levels the Greek ship owners then they will think Ship Management International is published six times a of its civil service and above all, to protect the nothing of upping sticks in search of a suitable year and is entirely devoted to reporting on the dynam- ic and diverse in-house and third party shipping cluster from the after shocks of a alternative. So why not Cyprus, after all shipmanagement industry. poisonous Greek debt that will inevitably affect Limassol is safe; it could be financially Subscriptions UK and ROW – 1 year: £120 ($180); parts of this idyllic Eastern Mediterranean attractive and culturally, it is a natural fit. 2 years: £200 ($300). island. Whereas Monaco has already staged a Download a subscription form from www.shipmanagementinternational.com or Cyprus is having to deal with a succession marketing drive in Athens in an attempt to woo Send subscription enquiries and/or address of issues – economic as well as political. Not the rich shipowning fraternity, what can be said corrections to: only is its own financial situation being laid of the Nicosia authorities? Elaborate Communications, Acorn Farm Business bare against the backdrop of a recovery- On a separate and sadder note, our thoughts Centre, Cublington Road, Wing, Leighton Buzzard, Bedfordshire LU7 0LB, United Kingdom. blocking electricity supply crisis but there is and prayers go out to all our friends in Norway Tel: +44 (0)1296 682051/682241/682403 mounting scepticism that the Turkish ban will and in particular in Bergen and Oslo, following

Printed in the UK by Warners Midlands plc. Although every effort be lifted sooner rather than later and there are the sad news of the tragic attacks of the past few has been made to ensure that the information contained in this publication is correct, Elaborate Communications accepts no growing concerns about the effects the political weeks. responsibility or liability for any inaccuracies that may occur or turmoil in northern Africa will have on the their consequences. The opinions expressed in this publication are not necessarily those of the publishers. All rights reserved. No part country’s economic prospects. Cyprus may of this publication may be reproduced whole, or in part, stored in a retrieval system or transmitted in any form or by any means have found itself in a difficult financial without prior permission from Elaborate Communications. situation. But where there is a will there is a way and the Cyprus government could very Approved and Supported by well take a leaf out of Singapore’s book and Sean Moloney

8 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011

NOTEBOOK

SHIPMANAGEMENT NEWS AND REPORTS FROM AROUND THE WORLD Beatings and pirates as young as 11 - the human cost of Somali Piracy he human cost of Somali piracy has pirates used them as ‘motherships’ to capture by the public,” said Kaija Hurlburt, lead been laid out for all to see in a new others and, even more terrifying, some researcher for the OBP study. Treport which shows 4,185 seafarers crewmembers were used as human shields in Per Gullestrup, CEO of the Clipper were attacked last year. attacks on other vessels and to ward off Navy Group shipping company – who had one of The shocking figure was just one of the vessels. its ships boarded by Somali pirates, added: statistics to come out of the study by the But it is not only seafarers being affected “Somali piracy has a tendency to be Oceans Beyond Piracy Working Group, by the hardcore criminal elements involved discussed in economic turns, but the real which showed mariners had been subjected in piracy – the study found it takes a heavy issue is the untold misery and trauma to gunfire, beatings, lengthy periods of toll on the perpetrators on the lowest rung of imposed on our colleagues at sea and their confinement and, in some cases, even torture. the piracy ladder with the United Nations relatives by the Somali criminals. We should Deeply concerned with the escalating Office on Drugs and Crime (UNDOC) be very concerned about the lack of concerted violence against seafarers in the Indian Ocean figures showing between 200 and 300 pirates action by the global community in dealing and Gulf of Aden and lack of public concern, have failed to return from their expeditions forcefully with this problem.” it called for a study into the subject – the since the resurgence of piracy off the Horn Human Cost of Somali Piracy. of Africa. Figures also show 1,090 seafarers were There is also evidence of coercion and Scan and you’re held hostage and 342 endured hours or days exploitation of Somali youth, one instance of persistent attacks as they survived by being the capture of a ship by the Indian sheltering in ships’ citadels. While in these Navy which had 61 suspected pirates on connected fortified rooms some were subjected to board, 25 of whom were suspected to be aged hose eagle- having RPGs (Rocket Propelled Grenades) under 15 and at least four as young as 11. eyed fired at doors at close range and three ships “We have found strong evidence that Tamongst you were even set fire to as terrified crews over a third of the seafarers that were held in will have noticed we huddled below deck. 2010 were abused, and the trend is looking have printed a new Crew of some of the captured ships were more ominous this year. The lack of reporting QR bar code on the also forced to continue operating the ships as prevents the true cost from being understood front cover of your favourite shipping industry magazine. This means that by downloading the free QR Reader App from iTunes (or other Android V.Group in $520 million alternative sites) and scanning the bar code, you will be taken immediately to the continuing to build a market-leading www.shipmanagementinternational.com company delivering outstanding service and website where you can read daily updated buy-out deal value to our customers. V.Group has a news stories and watch the key players in tremendous future and the management the shipping industry being filmed on .Group, parent company of the team is excited to be working with our new SMITV. world’s largest ship manager partners in the next chapter of growth in our Then all you have to do is store the VV.Ships, has announced a business.” website page onto your hand held mobile successful $520 million buy-out deal with Mark Redman, Senior Managing device, or your iPad, and be kept up-to-date its senior management and Canadian Director of OMERS Private Equity in on what is happening in the industry every Institutional investor OMERS Private day. Past issues of SMI are also held on-line Europe commented: “V.Group has an Equity. (not the current issue as this is for subscribers attractive and differentiated outsourcing- OMERS has confirmed it will support only) so you can also enjoy a good read on based business model and is led by an the continued growth of V.Group as a your iPad as you whizz across the Atlantic or provider of shipmanagement and marine exceptional management team. We believe soar off towards the Far East. As one services, including offshore services, and V.Group’s extensive global network, track shipping executive once told our editorial will replace Exponent Private Equity as record of profitable growth, compelling office, ‘I like SMI because it lasts the time it V.Group’s financial partner. customer value proposition and breadth of takes to fly from Europe to Hong Kong’. Clive Richardson, Chief Executive of services provides significant long-term Needlesstosay, we are also working hard V.Group will continue to lead the potential. As a global leader operating in to boost the quality and delivery of our news management team. Commenting on the robust and growing segments of the market, and features, so if you have any news to tell transaction, he stated: “I look forward to we believe the future opportunities for then send it to our editors by email to partnering with OMERS Private Equity in V.Group are extremely attractive.” [email protected].

10 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 NOTEBOOK

the International Shipping Federation Industry welcomes mandatory IMO (ICS/ISF), said the regulations were ‘absolutely’ what his organisation had hoped for: “The IMO’s decision is an important one, energy efficiency measures not just for the shipping industry, but it shows he industry has embraced new Energy Efficiency Certificate. All ships of a consensus can be achieved on climate measures by the International 400gt and above must comply with the change within an international debate. It’s a TMaritime Organization’s (IMO) regulations, which are due to enter into force global first and because the IMO has done Marine Environment Protection Committee on 1st January 2013. this for operational and technical measures, (MEPC) to reduce emissions from The EEDI is a non-prescriptive it can generate the will to do something about international shipping, marking the first ever regulation, as the decision over which market-based measures as well.” mandatory international greenhouse gas technologies to use within a specific ship He added that industry will take heed of (GHG) reduction regulations for a global design are left to the industry. So long as the measures which are “parented in the IMO” industry sector. required energy-efficiency level is achieved, and added that as a result, he is confident “the The amendments to MARPOL Annex naval architects and ship builders may impact on world trade and on the business of VI, which were adopted during the MEPC’s employ whichever solutions they deem fit. shipping will be taken into account”. He 62nd session (11th-15th July 2011), include The new regulations are also being presented added that his organisation is not confident an additional chapter four on regulations on as a vehicle for technical cooperation and the these two factors would be taken into account energy efficiency for ships, making the transfer of technology where improvements if the debate had occurred at the United Energy Efficiency Design Index (EEDI) in energy efficiency are concerned, Nations Framework Convention on Climate mandatory for new ships, and the Ship particularly as administrations must Change or as a result of the outcome of the Energy Efficiency Management Plan cooperate with international bodies such as high level advisory group which the UN (SEEMP) for all other vessels. Further the IMO to offer support to states requesting Secretary General convened. He concluded: amendments to Annex VI, bring fresh technical assistance. “We want the IMO to continue to work on requirements for survey and certification, Peter Hinchliffe, Secretary General of this process and we believe it has including the format for the International the International Chamber of Shipping and demonstrated it can do just that.” Long-lost painting of Canadian Arctic to go under the hammer

The artist was born in honour. After returning home he became a Stockport, England and in distinguished President of the Royal 1818 embarked on what is Geographical Society in 1856 and received now regarded as the very first his final promotion to Rear-Admiral a year Canadian Arctic expedition, later. the crew’s ambitious goals Alastair Laird, of Bonhams Marine being to locate the fabled Paintings Department, said: “This is a ‘North West Passage’ and to fascinating painting by an explorer whose reach the North Pole in the name ranks alongside pioneer explorers same year. such as Sir John Franklin and John Ross. The voyage was After extensive research through Back’s unsuccessful due to severe diaries we think it is likely that it was gales and heavy pack ice but painted in 1836, when sailing down the between 1819 and 1822 Black Davis Straits.” long-lost painting of the Canadian sailed on another voyage exploring the He had noted in his diary for 29th July, Arctic by one of the greatest early Canadian Arctic coast of North America ‘we observed an enormous berg, the AArctic explorers, Admiral Sir where he was responsible for all the perpendicular face of which was not less George Black, is to go under the hammer at surveying and chart-making. than 300 feet high, and other smaller Bonhams in London in September. He was promoted several times during bergs...in other directions…(a ship’s boat) The previously unknown watercolour the following years and, after mapping was sent to procure fresh water from the HMS Terror and one of her boats off a Montreal Island, was not only promoted pools formed on the surface of the…ice’. spectacular iceberg, apparently in the Davis ‘Captain – by Order in Council’, an honour Yacht racing scenes, ships’ portraits, Strait, between Canada and Greenland, is which no other officer in the navy had naval battles and views of London are also expected to fetch between £10,000 and received except King William IV, he also included in the sale at the New Bond Street £15,000 in the auctioneer’s Marine Sale. had the Great Fish River renamed in his salesroom on 13th September.

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 11 NOTEBOOK

UK shipping competitivness is under threat warns Moore Stephens ccountant and shipping adviser, non-doms to invest in the UK. To achieve the “The government’s commitment to Moore Stephens, has welcomed the latter objective, the government intends to consult on these issues is particularly AUK government’s decision to issue allow non-doms to remit overseas funds to positive, but is in stark contrast to its recent consultation papers on statutory residence the UK tax-free for commercial investment unilateral decision to reinterpret the rules on and the taxation of non-domiciliaries. But it in a qualifying business. Greiner added: UK tonnage tax. The importance of tonnage warns that the UK shipping industry faces a “Although these measures are at present the tax should not be underestimated. A recent growing threat from other jurisdictions. subject only of a consultation paper, and report by UK Maritime notes that, had the Her Majesty’s Revenue & Customs’ could change as a result of responses received UK-owned fleet continued to decline at the consultation papers propose a statutory by the government before the cut-off date of rate seen in the years immediately before the residence test and certain changes to the September 9th 2011, they represent a positive introduction of tonnage tax, the UK shipping taxation of non-domiciliaries with effect from development. industry would have contributed £3.9 billion April 2012. “These could have important “Similarly, the draft proposals for a less to UK GDP in 2009 than it actually did. implications for shipping,” said Moore statutory residence test should result in rules There would have been 81,000 fewer jobs. Stephens shipping partner, Richard Greiner, which are clear and fair, providing some “We have already seen movement to “and are generally to be welcomed”. long-overdue clarity in what has previously other jurisdictions. If this is not to become an The stated objectives of the non-dom been a very grey area. This is especially exodus, it is essential to maintain the taxation reforms are to ensure that non-doms appropriate for a country which seeks to competitiveness of the UK shipping make a fair tax contribution and to encourage attract, and retain, international business. industry,” he said.

Anthony Royle, Regina Bindao, Bjarke InterManager charity team braves Jakobsen and Hannah Merton. Set in the UK’s picturesque Lake torrential rain to raise funds District, the 24 Peaks Challenge is a two day trial over a walking distance of 31 miles e did it!” – that’s the The InterManager team, which included which tests participants’ endurance and triumphant message from staff from maritime companies Seagull, physical strength to the limit as they “WInterManager Secretary Headland Media and the Nautical Institute, encounter difficult terrain, lengthy ascents General Captain Kuba Szymanski, after was one of only five teams to complete the and steep descents along the way. his team completed the gruelling 24 Peak weekend challenge. Led by Kuba Szymanski, To date, the InterManager team’s Challenge to raise funds for maritime the team comprised Jennifer Crowther, fundraising efforts have raised nearly £7,000 charity Seafarers’ UK. for Seafarers’ UK – a maritime charity which Together they braved heavy rain and provides support to seafarers from the Royal wind for 27 hours and seven minutes to climb Navy, the Merchant Navy and fishing fleets 24 peaks in the UK’s Lake District region. and their dependants. An exhausted but pleased Kuba said: Kuba explained: “All of our companies ”The weather was absolutely the worst ever. have a long history of providing services to We had 27 hours and six minutes of heavy the maritime industry and owe a great debt to rain and wind and our team got thoroughly those who live, or whose loved ones have soaked. Navigation was very challenging lived, the hard life at sea.” with visibility down to 20 to 40 yards. Then, Online donations can be made at: in the last one minute of our walk, the sun http://uk.virginmoneygiving.com/team/Inter came out – completely out of the blue!” Manager.org

12 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011

By Helen Jauregui Admiral Robert J. Papp Commandant of the US Coast Guard

With military, law, civilian and humanitarian strands, the US Coast Guard (USCG) currently comprises 42,000 active duty, 8,200 reserve, 8,000 civilian and 31,000 volunteer Auxiliarists and represents the largest component of the Department of Homeland Security. Its motto ‘Semper Paratus’ (always ready), along with its ‘core values’ of ‘Honour, Respect and Devotion to Duty’, outline the supreme levels of dedication all USCG employees must devote on a daily basis.

ince assuming the role of Commandant of the which he noted that although 2010 US Coast Guard on May 25th 2010, Admiral was an ‘exceptional year’ for the Coast SRobert J. Papp has drawn on over 36 years of Guard in operational terms, the BP Homeland Security experience to deal with unique Deepwater Horizon Oil Spill “further challenges, including those posed by tight budget stressed existing aged and obsolete cutters, constraints and his organisation’s aging fleet, let boats, aircraft and support infrastructure”. He alone the Coast Guard’s extensive disaster response added: “It is imperative – even in the current efforts in the aftermath of Deepwater Horizon. fiscal environment – that we continue to invest In the face of an uncertain economic climate, and in recapitalising our fleet.” with a huge scope of responsibility, (which includes Admiral Papp also acknowledged environmental protection; border security; maritime Deepwater Horizon had placed a transport systems; drug enforcement; maritime safety; strain on ‘workforce ice operations; responding to natural disasters and port readiness’ within protection and maintenance), the USCG faces a tough the task in fulfilling its objectives during this time of recession and restrained budgets. “The most vital issue facing the US Coast Guard right now, on the capital side, is re-investing in our ships,” Admiral Papp told SMI, adding that though he is confident in the USCG’s ability to continue providing a dedicated service, the issue of aging vessels is of the utmost concern. “Most of our ships are in excess of 40 years old and are becoming increasingly expensive to maintain, which is taking a large bite out of our budget. They are technologically inferior to the challenges we’re facing so getting new ships built is my highest priority.” The USCG currently has a fleet of 270ft medium endurance cutters which were built 20 years ago, while its 378ft high endurance cutters (12 vessels) and 210ft medium endurance cutters (14 vessels) are over 40 years old. Admiral Papp has frequently cited the dilemma of using such antiquated vessels for modern Coast Guard operations, including during his testimony for the USCG’s budget request for 2012 (June 23rd 2011), in

14 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 ADMIRAL ROBERT J. PAPP FIRST PERSON

Coast Guard, owing to the extensive surge in operations required within humanitarian rescue efforts and in combating the aftermath of the explosion. This included the on-site burning of 11 million gallons of oil in addition to the recovery of 34.7 million gallons of oil/water mix. Up to 22 aircraft, including surveillance aircraft; short and medium range helicopters, 46 cutters, a number of patrol boats, breaking tugs, sea-going and coastal buoy tenders were deployed by the Coast Guard in its efforts to protect the ocean, shoreline, wildlife and US civilians. Throughout the operation, which is the USCG’s most prevalent to date, Admiral Papp and his team deployed an average of 7,000 workers simultaneously, whether in the air, onboard, on the beaches or in the Los Angeles and New Orleans-based command centres. Perhaps it’s no surprise that in his budget testimony, Admiral Papp also noted the need to boost support for the families of Coast Guard workers, particularly when resources are stretched significantly in response to such dire incidents. However, the provision of such a broad range of services does not come cheap. Admiral Papp visits Coast Guard Cutter Cypress at Naval Air Station Pensacola, during the Deepwater Horizon Response Admiral Papp has stated his top budget concerns and required funds for Coast Guard activities in 2012 include the Most of our ships are in United States Naval War College and a following: To rebuild the USCG, $1.4 excess“ of 40 years old...they are further Master’s degree in Management billion; sustain front-line operations, $67.7 from Salve Regina College, Rhode Island.

million; enhance maritime incident technologically inferior to the Prior to assuming his role as the 24th prevention and response, $22.2 million; and Commandant of the USCG, he undertook a to support military families $29.3 million. challenges we’re facing“ so number of different positions among the Though these funding expectations getting new ships built is my ranks of the organisation, including may seem extreme considering the US Commander of the Coast Guard Atlantic economy’s deficit, Admiral Papp told SMI highest priority Area; Chief of Staff of the Coast Guard; he holds a definite understanding of Commanding Officer of Coast Guard budget limits in the downturn: varied diet of local and national headlines Headquarters; and Director of Reserve and “The recession is a concern. on a daily basis. From the medical Training, where he held overall Revenue into the treasury evacuation of a pregnant woman from a responsibility for the Coast Guard’s training is going to lag behind, river in Alabama, to the search for a missing centres and the management of 13,000 whatever economic diver in the Gulf of Mexico or the rescue of Coast Guard Ready Reservists. recovery there is, so that’s crew from a sinking fishing vessel, the He has also served onboard six USCG got to occur before we Coast Guard’s responsibilities are immense cutters and worked off the coast of Haiti as can start rebuilding the and as Admiral Papp noted, without commander of a task unit, enforcing United federal budget because substantial funding, it will be difficult to Nations sanctions during Operation Able right now we’re devoting keep up with demand: “Within the Manner in 1994. This task unit also a lot of money towards constrained budgets we will be facing in the supported US Naval Forces during our deficit and that US, how do we keep up our frontline Operation Uphold Democracy in the same just squeezes out the operation levels as well? The balance period. Admiral Papp is the 13th Gold discretionary money between re-capitalising and keeping our Ancient Mariner of the Coast Guard – an that goes towards operations going will be an increasing honourary role which can only be assumed agencies such as challenge for us.” by an officer with over 10 years of sea duty mine.” Finance may be a continuing headache who has held the Cutterman Insignia award Though the for his team, but through his strong résumé for a longer period than any other officer. Coast Guard has hit in managerial and security affairs, Admiral He is also a committed family man to wife, global headlines Papp is well-versed to weather the storm of Linda, his three daughters and one with its disaster ensuring a safe maritime environment on a granddaughter. response efforts, shoe string. Born in Norwich, Connecticut, When asked what aspects of the Coast the organisation’s Admiral Papp graduated from the US Coast Guard have altered during his 36-year term responsibilities to Guard Academy in 1975 and went on to at the organisation, Admiral Papp jokingly ensure safety at complete a Master of Arts in National remarked: “Our ships were old when I first sea conjure a Security and Strategic Studies from the came in, we got some new ships and now

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 15 FIRST PERSON ADMIRAL ROBERT J. PAPP

explained the need to ‘face the challenges’ of the region – an area which, according to him, deserves more focus from the authorities. “What I need to do, is to come up with a comprehensive plan on how the US should deal in the Arctic because it’s just not gaining a lot of attention now. We’ve focused the last couple of years simply on trying to get ice breakers built and these may be a component of our strategy and our response but really, its much more and we’ve got to come up with a comprehensive plan on how the US asserts its presence in the Arctic. I think the USCG is the avenue through which to do that.” Though the Coast Guard is the US’s oldest continuous seagoing service, with a history dating from 1790 (when the first US Congress approved the building of 10 ships to combat illegal trade), the service is now Admiral Papp addressing the press during his visit to the Deepwater Horizon Response at focused on engaging with modern Grand Isle operations centre, Louisiana technologies and methods to ensure positive results. As Admiral Papp concluded, the they’re old and we need to replace them, so purposes. As the pressure to determine younger generation will play a key role in things go in cycles!” Arctic boundaries intensifies, particularly ensuring the continued success of the Coast Besides his aging fleet, Admiral Papp’s owing to the problem of thinning ice and the Guard: “My hopes for 2011 are that our dominant concerns also include the USCG’s race to secure a slice of the oil and gas country will experience an economic presence in the Arctic, where the assets which lie beneath, the US is looking recovery; that we’ll start finding the means organisation offers services including to further assert its presence in the region. and ways to be able to build these new marine law enforcement, marine mammal Describing the need to build on the ships, to get the right tools from our young protection, defence services and ice Coast Guard’s activities in the ‘emerging people who are volunteering to serve their breaking for scientific and surveying Arctic’ as a ‘strategic issue’, Admiral Papp country.” ■ EXECUTIVE STRESS SHIPMANAGEMENT Executive Stress Dealing with air travel

umerous studies have claimed to ● Utilise all the information and assistance to check-in and mobile boarding passes through display direct links between hand. We all like to be in control, but if you smart phones, which is rapidly becoming the Nextensive business travel and have staff who are equipped to liaise with norm for business travellers. Take some time negative health implications, along with your travel providers on your behalf, then to check which airlines (and other travel decreased employee efficiencies and a make sure they understand your criteria and suppliers) offer these options, and which travelling ‘culture’ that may be unnecessary the purpose of your trip. ‘Apps’ are downloadable to facilitate these. and avoidable, writes Joe Pitcher, V.Ships Regular business travel can encourage a This advice is aimed at reducing the Marine Travel Services. culture of ‘brinksmanship’. Dashes to the levels of often unnecessary stress business Preparing for a trip is key and you alone airport caused by workload or meetings over- travellers incur through inadequate can make the assessment of the value of your running are a regular experience, and can add preparation. What is fundamental to all this trip, or the lead in time needed to prepare. unnecessary stress. This is also the best time is not to eliminate stress completely (it is Whether you have 24 hours or a few months, to lose passports, blackberries, or your travel business, not a leisure trip, after all) but to the principals of preparation should be the information. Have your office request likely always focus on the purpose of the trip and same. You want to make the process as transfer times to the airport from your hotel or what you are trying to achieve, and use all the efficient and as painless as possible, no office, and also local conditions that may facilities available while travelling to do so. matter if it is a trip you have undertaken affect these, that the local office could be Remember that business class travel is not many times before. useful in advising. Also work out which valued primarily on the standards of food and ● Know your total journey time and work transit is the best for you, often public service onboard, this is often just an accordingly. A two hour flight does not mean transport links from airports to downtown are additional differentiator, the main benefits are two hours travelling. far swifter and more efficient than taxi the comfort and the flexibility to change your ● Know your options – how flexible are your transfers, or vice versa depending on the flights at no penalty if you need (again arrangements? Can you factor in a delay or destination. Again, research is the key. meaning less stress for the traveller). If you a change in plan if needs be – or will any Airline lounges have come a long way are travelling long haul and a good night’s changes mean back to square one? This sort since they were havens for people purely sleep is essential rather than being wide of contingency is often unnecessary, but have flying in premium cabins. With loyalty awake in economy, then factor in that cost. you genuinely assessed this particular trip and frequent flyer schemes, it’s now As regular travellers we become aware and what affect a delay or change may have relatively easy to accumulate the required of airlines encouraging us to look after on it? status to access these lounges even when ourselves in the air, and the benefits of ● Plan your return like you would your flying economy. drinking plenty of water, exercising and outbound – often travel will not just be point Recent years have seen a massive surge to point, with the same issues about preparing in the amount of baggage taken into the planning for jet lag recovery are not new. A for work on your return as you would for cabin rather than checked into the hold. rule that you need one day recovery for each your arrival. Arriving back in the office fresh Packing is an art in itself, and what some hour lost through flying to another time zone, is just as important as getting to the off site people feel is essential can be viewed by is often not practical, but being aware of time meeting, even if you have stopped in a others as unnecessary.. zones and the time lost before working ■ number of places in between. More and more airlines are offering should always be borne in mind on a trip.

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SMI talks to industry leaders and asks the question Howwork do you keep up with the rigours of the shipping industry?

process, stating that the first quarter “got us off to a good start for the rest of the year … and the derived synergies are ahead of plan”. Profit expectations for the full year remain roughly the same – at Dkr550m ($107m) – because returns from the sale of a non-core subsidiary will be largely offset by one-off integration costs. Synergies between the two companies are already reflected, to some extent, in stronger financials but the full benefits are likely to be evident only next year and beyond. However, there are some very serious questions hanging over the future of companies like DFDS and, although Smedegaard appears both pragmatic and confident about the future, he is only too aware of the challenges that lie ahead. Asked about new ultra low sulphur fuel regulations which are due to enter force in Europe’s Emissions Control Area (ECA) in ($35.6m). Despite high bunker costs, a January 2015, Smedegaard does not mince NIELS SMEDEGAARD lacklustre performance over the his words. “People were just sleeping President and CEO, DFDS traditionally quiet off-season on the English [when the regulatory framework was drawn Channel, and costs associated with the up] and I blame my own industry for letting t’s just about a year since Denmark’s closure of loss-making routes on the Irish this happen. The fact is that 0.1% [sulphur DFDS acquired Norfolkline from Sea, pre-tax profits for the first quarter content] is twice the price of what we are IMaersk. Since the acquisition of the swung back into the black. using today. short-sea, ferry and logistics company last Mr Smedegaard joined the group in “I think you will see short-sea operators July, routes have been revised, systems 2007 and, despite a non-shipping such as ourselves – together with Stena and dovetailed and procedures integrated. background, had already been the principal potentially a range of others – will move President and CEO Niels Smedegaard is architect of restructuring and rationalisation closer together in our efforts to come up pleased with progress so far, but he cannot in both the freight and passenger arenas with joint initiatives through dialogue with hide his concern over the outlook for the prior to the Norfolkline acquisition. His the politicians. Nobody really understood European ferry sector. initiatives helped to raise productivity and what this decision meant, and for a guy like The results of the takeover so far are profitability at the company, which is listed me coming from a different industry…” impressive. Revenue over the first three on the Danish Stock Exchange and counts The unfinished sentence says a lot. months of 2011 rose to almost Dkr2.7bn the Lauritzen Foundation and A.P. Møller- Smedegaard contrasts the short-sea ($524m), up 67% on 2010 figures prior to Maersk amongst its sizeable minority sector with deep-sea operators who have the takeover, while operating profit before shareholders. until 2020 and possibly even longer before depreciation (ebitda) and special items Smedegaard is clearly pleased with the new sulphur content regulations affect climbed no less than 76%, to Dkr183m speed and success of the integration them. They can still sail around with 3.5%

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fuel, he says, and few are worried because will also have the effect of driving today’s health benefits; we look at what will happen it’s a long way into the future. seaborne freight back on to roads and to the price level for other users of The issues for ferry firms and short sea railways. The flies fairly and squarely in the this fuel.” operators were summarised for EU face of IMO and European country aims He explains what is already happening transport ministers late last year when they to stimulate short-sea shipping by on environmental issues within DFDS. “We were warned the new regulations will encouraging more freight on to less have 82 [fuel consumption] initiatives in almost double fuel costs for short-sea environmentally damaging short sea our company,” he says. “We have gone operators running ships within Europe’s shipping services. through all our ships – everything from ECA. Their economics will change so investing in IT systems for the captains – drastically that some fear the inevitable the best suggested route taking in current closure of ferry services and short-sea cargo and all of those things – we have invested in lines on the English Channel, in the North that big time on our ships.” Sea and in the Baltic. “We have invested in new propellers on Despite the dismay which greeted some of our ships – we’ve just changed IMO’s Marpol Annex VI and EU member them on two ships between Copenhagen states’ own regulations, the feedback from and Oslo. These are significant investments London and Brussels has been unflinching but they seem to be generating a 10%-12% … at least so far. The new regulations will reduction [in fuel consumption]. We are stand, and coastal vessels which burn 1% doing a whole range of things to show we sulphur fuel today will have to comply with are not against this… but we need to engage the new rules, come what may. the politicians in dialogue.” Smedegaard has not lost all hope that a According to William Gibbons workable compromise can be reached, but of the UK-based Passenger Shipping he is very well aware that the clock is Association, oil companies are not keen on ticking. He notes that there is a better investing in new refining capacity to understanding of the issues in Brussels manufacture the fuel that is needed because today, compared with his early visits, a little they can make more money elsewhere. more than two years ago, when few had Gibbons says: “That forces us to look at even heard of the IMO or low-sulphur fuel. other fuel solutions such as liquefied natural “I started to go to Brussels two years gas but there is no supply chain in place and ago,” he explains. “EU politicians, this is likely only to be viable for new ships commissioners had no understanding of from 2020.” this. ‘Excuse me … IMO what? Low Smedegaard agrees. Two new ro-ro’s sulphur?’. But last year, the second year I which DFDS is building in conjunction was there, people knew about it. So even with the Danish and German navies are due though there was no solution, it was for delivery next year. They have been encouraging to see [the issue] hitting designed with a range of fuel efficient peoples’ radar screens. There are still some features and, if or when the time comes, years to go – we will have to keep up exhaust gas scrubbers will be relatively the effort.” easy to retrofit. But the ships will burn low- The issue is complicated in Europe sulphur fuel, rather than LNG. because the ECA, the first such designated Quizzed on this point, Smedegaard zone, is patchy and covers only some parts explains: “A lot of our ships could actually of the Continent. Most North European run on LNG with replacement engines, but countries lie wholly within the ECA and are now you need to find space for the tanks. therefore ‘ECA-blocked’; meanwhile Whether or not sufficient volumes of What about safety if you retrofit – one thing France, Ireland, Norway and the UK, lie low sulphur fuel will be available by 2015 is a freight ship, but what about passengers? partially within and without, and others is another big question, but ultimately, if How do you manage the turnaround times? in the south lie completely outside it. ferry lines and short sea cargo operators (Many DFDS vessels work routes on which This throws up a range of complex can’t make their sums add up, they will there is a mix of passenger and freight, competition issues, not only between close down and short-sea shipping in often driver-accompanied). There’s still a ports in the same country, but between ferry Europe will no longer be an option. lot of work to be done on this and we are and short sea firms offering services in Spokesmen for the sector stress that there is participating with different shipping different countries. widespread support for the “good and green companies in the exchange of best practice “This is a huge competitive issue for intentions of the changes”, but they are ideas and research on the issues.” some of the industrial manufacturers in telling EU transport ministers that the Longer term, and assuming that Finland and Sweden,” Smedegaard proposals, as they currently stand, are the thorny fuel issue can be worked comments, by way of example. unrealistic on grounds of cost and the out, Smedegaard expects continuing Firms like DFDS, operating on the time available. consolidation in the sector and anticipates English Channel, the North Sea and in the Smedegaard gives his view. “We need that DFDS will return to acquisition mode. Baltic will be forced to operate entirely to find a balance where, for instance, by us “Yes, that’s our goal …” he says, “to within the new regime. As EU transport reducing the sulphur content – maybe we demonstrate that we can manage to acquire ministers were told, the new regulations are can start a year early and go down to 0.5% companies, integrate them and create value not only likely to result in the loss of – and then we can push the ultimate for our shareholders.” However, just what thousands of seafaring jobs and widescale deadline until availability studies have been the European short-sea sector will look business disruption at a range of north made; we look at the consequences of this like in five to 10 years time remains to European ports and ferry terminals, but they [sulphur content] decrease; we look at the be seen. ■

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so many mixed signals – it’s damn difficult. are more reliant on Japan than we are.” In a way, if you look at it overall, GDP Prior to undertaking his role as Chief growth is good but then you have Executive, Mr Wilhelmsen gained a robust earthquakes, political unrest, the US business education, beginning at Heriot-Watt economy and all of these things which are University, Scotland, where he achieved an popping up and it’s extremely difficult to MA in Business Organisation in 1999. He plan for.” continued his studies in 2001 at Management A vital business component for Wilh. Centre Europe in Belgium and the same year, Wilhelmsen Holding, which is based in completed the Developing General Lysaker, Norway, is transportation services Management Potential course at Cranfield for manufacturers of car and agricultural University, England. Mr Wilhelmsen also equipment, in addition to other forms of high completed the Programme for Executive and heavy equipment. Describing this aspect Development at the IMD Business School, of operations, Mr Wilhelmsen insisted Japan Switzerland in 2004, prior to undertaking the will remain a significant market for his firm, role of Commercial Manager, Shipowning, at despite the impact on Japanese original Wilh. Wilhelmsen. equipment manufacturers (OEMs) following He has since worked in a number of the devastating earthquake and tsunami of different roles within the Wilhelmsen group, 11th March, 2011. including; Regional Director, Europe, for “The Japanese market is very important Wilhelmsen Maritime Services; Group Vice to us,” he said, citing his company’s most President, Shipping and Deputy Group Chief recent quarterly results as evidence of a Executive Officer – both for Wilh. THOMAS WILHELMSEN ‘positive’ and far more ‘optimistic’ projection Wilhelmsen Holding. Group Chief Executive Officer, Wilh. than expected. “Japan has had enormous Sharing his thoughts concerning how the Wilhelmsen Holding struggles – I think the surprise was not coming months may pan out, Mr Wilhelmsen ince starting his career in 1999 as a necessarily the OEMs of the parts remained cautiously optimistic over growth Regional Pricing and Marketing themselves, it was how reliant they were on from overseas markets: “I think from a global SAnalyst at Wallenius Wilhelmsen the second, third or forth tier manufacturers perspective, the US economy is extremely Logistics, Australia, Thomas Wilhelmsen of components, and not just in Japan, which important, and to the Asian economies also, has come a long way. Now, leading at the is an extraordinarily large seller of as you will get a good double effect if the US helm as Group Chief Executive Officer of components to the global automotive economy gets back on track.” But does he Wilh. Wilhelmsen Holding, Mr Wilhelmsen industry.” He added that there will be lessons believe this is likely to occur in the near has combined a well-rounded business learned for OEMs, who are now likely to future? “You can always wish for something education with over a decade of experience build contingency plans in case of future but I think what the US has shown many in industry to continue his family’s legacy incidents, as apart from a small number of times is they are good at adapting – whether with aplomb. companies, including Volkswagen and the they are able to do it this time, how quickly, The company’s 150th anniversary on 1st Hyundai Group, most car manufacturers are and to what effect, is very difficult to say,” October 2010 marked a shared celebration “reliant on Japan as a supplier to the he said. as Mr Wilhelmsen accepted the promotion automotive industry”. Though a chief element of his role to his current role, succeeding Ingar Skaug, When questioned about how his own involves retaining a close watch on so many who served from 2003 until retirement. company will adapt to the knock-on effect of markets and business angles, Mr Wilhelmsen On assuming the position, Mr Wilhelmsen the Japan disaster, Mr Wilhelmsen noted remains a perfect vision of corporate poise. described a number of “promising signals” several methods could be adopted to help Sharing his tips on retaining that impressive from the markets, despite still being “in reduce costs and ensure a steady stream of equilibrium between blind panic and blasé the aftermath of the financial crisis”. He continued business from Japan, including the cool, he concluded: “I think the more sound also predicted a growth in demand for the transport of alternative cargos, slow speeding you are, the more you can relax but the less maritime transportation of cars and ro-ro or the idling of vessels. He also noted that his you probably make in the good times so it’s cargo, in addition to increased business in company is in a fortunate position, as a that balance – where do you strike that the maritime services and integrated transporter of cargoes from other industries, balance? No I’m not really stressed. There are logistics sectors. not just those related to car manufacture: a lot of things I would like to see different, Having had time to reflect during the first “What Japan has shown is there are also but you cannot compare today’s situation half of 2011, does Mr Wilhelmsen believe his commodities we transport which have not with what we had during the early part previous forecast for growth was accurate? been hit as hard as the automotive industry. of 2009 – then you can be stressed! Today, Stressing the need to plan for a number of The high and heavy industry is moving on you have a healthy growth in the world different possible market outcomes, he told quite alright and so I think we are in a lucky economy, but it’s very patchy and that’s a SMI: “The world economy today is showing condition compared to other operators who challenge.” ■

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Association, Shikhov told journalists during his first press conference as IACS Chairman, he has three main objectives: To enhance the quality of the Association’s technical work; to strengthen its ties with industry, and to increase its sphere of influence among regulators in Brussels and at an international level. The first objective he hopes will be met through the harmonisation of Common Structural Rules (CSR) – the project that launched in 2008 to develop minimum structural requirements for the design and construction of tankers and bulk carriers. IACS has already committed itself to releasing in January 2012 the first draft of the harmonized CSR guidelines for industry scrutiny. And this, said Shikhov, 41, is an important step because industry input is essential to the overall success of the new and more transparent organisation – Pavel rules. “I believe that the new harmonised PAVEL SHIKHOV Shikhov, the youthful vice-director general CSR will be of great benefit to industry as Chairman of the International of the Russian Maritime Register of they will provide a set of rules based on a Association of Classification Societies Shipping and IACS’ new Chairman, is holistic and common set of principles for (IACS) confident that the year of his chairmanship both ship types,” he said. “will be marked by a number of important Shikhov’s second objective – to s Noboru Ueda stood down as the milestones”. strengthen ties and maintain dialogue with Chairman of the International Acknowledging the changes and the industry on a global basis – follows on AAssociation of Classification expansion ushered in under his predecessor’s from the sterling work Noboru Ueda did Societies (IACS) last month – following a stewardship, which he believes has during his tenancy with regards to addressing term of office in which he oversaw the reinvigorated IACS and opened the way to a the technical and safety challenges raised by transition of IACS to a larger, more robust wider range of views and activities within the greenhouse gas emission reductions. “One of SHIPMANAGEMENT HOW I WORK

the most important groups is the joint working group on the Energy Efficiency Design Index (EEDI),” he stressed, recalling how the group was set up in December last year to deal with the outstanding practical issues concerning the use of EEDI for newbuildings. “The agreement to join together and produce sound and comprehensive guidelines and methodologies for the establishment and use of original technical data from ship builders, ship owners and class societies is a big step forward and a major contribution to the IMO’s efforts to tackle greenhouse gas emissions from shipping.” However, Shikhov, who has been involved with IACS since 2004, was keen to emphasise this is just one example of IACS cooperation with industry. He revealed the organisation will convene regular tripartite meetings with owners, ship builders and classification societies to review current and emerging issues of common concern, share information, best practices, and promote shipping safety, quality and marine environment protection. Another example in which he said how the wider industry can contribute to IACS is through the Advisory Committee. Consisting of the representatives from the USCG, ICS, BIMCO, and a number of P&I Clubs, the committee offers a non-classification perspective on the quality of classification and statutory services and the effectiveness of the IACS QSCS (Quality System Certification Scheme). Shikhov, a naval architect from Asbest, a town in central Russia so far removed from the coast it’s hard to imagine anyone finding their sea legs, strives to continue to improve the quality and performance of member classification societies. And in this regard he supports IACS’ use of independent Accredited Certification Bodies to audit and assess QSCS compliance. “The old system has been replaced, but in the transition process IACS has implemented a number of steps to ensure the assessment process is not diluted,” he said, citing a number of examples: The ACBs have to meet rigorous criteria before they are accepted; QSCS auditor courses are conducted by IACS officials; and ACB audits are observed by IACS Operational Centre and Advisory Committee members. “While the new audit system is still in its early days, we will make every effort to ensure that the robustness of QSCS is maintained and even reinforced. The IACS Council will also put in place measures to improve further the quality system and has tasked the appropriate IACS bodies to detail them.” One improvement measure he cited is the development and use of Common Performance Indicators based on Port State Control (PSC) data. IACS intends to include these in IACS procedures so that a member’s PSC performance can now become an integral part of the QSCS regime. Strengthening IACS’ position with the regulators and maintaining its role as the principal technical adviser to IMO will be another of Shikhov’s goals during his year as chairman. “And in this area we will closely follow and contribute towards the development of IMO instruments, applicable to our activities, so that IACS’ views are taken into consideration and its members are prepared to properly implement the provisions of the IMO instruments when they come into force. Not only is the development of new instruments important for IACS, but it is equally important to promote and facilitate the implementation of existing IMO instruments by IACS members, flag states and relevant stakeholders,” he said. On a European level, IACS’ sphere of influence will be enhanced this September when Astrid Grunert takes up residency in Brussels as IACS’ Permanent Representative to the EU. Among her duties will be to interact with EU bodies to promulgate the Association’s aims regarding safe and environmentally friendly shipping. “IACS has a lot of things to do in the coming year and I am fully committed to delivering the results for enhancing safety at sea and protection of marine environment,” Mr Shikhov affirmed. ■

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REGIONAL FOCUS CYPRUS

Weathering the electrical storm

f the global financial press is to be With estimated costs to the economy Times reported on July 20th, “the destruction believed, then the massive explosion that ranging from €2bn to €3bn, the government of 50% of the island’s power-generating Iknocked out the main power generation has been urged to take drastic austerity capacity resulting from the July 11th plant at Vasiliko over a month ago could be measures to close a deficit almost twice the explosion has suddenly combined with other the harbinger of worse economic woes to EU-recommended ceiling of 3%. negative economic factors to accelerate the come. Indeed, a headline in the UK’s According to press reports, the Cyprus risk of default by Cyprus on the nation’s Guardian newspaper, published soon after Central Bank governor Athanasios debts”. the crisis, shouted out its concerns that Orphanides has already warned the political Thomas Kazakos, Director General of Cyprus was in danger of becoming the leadership, including President Demetris the Cyprus Shipping Chamber, remained Eurozone’s next crisis point! Christofias, that it must instigate immediate solemn about the circumstances surrounding The cost of rebuilding the power plant cost-cutting measures if it is to avoid going the explosion. He told SMI: “As far as the alone is believed to be around €1 billion and cap-in-hand to the EU for a bailout. Cyprus shipping industry is concerned, we are it will need a strategic investor to help rebuild banks are heavily exposed to poisonous worried when we read these kinds of reports. it, while the energy sector could take several Greek debt which has resulted in negative We have been trying, together with other years to recover. credit rating adjustments. As the Financial professional bodies on the island, to exert as

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much legitimate pressure as possible on all we are concerned that urgent practical are restored. Electricity supplies need to go political parties to take drastic measures to measures are needed irrespective of the back to the unrestricted levels before the cut down the public spending as well as political cost. These are the basic policy lines explosion. This is an urgent need. At the same control the budget and the cost of running the that private sector industry, including time, we cannot help but relate this situation civil service. These are measures that are shipping, is passing onto the Cypriot to the overall energy issue of Cyprus bearing being discussed as we speak; the fact we had government.” in mind the various discussions made as far this most unfortunate and tragic event on July According to Thomas Kazakos, there as the possibility of discovering natural gas 11th, means we can only be conservatively needs to be some form of prioritising of and oil in the territorial waters of Cyprus. It optimistic that common sense will prevail. response to the situation. Firstly, the country has become necessary to speed this process Despite the fact that some signs of needs to return to a situation of unrestricted up. One can only hope that this severe improvements in the financial situation of electricity supply. “Electricity production has accident will be the ‘generating power’ for a Cyprus were appearing on the horizon before been reduced temporarily and the faster and more secure long term policy on the explosion, things again are becoming a government has already acted on this by energy in Cyprus,” he said. bit worrying. Having said that, I don’t want it calling in external generators from abroad The second important issue is tackling to be seen that we are in a defeatist mood, but until such time as our own electricity plants public spending. Thomas Kazakos again: “I

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was pleased to see that all the political parties the markets and we are seeing a lot of owners have consented to a number of measures that Chrysostomos Papavassiliou, cancelling orders at the shipyards and cover all these issues – public spending, the Managing Director of Island Oil restructuring their companies but they are not cost of the civil service and the issue of future “Cyprus is fast becoming a pulling out,” she said. development. This was a political preferred bunkering option for This was a view echoed by Marin Sobin, commitment but we are working closely with Managing Director of SpecTec, who said that ships working cargo here because the policy makers to ensure that any measures after a year, the number of shipmanagement that need to be taken will not adversely affect of the quality of the product. companies on the island had not really the positive trend shipping in Cyprus has There is also trouble-free delivery. changed. “I am an optimist, I have worked in been following.” We have five vessels in our fleet – this industry for 25 years and I believe it has But what of the general economic two operating in Cyprus that are a clear future. It is not possible for this situation affecting the island’s maritime capable of satisfying demand, two industry to slow down despite the huge cluster? How positive and forward looking is in Romania where we started capacity and vessel construction, it can only the sector, in light of the long-running stabilise or grow. I believe the planet will financial crisis? operations last year and one which need more transportation of cargo and ships Sylvia Loizides, KPMG Cyprus board brings in the cargo. We have cannot be substituted for anything else.” member in charge of shipping, told SMI that become a quality and competitive As he claimed, the demand for onboard while the shipping community is coping with destination so the owners who communications has also dramatically the stagnation in the shipping markets with may pay a small premium believe it changed over the last 10 to 15 years to the no business closures to date, the country’s is a trouble free operation.” extent that the ship has now become part of current recessionary situation isn’t helping the office. Selling quality computerised matters. “We do have €2.7bn worth of debt shipmanagement systems was not possible that needs refinancing and a downgrading of 15 years ago but today it is standard practice. the economy is looming because of the recent stress tests is a positive sign but until Can you imagine how the crewing country’s exposure to the Greek debt. Other the government tackles its public debt, then department in a shipmanagement company factors need to be tackled such as delays in problems could still exist. could exist without having an electronic the government’s tackling of its structural “There is a bit of stagnation in the database with the necessary documents and reforms – reducing the number of civil economy but there isn’t a noticeable certificates and relying on the ability to servants; reducing the national payroll and downturn. And while ship owners have been communicate between ship and shore?” also restructuring the state pension scheme. affected by the economy, there is no closing Sylvia Loizides again: “The tonnage tax The passing, by the country’s banks, of their down of businesses. Everyone is monitoring system has also come at the right time, it was

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only introduced late last year and once the owners and managers get to know the Because it [the tonnage tax scheme then we will see the benefits. It is in “system] is in place for the next place for the next 10 years so there is no uncertainty and this has brought some 10 years, we have had a good “ stability to the island so hopefully it will attract a few more owners and charterers. bit of interest from customers Everyone is trying to promote it, KPMG considering Cyprus as a flag included, and we have seen interest from Bob Maxwell, Managing Scandinavian, Canadian and some German owners and even from shipping interests in Director, Dobson Fleet Hong Kong, Singapore and Russia,” she said. Management “From the Chamber’s position, the vibes we are getting from our members is more positive,” said Thomas Kazakos. “Yes we necks. There is growth in this and I am have had rough times over the last couple of hopeful we will get some of it. There are years and yes budgets were cut but over the definitely a lot of enquiries along these lines,” last few months, as far as I can see, and don’t far we haven’t got any in but hopefully in the he said. take it to mean that shipping is out of danger, next six to nine months we could be doing “Last week, I was told of two new but there is a more realistically positive something there. There are definitely people German companies who are moving down outlook. Ship owners know it might be some buying ships from Africa and the Near East; here so there seems to be some attraction here time before they return to these crazy freight there is money around, and as they are being to set up shop, added Dieter Rohdenburg, levels of a few years ago, but they are refinanced they are coming in under a Managing Director of Intership Navigation. considering a reasonably positive trend as a different umbrella. We are hopeful that the “Also, I understand that the new German sign of positivity to the future,” he added. investing side is another angle into the market Cyprus double taxation treaty comes into As Bob Maxwell, Managing Director of rather than from traditional ship owners. force which is also very beneficial for Dobson Fleet Management, told SMI, the “There are a few deals going down, not attracting direct investment by German good thing about the tonnage tax system is quite distressed assets, but where the original companies into Cyprus. We are all facing the that it has clarified everything “because we finance houses are under pressure and would same problems in market-related know it is in place for the next 10 years. We rather liquidate their shipping assets. These fluctuations, but some are feeling it a little have had a good bit of interest from are getting bought out by finance people who more than others but a lot boils down to the customers considering Cyprus as a flag. So do not have bad debts hanging around their fleets you have,” he said. REGIONAL FOCUS CYPRUS

On the chartering and

“management side, there are

smaller new entities being attracted in. They are of “ Russian origin and there are a few German companies Captain Eugene Adami, Managing Director, Mastermind Shipmanagement

still very much a question of running a selling campaign. The various government institutions and the shipping trade have undertaken trips to visit potential users of the flag in order to explain the advantages of the tonnage tax system and I believe it will have a positive effect. The big disadvantage we still have is the Turkish embargo problem. Owners cannot say ‘Ok, we have a tonnage Intership has seen its fleet grow to an Turkish ban issue will not last forever, he tax system that is brilliant, but I cannot go to impressive 75 ships, but as Mr Rohdenburg opined. Pointing to a certain element of Turkey’. I am a little bit sceptical about what stressed, it needs to start focusing beyond just growth in the attraction of new businesses to they are achieving and no matter how much transporting cargoes from A to B: “We need Cyprus, he added: “On the chartering and I would like to have good news to say, there to look at what else we can do for our management side, there are smaller new is no change in the situation. Turkey is still customers, such as introducing add-on entities being attracted in. They are of off bounds for us. I would love to have a services,” he said. Russian origin and there are a few German solution but I am sceptical because what As Dieter Rohdenburg added, Intership companies. I would reckon there is a certain interest does Turkey have in seeing it our is not in the business of canvassing for third growth because normally when you are way? When Turkey wants to join the EU we party business, but it does manage ships for facing difficult times, people look at can put on pressure but Turkey is doing third party owners and some charterers have optimising certain procedures to cut costs and extremely well on its own. Its economy is started to approach the company over its third shipmanagement comes in as a handy tool,” booming like no other European economy to party management services. “We are owners he told SMI. the extent you could even compare it to some and I would always want to retain control This was a point echoed by Dirk Fry, Far Eastern economies,” he said. over our crew. It is not just a point of Managing Director of Columbia The main beneficiary of the tonnage tax operating ships efficiently; it is also a Shipmanagement. He said: “Everyone talks system is the Cyprus flag and according to marketing tool because our crews are of the crisis and the freight levels but if we the Cyprus Department of Merchant involved in the cargo handling activities are talking of ship managers I always Shipping, “at the moment we are witnessing when they are operating the cranes. I need maintain that the ship is there and it needs to the positive impact the new tonnage tax people who know what they are doing and be managed. Yes money is tight, but I am system is having, as new companies are who are ambassadors for us. I also need our sorry there is no change to the fact that ships opting to be taxed under the new system and ships turned round quickly; it is all about need to be run. We are picking up additional we do believe this will lead to the further making sure the efficiencies we develop are tonnage – not at an exaggerated fee but that expansion and growth of both the Cyprus being deployed on the ship.” was never our aim anyway. We want to be Register and the Cyprus maritime cluster. Ex-Intership senior executive and now a sure we can do a proper job; I would consider “Numbers show that the economic ship owner himself through his Mastermind the situation as stable but ships are slowly downturn didn’t have a negative impact on Ship Management entity, Captain Eugene coming in.” the Cyprus Registry. In hard times like these, Adami, agreed with the notion of stability in He added: “I believe the tonnage tax the competitiveness of various ship registers the Cyprus cluster, albeit tempered by system that Cyprus has implemented is very is of particular importance. Although Cyprus problems associated with the continuation of good but that doesn’t mean that everyone will has much to offer in terms of infrastructure the Turkish ban. People are optimistic that the turn around and want to come to Cyprus. It is and maritime administration, ultimately the

28 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011

REGIONAL FOCUS CYPRUS

incentives available to both residents and non-residents and the enhancement of the international reputation and the competitiveness of the Cyprus flag as a maritime flag and of Cyprus as an international maritime centre. On the other hand, the quest for higher safety standards and the protection of the environment never ends. New international instruments and EU directives are adopted and enter into force. The DMS maintains its administrative Martyn Gibbon, Managing Director of capacity to act quickly and efficiently in MARSAL Waste Management implementing such instruments,” he said. The Department of Merchant Shipping I believe the tonnage tax had its own strong words to say about the the discriminatory practices applied by “system that Cyprus has Turkish ban on Cyprus flagged shipping: Turkey. The local shipping community has “The illegal and discriminatory restrictive also been working hard through various implemented is very good measures imposed by the Turkish international and regional industry Government on ships flying the Cyprus flag organisations, such as the International but that doesn’t mean that have been acknowledged as being contrary Chamber of Shipping (ICS) and the everyone will turn around to the provisions of the Customs Union International Shipping Federation (ISF) as and want to come to Agreement between European Union and well as through the European Community Turkey and the Protocol thereto, which Shipowners’ Associations (ECSA), towards Cyprus. It is still“ very much a extends the Agreement to the States which the termination of the restrictive practices of question of running a selling became members of the European Union in Turkey and intends to keep up the pressure 2004. The Cyprus Government, on a regular on Turkey to lift the measures. campaign basis, submits to the European Commission “With our accession to the EU and the Dirk Fry, Managing Director, factual reports which document the violation commencement of Turkey’s accession of the provisions of the Agreement by negotiations with the EU, the abolition of the Columbia Shipmanagment Turkey. These reports provide also a record Turkish restrictive measures was one of our of the willingness of Turkey, a State aspiring major expectations. However, it is still one of bottom line is cost,” a spokesman told SMI. to become a member of the European Union, the drawbacks of our flag. These restrictions “In that respect, Cyprus provides a to implement the acquis communautaire. violate the freedom of navigation, the competitive edge to its clients, with regard to “The issue has also been discussed freedom of trade and the freedom of access to taxes, fees and services following within the European Union at various levels ports and harbours. Although the Turkish registration. The new tonnage tax system including the European Council, the restrictions have for some years now secures a stable fiscal environment for European Parliament and the European adversely affected the development of Cyprus shipping in the long term. It also Commission and it has been recognised as a Cyprus’s ports, reduced the trade and introduces incentives for new shipping violation of the provisions of the Agreement. hindered the growth of the Register of activities and extends the implementation of The reports of the European Commission on Cyprus Ships, the issue has now gained a the EU maritime transport policy beyond the the progress of the accession negotiations new dimension. The lifting of the Turkish European boundaries. This, in fact, provides with Turkey have been recording that Turkey embargo is a prerequisite for further progress a new impetus for the shipping industry on has to withdraw the restrictive measures of Turkey’s European ambitions. Our efforts the island and creates great prospects for which it has in place against ships flying the will continue and be intensified both at the future growth. Cyprus flag as they are in violation of the political level and at the technocratic level,” “The main efforts of the Department of Agreement. The Cyprus Government will a spokesman said. Merchant Shipping are focused on the further continue its efforts and will maintain the Turning to the general economic improvement of its services and facilities, the pressure already exerting for the abolition of situation and how it is affecting companies

30 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 Nikolay Khovrin, Chairman of the Switzerland- based International Law Enforcement Agency “Cyprus has very strict gun control laws. Even private security companies are not allowed to carry fire arms. The pending new legislation on the protection of Cyprus-flagged ships can change the legal framework but is unlikely to change the attitude so no company is expected to get a fire arms licence easily. In fact this legislation has already found opponents who point to EU laws working against proliferation of small arms.” on the island, Michael Steemers, Director of Limassol-based Albatross Adjusters, said that at a time of economic recession, companies could regard themselves as well off if they were able to hold onto what they had or even grow slowly. He said: “Cyprus is still performing quite well but these are not the days when owners are making lots of money but it shows the strength of Cyprus that the companies are still doing well. And the new tonnage tax has been introduced. There has been interest from Scandinavian companies but the actual selling of the programme still needs to be done. “Attracting charterers could be a new thing for Cyprus. There is a hope that a number of the major charterers will somehow be attracted and this is positive I think from a Cyprus point of view and hopefully it will work. Charterers have the same needs as owners and managers and all these services are available in Cyprus,” he said. Albatross Adjusters has been operating on the island for 27 years and handles a variety of marine casualty claims from around the world. “We cannot complain at all about how things are going; at the moment we are handling one of the largest collection cases there has been for General Average involving a ship of 10,000teus. The fact we do this shows that General Average has a future because in the past there was talk of the days of General Average being over. We believe General Average is here to stay but the only thing we can do is to provide a good service and the shipping industry is small enough to notice these things.” Aphcentrica Marine Insurance Brokers Director, Marinos Vourgos, has seen a steady increase in interest in Cyprus from charterers, again linked to the attractions posed by the introduction of the tonnage tax system. But the recessionary climate has increased the number of FD&D claims, he added. FD&D insurance covers a claimant against any legal costs or expenses that might arise as a result of pursuing or defending claims arising out of contractual disputes. The most common cases relate to disputes under the terms of the charterparty; but disputes arising under bills of lading, or other forms of contracts REGIONAL FOCUS CYPRUS

case of nice to have, rather than need to have you reach? So they could be more proactive.” – it will take some time before owners and Peter Economides, Chairman of managers understand there are cost savings. Totalserve – a business offering tax planning If they look to the future, payback time can be and corporate services worldwide – pointed very short indeed, six months in some cases.” to the benefits Cyprus would enjoy if the What about competition with other Turkish ban was lifted. “If it was resolved it clusters? Dirk Fry again: “If you compare the would mean that ships calling to Turkey Singapore and Cyprus governments, the could fly the Cyprus flag. It would definitely Singapore government is really, really increase Cyprus’ market share because proactive and will bend over backwards to Turkey is a growing economy – 70 million attract additional business. Yes, in Cyprus we population – and being a growing economy it have the tonnage tax system and yes they are means there are a lot of imports and exports marketing it, but they are not as proactive as which Cyprus could benefit from. Not only Peter Economides, Chariman, Totalserve Singapore. If you want to get something big, would shipowning companies benefit but and fast, then you have to move fast. It would also all shipping-related businesses would of carriage are also covered. be very helpful if the government did more. benefit from this. “It has been a difficult time for owners What the Cyprus government is doing is one- “But as we know you need two to tango and managers and our role has been to help on-one marketing, which is a good idea, but but it seems that Turkey is not ready to sit them collect their claims faster, and to sort if you do one-on-one marketing at five down and come to a final settlement of the out their problems more quickly to help cash locations for example, how many people can issue,” he said. ■ flow. When times are good, owners are more relaxed but in the current economic climate, if you have a pending claim our role is to make sure it will be resolved so our clients Limassol port looks to expansion can get their money as quickly as possible. From our experience there are more FD&D taken place, boosting depth at the claims coming through; you can see this from quayside to 17 m. State-of-the-art post the reaction from the P&I Clubs and it panamax gantry cranes will also be involves everything from demurrage to bought for boosting container handling unpaid freight or delays in paying freight or efficiencies. trying to cut freight commitments. Charterers Yiannakis Kokkinos, General are also in a difficult position, they will try a Manager of the Cyprus Port Authority, variety of things such as putting a vessel off- told SMI: “The gestation period of the hire, even for a few hours; so it is a difficult projects is quite long and we are at the market for everyone involved in shipping,” stage now where in the next couple of he said. months we will go out to tender for the This was a view shared by Martyn expansion of Limassol port. We felt it Gibbon, Managing Director of MARSAL necessary to expand the port so we could Waste Management, who said of the current yprus Port Authority has have a linear quay of 1,000 m with the ship supply sector that generally it is more of expansion on its mind following appropriate equipment in view of the fact a case of buy it if we have to, otherwise wait Cnews that it is poised to go out to that the larger ships are coming out on the till later. “In the shipmanagement industry tender as part of an €85 million project to Europe to Far East trades. We expect the cost has always been the priority but you get boost throughput at the port of Limassol whole project to be completed by the end what you pay for at the end of the day. We from 800,000teus per year to 1.3mteus. of 2013 or the beginning of 2014. It is an have lost a couple of baler orders to a cheaper Under the proposed project, quay investment that will help the growth of competitor but there is no way the machine is length will be extended by 500 metres efficient trade and yes the attractive comparable to our machines. As the waste alongside dredging which has already dimension is transhipment trade.” ■ compactors aren’t requirements – more a

32 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011

SHIP REPAIR Singapore offshoreshows its By Alan Thorpe credentials

embawang Shipyard, a wholly- m3 Dapeng Sun, BW Gas’ 162,400 m3 BW the Roncador Field offshore Brazil when she owned subsidiary of Sembcorp GDF Suez Paris and NYK’s 145,700 m3 is delivered during this year (2011). SMarine, has recently signed a long- Tangguh Towuti. Sembawang also signed a The FSRU contract involves the term alliance contract with Canada’s Teekay block booking deal with Japan’s K Line for 126,360 m3 LNG tanker Khannur, which is Marine Services, to provide ship-repair, the repair of three LNG tankers, the 155,000 owned by Golar Energy. The Khannu will refurbishment, upgrading and related m3 Tangguh Jaya, being repaired during be converted to Floating Storage and marine services for its fleet of 137 ships. December last year (2010), and the sistership Regasification Vessel (FSRU), and renamed With the signing of this long-term contract, Tangguh Foja both during this year. West Java. Sembawang Shipyard can anticipate the On the conversion side of Sembawang’s Keppel Shipyard, part of the Keppel refit and/or upgrade of six to eight Teekay activities, the largest being from Norway’s Offshore & Marine Group, is the world vessels each year. In February 2011, BW Offshore for the conversion of the leader in large scale conversion projects, Sembawang Shipyard repaired Teekay’s 97,172 dwt tanker BW Genie into a Floating especially those involving conventional 108,712 dwt shuttle tanker Navion Production Unit (FPU). The vessel is tankers to FPSOs. Savonita, which is operated by Teekay expected to be re-delivered to the owners in The latest FPSO contract won by Keppel Brazil, and recently in the yard was the 4th quarter 2011. On completion, the FPU involves a fast-track project for the 96,668 dwt tanker Continental Spirit from will be stationed at the Terang Sirasun Batur upgrading of a FPSO vessel for Petrofac Teekay’s Singapore office. field in offshore Indonesia. International (UAE), a subsidiary of Last year, Sembawang signed such The second major conversion project Petrofac. Designated for an oil and gas field ‘regular’ agreements with (in May) involves the upgrading of FPSO Glas Dowr offshore Peninsular Malaysia, this FPSO Germany’s Ocean Shipmanagement, for its from Bluewater Energy Services B.V., the facility will be able to handle both oil and fleet of containerships, and (in October) with Netherlands. The shipyard’s scope of work gas production. Carnival Corp for the repair and includes repairs and life extension for the Keppel’s latest FPSO delivery involves refurbishment of cruise vessels. Already this vessel to operate for another 10 years. the FPSO Lewek EMAS, which will be year Sembawang has signed an agreement Jurong Shipyard Ltd (JSL), also part of delivered to EMAS Production, and is one of with Canada’s Teekay Marine. SembCorp Marine, is very active in the Vietnam's largest FPSOs. To be managed and The Carnival agreement involves 8/9 conversion market with three FPSO projects operated by EMAS Production, the vessel cruise vessels each year and has already seen recently underway and one FSRU (the first has been chartered by Premier Oil Vietnam Carnival (Australia)’s 63,524 grt Pacific FSRU conversion contract to be carried out Offshore B.V. for the development of the Pearl, and the 52,926 grt Costa Classica, by JSL). During April the FPSO PSVM was Chim Sáo field off southern Vietnam for six both repaired during the latter part of 2010, delivered to Japan’s MODEC – the unit is years, with a further option to extend the and the 9,975 grt Seabourne Spirit and the now deployed by BP in the Plutao Saturno charter by another six years. 60,906 grt Volendam, repaired this year. Venus and Marte (PSVM) Fields offshore Keppel has also delivered the FPSO Sembawang also has an agreement with Angola, West Africa. The second FPSO project, Armada TGT 1, to Indonesia’s Bumi Australia’s Northwest Shipping for its fleet conversion contract involves the Aframax Armada Berhad. Armada TGT 1 will be of LNG tankers, which includes longevity tanker Arc 11 ex Arc, which is being deployed in the Te Giac Trang (TGT or projects, two already completed and one, converted for Teekay Petrojarl Production White Rhinoceros) oil field, in Vietnam’s involving the 1991-built 127,500 m3 AS. The vessel is to be delivered during the Cuu Long Basin, for Hoang Long Joint Northwest Sanderling later this year. second quarter of 2012 and to be renamed Operating Company. This FPSO is expected Last year Sembawang repaired 14 large FPSO Petrojarl Cidade de Itajai. The vessel to strike first oil in the third quarter 2011. LNG tankers, this year the yard predicts has been chartered by Brazil’s Petrobras for There are six other such projects some 18-20 such vessels coming to the yard. use on the Tiro e Sidon Field offshore Brazil. currently underway in the two yards operated Already four LNG tankers have been The third FPSO project involves the VLCC by Keppel in Singapore – Tuas and Benoi. repaired – two from China LNG – the Suva, which will be converted to P-62 also These include: 147,100 m3 Dapeng Star and the 147,000 for Brazil’s Petrobras. She will be used on ● The 158,000 dwt FPSO Okha, an FSO to

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Success, the vessel to have a double-hull installed. ST Marine has also recently completed the installation of sponsons onboard the offshore diving support vessel Caballo Mayo, which is owned by Coast Line. The vessel also underwent an upgrading operation including the installation of an 850 tonne capacity Huisman heavy lift crane. During 2006, Malaysia Marine and Heavy Engineering (MMHE) formed a joint- venture company with South Korea’s Samsung Heavy Industries (SHI) – MSLNG to market the yards facilities in the LNG FPSO project for SBM, the vessel to be projects currently underway. The first is the tanker repair market. MISC is one of the stationed offshore Australia. conversion of a containership, the 7,285 dwt world’s largest fleet owners of LNG tankers ● The 280,491 dwt FPSO P-58, a tanker to Reestborg, to a livestock carrier, to be named and as such commits a great deal of regular FPSO project for Petrobras (Netherlands) for Dareen. The work is being carried out for repair contracts to the shipyard. Last year use offshore Brazil Hijazi & Ghosheh Group. Keppel is also MMHE repaired 10 large LNG tankers for ● The 255,346 dwt FPSO Aseng, a tanker to completing the 89,000 displacement tonnes MISC and two for South Korea’s Hyundai FPSO project for SBM for use offshore DP3 pipe-laying vessel Castorone for Italy’s Merchant Marine (HMM). Equatorial Guinea. Saipem. This year the first of the MISC contracts, ● The 142,639 dwt FPSO Ciudad de Paraty, ST Marine recently completed two involving the 152,300 m3 Seri Bjaksana, the a tanker to FPSO project for SBM for use major projects, the first involving the 145,000 m3 Seri Amanah, the 131,700 m3 offshore Brazil. upgrade and modification work onboard Puteri Nilam Satu and the 130,405 m3 Puteri ● The 148,192 dwt FPSO OSX-1, a FPSO Saipem’s 31,901 grt semi-submersible pipe- Zamrud, have all been completed. modification and upgrading project for OSX laying vessel Semac 1. The vessel will be Apart from general repair work, MMHE 1 Leasing (Netherlands) for use offshore deployed offshore Australia. has also been very active in the tanker to Brazil The second large scale project currently FPSO conversion market, the latest contract ● The 68,536 dwt FSO Sepat, a tanker to underway in ST Marine also involves involving the 100,020 dwt aframax tanker FSO project for Bumi Armada Berhad for Australia. In the first project ever carried out Ozono, which has already arrived in the yard. use offshore Malaysia. outside Australia, the Royal Australian Navy The contract, coming from MISC, involves Apart from offshore conversions, placed a major project involving the long- the conversion to FPSO for the Cendor Phase Keppel also has two other conversion range combat logistics vessel HMAS 11 (Petrofac) offshore Malaysia. ■

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 35 TRADE ANALYSIS REEFER SHIPPING Specialist operators resilient in face of

mountingBy David Tinsley challenges carrying capacity, progression beyond a certain size is subject to fundamental operational limits, including turnaround time at the loading and discharge terminals. Higher productivity, as regards cargo handling on both sides of the rail, therefore remains a key goal in many spheres of the business. The New Zealand kiwifruit industry recently raised the bar in terms of shipping throughput by loading and delivering 160 refrigerated containers to the port of Tauranga for export within a 12-hour period. The consignments involved totalled 832,000 trays of Zespri kiwifruit, and the box filling rate equated to one container every four and a half minutes. Since the length of the season changes pecialised reefer shipping has taken next few years, and a rising age profile should little, the handling stages become more something of a hammering over the produce demand-supply benefits for those critical to higher production and export Spast couple of years, with weakened specialist practitioners with efficient tonnage. volume growth. Tauranga Kiwifruit rates, increased costs, and markets hit by However, it will probably also help facilitate Logistics’ General Manager Ian Mearns said the recent global economic crisis and also the containership operators’ bid to build that while the loading of 160 containers in by climatic events. The unerring and market share. one working day was a record, he wanted it to successful drive by containership operators The single most important refrigerated become a standard for the industry. Key into the temperature-controlled cargo cargo is bananas, accounting for some 20% measures adopted to raise throughput rates category already posed a huge challenge to of the overall seaborne reefer trade, and included adept use of technology and the dedicated reefer vessel segment, and that elemental to business wellbeing in the communication tools, while the level of incursion appears to have gained fresh dedicated reefer vessel segment. Bananas, coordination in the NZ kiwifruit supply chain momentum. apples, oranges and other produce together is conducive to such improvements. Nevertheless, 2011 has seen form the dominant cargo category in Embodying the latest technology in improvements in trade and earnings in a temperature-controlled sea transport, reefership design, Seatrade Reefer number of spheres, and the performance, representing around half of all perishable Chartering’s new class of 661,000 cubic foot capabilities and know-how of the specialist traffic. Meat and poultry is reckoned to capacity vessels represents one of the few operators means that the sector has a future account for about one-quarter of carryings, commitments made by the industry as a even though the fleet’s market share is set to with fish and seafood amounting to nearly whole to newbuild specialised reefer tonnage be squeezed further by the container liner 20%, and dairy produce making up much of over recent years. Baltic Klipper and Atlantic service majors. the balance. Klipper, the first two vessels in the series of Industry sources put the containerised Because cargo characteristics vary from four entrusted to Japan’s Kitanihon proportion of seaborne refrigerated cargo in commodity to commodity, handling Shipbuilding Co, were phased into service the region of 50%-55%, and suggest that this procedures and transit environments also last year. At the time of writing, the two could rapidly grow to 70% within the next vary. The challenges of shipping different remaining ships in the programme five years. types of transportation-sensitive and constituted the only large pure reefer units on While containership fleet investment has handling-sensitive commodities cannot be the orderbook worldwide. resumed on a large scale, and with many understated, against the backcloth of the most Charters on two of the four new vessels projects including substantial design exacting service and delivered quality from Kitanihon have been agreed with the provision for refrigerated containers, orders expectations of every producer, shipper Joint Fruit Company (JFC), based in St for specialised reefer vessels have almost and buyer. Petersburg. Series leader Baltic Klipper dried up in all size categories. An increased Although design evolution in dedicated entered JFC employ after her maiden voyage offtake of capacity through scrapping, reeferships amply illustrates the quest for via New Zealand with kiwifruit for Europe. coupled with scant newbuild deliveries in the greater economies of scale through increased At the time of the deal, JFC’s Alexey Lyapin

36 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 REEFER SHIPPING TRADE ANALYSIS

had indicated that these modern and cost- vessels that can ensure fast and efficient investment in associated technologies. For efficient, dedicated reefer vessels, built to ice point-to-point logistics. instance, the fleet’s Volumax integrated class and incorporating sockets for a large While most of the considerable fleet reefer units provide a market-leading interior number of reefer boxes on deck, represented operated by Seatrade Reefer Chartering are volume of 30m3 in the 20ft container size the best solution to satisfy the requirements deployed in the Seatrade Reefer Pool, a and 70m3 in the 40ft high-cube container. of a large banana trader like JFC. number are allocated to the Hamburg Reefer Hamburg-Sud’s determination to Antwerp-based Seatrade Reefer Pool, formed last year in cooperation with achieve further growth in core business Chartering had existing connections with the Alpha Reefer Transport of Germany. The fields, in conjunction with a strategy of Russian company, through the latter’s Seatrade pool was augmented in 2010 with raising the owned proportion of ships and charters on three ice-classed vessels of about six Country-class, dedicated reeferships containers, is reflected in new commitments 464,000cu ft capacity, the Santa Lucia-type, from the fleet controlled by the Norwegian to reefer cargo-maximised box vessels and for the previous four years. “It shows that the company Green Reefers. Non-Pool vessels specialised equipment and services. major players in the fruit trades prefer to ship managed by Seatrade Groningen include Last year’s deliveries into the fleet, all their cargoes onboard specialised reefer four of the world’s largest reeferships, the emanating from Daewoo Shipbuilding & vessels,” Seatrade’s General Manager Yntze 720,000 cu ft Cala Pula series. Marine Engineering, comprised four 4,600 Buitenwerf had observed. Oslo-listed Star Reefers has ensured a teu containerships incorporating 516 reefer Long and slender, akin to the classical steady inflow of new, pallet-optimised plugs, and the first two in a series of 10 refrigerated trader, Baltic Klipper embodies tweendecker tonnage over recent years boxships of the 7,100 teu Santa-class a design which combines the optimum through a 12-ship programme in Japan. The distinguished by the provision for 1,600 modern design in pallet intake, refrigeration deliveries during the first half of 2010 of the reefer sockets. This equates to a maximum technology and provision for containers, final two vessels, Star Endeavour and Star reefer teu equivalent of 3,200 units, with best practice in cargo handling Leader, marked the completion of the representing one of the highest individual arrangements. series, and thereby also the completion of a capacities for reefer cargo worldwide. By virtue of her tweendeck major constituent of the industry’s Two of the 4,600teu entrants are configuration, the four holds are divided into diminishing overall investment in specialised chartered and two are owned, the latter 16 cargo compartments. In addition to the reefer tonnage. having been phased into the company’s Asia- 661,636 cu ft of underdeck stowage, there is Led by the Star First in 2006, the 12 Mexico/South American west coast service. provision on deck across the full width of the vessels in the programme each embody more The initial vessels of the 7,100teu generation vessel for a maximum of 552 teu containers, than 600,000ft3 of reefer capacity, have been brought to bear on the Asia-South including up to 267 units of 40ft. The augmented by slots on deck for 200 FEU Africa/South America east coast trade. electrical socket array allows for as many as (40ft) reefer containers. Built by Shikoku Besides the eight follow-on vessels of the 200 boxes on the manifest to be of the Dockyard to the account of Japanese Santa-class from Daewoo, scheduled fleet integrated reefer type. Self-sustaining interests, each vessel operates under Star additions through to the end of 2012 include qualities as to cargo working, a traditional Reefers’ colours on the basis of a 10-year four smaller newbuilds of 3,800teu booked requirement in the general reefer trades, are charter. Star has in turn committed all the from Shanghai Shipyard. conferred by two 40t and two 8t deck cranes. tonnage on long-term time charters to Moreover, to achieve business Fully-laden with bananas, the ship can leading banana producers and traders. The expansion goals, the German group ordered make 21.5 knots. company holds options to purchase eight of six boxships of 9,600teu in March 2011, with Last year’s signing of a major freight the ships. an option on a further four. These will be the contract with kiwifruit marketeer Zespri Temperature controlled freight largest-ever vessels commissioned by provided Seatrade with a firm base on which constitutes one of the single most important Hamburg-Sud, and will host a further to continue the development and expansion commodity groups for north/south container increase in individual slot capacity for of its New Zealand liner operation to Europe. liner operator Hamburg-Sud, to the extent integrated reefer units, through the The new deal has enabled Zespri to secure that the company ranks among the top five specification of 1,700 sockets. The six firm an ongoing major volume of space on the carriers of reefer containers worldwide. A newbuilds have been contracted from regular, 10-day frequency service, and predilection in boxship design for an Hyundai Heavy Industries for delivery indicated the company’s predisposal in the exceptionally high reefer unit intake between May 2013 and early 2014, and are European traffic towards specialised reefer capability testifies to this role, as does its to be deployed in South American trades. ■

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 37 NEWBUILDING NEWBUILDCONTRACTS relative to similar size vessels in operation or CMA CGM is also revising LONG-TERM VIEW under construction. Pollutant exhaust specifications of some of its existing orders emissions will be correspondingly cut by so as to further advance scale efficiency. PERMEATES MORE around 20%. The project incorporates Three 13,800TEU vessels among a total of findings from Seaspan’s three-year SAVER 24 owned and chartered newbuilds due to CONFIDENT LINER (Seaspan Action on Vessel Energy join its fleet in the next few years will now Reduction) programme, aimed at enhancing be delivered in 16,000TEU configuration. It SECTOR cargo uplift, fuel efficiency and operational is understood that the tonnage involved is performance. part of a series booked from Daewoo. At The new features have been developed 16,000TEU, the ships would be among the By David Tinsley in collaboration between the owner, largest worldwide, apart from Maersk’s Yangzijiang, the Marine Design & Research 18,000TEU Triple-E behemoths at Daewoo. high degree of design added-value, Institute of China (MARIC), and Det Norske Evergreen, however, is pursuing a besides contractual competitiveness Veritas. “In this economic climate, where it strategy based on what may be regarded Ain terms of cost, delivery and build really is a buyer’s market, the time is right to today as a more modest size of long-haul quality, has been a major factor in the South push for technological improvements,” said container liner, at 8,000TEU capacity. In a Korean shipbuilding industry’s emergence Peter Curtis, vice president of Vancouver- third tranche of ordering, 10 such vessels of as the world’s premier supplier of large based Seaspan Ship Management. the new L-type have been entrusted to China containership tonnage. However, an The shift to larger boxships has found Shipbuilding Corp of Taiwan. The purchase increasing tendency among Chinese yards new expression in a huge fleet development takes the series to 30, following contracts in to engage with owners to better ensure the project announced by Neptune Orient Lines July and September 2010 for 10 L-types in long-term asset value and operating (NOL), to be entirely fulfilled in South each case from Samsung Heavy Industries. performance of such vessels, while Korea. Orders have been confirmed with Returning confidence in the liner trades, tendering a keen capital cost, poses an extra Hyundai Samho Heavy Industries for 10 plus the perceived need to better ensure challenge to Korea, and widens the sourcing vessels of 14,000TEU, and with Daewoo longer-term viability by investing in more scenario for many potential buyers. Shipbuilding & Machinery for two of efficient and/or larger designs, has seen a Exemplifying this development, 9,200TEU. In addition, the 10-ship contract considerable pick-up in boxship contractual independent owner Seaspan has entrusted the awarded by NOL to Daewoo last year is to activity during 2011. By June, the newbuild privately-owned Yangzijiang Shipbuilding be amended so that vessel size will be raised intake had surpassed the tally for the whole Group with a new generation of 10,000TEU from 8,400TEU to 9,200TEU. of 2010. vessels encapsulating substantial Deliveries are to be effected in 2013 and In the product tanker category, improvements in energy usage, operational 2014, and the entire investment covering both competitive newbuild prices in conjunction efficiency and cargo capacity. The order new and amended orders is valued at with a more positive market sentiment and comprises a firm commitment to seven such around $1.54bn. stable freight rates, have stimulated fresh newbuilds, with options on 18 further vessels, The 14,000TEU generation will be ordering. Most recently, Scorpio Tankers has constituting China’s biggest-ever deal in the assigned to the Asia/Europe traffic. Five will awarded construction of five 52,000dwt containership sector. be operated by the group‘s container shipping product carriers to Hyundai Mipo Dockyard. The hull lines have been optimised for a arm APL and five will be chartered by its It is claimed that these vessels will have a speed range of 18-22 knots, with an attendant New World Alliance partner Mitsui OSK 10% lower fuel consumption than existing, reduction of 16-27% in fuel consumption Lines. The 9,200TEU series is earmarked for comparable designs, largely through the trans-Pacific trade. The principal driver of the nomination of the latest generation of planned investment is the bid to reduce unit electronically-controlled, ultra long-stroke capital and operating costs in APL. By main engines. upgrading the size and specification of the Danish owner Norden has taken over ships in last year’s deal with Daewoo, the contracts covering four 49,600dwt product company is harnessing new, more efficient tankers at STX Offshore & Shipbuilding in design and technology. Korea, with completions due in the first half of 2013. Compared to Norden’s most recent newbuilds dating from 2007, the latest series promises a 25% reduction in fuel consumption. The investments in these and further vessels are expected to yield attractive returns as freight rates and asset prices normalise, and as an expanded owned fleet and design improvements result in economies of scale and facilitate Norden’s efforts to meet oil companies’ tightened requirements as to vessel quality. Meanwhile, the STX order book has been augmented by three 51,000dwt tankers for Thenamaris Ship Management. The versatile design provides for crude oil, refined products and petrochemicals. ■

38 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 OFFSHORE & SHIPPING TRADE ANALYSIS Building on tradition ario Froio is the Managing Elcano, Sao Miguel (part of the Brasbunker worries me somewhat,” he said. “We have Director of Pancoast Trading group in Brazil), and Global Transporte a contract and a commitment with Petrobras MSA, the Brazilian subsidiary of Maritimo (a Rio de Janeiro based company and also with the Rio Nave shipyard Greek shipping line Krontiris, and his with links to the Oceanus agency and part [ex Caneco].” Botafogo office – on the 39th floor of the of the Lachmann shipping group). The last Froio has a good relationship with the Edificio Rio Sul Center building – of these four contracts is under a cloud directors at Rio Nave and this has helped in overlooks the world-famous Sugar Loaf anyway as Global is understood to have finding slots during a time of high demand Mountain, the Rio Yacht Club and stopped trading, although it is also for Brazilian newbuilds, especially tankers Guanabara Bay, writes Rob Ward. understood that Lachmann may have the and offshore vessels. He must have one of the best office right to sell the favourable contract, The long-term charter contracts that views of anyone in the maritime industry, procured by Global/Lachmann, on to Pancoast has signed with Petrobras is part so going to work is an absolute pleasure... another ship owner. The total tranche of of the Empresas Brasileiras de Navegacao most of the time! contracts is for a total of 19 ships and all are (EBN) initiative designed to bolster the Because, of course, Froio suffers, like supposed to be ready to operate by 2014. Brazilian flag fleet and also (say some the rest of the industry, the “slings and Froio told SMI when we visited him in knowledgeable insiders) create some arrows of outrageous fortune” but he is his Botafogo office: “We have signed a competition between Petrobras (the oil usually pretty good at “opposing, and contract with Petrobras for the ships but the multi-national) and Transpetro (the logistics thereby end (ing) them” (with apologies to FMM has not met for a long time now. We and shipping arm of Petrobras!!). the Bard from Stratford upon Avon). understand that last year’s delays were Many of the other EBN contract Right now he is simmering because related to the Presidential elections but then winners have still not signed contracts with contracts signed with Petrobras, the state- the meeting set for December (after the the shipyards and this could prove to be controlled oil giant of Brazil, for long term elections) was postponed to February 24. a problem with so little (15-year) charters on four 30,000 dwt dirty That was supposed to be a definite date but capacity available product tankers - based on them being built then that got postponed sine die with no these days. in Brazil and flying the Brazilian flag – new date given.” should have led to the release of soft loans Froio, 53, is wizened enough to know from the Brazilian Merchant Marine all about the complex (and often confusing) Fund (FMM). ways in which the maritime wheels move But they haven’t. forward in Brazil and so he is not too The FMM has not met now since perturbed, but he is a little December 2009 (for more than 15 months) exasperated. which is a record period and the Brazilian “In the past they have maritime community, and Froio, are always given a new date starting to get very worried. but not this time Other companies with similar contracts and this with Petrobras are Spanish shipping line

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FMM loans are usually worth waiting for, and they often more than make up for expensive newbuilding costs in Brazil. They usually cover 90% of the overall costs of the vessels and charge interest rates a few percentage points below the average rate available in Brazil. They usually come out at around 6% Libor plus 2% or 3%, which compares favourably to the 10% plus rates normally offered in Brazil. The loans are also for 15-year periods. The Pancoast head has had a very distinguished career, mostly at the Bunge trading group, where he was the “other side of the fence”, taking on chartering duties for several years, and carving out a name for himself as a high-flier. He was also President of FONASBA for two years, from 2006 to 2008, and was awarded the Fenamar Medal of Honour in 2010 for his shipping company. but, in the end, not too painful but it took “achievements on behalf of the ship agency Froio takes up the story: “I knew the a month.” industry in Brazil”. Krontiris group from my time in Brazil with The ship was in poor shape as it had not Bunge moved him to their head office Bunge, and especially with Fertimport [the been well maintained for the previous five in Switzerland but after two and a half years ship agency and port terminal arm of the years. Ship repairs, as with newbuildings, there the Froio family as a whole – his wife Bunge group] and we used to charter in are notoriously expensive in Brazil, so and two children – found life a bit “staid many of their vessels for use along the East Froio sent the Lily to Turkey for three and predictable” and found it difficult to Coast of South America. months of dry docking that cost $3.5M. On settle down and think long-term. “I think in fact that the very first time a top of the $9.5M paid for the Lily, Froio explained: “We enjoyed living in Krontiris vessel was used by us it was to Pancoast’s outlay was considerable for a Geneva to begin with. There everything move cargo from Argentina to Brazil. We (then) 23-year-old 47,000 dwt bulk carrier, works unlike in Brazil, but we are Brazilian developed a very good working relationship but Froio reckons the 27-year-old Lily, now and we just love the chaos and energy during this period.” renamed as the Mimosa K, still has “about of Brazil so we had to try and find a Then in early 2007, Brazilian flag three years left in her”. way back.” shipping Alianca Navegacao (part of the He told us: “We thought we would And then the Krontiris family threw Hamburg Sud and Oetke shipping group) recoup the outlay fairly quickly but then the Froio a lifeline that pulled him back to decided to sell their last bulk carrier, the world economic crisis came in 2008.” Brazil, and to his favourite Brazilian city, Lily, which they had to operate to allow Nevertheless following the purchase of Rio de Janeiro. Come to think of it, them to keep the Brazilian flag. Having the Mimosa K/Lily, Pancoast became a it’s probably most people’s favourite bought a Brazilian flag container vessel, Brazilian registered shipping company, Brazilian city. Alianca were keen to unload and their Pancoast Navegacao, a branch of Pancoast Pancoast had been established in Brazil directors, Julian Thomas and Jose Balau, Trading company. since 2002 but only as the Brazilian were seeking a buyer. Rio de Janeiro based For most of the past year the Mimosa K branch of an international operator bulk carrier Norsul was contacted but has been deployed carrying wheat from trading in Brazilian waters. Then, when declined and then: enter stage left Froio Paranagua, in the south of Brazil, to Konstantinos Krantiris, the owner, decided and Pancoast. Salvador and Fortaleza, in the northeast. to set up a Brazilian branch, he decided Froio told SMI: “I put the idea to the Prior to that she was moving fertiliser and that Froio was the man to do it. The aim owners in Greece and they decided to go grain from Argentina to Brail and also was to turn Pancoast into a Brazilian for it. It was a very bureaucratic process bauxite for steel company Alunorte (based

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in the state of Para), from Porto Trombetas, crew prefer to work on the offshore vessels, on the Amazon River, to Vila do Conde, Right now we are defining where they do “15 days onboard ship and 15 near Belem. “what is the best strategy for us days at home”, compared to “two months And now Froio is helping to draw up a on and two months off” which Pancoast plan to take Pancoast into the future. The to move forward in this prefers. aim is to set up a holding company – to offshore sector. Do we build “Local taxes and social security costs be called Pancoast Incorporacao – and are also hurting us. For every Real we pay in then operate three companies under PSVs or anchor handlers here wages, we pay anther Real1.1 to Reais1.2 that umbrella: Pancoast Navegacao in Brazil or do we charter in in social security and other benefits. We

(bulk shipping), Pancoast Tanker and vessels or maybe even buy in have also suffered from the steep rise in Pancoast Offshore. bunker prices [they have more than

Yes, like everyone and every company some existing Brazilian flag doubled] and this is exacerbated here in in and out of Brazil, Pancoast (and vessels? Building is a problem“ Brazil by cabotage operators, such as Krontiris) want to carve out their own slice oursleves, having to pay an extra 40% in of the Brazilian oil boom. because of the lack of taxes for local bunkers.” The Petrobras order to build those four capacity these days, Froio and other ship owners in Brazil small 30,000 dwt tankers is already are petitioning the Brazilian Shipowners’ progressing that Pancoast Tanker intention Mario Froio, Managing Association, Syndarma, to lobby Brasilia (FMM funding notwithstanding) and now to try and get these cabotage bunker taxes Froio has to work out the best way forward Director, Pancoast Trading SA reduced or eliminated as they are ‘an into the potentially lucrative offshore supply anomaly’. boat sector. He also lamented the fact that the He told us: “Right now we are defining Offshore has put up for sale. If they bought Brazilian naval academies are not producing what is the best strategy for us to move these –and the asking price is around $30m enough cadets, although there are moves to forward in this offshore sector. Do we build to $35m apiece, according to reliable SMI increase numbers. PSVs or anchor handlers here in Brazil or sources in Rio de Janeiro – then that would “We suffer particularly because, for the do we charter in vessels or maybe even buy allow them (under Brazilian legislation) to time being, we are only operating the one in some existing Brazilian flag vessels? bareboat charter two more vessels of similar vessel. This means we have to pay for two Building is a problem because of the lack of size to give them the “fleet of four” that sets of crew all the time.” capacity these days, although there might be Froio spoke about. But Froio still believes clearly that the some slots to be found for smaller OSVs in Once Froio and Pancoast get a toe-hold positives outweigh the negatives in Brazil. yards in Santa Catarina, in the south of in the offshore market the numbers he will Froio said: “We believe in this country and the country.” manage will rocket from today’s 56 (42 we believe in what the people and the The Pancoast boss said that the aim was crew and 14 office staff), up to well government are doing. I still think there to build up a small PSV fleet of between over 100. are many problems that we must solve four and 10 vessels and then grow into the “Like everyone in Brazil we are locally but there are lots of opportunities business from there. Because they operate suffering from a lack of crew and especially here in Brazil. the Brazilian flag Mimosa F they are entitled officers,” stated Froio. “There is a shortage “For me and for Pancoast, Brazil is right to bareboat charter in vessels up to the of qualified crew and there is especially a now one of the best places to get settled and equivalent dwt tonnage of the old bulker. shortage of quality crew members, to invest your money.” “We are talking to a number of especially officers. We have to have 100% And, referring to the commonly held investors,” Froio revealed to SMI, “and Brazilian crew on our Brazilian flag ship believe that Brazil will only ever be known these include equity funds and pension and good crew are very scarce these days, as the “Country of the future”, Froio added funds. We might even consider a joint and very expensive too.” enthusiastically: “The Brazilian economy is venture.” Froio bemoaned the fact that it costs without doubt a very healthy economy today And SMI learnt from other sources that $12,000 per day in crewing costs for the and I hope that we will become the country Pancoast has been making inquiries about Mimosa K and that crewing costs and taxes of the present and not just of the future from two Brazilian flag vessels that Norskan are “very, very expensive” and Brazilian now on.” ■

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MARKET SECTOR IT & MANAGEMENT SOFTWARE 48 Information2525652525392513 61 252525 25252525 76 overload?2525 77252545 2567 482525259925 32

By Helen Jauregui hether easing the paperwork management where efforts to effectively all-encompassing solution from one burden at all levels of document technical problems, cargo issues provider: “It seems many shipping6721 Wpersonnel, streamlining and costs simultaneously, can lead to a companies are looking for integrated operations or improving safety and form of information overload. “It’s easy to solutions where they have crewing, accident prevention strategies, claim to have an integrated solution, but purchasing, and maintenance (in line with management software is a vital tool in the what if this doesn’t behave in a truly the International Safety Management ship manager’s quest for workforce integrated manner?” Mr Joshi said, (ISM) and International Ship and Port optimisation. But as shipping companies noting that due to the dynamics of Facility Security (ISPS) codes) within in seek a whole software solution to their shipmanagement, effective software should the same software. If you look at the administrative woes, problems relating to be able to account for a continually question of using the same data throughout training and the integration of software changing environment. the system, its obvious to anyone, it would 35 have become common challenges across Describing a culture of ‘commercial be the correct solution to have an integrated the ship management sector. rigidity’, Mr Joshi added that it can be system.” However, Mr Reumert argued Crispin Jessop, Maritime Sector difficult to encourage some shipping that he does not believe a truly integrated 9 Manager at Allocate Software, described companies to accept new methods of system has been produced: “In my the ‘false hope’ many owners and managers working, but as he said: “We’re not asking maritime career over the past 40 years, I face when attempting to build a hybrid companies to change, just helping to bring haven’t seen it. When I speak to managers system composed of different software a fundamentally different approach – a and technical directors of shipping packages – a common practice which often service approach, not a product approach.” companies it seems they don’t feel 89 spells disappointment: “IT is now in its He also noted the importance of sharing confident that the suppliers of integrated fifth generation but its still early days. intellectual property with clients, as without systems can provide them with the People can have a myriad of systems and proper support, software can be rendered correct solutions. 7 often, clients may purchase a number of useless. “I’ve seen cases where people have However, George Frydas, Managing different packages. The issue is there is no stopped using software just because of Director of Greece-based IT solutions single system which will encompass their this,” he said and described the contrasting provider Fortune Technologies, explained total requirements.” He noted that if a approach of his own company, where the greatest challenge of aiming to provide requirement for effective interfacing comes client-specific software products are a single, incorporated system for into force in the future, this would assist provided alongside full information management software is convincing those 65 ship managers greatly. and support. in industry that an integrated solution for The problem of attempting to combine Adding to the debate on combining all departments is the right choice: “It is 36 ‘disparate applications’ was also software from different sources, Ole not logical or best practice if each highlighted by Himanshu Joshi, Chief Reumert, owner of Danish software department uses different applications. Executive at Seven Oceans Consulting. Mr provider DOCONTROL, described the Successful business practice comes from Joshi described a ‘struggle’ within ship difficulties facing owners who expect an having one vendor and flexible solutions

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which can be adapted to each customer’s namely tablets and smart phones. Cloud companies must show quickly they have needs.” He added that other persuasive computing and software as a service will be the right, skilled people.” factors include ease of use, since crew often of greater importance in the coming years. According to Martin Karlstad, Chief do not have the opportunity to devote a At the moment, we are trying to keep up Commercial Officer, at Norwegian great deal of time to management software, with this trend by moving part of our software specialist Star Information while price is also an issue which software software functionality to the web.” Mr Systems, increasingly strict conditions providers must constantly compete on. Prinias remained realistic about the demand from charterers will usher in requirements 8 Fortune Technologies has developed a for software solutions, in line with common for more professional solutions from range of products based on a Microsoft perspectives from those in industry: “The shipmanagers. “Furthermore, as Dynamics NAV platform which is updated ship management industry, being an transparency is a key word, we believe that every two years – a facet which Mr Frydas industry heavily reliant on accurate and the owners will require more information said has helped his company, in an industry prompt information, has a lot to gain from from shipmanagers than previously,” he where competition is based on smart and well-designed software said, noting that transparency of technological factors. solutions. In my opinion, we have a long information will become a key method for Alexandros Prinias, representative way to go to convince the heads of this customers such as owners or oil majors to from Greece-based software provider industry that investments in IT can really measure reliability. Considering this Oceansoft, emphasised the need to create make them money in the long run.” emphasis on shared information, he added 76 integrated software devised for multiple Lee Clarke, Allocate Software’s that as owners are not users of devices: “At the moment there is an ever Product Services Manager for the Maritime shipmanagement software themselves, increasing demand for integration and Sector, added that technologies have shipmanagers must make the required 32 widespread availability of information. As moved on and owners are willing to look information available through other people in the industry tend to travel all more readily at ship-to-shore systems, tools, including web solutions, reports, around the world, be it for business or though bandwidth is still expensive. He forms, etcetera. pleasure, there is a demand that they can added that ‘ancillary features are also an Noting the growing trend for keep in contact with their office 24/7 and important aspect of Allocate Software’s measuring data in terms of key have, at least, a summary overview of what packages, particularly concerning the performance indicators (KPIs) and for happens during their physical absence. We optimisation of travel: “This is becoming a interfaces to new tools such as smart see a large part of our industry moving greater challenge due to increasing phones and other handheld devices, Mr 7 towards web-based solutions, and/or regulations within industry, partly because Karlstad added: “We see more demand for solutions running on multiple devices other finding and retaining crew is becoming integrated solutions onboard with further than the classical user desktop or laptop – more difficult and so, during audits, modules covered within software packages. Furthermore, demands from the charterers are increasing with regards to Tanker Management and Self Assessment (TMSA), vetting/audits and similar. This is a particular requirement for tankers but it will be relevant to other segments of the 5 maritime industry as well. The oil industry has had it for a long time and the shipping industry will face similar requirements and demands. This means owners and 94 managers need to have more reporting and follow-up reports concerning what happens onboard.” 9 Audits and regulatory requirements are a key reason for choosing the correct

Allocate Software software package, and as Colin Hook, Chairman of fleet management provider Pole Star, noted – environmental legislation 71 such as ballast water treatment and stringent air emissions regulations have ushered in strict punitive measures for non- compliance. Shore-based operators must pay close attention to the environmental 5 compliance of their vessels but as Mr Hook said, software can assist with leaving IT staff on the shore: “Ship- to-shore telemetry systems 6 are one obvious solution, allowing shore-based operators to monitor the operation and efficiency

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of expensive onboard environmental Where there are exceptions, they work to don’t have the range of IT skills. It’s equipment. This could alleviate pressure on validate which information is correct.” important to try and cater for the average the vessel owners and managers to have IT Considering the importance of seafarer and where English is a problem, personnel onboard their vessels.” combining human understanding with training will be an issue. The less you have Aiming to keep a close watch on all technology, crew training is also a vital to engage with it, in terms of system use, vessel activities, ship-to-shore IT element in ensuring the effective use of the more intuitive the product becomes.” communications also include the use of management software. However, as Mark He added that an ‘ethos of simplicity’ Automatic Identification Systems (AIS) but Jennings, Operations Manager at Marine is important when dealing with the 3 Mr Hook noted how the availability of free Software Ltd, explained, introducing international market, particularly since the AIS data on the web “represents a major seafarers with little previous experience of ability to access the correct electronic security concern”, while AIS itself could IT or those with language barriers to the records rapidly and accurately, forms an “be perceived as a game changer in the world of management software can bring important part of ship inspections: “From vessel tracking industry”. However, he ‘common problems’: “For many seafarers, the ship manager’s perspective, they are added that a lack of global coverage of English may be their second or third facing increased pressure over the amount satellite-based AIS systems and terrestrial language – they don’t have the time to be at of port state and class inspections. In terms based stations means “this system is not yet the computer as crew numbers are being of ship management software, crew must 2 mature enough to be a replacement for squeezed down, but some of them also demonstrate the ability to operate IT 6 existing tracking systems provided by companies, such as Inmarsat-C, IsatM2M and Iridium”. However, AIS providers remain confident of the powerful uses of such systems. Daryl Williamson, Director of Government Business at Lloyd’s List Intelligence, said his company’s Vessel Tracking and AIS service offers the largest land-based AIS system in the 8 world, through which users can access a detailed view of the maritime domain, including access to the Lloyd’s 9 Agency service and the ability to zoom into ports and retrieve detailed information about a vessel’s past. Such IT tools can usher in powerful commercial advantages, as Mr 7 Williamson explained: “Owners know very well where their vessels are, but what are their competitors doing? Where are their vessels deployed? When you’re looking at the availability 6 of vessels in a particular location, you can look through the AIS and get a picture of the population of vessels and 3 use information about their ownership and characteristics.” However, Mr Williamson warned of the need to combine modern IT with human intelligence: “We’re providing knowledge, not just data. Through our analysts and agents we can fuse and validate information – if you went out and bought yourself an AIS receiver, 12 pretty soon you’d be able to get images on the screen but you need a wealth of 4 information to put that into context. Through our agent’s feeds and our associations with class societies, flag authorities and businesses all over the world, we collect information. Our 2 systems preen that information and our human analyst group of over 60 people, checks every single piece of data. 5

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systems and to provide the information Commenting on the regulatory needs to calculate when to switch from they’re looking for in a quick and easy challenges facing industry, he added that IFO to Low Sulphur Fuel (LSF),” Mr way. Sulphur Emission Control Areas (SECAs) Sheldon noted. The pressure of more increased “add a whole new level of complexity to Nedumbur Karthikeyan, Vice inspections does not bode well with bunker planning and fleet management,” President, Sales and Marketing at Teledata complicated software which the seafarer as many commercial shipping Marine Solutions, said training is the most may find difficult to use. Mr Jennings organisations will need to update their problematic issue within the field of noted the need for a task assistant to help operational software as a result. “They management software: “In my experience, crew to find the correct information: “It’s need to track and define multiple bunker I have found that many companies buy the important to ensure the crew has a tool grades as alternative fuels to the existing IT software to manage their operations, which is simple, intuitive and easy to use. Intermediate Fuel Oil (IFO) and Marine then provide initial training for the crew. 67 Potentially, if an inspector goes onboard Diesel Oil (MDO) types. Often, they must However, in the marine industry, crew are and finds deficiencies they track non-fuel vessel liquids such as often not in a long-term contract with one could detain the ship hydraulic fluid and lubricating oils. When company and change jobs fairly so if the crew lack a vessel is entering a SECA, frequently – you find crew start to use the 35 confidence or can’t the operator software incorrectly and send the wrong 21 find the information it information and this is a problem for ship could potentially lead management companies. Some to a big loss of work seafarers, particularly the for the vessel which older generation, don’t like would mean even to use the software, greater pressure falling whereas the younger on the ship manager.” generation is happy to Warning that within use it.” ship-to-shore He added that the71 communications, “one cost of training is a size does not fit problem for many all”, Jamie Sheldon, companies, in addition 94 IMOS Product Director to the logistics of at Veson Nautical, arranging training explained how pressures courses. “This will for increased speed, change over the next efficiency and decision few years as training making are at the problems will forefront of shipping increase. I think 89 today. “These pressures going forward, it are driving the need for will become a better data access system requirement to integration. Process maintain all documents in soft copy so 65 automation within the office is a baseline that basic standards and security competitive necessity. Companies should requirements can be easily met – that will now look at technologies which extend happen in the next five years. It will be 36 those efficiencies to fleet and business good for the industry but I’m not quite partner processes,” he said. Pole Star sure how the industry will react to

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training, which has been a problem for 10- uptake of effective management software used Microsoft Excel platform and Spiros 15 years and will not be easily solved.” is largely dependent on seafarer Logothetis, Executive Consultant and Industry stakeholders also described knowledge and the use of quality hardware Software Developer, said his company the problem of mistakenly associating but in some regions, this is less common: aims to ‘plug the holes’ between core mainstream software issues with the “To cope with electronic reporting, my software and workflow cycles, particularly maritime sector. Dimitris Lyras, Managing clients from Norway have all the necessary as shipping companies often don’t employ director of maritime software vendor equipment to run software, but when you in-house IT staff to do this effectively. He Ulysses Systems, explained: “There has go abroad to the Middle East and other also noted that although accessible 35 been a general confusion and will continue parts of the world, we find they lack a lot software is vital, problems can arise when to be, over changes within the software of the basic equipment needed. It is like shipping companies base all hope of an industry outside of the maritime sector two different worlds when it comes to effective management solution on the (cloud computing for example), but much using modern software – when you are in purchase of a software programme alone, of this is not relevant. The maritime Europe everyone is used to it but in other after which they believe “all their industry has a few special problems which parts of the world, they lack basic problems will go away”. “The training, 21 require communication systems from ship knowledge, especially onboard.” implementation and development of to shore. The way we use software He added that health, safety, correct workflow procedures is something solutions is not the same as we are a environment and quality issues are which is very lacking in shipping and this 12 service industry focused on identifying currently driving Shipadmin’s business. is where problems begin,” he said, adding risks and decision making so altogether, The company’s core solution, Captains that consistent training is a fundamental we are different from the mainstream – we Secretary, enables crew to log into a web element within IT, for both onboard and have our own issues which are not always page at any given place in the world and ashore staff: “It is difficult because you easy to overcome.” input information about themselves, have people onboard who are many71 Highlighting the fact that many IT including next of kin, relevant certificates thousands of miles away from you – I 5 companies have failed to address the etcetera, all of which are sent to the safety don’t believe there is enough training problem of effective and continuous management officer ashore. Much of regarding workflow procedures.” communications between ship and shore, Shipadmin’s business is focused within the Quality control is another important Mr Lyras said an antiquated approach to offshore business, dealing with offshore facet of software solutions, and according communications, which has barely altered support vessels and Mr Grøsvik added that to Ole Reumert of DOCONTROL, this over the past decade, is common within these can accommodate up to 200 includes the need to teach maritime industry. He also noted the importance of individuals onboard, with perhaps only 25 employees what quality operations 94 getting software choices right from the who are there to run the vessel itself and actually entail, i.e. “The ability to do early stages: “It’s a matter of selection of so, the shipping company is not only things again and again with the same level software – there is confusion for the running an offshore support vessel but of quality”. However, Mr Reumert added mariner if the software is not user-friendly also, what is effectively a hotel with 200 this is dependant on the end user’s but its at the point of selection that beds. Mr Grøsvik noted the challenges of perception of what quality is. He added managers should ask more questions and keeping abreast of information concerning that to ensure a full and clear level of understand, there are conflicts of interest all those onboard, particularly for understanding, documents must be kept as 67 in the selection process – decisions can get the Master, for whom electronic simple as possible, so as not to over- in the way of truth. I’ve yet to meet a documentation represents the freeing up of complicate the seafarer’s responsibilities. company which hasn’t made an error in time and a simplified approach to ensuring Praising a “keep it simple” approach, Mr the selection of software at some point.” the safety and wellbeing of all personnel Reumert concluded: “It’s a skill to 65 Per Magnus Grøsvik, General onboard. simplify things and have everyone run in Manager of Norwegian IT solutions Cyprus-based Seaxl Marine Software the same direction – its one of the finer provider Shipadmin, agreed that the offers solutions which run on the widely- points of management.” ■ 364 2 89 50 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 INSIDER SHIPMANAGEMENT 5 1 Dealing with a surplus Ashok Sabnis Managing Director of Goodwood Ship Managment

1 believe there will be a surplus of manpower in the next few years mainly as a result of the privatisation of maritime training Iaround the world. Once anything is privatised and once the investments are pumped into it, the private sector is not going to wait. Whether the industry likes it or not the colleges will throw a certain number of cadets into the system every year. India and 4 China are examples of this and we get an average of 10-15 applications per day from seafarers looking for a job. Today India is rolling out 3,000 cadets each year while China is rolling out close to 2,400 cadets. My question is, if these 5,400 cadets are coming out of the training colleges, are there enough jobs to go around? We have always been selective and cautious when choosing 7 our officers, especially when it comes to our senior officers. But it is always our ambition to promote people internally because these seafarers are used to our systems and they have worked with us and 5 know how we work. Despite the increases in seafarer supply, I do not believe wages will get pushed down. They could stay at the same levels but a lot of it has to do with what is happening in the global economy. Seafarer wages are paid in dollars but the US dollar is slowly 6 weakening against the Filipino, Indian and Singaporean currencies and this is having an impact. When you ask about our concerns for the future, as far as Goodwood Ship Management is concerned what we have achieved so far is maintaining the quality and market recognition we wanted. We have always been selective and cautious We have always been selective about which ship owners we take into management. We have turned down some companies because when choosing our officers, especially when it 4 they did not understand our philosophy. I fully agree it is the ship comes to our senior officers owners’ asset that is being offered up for management but at the same time we are not willing to take any short cuts because we are first class owners who won’t compromise too much when it comes a vetted operator for three oil majors; something we achieved in to paying the price and others who just agree to whatever it costs to three years but it puts a lot of pressure on us. If you have one bad operate the ship. incident, it reflects on you but a lot depends on how you deal with Ship owners believe they must know what is happening on it. It can tarnish your image. their ships. A decade ago, if an owner gave you a ship to manage 2 There will always be two or three categories of ship owners he did not bother about anything but today he is equally as and managers in the market including the fly by nights, the people important in the case of a crisis. Basically, whoever is the operator, who have the recognition as well as the top quality managers. Any the owner is also involved and he has to answer questions. But a owner today wants the best at the least cost. So there will always be ship owner must do a ship owner’s job because if he starts doing 89 cost considerations attached to the management issue. There will be the ship manager’s job, he will fail in a lot of aspects. ■ JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 51 SHIPMANAGEMENT ON MY MIND ONMYMIND Raajeev Singh Managing Director, Sovereign Ship Managment

A Bachelor in Marine Engineering from DMET, the government-run marine engineers institute in Kolkata and Mumbai, he also holds an MBA from the University of Strathclyde. Raajeev Singh started a sea career in 1990 and was promoted to Chief Engineer six years later. In 2008 he stepped ashore as a technical superintendent and worked with a number of shipmanagement companies in London and Hong Kong. He set up a consultancy firm in Hong Kong that year called Royal Marine Consultants and then established an Indian entity known as Sovereign Safeship Management in Mumbai. According to the company website, Singh plans to establish shipmanagement in Hong Kong and Singapore in the near future and to grow his business horizontally by offering vessel services affiliated to the shipmanagement industry and reach a stage where it “can self-support the technical management function with various subsidiaries all around the world”.

Sovereign Ship Management was founded in June 2007 and describes itself as a third party technical management company based in London, albeit with back-room management functions operated out of Mumbai.

“Sovereign was formed four years ago and manages vessels owned But since we are managing vessels for German and Dutch ship by Union Maritime. We started with one tanker but slowly the fleet owners who have fleets all round the world we will start to look at has grown to six tankers in a size range between 6,000 dwt and getting oil major approval.” 30,000dwt and they have two handymax bulk carriers as well. We What is your strategy with regards to training? are looking to grow into the third party sector and have contacted owners in the Netherlands and Germany who have been working “We have our own in-house training operation run by the same with some banks. We manage 16 ships, technical and crew person who looks after our web-based planned maintenance system. management and we are also looking at getting into providing web- We create models in our training centres and prepare questionnaires based planned management systems which combine planned in accordance with the requirements of the vessels we manage. We maintenance with crew reports and certificates. This would enable a are still training in accordance to our trades. We are also slowly master or member of the ship’s staff to log on to the website and looking at all types of training such as STCW courses.” download or update whatever information they needed.“ As a young management company you are facing a You need oil major vetting approval as a tanker ship lot of competition. What are the biggest challenges manager. How much of a burden is this? you see? “Since we are new, it is difficult to get vetting approvals so we have “We are not very old but we have managed to get some of the best started to undertake the TMSA ratings ourselves. The tankers we are crew from the Indian sub-continent, It is our policy not to give too managing are operating along the west coast of Africa where not many ships to our superintendents, no more than two ships per many people are trading the ships on the basis of oil major approvals. superintendent. We have 10 superintendents on our staff at the

52 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 ON MY MIND SHIPMANAGEMENT

“What is your strategy with regards to training?”

We have our own in-house training operation run by the same person who looks after our web-based

“ planned maintenance system. We create models in our training centres and prepare questionnaires in accordance with the requirements of the vessels we manage. We are still training in accordance“ to Qa our trades. We are also slowly looking at all types of training such as STCW courses

moment. We are running some very old tankers so if you give four Since we are new, it is difficult to get vetting ships to a superintendent, he will not be able to do their management justice. And at the same time I manage everything from India so I am “approvals so we have started to undertake the able to reduce my costs. To employ someone in India is definitely TMSA ratings ourselves. The tankers we are much cheaper than anywhere in Europe. Our entire management operation is in Mumbai. We have our own crewing division which managing are operating along the west coast of takes out advertisements in the local papers and magazines. Seafarers Africa where not many people are trading the can also apply for jobs on our website as well. My idea of shipmanagement is not to grow vertically like the bigger ships on the basis of oil major approvals. But

shipmanagement companies. I would rather have a fleet of 40 to 50 since we are managing vessels for German and ships because at the end of the day I would like to have a clear idea of how things are working on each of the ships and business can Dutch ship owners who“ have fleets all round grow around the shipmanagement business. Like I say, we are the world we will start to look at getting oil developing a training academy and an IT arm as well and we will move towards handling ship supplies and agency as well. We will major approval start to operate them in-house as we have facilities to manage them in India. There are various ways to grow as ship managers. I But the size should not be too big. I will be looking to get third party wouldn’t like Sovereign to be very small but it would have to be a business from European owners such as the Germans and sizeable company where I can negotiate with my vendors as well. Norwegians as well as the Japanese chemical tanker market.” ■

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Ridingof waves the

anagers and owners yet to of some of the mandated changes but I changeengage with digital navigational think the early adopters are seeing there is Mtechnologies will face a curt real opportunity there.” wake up call when the mandatory carriage Russell Gould, Chief Executive at companies embracing electronic charts and of electronic chart display and information London-headquartered marine navigation adopting them far sooner than regulations systems (ECDIS) comes into force from provider Kelvin Hughes, said ECDIS is would force them to. There is a difference 2012, writes Helen Jauregui. viewed by some industry stakeholders as a and it’s almost polarised the market – you’ll Though specific deadlines differ problem worthy of avoidance – particularly get those early adopters and then you’ll get depending on tonnage and vessel type, from those who have already witnessed a number those who are hanging on,” he said. next year, amendments to the International of regulatory changes to equipment. He Mr Gould noted the importance of Maritime Organization’s Safety of Life at cited voyage data recorders (VDS), timeliness of data and said Kelvin Hughes’s Sea convention require ships engaged on Automatic Identification System (AIS) and 5,000 subscribers benefit from the time international voyages to be fitted with an Ship Security Alert System (SSAS) as critical elements, where notices to mariners, ECDIS system. examples of other mandated equipment weather data, crew newspapers or According to Michael Cauter, Deputy which has been forced on owners and electronic navigational chart (ENC) updates Chief Executive of the UK Hydrographic managers, and noted these are often such as overlays for piracy information or Office (UKHO), shipping companies perceived as a cost to the purchaser, with real time route optimisation are commonly already engaged with the switchover to few financial benefits. He added that used. “That’s certainly where we see the electronic navigation will hold a clear for such equipment, there was a sense market and demand going, it’s not for competitive advantage over those who plan of ‘reluctance’ across industry, where features and functions on the ECDIS but to wait until the last moment: “Clearly, companies chose not to fit equipment until more about value-added services through there are some mandated requirements the ‘last possible moment’, thus creating a the provision of data,” he said. which industry will have to react to. rush to uptake as implementation dates But whether or not industries choose to However, a lot of the more innovative and loomed closer. purchase electronic charts prior to earlier adopting companies are seeing “Some owners may feel the same about mandation, Mr Gould added that ship beyond that and realising that yes, there are ECDIS and view it as an annoyance – owners are still clinging to their paper some mandated requirements, but actually, something they don’t gain value from,” he charts with vigour: “The majority of ship there are also some real opportunities if you added, noting how this mistaken attitude is owners are reluctant to leave their drawer raise your vision above the short term detrimental in the long run, as more of paper charts on the side of the quay when horizon. enlightened companies embrace and benefit they depart. It’s similar to in your car – you “When you’re installing new from change. “There are many ship owners may have satellite navigation, but you’re communications equipment and and operators who see and who get the loathed to throw your road atlas out. The technology, think about how you may wish benefit of navigation with electronic charts, cost of charts and updating them is, in the to use them, be it networked or with the means to improve safety and greater scheme of things, not all that much synchronised together – we’re seeing all reduce costs. We have seen, well ahead of and the ability to pull a chart out and kinds of opportunities coming at the heart the implementation date, many shipping examine the whole thing, rather than a

54 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 NAVIGATION & ECDIS MARKET SECTOR

small section of it on a screen, can be an these investments.” He explained the need He also noted the problem of access to important part of a navigator’s tool kit. We to educate customers in a bespoke way by training and said there has been some have seen a significant uptake in sales of discussing the minimum regulatory confusion in industry between type-specific electronic charts but we have seen no requirements and explaining how the and generic ECDIS training. Overall, this decrease in our sales of paper charts.” implementation of ECDIS may change has led to reluctance from some players to Mike Bailey, General Manager at bridge operations and procedures. engage with correct training: “There will ECDIS and digital chart specialist Thomas From FURUNO’s Integrated always be someone who is not jumping on Gunn Navigation Services, agreed there is Navigation System (INS) Training Centre, the first train passing but waiting for the last “a degree of scepticism” in industry when it which is certified by Det Norske Veritas, one, but many ship owners are looking for comes to changing to digital navigation. the company now offers training courses for the right way and the right direction for “We are not seeing a huge increase in sales superintendents and shore staff to them to go. There is a lot of confusion in of hardware but the industry is becoming familiarise them with ECDIS. Mads Friis the market over flag requirements. We can acutely aware the purchase of ENCs can be Sørensen said the ECDIS Shore Staff see now, there are different kinds of training controlled in a cost effective manner,” he Training course follows the IMO Model platforms, from training centres, computer- said. “The solutions we are developing are Course 1.27 but is a ‘boiled down’ version based training, onboard training, web-based moving much more down the route of focusing on aspects relevant to the role of training and there is some confusion over tailoring ENC purchases for exact voyages shore staff. which flags and which oil majors will and exact routes, rather than going for accept which kind of training platform – blanket coverage of areas. Internally and Mariners like using paper this makes it difficult for owners to find the within our digital departments, we’re right solution.” becoming pro-active in ensuring ENC “products – if all the power Sharing his concerns over training, requests are coming through and we’re goes down on “ a vessel you Mike Bailey added: “The recent Manila advising customers on cost effective Amendments to STCW have given us the solutions and alternatives.” can still use paper format and criteria of generic training Mr Bailey also noted the importance of products..... courses and this has now been clarified. The providing a unique and tailored service to generic model course 1.27 is now published the customer: “We’re looking at developing Michael Cauter, Deputy Chief so we (training providers) know what solutions internally for the ports of the Executive of the UK content we must work to. Ship owners and world and major trading routes, using managers will have fleets working with criteria such as ship type or dwt of the Hydrographic Office ECDIS from various manufacturers, but not vessel and inputting this into a filter engine, only must they complete the generic to ensure the ENC coverage we provide is “We are concerned, particularly training, but also the type specific training. tailored specifically to that vessel, instead following an investigation by the MCA and It all comes down to cost. We’ve got to look of generic coverage.” MAIB regarding ECDIS groundings in UK at the development of computer-based Providing a sound service for the waters – as this clearly indicates there is a training to get compliance for both facets.” ECDIS changeover also falls in line with gap between the skills of some navigators Mr Bailey added that though helping owners and managers to make and the use of this sophisticated companies are ‘well aware’ of the necessary the most suitable choices for their fleets. equipment,” he said. “For this reason, training requirements, it is a burden for Mads Friis Sørensen, Branch Manager at FURUNO has introduced a project to managers when they must decide how best the European office of marine electronics provide proper training for navigators to achieve appropriate training of crew manufacturer FURUNO, said: “We are worldwide. It’s like a tsunami, we can see when there are over 30 different ECDIS facing huge interest for ECDIS the water is retracting and the wave will hit original equipment manufacturers at this installations, especially retrofitting existing soon, it’s just a matter of time. The big time, with many more expected to emerge fleets. What we see right now is the owners players in shipping are purchasing ECDIS from China in the near future. may be confused about new regulations and and developing strategies for this so it’s not The need to ensure seafarers are well- how to meet them, also regarding what just a case-by-case purchase – companies versed in new technologies is paramount might be the best way for them to make are looking for big solutions.” but it is also vital to ensure the quality Imagery courtesy of Transas

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 55 MARKET SECTOR NAVIGATION & ECDIS

them to uncover what their requirements are and then assist with setting up the system. It is also important to figure out how to change procedures onboard and document how to work with different navigation costs. We also need to think about how to train officers, firstly for equipment and also for procedures and how they should maintain and operate in line with their company’s procedures. Today we offer a full service and can help shipping companies to decipher everything they aspects of using paper charts are not lost. Lars Skjelbred-Eriksen, Vice President, must do to get through this process.” Michael Cauter again: “Mariners like using Sales and Marketing at specialised display Mr Rydlinger refered to the paper products – if all the power goes down and computer product company Hatteland ‘bottleneck’ problem which training may on a vessel you can still use paper products Display, added that the value of electronic represent, particularly as companies may be – so long as you have a torch! But charts can also stem from ease of use and responsible for the training of hundreds of electronic navigation is all about using quality calibration: “What we see as vitally seafarers, each of whom will require both technology to simplify and bring that important is that system integrators, as well generic and type specific training, from process up to date.” as the ship owners, are aware of and have locations around the world. He added that So, how does the UKHO take its all the type approvals in place, and that all the pressure on training centres will be existing data and information to create new displays are real calibrated (colour substantial as demand continues to grow. uses? “Traditionally we’ve created paper calibration). It is easy to make short cuts to “If you don’t train your officers, you don’t materials and the mariner has found great save costs but when it comes to safety at get value for money as officers who aren’t use and utility in those but there is a world sea, ship owners should put focus on type trained cannot operate ECDIS and cannot of information and data within which, when approvals.” benefit from advanced features, only the released from the paper form, can create Joining in the debate into timelines for most basic-level features.” further value – be it optimising the route or the switchover, Anders Rydlinger, Product Paul Elgar, Product Manager for OEM real time ship logistics – we’re considering Director of Navigation at Transas Marine Services at Jeppesen, a provider of charts, how to create synergy and real value out of International, said: “We realised a long time maps and planning solutions, also noted the information we’ve traditionally produced in ago, we must work together with ship importance of sharing knowledge and paper form,” Mr Cauter said. owners who aim to go paperless. We help expertise of ECDIS across industry, NAVIGATION & ECDIS MARKET SECTOR

particularly as the changeover process can will also allow them to change their costs down during the two years where they prove a lengthy challenge: “We travel the onboard procedures and routines so that have the contract. Some owners have come world talking to shipping companies and when the time comes to switch to quite far whereas others are very much holding ECDIS seminars where we try to navigating with ECDIS and ENCs, they are behind.” answer questions as best we can, but there fully trained and ready to go.” Dean van Leeuwen, a renowned is so much disagreement in the industry, Anders Rydlinger again: “I think the ‘Futurist’ and co-founder of not least over the differing Flag State most important thing from the owner’s TomorrowToday International – a company requirements themselves. It becomes perspective is not waiting until the last specialising in teaching businesses how to difficult and results in decisions to move moment to get vessels equipped – this is succeed in the world of work, said: “My over to electronic navigation being delayed aiming for failure as it’s quite a long advice to owners and managers would be to until the last moment. journey to go from installing ECDIS, to grab the opportunity and go for it – don’t “This is obviously not a good situation having all the procedures in place, the crew wait for regulations to force it on you – be as we know from talking with many trained, finding supplies etcetera – it is a one of the first adopters and shape your shipping companies that the transition from steep learning curve. To do the first few future. There’s a lot of doom and gloom in paper to electronic charts can be quite a vessels may only take around a year but the the markets at the moment and many long and complicated process. One major remainder of the fleet will take longer and if companies are crawling their way out of the company we deal with told us the transition you only start doing it around six months great depression and feeling a bit battered from paper to electronic charts on their prior to the mandatory carriage date you and unsure. We’re saying, look further into vessels took them a minimum of six will fail.” months, given the procedural changes and He noted how attitudes towards ECDIS the future – its looking bright for shipping training requirements.” often relate to the ‘culture’ within different and our depictions for global growth are Mr Elgar added that crews should companies and how they judge investment, optimistic. be given a fair chance to familiarise safety and quality. Mr Rydlinger also cited “Shipping companies which take on the themselves with electronic navigation in tankers and cruise ships as examples of early adopter approach will get ahead of the good time, prior to the mandate taking vessels where a great deal of attention has competition. There are great learning effect. “This could be purchasing a gone into navigational safety: “There are opportunities to be gained if you get in on single ECDIS and installing Jeppesen’s differences across industry, depending on the beginning and work out what cost Professional+ database in order to allow the the flag or vessel type and also the owner, savings and efficiencies can be introduced crew to use and familiarise themselves with as you have those who try to keep costs as into your business system – it’s about the equipment, but at the same time, still low as possible, then those who are run by gaining competitive advantages,” he keep and navigate with paper charts. This management companies and try to keep concluded. ■

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 57 BUSINESS VIEWPOINT MEDICAL

demands

By Samantha Giltrow

he balance of the scales in terms of enabled seafarers to command higher I believe the shortage welfare is about to be tipped firmly wages and benefits.

Tin the seafarer’s favour when the One company which will benefit from “of good, well trained crew is

Maritime Labour Convention (MLC 2006) the increased focus on health and safety is making more demands on comes into force. UK-based Argentic, which provides The Convention, providing rights and benzene testing kits. Director Graham the maritime“ market in protection at work for more than 1.2 million Birch, believes his ‘benzene box’ will be in regards to health and seafarers worldwide, is expected by many greater demand as operators try to to be ratified as early as next year. So far, demonstrate they are falling into line with safety 16 member states have backed the the requirements of the MLC. Althea Rollins, Maritime international standard, with just 17 more “The operator will want to offer this to needed to support it, and the other his crew to show the working environment Program Director, Health requirement of reaching 33% of the world is safe and that the crew is benefiting from Systems International gross tonnage has already been met, a good level of healthcare. standing currently at 53%. “Benzene is a very significant chemical gives a greatly increased risk of So, with the added global shortage of carcinogen. It’s extremely dangerous and developing leukaemia. well-trained crew members, the ball seems it’s becoming increasingly focused on “People are supposed to wear personal to be heading into the court of seafarers under various legislation, the biggest protective equipment to stop them coming in their demands for better health and of which is going to be the MLC when into contact with the vapours and what our safety measures. that comes in. It will say that you have to kit does is basically tell you that the mask “I believe the shortage of good, well carry out appropriate medical checks and suit you are supposed to wear is trained crew is making more demands on on seafarers.” working,” explained Mr Birch. the maritime market in regards to health He added: “Companies are preparing “Although the test is not compulsory, and safety,” said Althea Rollins, Maritime for the MLC already and people are even the oil majors and port state control and Program Director at US-based medical cost building ships to its requirements.” anyone who is vetting a vessel will want to management company Health Systems Benzene is generally found in three see evidence that the ship is complying International (HSI). cargoes – one is the chemical itself and also with this new legislation. However, they “Due to the scarcity of well-trained crude oil and bunker oil, so essentially most should already be complying under crew, it makes the health and safety of ships are carrying an element of this COSHH (Control of Substances Hazardous existing crew even more important and I dangerous cargo in one form or another. to Health).” believe the market has already begun to put The benzene test is a collection kit, Though the MLC is great news for certain measures in place to look after the whereby a small urine sample is collected seafarers, it will add costs to the owners’ health of the crew.” and goes away to be measured for a unique and managers’ already burgeoning budgets. She said the high demand for crew in marker for benzene in the body. Prolonged “The shipping industry has been hard all sectors of the maritime industry had and extreme exposure to the dangerous hit by the financial crisis of the past couple

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MEDICAL BUSINESS VIEWPOINT “ Her company’s ‘Caring for the Crew’ We had a case last year where we had to help coach a programme incorporates an international captain“ to sew the left finger tip back on for a crew member, in physician advice call line with physician advisers operating 24/7 along the world the hope of saving it time clock in countries such as Greece, Christina DeSimone, Founder and CEO, Future Care India, Portugal and China. “We had a case last year where we had of years and while many industry time,” said Ms Rollins. “In these cases, it is to help coach a captain to sew the left finger stakeholders are struggling to maintain a understandable that shortcuts are taken to tip back on for a crew member, in the hope healthy bottom line, they are challenged to save time, but often it results in injury. of saving it. Captains are trained in medical continue to control costs while maintaining Increased workloads also leave less time for emergencies but they are under great a healthy crew,” explained Ms Rollins, of medical attention to address minor pressure and it’s always better if a doctor is Health Systems International. symptoms. As seemingly minor symptoms behind them giving them step by step She said medical costs were spiralling are allowed to progress, they develop into guidance. It was a big success and the crew worldwide and in the US had risen 9.5% more serious and very dangerous member wrote to thank both the captain and last year, with the prediction of increasing conditions.” Future Care.” by a further 9% this year. However, with these increases, she With Future Care’s programme, “With increases in unemployment, believes owners and managers are taking statistics are collected from medical hospitals and medical providers raise rates more notice of the seafarers’ well-being incidents so best practices can be planned to make up for the loss of revenue from the now more than ever. for the future. increasingly uninsured and underinsured “More are being more proactive by Ms DeSimone again: “Healthcare population.” engaging cost managers such as Health presents a wide array of challenges for the Ms Rollins said the service HSI offered Systems International, to assist with ship owner, the ship manager, the crew was vitally important to help operators arranging medical care for their crew. In member and the medical provider. It’s reduce the costs of medical care for addition, I have seen a greater focus on compounded when a ship owner operates in seafarers: “We connect clients to the lowest creating a safer environment through different countries and different ports. It possible cost of care utilising advanced implementation and monitoring of safety frequently seems like an unmanageable technology, customised solutions, exclusive training programmes.” problem but experience has shown that this offerings and personalised service to drive Another area which is set to see growth does not have to be the case. Healthcare optimal savings and reduce administrative is remote diagnosis. The MLC calls for responds fairly rapidly to modern risk demands.” ships to ensure that medical advice by radio management techniques.” HSI’s main clients are from the or satellite communications, including Future Care, which was established in container, cruise, tug/barge, tanker and ro- specialist advice, is available 24 hours 1996, currently has about 700 vessels using ro sectors and the most popular service it a day. its ‘Caring for the Crew’ programme, with offers is bill review. Christina DeSimone, Founder and around 20,000 crew members having “Without a medical cost manager with CEO of Future Care, said: “It is a giant access to it, and Ms DeSimone sees this an extensive network, customers will pay paradigm change. The influence of this number growing when the MLC is ratified. much higher costs than they have to.” legislation will make telemedical and She also envisages the nature of the With the emphasis on managing costs remote diagnosis so much more accessible. calls changing: “Before, they may only in a time of global recession, Indianapolis- An international seafarer can, and will, have been using a call line if they were based HSI has more than doubled its size receive the same benefits as land-based worried about an evacuation needing to over the past three years and continues to employees.” take place. Now, if someone has a belly grow. Recently it added a medical data She said while many of the top ship ache, feels nauseous and has a fever, they analysis and claims service company – True owners already used a 24-hour advice call will use the call line so the doctor can give Course to its international stable. The line, many other operators did not but the them medical advice. company has noticed a rise in both injuries benefits of tackling a health problem “Telemedical access is growing and and serious illness. straight away rather than waiting until many top ship owners are currently using “Like many other occupations, getting to a port often proved crucial and our programme. They know it is needed and seafarers are faced with more tasks and less cost-saving. it is well worth using,” she concluded. ■

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Getting to grips depression Statistics show that the rate of suicide by seafarers is much higher than for other industry sectors with the causes of depression leading to suicide including loneliness, separation from families, stress, lack of shore leave, short ship turnaround times, job security and cultural problems. But what rights do seafarers have to free and effective mental health care and how keen are they to discuss their condition with their employers? SMI reports.

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recent survey undertaken on behalf Those who worked onboard general cargo concerns are not tackled then the question is of Seafarers’ Rights International vessels, dry bulk carriers and cruise ships how seriously can they affect the mental Apaints a grim picture about life at needed the most help, as did seafarers wellbeing of our seafarers? Experts such as sea. It shows that over 96% of seafarers working onboard vessels trading around the Douglas Stevenson from the Seamen's interviewed wanted more information about Black Sea and Eastern Mediterranean. As Church Institute in New York, believe that their legal rights. Most of those questioned seafarers on these vessels are more likely to neither traditional maritime law nor the ILO were worried about unpaid wages, personal be abandoned than other areas and other Maritime Labour Convention, 2006, injury and health as well as contract vessels, these fears were not unfounded. specifically addresses mental health care, but disputes. court decisions in the past 50 years make it A quarter of the 1,000 seafarers very clear that a seafarers’ right to free questioned by Professor Erol Kahveci of the medical care includes a right to free mental Working Lives Research Institute said they health care. A greater obstacle to seafarers needed expert advice in relation to their seeking mental health care, he believes, is the contracts and other work related issues. This stigma of receiving the care and seafarers need was particularly high among petty may fear being labelled as a person with a officers and cadets, who, as young workers, mental illness and all of its associated enter the profession with high expectations stereotypes. Seeking mental care can also and aspirations, and a more confident have consequences for a seafarers’ social attitude. Shockingly, over a quarter of the acceptance and self-esteem. seafarers who needed advice had failed to ask So worrying is the problem of seafarer for it, with the main reason being a fear of mental health that the Rotary Club of retribution undermining their employment Melbourne, South Australia together with the prospects and potentially endangering their International Committee on Seafarers families. This was particularly prevalent Welfare (ICSW) raised the issue of amongst Filipino seafarers, while the vast depression through the publication of majority of Chinese seafarers needing advice What the survey illustrates is the level of booklets for Masters and leaflets for non- relied solely on the internet in order to avoid concern seafarers have on issues affecting officer seafarers in four languages: English, face to face contact. their day-to-day existence. And this is on top Chinese, Tagalog and Russian. Indeed, Unsurprisingly there were significant of the pressures created by an ever-more according to Robert T. B. Iversen, from the differences depending on the type of ship in regulated sector that only adds to their daily International Service Committee at the which the seafarer worked and its location. workload and the stress. If these worries and Rotary Club of Melbourne, the evidence that

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suicide among seafarers is a serious problem boost seafarer communications with home colleagues; relationships at work; the is incontrovertible. Several cite seafarers that via email or social networks. Yet some seafarers’ role in the organisation; change and disappear without a trace and which are owners still believe that by limiting contact how it is managed. thought to be suicides. Suicide by seafarers between the seafarer and his loved ones at When under severe stress, a seafarer fails is much higher than suicides in general home, it can reduce the element of worry on to take clear-cut decisions, re-evaluates and populations. In Australia for example, the part of the seafarer: a case of what the eye reassesses priorities and lifestyles, and suicides were 2% of the country’s total deaths don’t see the heart don’t grieve. ultimately tends to fall into unproductive in 1998 and 1.5% of all deaths in 2008. distractions. This can be described as a classic The causes of mental illness among When under severe stress, a case of ‘burn out’. seafarers are well known. The International Chronic responsibility syndrome is a Committee on Seafarers’ Welfare booklet seafarer fails to take clear-cut kind of burnout where people get mentally “Guidelines for Mental Care Onboard decisions, re-evaluates and and physically exhausted from their Merchant Ships” (ICSW 2009) cites stress, workload. The symptom is often described as harassment and bullying, anxiety, fatigue, reassesses priorities and ‘there’s too much work to do, and no one else disruptive thinking and behaviour and lifestyles, and ultimately tends can do it but me’. Typically it will occur in addiction to alcohol and drugs. To these must hard working, hard-driven people who be added loneliness, short ship turnaround to fall into unproductive become emotionally, psychologically or times, lack of shore leave, separation from distractions physically exhausted. spouses and families, job retention, and long Short ship turnaround times are a working hours. According to the ICSW, typical problem. In Melbourne, Australia turnaround There is no doubt that loneliness creates symptoms of stress among seafarers are times for container ships are not more than problems for seafarers, with the main insomnia, loss of mental concentration, three days and in most cases less than that. psychological problems primarily caused by anxiety, substance abuse, extreme anger and However, bulk cargo ships or combination long periods away from home and social frustration, family conflict and physical container/bulk cargo ships may be in port for isolation as well as the decreased number of illnesses such as heart disease, migraine somewhat longer periods. A significant seafarers per ship and increased headaches, stomach problems and back number of automobile carriers call in automatisation. There are two schools of problems. Six key areas (or ‘risk factors’) can Melbourne. Their loads of 5,000 or 6,000 thought on tackling the issue of separation be causes of work-related stress onboard. automobiles can be discharged in 24 hours, from loved ones with the industry These are: the demands of the job; the level after which they are able to leave. This can increasingly turning to broadband of control seafarers have over their work; the result in seafarers not getting a chance to communication onboard ship in order to support received from management and go ashore because their duties onboard ship

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do not leave enough time for even a half Working Life’, the UK-based mental health ensuring a good intake of fruit and vegetables day ashore. charity Mind describes how each year, is important, while an excess of starchy foods Worries over job security are also an millions of work days are lost because should be avoided,” Mr Taylor said. issue. Most non-rated seafarers are employed individuals suffer from mental illness caused Physical exercise has long been on nine or 10 month contracts and as these or made worse by their working patterns. associated with good mental health as it is contracts end the seafarers are said to be very Mind acknowledges that work can be a proven to increase levels of the monoamine concerned that their contracts will not be positive force in our lives by providing neurotransmitter serotonin – a hormone renewed, thus ending a chance to send money structure, a sense of identity, contact and widely considered to contribute to feelings of home (repatriation of wages). As a result of friendship with others and the opportunity to well being and happiness. Dr Karol Parafian, the 2008 financial crisis, the shipping meet goals and contribute. However, work a psychologist and researcher at Gdynia industry was severely affected with many stress can provoke physical, psychological Maritime University, Poland, performed a ships unable to obtain charters, causing and behavioural symptoms such as fatigue, study in 2006, exploring the impact of seafarers to worry about job retention. “Many anxiety, tearfulness, mood changes, physical exercise on mental illness among ships were laid up and some anecdotal indecision, loss of motivation, aggression and seafarers. During this study, 100 seafarers accounts said newly constructed container withdrawal. Matthew Taylor, a spokesman participated in a regular exercise regime ships were being used as temporary storage for Mind, told SMI’s sister publication while an equal number participated in no warehouses for the surplus of empty Maritime Medical International (MMI) about exercise whatsoever. Dr Parafian confirmed containers that accumulated because of the some simple steps to improve mood and how, following extensive data collection, “the lack of business,” Iversen said. maintain mental wellbeing – techniques results showed those who took part in regular A correlation between the work which he noted are “especially important for exercise were six times less likely to develop environment and mental illness is reflected in anyone feeling isolated and remote, or mental health related problems than those the link between general health conditions working in confined spaces,” so seafarers who did”. “Physical exercise is the best and the workplace. In its ‘Guide to Surviving should take heed. “Eating healthily and recipe against mental illness,” he said ■

MyView

By Dr Karol Parafian, by national pride. We see the consequences seafarer understand how important he, and Psychologist and Researcher at of this onboard ship. People are afraid of his role, is. During an average day shoreside, others and so isolate themselves. They spend a person can undertake as many as 700 to Gdynia Maritime University, a lot of time in their cabins in front of their 800 activities compared to between 200 and Poland computers which is not good for their health. 220 onboard ship. So seafarers need to be aware of ways to integrate themselves How much of a problem is seafarer What can be done to reduce the within the shipboard team. My team at the depression and what are the problem? Gydnia University is writing a programme contributing factors? Raising awareness about the issues is designed to help integrate the team. “The main factors are cultural differences. important through the media but other It is important that crew managers and Different nationalities have different habits solutions can be as simple as introducing owners reinforce the importance of the coupled with ignorance of others as well as sport onboard ship, especially those with a seafarer. In Poland the seafarer is regarded a hatred of others. They teach us in school competitive element. Our studies have as having a senior position, in the UK, for that we are the best in the world, better than shown that sport is a great remedy for instance, he does not. Image of the industry others – something that is also encouraged depression. It is also important to make the is again very important.

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comply orBy Helen Jauregui

s pollution prevention strategies career at sea spanning 17 years. Having which can act as barriers to full compliance continue to gain prevalence across received a scholarship to the World Maritime with MARPOL, despite the willingness Aindustry, the maritime press has University in Malmo, where he gained an of respondents. been keen to champion the best practice MSC in Maritime Safety and Environmental Economic perceptions were found in efforts of quality owners and managers who Protection, Capt Abou-Elkawam decided seafarers who considered the political will of are engaging with environmental policies to remain in a shore-based maritime regions to protect their marine environments and requirements – but rarely does the focus education and training career. to be directly linked to economic resources. fall on seafarers and their own efforts and Describing his most recent research Some seafarers reported affluent nations to attitudes concerning environmental issues project, Capt Abou-Elkawam explained he be performing better on the MARPOL and procedures. is troubled over the growing levels of enforcement front than developing countries. Aiming to regress the balance, Capt environmental responsibilities seafarers As one seafarer claimed when discussing oil Mohab Abou-Elkawam, Lecturer in must face in the modern maritime world: dumping and a lack of surveillance: “In our Maritime Studies at Lowestoft College, has “The environmental legislation bearing on areas…I mean the developing countries completed a PHD study (through the Nippon the shoulders of seafarers is incredible – they regions…our seas have no respect…have no Foundation and Cardiff-based Seafarers are tackling it on the practical side. I am value…even the Europeans when they come International Research Centre) into seafarer genuinely concerned over the compliance to our waters…they do whatever they like.” attitudes towards marine pollution – from the practices of seafarers. Many want to comply Seafarers operating in more affluent perceived normality of ‘dumping at sea’ to and create a benevolent relationship with the regions reported a lack of political will or seafarers’ aspirations to protect the marine environment and as citizens, we are all trying ‘institutional passivity’ from wealthier environment of their home countries. to work more responsibly where the authorities as a problem, particularly when The culmination of five years’ work, environment is concerned but for seafarers, high levels of pollution in the waters of Seafarers and growing Environmental this aim is always entangled with being Gulf nations were observed. However, Concerns: To Comply or Not to Comply – a professional.” Capt Abou-Elkawam also dismissed the Choices and Practices, is a study based on “Seafarers want to keep their jobs and claim that only seafarers working for qualitative research, where the author held they want to please their Master or higher companies based in developing countries are 40 confidential, semi-structured interviews ranking colleagues within the classic experiencing such moral and environmental with seafarers from a number of different hierarchy onboard in this established dilemmas and said he has had the same regions during shore leave and training profession. Captains and Chief engineers complaints, though perhaps with a “different sessions. The main aim of the research was also want to perform well or better level of stress” from those based in to trace the source of what Capt Abou- environmentally, particularly in front of their European countries. Elkawam refers to as the ‘environmental superintendents, though sometimes, put Capt Abou-Elkawam highlighted the integrity’ of modern seafarers. This included simply, they can’t.” views of seafarers, including one who noted searching for the motivating factors and Throughout his research, the author the problems of owners reluctant to pay challenges facing crew as they work to found seafarers to be “continuously ‘prohibitive’ costs and so, crew must struggle comply with regulatory steps to combat evaluating (often critically) and using their with the burden of disposing of polluting pollution, with focus on Annex One (oil) of job’s extremely mobile nature to monitor the waste. The high cost of using port reception the MARPOL Convention. status of the maritime and coastal facilities for discharging oily waste were also As an ex-seafarer himself, Capt Abou- environments in various parts of the noted, with some seafarers even claiming Elkawam is well-versed in understanding world”. The author uncovered three such ‘barriers’ served as a justification for how differing attitudes towards pollution can main compliance issues, stemming their own illegal oil dumping activities. be found onboard. Starting in 1987 as a third from economic-based, value-based and This kind of barrier can put seafarers in mate, he progressed to Master in 1999 for a socio/political-based perceptions, all of a moral quandary, as even those with sound environmental intentions are left with few

options. Capt Abou-Elkawam said this

In many industries, the workers are represented and consulted relates to compliance practices, as seafarers “before another piece of legislation is thrown onto“ their shoulders are usually the last link in the chain to conform with regulations. Though many but in the maritime industry, they are not consulted, they are simply hold aspirations to become ‘better confronted with new maritime conventions professionals’ in relation to environmental

66 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 ECOVISION not to comply? issues, it can prove challenging for even Seafarers want to keep their jobs and they want to please those seafarers who are highly dedicated to green issues. “their higher ranking colleagues. Captains and chief engineers “There is a lot of talk regarding over- also want to perform“ better environmentally, particularly in legislation but it can come down to the seafarer’s ability to compromise,” he said. front of their superintendents, though sometimes, put simply, “Some of those compliance practices are not they can’t Capt Mohab Abou-Elkawam, Lecturer in Maritime possible in certain shipping companies. Some companies may not pay for a barge to Studies, Lowestoft College come and take their oil effluents – in a MARPOL special area, where substances are happening [...] things are going to be Though different attitudes may stem like that cannot be dumped into the water, harder in the days to come.” A Nordic Master from one’s own social background, a further the seafarer may think to himself: ‘What am added: “The more talk out there about the barrier to environmental compliance has I going to do Captain? Am I going to drink environment…the more you feel the been reported by Capt Abou-Elkawam, who it?’ It is a dilemma.” pressure to apply...and you don’t want to do found Masters to be targets of coercive Referring back to the different things that will result in pollution…you want practices as environmental concerns ‘perceptions’ discovered during his study, the to behave as good as you can.” increase and their companies implement author described how the issue of ‘regulatory Throughout the study, seafarers also regulations or attempt to avoid elements enforcement’ can also serve as a barrier to showed evidence of a ‘national theme’ of these. MARPOL compliance, particularly as attitude towards pollution where seafarers Masters were reported to feel ‘over different governments may fulfil their adopt a ‘national’ self representation or regulated’ when the burden of their obligations to the MARPOL Convention image when questioned about their companies’ environmental stance fell to with varying levels of success. compliance with marine environmental them and as one European Master stated: “I As a result of such perceptions Capt regulations. A number of European seafarers can tell you…I don’t need it…because I Abou-Elkawam reported high levels of who took part claimed their own positive have the feeling inside to protect the mistrust from seafarers, particularly when actions towards environmental regulations environment.” He added that the growing they discussed the actions of international stemmed from their homeland, where they level of paper work related to environmental policy makers in control of the pollution perceived a culture of respect for the compliance is becoming difficult to manage agenda. When seafarers lack trust in ‘policy- environment to be the norm. as his company adds to the crew’s ‘agony’ of makers’, this may have a detrimental Claiming a form of superiority within environmental tasks. influence on their own attitudes towards environmental issues, one Nordic Chief said As Capt Abou-Elkawam concluded, protecting the environment. In addition, that in his native country, waste is seafarers will require greater assistance in seafarers are aware of the global ‘cry’ to commonly divided up and recycled and so, protect the environment and so, may the population at large is doing its ‘best’. sharing the burden of environmental experience pressure and grow more Conversely, he perceived the population of compliance, especially at the regulatory ‘committed and stressed’ when facing their some other nations to be hardly contributing planning stages: “I can see we need more own compliance barriers. to the environmental cause. Some Asian and support for seafarers but more importantly, This can lead to obstacles relating to Middle Eastern seafarers described their there isn’t much representation. In many ‘globality’, where seafarers bare the brunt of disappointment at what they deemed to be industries, the workers are represented and international efforts to solve pollution lenient environmental policies. An Arab consulted before another piece of legislation problems. This is especially evident through chief engineer stated: “I feel great pain when is thrown onto their shoulders but in the the criminalisation of seafarers following I see our Arab countries’ ports…the maritime industry, they are not consulted, pollution accidents. The study found pollution in it can be easily seen with your they are simply confronted with new seafarers to be acutely aware of how the bare eyes. It is a disgrace.” It is claimed that maritime conventions. To be compliant finger of blame can be pointed in their individuals must feel their efforts towards professionals, seafarers are trying to fulfil direction and this perceived ‘global pressure’ environmental causes make a difference, conflicting goals at the same time. We was deemed to be progressing fast, as one otherwise an attitude of helplessness may should consult seafarers before adopting and Chief Engineer added to the study: hinder one’s ability to successfully comply enforcing a new age of legislation “Regarding these incidents or accidents that with environmentally sound practice. and amendments.” ■

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Wartime Anwrecks even more serious: environmental concern By Thomas Ország-Land

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purple oil slick stretching for graveyard. Chuuk Governor Wesley Simina But some of these programmes have miles across the coral Chuuk believes that both Japan and the US are just been authoritatively reviewed at a ALagoon of Micronesia is among morally as well as legally obliged to help. landmark industrial/scientific conference the early, unavoidable signs of a series of Jurisdictionally, Britain, Japan and the organised jointly by the American Salvage environmental disasters comparable to last US own over 80% of all the sunken World Association (ASA) and the North year’s Gulf of Mexico catastrophe, War II vessels, calculates marine scientist American Marine Environment Protection threatening to explode simultaneously in Rean Monfils, who assembled the original Association (NAMEPA), held at the most of the oceans. The slick originates SPREP database, in an important recent Maritime Institute of Technology at from the wreck of the Hoyo Maru, one of discussion paper. Following is her Linthicum Heights, near Washington, in three loaded oil tankers resting on the subsequent breakdown of the biggest June. Its programme originally focused on bottom of the lagoon together with some wartime wrecks worldwide, relying on the the wartime shipwrecks was extended in 50 other destroyed Japanese war and findings of several authorities: response to the Gulf of Mexico disaster to merchant ships and many naval aircraft. They were sunk in a sustained bombing Ocean/Sea No. of Vessels Total Tonnage No. of Tankers raid by the American Navy in February North Atlantic 3002 15,108,305 452 1944 during Operation Hailstone, part of the decisive Battle for the Pacific. South Atlantic 198 1,143,374 20 Nearly seven decades after the Second Mediterranean 305 1,578,910 19 World War, the wrecks are a magnet for Indian 313 1,813,398 35 tourists and especially scuba divers. The corroding structures are inevitably breaking Arctic 124 729,569 2 up. The total cargo load of the three tankers Pacific 3276 12,158,895 273 in the Chuuk Lagoon is believed to be close to the 260,000-750,000 barrels discharged Some major maritime powers are embrace also the pollution threat posed by in the infamous Exxon Valdez spill, one of reluctant to acknowledge the size of the the tens of thousands of offshore oil wells the world’s worst human-induced disasters global emergency and their obligation to abandoned worldwide. to strike the marine environment, in Prince seek and finance a solution. But the The many eminent contributors to the William Sound, Alaska. European Union (EU) as a whole and many conference included marine technologists Specialists of the United Nations’ countries individually are discreetly from the Woods Hole Oceanographic South Pacific Regional Environment assembling inventories of shipwrecks Institute describing state-of-the-art Programme (SPREP) reckon that the legacy threatening their waters and cooperating in research and lawyers from the UN’s of the war includes more than 1,000 the development of technologies to answer International Maritime Organization wrecks, many of them tankers, littering the some of the challenges they pose. projecting vital forthcoming regulatory seafloor within their area of concern alone. Their perception of the threat has issues. Some of their discussion papers All of them still hold bunker oil and many concentrated the minds of researchers on published at the conference may well are loaded with explosives containing issues like international collaboration in oil become required reading for shipping fearsome pollutants. The first database removal, risk assessment, impact modelling industry executives. covering all the oceans identifies more than and marine pollution mitigation and “Sporadic or continuous leakages or 8,500 potentially polluting seabed wrecks, management. And the maritime salvage potential sudden massive spillages from the many of them dating back to the war, industry is preparing for a bonanza. seabed wrecks pose a continual risk across including more than 1,500 oil tankers. Kriton Arsenis, a Greek deputy at the the globe,” said Richard E. Fredricks, Ian McLeod of the Museum of Western European Parliament, told EU Environment Executive Director of the ASA. “The risk Australia, a global authority on maritime Commissioner Janez Potočnik of Slovenia of oil and other hazardous materials corrosion, fears that these rapidly decaying earlier this year that most of the corroding seeping out of the sunken shipwrecks is wrecks around the world are about to seabed wrecks especially in the growing yearly, and the likelihood of release their noxious contents. This would Mediterranean and the North Atlantic were leakage or even a massive spill occurring precipitate simultaneous environmental of British and American origin. “They will increases, as do the potential costs.” disasters demanding urgent innovative soon begin to leak,” he went on. He argues that there is little difference, solutions to an enormous array of “Scientists calculate that, even on the in terms environmental and economic industrial, technological, scientific, lowest estimate, the quantity of oil involved impact, between oil spills emanating from financial, regulatory and political issues. is twice the amount spilt following the BP modern-day vessel casualties and those Within the confined waters of the oil rig disaster in the Gulf of Mexico and spewed by the aging wrecks – except that Chuuk Lagoon, the oil pollution would 60 times higher than the amount spilt by the you cannot predict the next shipping have “a totally devastating effect on the Exxon Valdez oil tanker. These oil spills disaster while the probability of spills from environment...worse than the recent Gulf of could last for 50 years, with devastating the corroding wrecks is “quantifiable or Mexico spill,” Dr. McLeod warned after a consequences for coral reefs, marine even inevitable... Taking a proactive rather recent inspection of the Japanese wrecks in biodiversity and fishing...” than a reactive approach to mitigating this an Earthwatch-funded project by a The Mediterranean deputy risk will save costs and reduce the threat of team that he led as its principal scientific provocatively asked: “Is the European environmental and socio-economic investigator. Commission aware of this problem?” damage.” Micronesia, a poor country dependent Naturally, replied the taciturn Environment Clay Maitland, founding chairman of for survival on diving tourism and fishing, Commissioner, pointing to a legislative the NAMEPA, an industry-led organisation has already called for substantial framework already enacted in support of concerned with education and the maritime international financial assistance in the many current and projected maritime ecology, adds that the world must seize the face of an impending environmental surveys and technological research and “opportunity to mitigate the risks of these catastrophe. The threat is emanating from development projects that he carefully wrecks becoming environmental disasters an area claimed by Japan as a maritime refrained from describing. fouling our environment”.

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Already, the expertise needed for the deep seabed and the vulnerability of the recovery of bunker oil from wrecks lying in Scientists calculate that, cargo of modern super-tankers in transit. shallow coastal waters is widely in use. “even on the lowest estimate, This is one promising EU-sponsored Outstanding team work by several ASA research programme that Environment contractors led by Global Offshore Diving the quantity of oil involved is Commissioner Potočnik failed to outline in and Salvage Inc. and involving also the twice the amount spilt his parliamentary reply this year, aimed at United States Coast Guard and the regional the development of a light and easily environment conservation authorities following the BP oil rig portable submarine contraption called

recently culminated in the removal of over disaster in the Gulf of Mexico Double Inverted Funnel for Intervention on 130,000 gallons of heavy fuel oil from the Shipwrecks (DIFIS). Its principle exploits wreck of the cruise ship Princess Kathleen and 60 times higher “ than the the buoyancy of oil for the orderly control that sank in 1952 at Point Lena near Juneau amount spilt by the Exxon of spills. in Alaska. Similar projects are forthcoming The work is centred at the Maritime elsewhere in the US and in Canada, India, Valdez oil tanker Research Institute (MARIN) in the Norway and South Korea to make safe Kriton Arseis, Greek deputy, Netherlands. Its progress has been pollutants held by wrecks resting near described in the MARIN research paper the coastlines. European Parliament “Recovery of Oil Trapped in Ship-Wrecks: But oil recovery from wrecks on the the DIFIS Concept” including contributions deep seabed is another matter. Public and settled at a depth of some 3,800 metres from additional project participants such as concern with the development of far out at sea off Cape Finisterre in north- the European Commission’s Joint Research technology essential for such projects has west Spain with a 77,000 tonne load of Centre, the Industrial Systems Institute of been stimulated by a relentless series of heavy fuel oil. The project lasted over a Greece, Sener Ingenieria y Sistemas of marine pollution catastrophes such as the year, involved several prestigious European Spain and Cybernetix of France. Amoco Cadiz spill in 1978, Tanio (1980), companies, cost well over €100 million and J. L. Cozjin, the engineer coordinating Exxon Valdez (1989), Aegean Sea (1992), ended with the dispersal of 80% of the the research programme at MARIN’s Erika (1999), Prestige (2002) and ship’s cargo in the marine environment. Wageningen laboratories, projects the Deepwater Horizon (2010). None of the But the lessons drawn from such regular collection of the spilt oil by passing resulting environmental rescue projects disasters could lead to a solution under tankers from the leaking seabed wrecks developed and implemented mostly under advanced development by several until they empty. The idea is to trap the extreme pressure generated by the actual technological research institutions and rising oil in a dome-like structure fixed emergencies has yet resulted in the removal marine engineering enterprises in a above the wreck and lead it upward through of more than a small portion of the wrecks’ collaborative programme coordinated and a tube into a sub-surface buffer bell for target cargo loads. financed under the auspices of the safe removal. The best relative success was achieved European Commission. Indeed, the Resembling a circus tent, the dome by a disaster mitigation project developed programme could resolve the dual threat of made of cloth will be fixed to the seabed by for the tanker Prestige that broke into two leakage from the decaying wrecks on the means of guy ropes, put in place by

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remotely controlled underwater vehicles. It including heavy metals, could trigger Directive calls for an assessment of the should be large enough to cover even the massive environmental crises if they major potential pollution sources in the biggest stricken modern tankers. The entered the maritime food chain leading to coastal waters to be completed by July plastic riser tube connecting the dome to the our tables. The list of toxins includes 2012 and adequate financial and other buffer bell will comprise flexible dioxins and PCBs, titanium tetrachloride, provisions for their removal or control to be components designed for speedy lead, red and white phosphorous, cadmium, made by 2015 at the latest. attachment. The storage bell is envisaged as hexachlorobenzene, polyvinyl chloride, The law covers current shipping and a relatively small structure shipped to the strontium and hexachloroethane. In the the old wrecks as well as oil installations crisis zone in one piece and placed perhaps Chuuk Lagoon, the resting weaponry as and the lingering effects of weapons 50 metres below the surface. The oil well as the wrecks and the skeletal remains dumping. It does not directly concern the collected within it would be removed of sailors lie within diving distance of issue of the deep seabed, but the ownership regularly. the tourists. and consequent sovereign responsibility The system would have to be Despite the public nonchalance of over most wartime wrecks rusting there is assembled fast enough to prevent an oil many coastal states in the face of the beyond doubt. spill from becoming an environmental impending emergency, the EU passed Some Baltic states are already catastrophe. Brilliant, but the DIFIS collective legislation last September conducting extensive surveys of their semi- development programme does not address obliging all its member countries to enclosed swallow sea where marine the threat lurking on the seafloor in the confront the issue at once. The law enacted pollution is naturally treated as a regional rusting canisters of explosives and under an EU Marine Strategy Framework issue. Their studies could lead to chemical weapons that sank with the collaboration in a regional cleanup warships or were dumped overboard in vast programme organised by the Helsinki quantities after both the First and the The risk of oil and other Commission, an institution coordinating Second World Wars until as late as the “hazardous materials seeping their policies for the protection of the 1970s. marine environment. Methodologies now exist for the out of the sunken shipwrecks The Baltic is littered with shipwrecks relatively safe, if expensive, disposal of is growing yearly, and the and huge quantities of discarded ordnance, such weapons on land – but the surviving a cause of death and injuries to seamen who records of their maritime dumping grounds likelihood of leakage or even are often forced to use decontamination are inadequate and often misleading. a massive spill occurring“ equipment onboard. Its coastlines are Unexploded ordnance is increasingly being frequently plagued by oil pollution, washed up ashore and entangled with increases, as do the sometimes of mysterious origin. shipping, marine engineering and fishing potential costs Sweden’s Maritime Administration has gear, putting lives at risk. launched a three-year project to assemble The release of a long list of potent Richard E. Fredricks, Executive an inventory of potential major pollutants materials contained in the corroding bombs, Director, ASA within its territorial waters. This will be

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followed by a programme of physical The WORP programme has been Pollution from the wreck affected the inspections and risk analyses leading to an mounted, in part, as a response to a biodiversity of some 4,000 square miles of extensive salvage operation to make safe mysterious series of environmental the Pacific and dealt lasting damage to the area. disasters triggered by the 1953 sinking of California’s famous beaches, tidal flats and The Finnish Environment Institute has the Jacob Luckenbach after a collision with wetlands, underwater canyons, kelp forests already removed oil from five aging its sister ship 17 miles west-southwest of and sub-tidal reefs. Efforts to mitigate the wrecks. Poland’s Maritime Institute has the Golden Gate Bridge at San Francisco. damage plus the salvage and oil removal mounted regular surveys, monitoring and The wreck containing 457,000 gallons of operations in 2002 cost $20m. wreck categorisation exercises since 1998. bunker fuel was eventually identified as the Some of the most urgent projects to There is great scope for regional source of periodic, prolonged spills of make safe the decaying wartime wrecks cooperation, according to a working paper heavy oil that killed sea otters and tens of worldwide are also underway or have been issued by Erik Svensson, a PhD candidate thousands of birds over a decade. completed. A salvage team of the US Navy at the Chalmers University of Technology, recently drilled into the wreck of the oil who is involved in the development of a tanker Mississinewa resting in an island scientific protocol for the Swedish lagoon near the Philippines, and recovered investigations. He argues that the Baltic the bulk of its remaining cargo load. The neighbours can learn a lot from each other’s operation had been necessitated by a storm experience. And he suggests that a that shifted the wreck and rendered its compilation of the surveys conducted by cargo tanks unstable. The American ship their marine environment authorities could went down in a firestorm in 1944, the provide a realistic early indication of the victim of a suicide attack. The sinking likely success of co-operation in the actual claimed the lives of 64 sailors including the cleanup of their common sea. pilot of the manned Japanese torpedo that An energetic, proactive environment caused it, and released a spill fouling protection programme is also advancing in long coastlines. the US, focusing the resources of many Some recent inspection exercises have maritime science and technology also exposed many new problems. The establishments and specialist government Earthwatch-sponsored diving project in departments. The American Wreck Oil Micronesia, undertaken in collaboration Removal Program (WORP) relies on the with the regional department of marine database of the National Oceanic and resources and the historic preservation Atmospheric Agency that lists more than authorities, was part of a scheme to develop 7,000 wrecks along the coastlines. environmentally sustainable management Many of them are small and relatively practises for the ships known locally as the harmless. But they include more than 400 Ghost Fleet of the Chuuk Lagoon. tankers, and they hold an estimated total of Several of the Chuuk sites are regularly 180m gallons of oil plus petroleum exploited by dynamite fishers, the products, some 15 times the volume of the inspectors found, according to a project Exxon Valdez spill that cost billions of document, “stripping valuable protective dollars in disaster mitigation and damages. layers of the natural and cultural fabric and Research into the safe preservation of killing most animals in the impacted areas.” the so-called Graveyard of the Atlantic The researchers fear that this could along the North Carolina coastline has destabilise the integrity of the sites, attracted great public interest. The area possibly leading to their collapse as well as includes the wrecks of several British and the release of further pollutants. American warships, many German U-boats Thomas Ország-Land is an author and and various merchant vessels sunk during award-winning foreign correspondent who the 1942 Battle of the Atlantic. writes on global affairs. ■

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BUSINESS OF SHIPPING ADHOC

AdAdHocHoc Tall Ships Race adventure for UK students

tudents from St Budeaux School, the from the marine science department at people have also had an opportunity to UK’s only state-funded marine Plymouth University. attend crewing parties and parades in each Sacademy have taken part in the Pupils were treated to a presentation of visited town. prestigious 2011 Tall Ships Race – an round-the-world sailing by yachtsman Speaking onboard Moosk, 15-year-old international event which began in Conrad Humphreys and also had to show student Lewis Harrison from Keyham said: Waterford, Ireland and called at Greenock, their dedication during a three-day sail- "It's absolutely amazing! Breathtaking! We Scotland; Lerwick in the Shetland Isles and training course prior to joining the crew for are sitting on the boat and there are Stavanger in Norway, prior to anchoring at a section of the race. thousands of people here – fireworks, horns Halmstad, Sweden in early August. Hundreds of young people have taken tooting and bands playing. We are all much A group of 18 young people aged 14-19 part, including those from Russia, Belgium, better mates than when we started out and were selected to sail on the tall ship Moosk Germany, Sweden, Lithuania, Poland, even though most of us were sick through through a process which included an Norway, Denmark, Colombia, Spain and the Celtic Sea, the best bit has definitely interview with crew from the Cremyll France. The event focuses on student been the sailing. There are ships from Spain Sailing training centre and a representative endurance and sailing skills but young and Norway next to us."

74 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 ADHOC BUSINESS OF SHIPPING

Inmarsat announces key appointments

lobal mobile satellite company, including the acquisition of communications services provider Inmarsat’s largest distributor, Stratos; GInmarsat has carried out its plan to formulating and executing the business plan separate the role of Chairman and Chief for the Global XpressTM Inmarsat-5 Executive Officer by announcing two new satellite constellation; as well as the key appointments. creation and negotiation of the Co- With effect from January 1st, 2012 operation Agreement with LightSquared on Andrew Sukawaty will become Executive use of Inmarsat’s spectrum over North Chairman and Rupert Pearce will become America. Chief Executive Officer. Mr Pearce will The Board of Inmarsat is pleased to join the Inmarsat plc board as an executive confirm that Andrew Sukawaty has agreed Rupert Pearce, Chief Executive Officer, director effective from July 6th, 2011. to continue to be involved in the business Inmarsat Rupert Pearce, who currently serves as as Executive Chairman for not less than two Senior Vice President of Inmarsat years. He will continue in the joint role of programmes since he joined Inmarsat six Enterprises and Inmarsat’s Group General Chairman and Chief Executive Officer until years ago. He is extremely well prepared Counsel, has been with the company for six December 31st 2011. Commenting on Mr to head our experienced management team years. In this time he has been instrumental Pearce’s appointment, Mr Sukawaty said: and drive the company forward into its next in shaping the strategic direction of the “Rupert has led many of our major stage of growth.” LRET awards £1 million to new asset maintenance centre of exellence

aligned with the post-graduate teaching programme). Michael Franklin, Director of LRET said: "Maintenance is a key discipline for anyone who aspires to deliver sustainable industrial services to society. To guarantee safe, clean, reliable and affordable operations, capital assets require state-of- the-art strategies for their maintenance, repair and overhaul. Those strategies increasingly underpin the effective identification and management of any risks to safety, health and the environment. This sponsorship therefore fulfils our mission to olland's University of Twente has industry and for public services such as support advances in transportation, science, been awarded £1 million by the transportation. According to the University, engineering and technology-related HLloyd's Register Educational Trust an estimated €400bn is currently invested education." (LRET) over the next five years, to set up in public and private sector assets in the Professor Leo van Dongen of the the LRET Maintenance Research and Netherlands, meaning €18bn must be spent University of Twente added: “In various Education Programme, which will form a annually on maintenance. These figures sectors, maintenance is no longer regarded prominent aspect of the university’s Centre also ensure job creation for around 150,000 as being a necessary cost and 'technology' of Excellence in Maintenance Engineering. people. is back on the agenda in the boardroom. The LRET is an independent charity which Funding from LRET will be used to set objective is to enhance the earning power supports advances in education, training up three aspects of the programme – a of installations, guarantee their availability and research worldwide for the Master of Science in Maintenance and facilitate sustainable operations. transportation, science, engineering and Engineering; an International Master of “It is a challenge to help the new technology disciplines. University of Science in Maintenance Management (also generation of engineers make even more Twente representatives have emphasised involving the Technical University of progress in this respect. I interpret the the importance of maintenance as a Eindhoven and the Technical University of LRET grant as recognition of the subject's technical discipline which occupies an Delft); and research on the fundamental importance and a show of faith in our essential role in ensuring the health of principles of maintenance (to be commitment to it."

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 75 BUSINESS OF SHIPPING ADHOC

Bureau Veritas Faststream certifies first raises Philippines manning LNG staffing agency worries

ureau Veritas has certified seafarer manning office in the UK and its Philippines-based manning agency branch office in India, two in Greece and we BMaryville Manila for compliance to have published a Guidance Note (NI 563) to the Maritime Labour Convention MLC facilitate the certification process. We expect 2006 on a voluntary basis making it the first other manning offices be looking for manning agency to be certified by class certification before the convention enters into society in the Philippines. force, probably next year.” Claude Maillot, VP Ships in Service Emmanuel Danion, Bureau Veritas Management at Bureau Veritas, said: “The Country Chief Executive for the Philippines, readiness of Maryville Manila to move added: “The Filipino manning industry is towards voluntary compliance and very important both here in the Philippines certification under MLC 2006 in advance of and as the biggest resource of skilled hipping recruitment consultant the convention coming into force manpower for global shipping. It is most Faststream has warned that ship demonstrates both the quality of the important that manning agencies are forward Sowners taking part in the LNG organisation and the forward thinking of its looking and ready to comply with global vessel order spree could face serious management. We have so far certified one standards, as Maryville is.” difficulties in finding experienced superintendents to run these vessels in the coming months and years, particularly in Europe. It said it has already seen triple the number of vacancies for shore-based technical staff with LNG vessel ClassNK unveils experience in 2011 compared with the whole of last year. Group CEO Mark Charman said: “With the capacity of the LNG market said mid-term plan to rise from 300 billion cu m to 380 bn cu m by 2015, I believe that ship owners are going to be hard pressed to find the right met for the first time since the Society people to manage these complex vessels. completed its transition to a new legal This has always been a specialist market, structure in April of this year. but the latest DFDE LNG vessels are The ‘Global Approach 200’ plan lays equipped with electric engines and using out three key strategic objectives for the propulsion systems which have not been society for the period between 2011 to 2013, around for long, so finding experienced including creating a stable foundation LNG people to run these vessels is going to resistant to changes in the market be a real challenge. environment; maintaining ClassNK’s “Seafarers serving on LNG vessels are position as the world’s leading classification among the most highly paid in the shipping society and expanding upon its share of the industry and luring them ashore has always classification market; and taking a more been difficult. In the UK, the impact of the proactive approach to new opportunities. immigration cap has meant that importing Based on these strategic objectives, experienced superintendents from outside ClassNK Chairman & President Noboru Europe is no longer an option and the apanese classification society ClassNK Ueda laid out five goals for the class society problem is only going to get worse.” is aiming to have more than 200 to achieve by 2013, including establishing a Faststream said many ship owners Jmillion gross tons on its register by the stable financial foundation for future were now recruiting people with general end of 2013 as part of the Society’s new growth; reaching more than 200 million tanker experience rather than an LNG ‘Global Approach 200’ mid-term plan, gross tons on its register; improving the specialism to run their ships. The average unveiled in Tokyo today. quality of its services; and increasing its salary for LNG shore-based staff are The plan was officially revealed to the global presence, expanding its business typically at least 10% higher than for tanker press today following its approval by the operations, and promoting new research and staff, with LNG technical superintendents ClassNK Administrative Council, which development. earning between £62-65K per year.

76 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 ADHOC BUSINESS OF SHIPPING

DNV acquisition boosts software portfolio

NV has boosted its software portfolio with the acquisition of Dfellow Norwegian company Synergi Solutions. As a provider of asset integrity software for the energy and maritime industries, DNV is now extending its portfolio to include risk based software for operational risk management. operational integrity management and asset companies in the energy, maritime and Quality, Health, Safety and Environment integrity to the energy, maritime and health industries, added Mr Føllesdal is becoming increasingly complex in many healthcare industries,” said Are Føllesdal Tjønn. industries and recognised systems for Tjønn, Managing Director at DNV’s ■ Meanwhile RINA, the GENOA-based managing these risks vital. Synergi Solutions software house. classification group has published Gas provides customers with complete HSE- “We aim to have especially strong Fuelled Ships – a new notation which HSEQ software for risk and growth in China, Korea, Singapore, Middle establishes requirements for the use of non-conformance management. East, South America and have further alternatives to traditional fuels onboard, Through the acquisition, 30 new expansion in North America.” namely liquefied or compressed natural gas employees will be joining DNV’s software Synergi Solutions’ software is available (LNG or CNG). The notation aims to house with both support and sales activities in 20 languages and used in 150 countries provide a regulatory tool for industry to being managed from the new combined unit. and existing customers, as well as new ensure safe and reliable practice, “We are now able to provide the most customers, will benefit from DNV’s global particularly during the installation of gas complete set of risk based software for presence and close relationship with fuel machinery. Voluntary onboard tests improve training standards

ideotel Marine International, in association with the Chemical VDistribution Institute (CDI), is pioneering a new voluntary Crew Knowledge and Proficiency (CKP) Testing System by randomly testing officers’ operational knowledge. These short tests are designed to complement the crew’s existing training programme and provide strong evidence of continuous objective assessment of officers. Captain Milind Karkhanis, Vice President, Videotel Training Services, has Engineers or their equivalent ranks are individual seafarers by delivering been instrumental in working with CDI to eligible to undertake the testing. Selection assessment based questions. Assessments develop this project. “What the industry of the Officers is made randomly by can be set up by selecting questions from needs is a globally consistent system of computer and the checks are carried out on an extensive and growing database which, quality measurement. With this system, the a one-to-one basis onboard by an Inspector in turn, can then be assigned to selected individual ship operator can benchmark the via pre-determined questions programmed seafarers. The assessments are completed CKP of his officers against the world into a laptop. A CKP Review Committee on line, enabling employers to identify chemical and gas tanker fleet average. This has been set up to review the progress, the strengths and weaknesses of their provides a genuine measurement of results and statistics of the CKP database on seafarers both prior to and during performance, allowing those fleets a quarterly basis. employment. The results demonstrate how demonstrating high quality standards to CKP Testing constitutes part of they are progressing and identify further receive the recognition they deserve.” Videotel’s VOA (Videotel Online training requirements for individuals as part Chief Officers, Second Officers, Third Assessment), an internet based program of a company’s overall competency Officers, Second Engineers, Third designed to help assess the competency of management programme.

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 77 LIVE OBJECTS OF DESIRE Objects of desire

Box of delights

There will be no excuse for a party without good music with this nostalgically designed black Wurlitzer One-More-Time jukebox. The OMT iPod/CD model offers superb sound quality by BOSE and combines a holding capacity of 100 CDs and the huge memory of the included 60GB iPod, meaning you can choose from more than 10,000 songs at the touch of a button. It also has a remote control, so you don’t even have to leave the comfort of your armchair to run through your rock repertoire. The jukebox comes in a black onyx finish and is also available in special edition white. Black Wurlitzer One-More-Time iPod/CD Jukebox £6,299.99 www.theinsideman.co.uk

Cool table

This glass pool table offers the perfect playing surface while at the same time providing a stunning centrepiece for any games room. The playing area of the G-1 table is composed of the patented Vitrik transparent playing surface on top of a 15mm toughened glass top which replicates the rolling resistance of an average speed cloth. It is hard wearing and the minimalist modern frame includes visible ball return systems which make a feature of pocketed balls rather than being hidden away. The cost of the table includes a ball set, black triangle, two aluminium cues and a bridge stick. G-1Glass Pool Table £34,999 www.nottagedesign.com

Deep seat adventure

The best seat in the house could be yours with this spectacular tentacular creation. Designed by Maximo Riera, the Octopus Chair is part of a larger range of animal chairs by the Spanish artist, combining art with functionality. The chair is upholstered in luxurious black leather and hand- crafted by a team of over 30 professionals, overseen by Riera himself. It could certainly make a big impact at your next dinner party with the tentacles extending to 1.5m behind the seat. The Octopus Chair is being produced in very limited numbers so you’ll have to hurry to make sure you net one. The Octopus Chair £35,000 www.firebox.com

78 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 OBJECTS OF DESIRE LIVE

Sweet smell of success

Ten years ago Clive Christian came up with what was billed as ‘the most expensive perfume in the world’ and the fragrance shows no signs of wearing off. No expense was spared in creating Clive Christian No. 1 for Men, and it smells as fabulous as it looks with ancient Indian Sandalwood combining with Arabian Jasmine to give it an understated yet distinctive fragrance. It is still as popular today and the stunning bottle is worthy enough to adorn the most glamorous of dressing tables. Clive Christian No. 1 for Men £430 www.fortnumandmason.com

Stunning sound

Treat your ears to a luxurious sound with these beautifully crafted Ultrasone Edition 10 headphones. The headphones, hand-made in Germany, sound phenomenal as they incorporate S-Logic Plus technology to create the effect of surround sound. They also look fabulous too, with the design inspired by the wings of a butterfly and precious Ethiopian sheepskin leather covering the ear cups and headband. The cups are also emblazoned with inlays of Zebrano wood as are the specially designed stand and box which are included in the price. Ultrasone Editiion 10 Headphones £1,749 www.audioaffair.co.uk

Minute master

Equipped with a programmable countdown with a mechanical memory, the Rolex Oyster Perpetual Yacht-Master II allows the skipper to programme a regatta countdown sequence from one to 10 minutes. Once the countdown has been launched the skipper can synchronise his chronograph to the official race countdown. This new version is the first professional watch in the Oyster collection to be available in Everose Rolesor, an exclusive combination of the 904L steel superalloy and 18ct Everose gold. It is also waterproof to 100m. Rolex Oyster Perpetual Yacht-Master II Price on request www.rolex.com

JULY/AUGUST 2011 ISSUE 32 SHIP MANAGEMENT INTERNATIONAL 79 Books By Margie Collins Spies of the Balkans

By Alan Furst Phoenix/Orion Books £7.99

t is late 1940; Greece is under the high-ranking Wehrmacht officer, who dictatorship of General Ioannis is involved in a highly dangerous IMetaxas. Much of Europe including mission to smuggle German Jews out Austria, Poland, Czechoslovakia is under of Germany. She persuades Costa, Nazi occupation. Greece awaits the who has the ability to hide in full and tentacles of war to spread to their plain view, to help her and her network own shores. of clandestine supporters to obtain Mussolini tries to invade Greece, but visas – and a way out of hell – for the Resistance pushes him and his Fascist fleeing Jews. Desperate times beget army back into Albania. desperate measures and unlikely allies. Spies of the Balkans is set in Salonika As an officer of the law who – the ‘Jerusalem of the Balkans’ – where decides on matters of right and wrong, “there was still a tavern named Smyrna on bad and good people, Costa barely Betrayed, located on what once had been dithers; he knows life is messy and known as Basil-the-Slayer-of-Bulgars littered with an abundance of moral Street”. The ancient and polyglot city, conundrums. His moral compass is recently returned to Greek sovereignty by firmly set on the side of angels. He the second Balkan War, is reassuringly devises escape routes, works his contacts reckless affair while all around them their exotic; a place “where wars outnumber the and calls in favours, and sets up a higgledy- comfortable world collapses. streets.” Part Balkan/part Ottoman, piggledy, but effective, network of cops Alan Furst, who is routinely likened – Salonika is a hotbed of gossip and intrigue, and lowlifes who smuggle the Jews helped fairly or unfairly – to John Le Carre, has where spies, undercover journalists, by Krebs past the Gestapo, Croatian written eleven critically acclaimed and suspicious expatriates, courtesans, consuls, Chetniks, through Macedonia and Thrace, internationally bestselling espionage novels thieves, wealthy ship owners live amiably, penetrating across heavily guarded borders, married to historical fiction. America’s pre- if warily, side by side, aware of the all the way to Turkey, where they are eminent spy novelist has plundered and darkening prospects and scourge of war, thrown a lifeline and seek asylum or plumbed the period before and during the the odour and pall of death, doom and transport to the US. Second World War, in Europe, its stories, gloom encroaching, unstoppable, upon ‘Spies of the Balkans’ is peopled by scents and sounds. Furst’s world war is a Salonika’s neighbours. some truly memorable characters. We meet great undiscovered continent, with its In Salonika, their lives, too, are put on Marko Pavlic, a detective from Zagreb, dislocations, destruction, disarray and hold; they wait, but while they wait, spies whose assistance Costa co-opts. “What death, and peopled by complex, intriguing, plot and recruit new agents; corrupt do I do if we’re occupied?” he asks vaguely sexy characters, with their officials continue to enrich themselves; rhetorically. “Nothing? Nothing doesn’t inimitable foibles and frailties. they party. Taverns fill up with regular exist. When somebody takes your country, Furst’s novels – well-researched and diners asking for the fresh catch of the you help them or you fight them. Because finely realised, with their deep strain of day; bouziki bands strike up lugubrious they will come after you.” And the dour melancholy romanticism – capture not only melodies; lovers make frantic love. Just Hauptstrumfuhrer Albert Hauser, a Gestapo beautiful and unsentimental evocations of ordinary people cauterising their fears with official hell-bent on capturing Jews and Europe and Europeans caught in the dread the rhythms of everyday life, passing Communists, because they have been of war, but also the turbulence and turmoil through each others’ lives with amazing marked as enemies of the state; he argues of a world gone mad, tipped upside down. velocity. that he is only doing his job and enemies These are flawed, but fundamentally good, Costa Zannis, 40, is Salonika’s all- must be apprehended, and if necessary, men trying to do the right, the moral thing. around senior police official and detective; destroyed. It is said that a coward dies a thousand he knows everybody; he gets things done. Into this melange of characters is deaths, but a brave man only once. A devoted son, Costa loves his English thrown the beautiful Demetria – a well- If you haven’t yet experienced the girlfriend, his Georges Simenon novels and indulged woman married to a Greek pleasures of an Alan Furst novel, you’re in his dog – not necessarily in that order. Into oligarch. When their lives are changed at for a distinct treat! Go back to the first his agreeably humdrum life walks Emilia first sight of each other, Costa and she fall, novels and then read your immeasurably Krebs, a wealthy German Jew married to a headlong, madly in love, and conduct a interesting way forward.

80 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 Books Treasure Islands: Tax Havens and the Men Who Stole the World

By Nicholas Shaxson Bodley Head £14.99

encouragement, of governments that London, through the City of London, perpetuate this business model. is named as the centre of the global “Offshore is a project of wealthy and offshore system. Some 83 of the top 100 powerful elites to help them take the American firms and 99 of Europe’s benefits from society without paying biggest 100 companies routinely use for them,” writes Shaxson. some form of offshore finance, a dizzying Shaxson cites many examples array of financial esoterica and arcana. that for their sheer cunning would Shaxson calculates that the balance sheets convince you the devil looks after his of small island financial centres alone own; of people and companies amount to £18 trillion – about a third of increasingly detached from reality and the world’s total GDP. the rest of humanity. Among them Sir Peter Preston, writing in The Philip Green, the BHS and Top Shop Guardian, argues that: “Such treasure billionaire, who paid £1.3bn dividend islands, with attendant trove studies, seem f you’re still in pain, smarting from to his wife in tax-free Monaco, where only symptoms of something far more the impact of the recession that they live, and avoiding paying Her intractable: basically, a way of doing Itotally spavined our financial system, Majesty’s Revenue & Customs £300m business that no one can reform or replace this book should come to you with a in taxes. because no one has the resolve or the health warning. But if you want to The Vesteys, for decades Britain’s means, because there is (literally) no understand the modern financial machine wealthiest family, paid just £10 tax, in alternative...we’re talking about a that runs the world, it is important to 1978, on their profit of more than £2.3m universal way of business life here, about know about offshore tax havens. from Dewhurst, the family’s chain of a system so entrenched, so formidable “Imagine,” writes the author, a butchers. “Let’s face it,” said Edmund in the lobbying, so familiar in its financial journalist and consultant for the Vestey, head of the family’s business assumptions.” Tax Justice Network, “you are in your empire, “nobody pays more tax than they Shaxson does, however, accept that local supermarket and you see well- have to”. many firms regard it as their fiduciary dressed individuals zipping through a When the LA-based actor Paul duty to minimise the amount of tax they ‘priority’ checkout behind a red Hogan was detained for questioning by pay, to enable them to invest more in their velvet rope.” Australian authorities for his tax affairs, businesses, to create more jobs and return The book, written in a polemical, but the star of Crocodile Dundee said: “I higher dividends to shareholders. very readable style, chronicles the history haven’t done my own tax for 30 years. The message of Treasure Islands is of the modern tax offshore system – from They talk about me going to jail. Erm, the system needs wholesale change. The the introduction of a tax on overseas excuse me, there’s about four law firms author writes: “Drug smugglers, terrorists income, in 1914, to the role of tax havens and about five accounting firms that’d and other criminals use the same offshore in today’s byzantine economic system. have to go to jail before you get to me.” mechanisms and subterfuges – shell “Sunlight,” said US Supreme Court When Warren Buffett, the billionaire banks, trusts, dummy corporations – that Judge Luis Brandeis, “is the best investor and third richest man in the corporations use. We will never beat disinfectant.” Treasure Islands shines a world, surveyed the tax paid by his staff, terrorists or heroin traffickers unless we light on a convoluted web of power and he found he was paying the lowest tax rate confront the whole system.” The influence, a secretive world of havens that among them, lower even than his consequence being that the burden of enables the wealthy, multinational receptionist. taxation will increasingly fall on to corporations and banks to avoid paying When the American energy giant ordinary folks – that’s you and me. taxes, which Shaxson estimates to total Enron imploded, in 2001, it had over 800 The real scandal is not in what’s some $1,000bn a year. offshore subsidiaries on its books: 692 forbidden, but what is allowed. Power and These companies and individuals, in the Cayman Islands; 119 in the Turks influence, it’s true, bring a man many argues Shaxson, wilfully do so with the and Caicos; 43 in Mauritius and eight luxuries, but a clean pair of hands is collusion, if not always the outright in Bermuda. seldom among them.

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Music Stevie Nicks Duane Eddy In Your Dreams Road Trip Reprise Records Mad Money/EMI

King of the twang guitar Duane Eddy is back with his first album in 25 years. Now in his mid-70s, the American star has teamed up with UK co-producer/co- writer Richard Hawley, an Eddy lifelong-fan, whom he met at an awards ceremony. The album was recorded in just 11 days and the guitar playing evokes a wide Think spaghetti western theme music range of emotion from harsh, aggressive teamed with powerhouse rock ‘n’ roll and and demanding to sensitive with a touch of you’ll not be far from understanding what melancholy. this album is all about.

he former Fleetwood Mac singer Dining is back with her first solo record Tin a decade and it is true to her usual style of soft, slick, melodic rock. Produced by Dave Stewart, formerly Eleven Madison Park of the Eurythmics, and Glen Ballard, it Photo: Francesco Tonelli is glossy and polished with Nicks’ witchy, mystical and husky tones iners at top New York restaurant featured across 14 tracks. Eleven Madison Park are now kept There is a real sense of purity to Dguessing as to what will arrive at Nicks’s voice and one song in particular, their table following a complete revamp of ‘Moonlight’, cleverly gives you a sense the menu. of romance that it is coming from the The a la carte has gone with guests Executive Chef Daniel Humm and heart of an innocent 17-year-old, not a instead receiving a card printed with a grid of General Manager Will Guidara also recently woman now past middle age. 16 ingredients hinting at the dishes available. reduced capacity from 114 to 80 covers giving ‘In Your Dreams’ will no doubt They are then invited to make selections and the eaterie a more intimate feel. A four-course captivate all Mac fans and those who divulge any preferences including dislikes dinner is $125 and the tasting menu, $195. have enjoyed her subsequent solo allowing the chefs to design their meal releases. from there. www.elevenmadisonpark.com

Theatre Ghost The Musical

ift your spirits with the hottest Molly through a phoney psychic as he ticket in town! Ghost The tries to save her from his murderer. LMusical recently opened at the Featuring new music and lyrics by Piccadilly Theatre in London’s West music legends Dave Stewart End and it is sure to wow fans of the (Eurythmics) and Glen Ballard (who Oscar-winning film, from which it has write Michael Jackson’s ‘Man in the Photo: Sean Ebsworth Barnes Mirror’) the musical, of course, been adapted. features the big screen hit, ‘Unchained The timeless fantasy revolves Melody’ from The Righteous Brothers. around Sam, who is trapped as a ghost between this world and the next, trying www.atgtickets.com to communicate with his girlfriend Now booking to January 28th 2012

82 SHIP MANAGEMENT INTERNATIONAL ISSUE 32 JULY/AUGUST 2011 Chile’s turning up the heat on the fine wine market ew World wines are standing up to be found his finest wines were going missing. He 56th in Wine Spectator’s top 100 wines in the counted among the Old World spread the word to staff that the devil lived in world for 2010. Part of the vineyard has also Nofferings which have dominated our his cellar and never again did any of his stock been set aside for another of CyT’s fine wines tastes for centuries. go astray! – Almaviva. Borne from a partnership Indeed, they offer great value for money Chile’s benevolent climates, multitude of between CyT and Baron Philippe de and none more so than in Chile, where geographical conditions and soil compositions Rothschild, owner of Château Mouton unbeknown to many, their roots lie firmly in make it a viticultural paradise. Deeply Rothschild in Bordeaux, France, the the past of great winemaking. influenced by the Andes mountains, the Bordeaux-style red, which had its first harvest Wine grapes are not native to the country has a ribbon-like shape at 4,300km in in 1996, combines the winemaking traditions Americas – they arrived with the Spanish length and just 250km wide. and innovations of both families. missionaries who needed wine to celebrate the There are a number of great wine- “Chile really is a wine paradise,” Catholic mass and Fray (Brother) Francisco growing areas from the desert lands of the explained Miss Ritchie. “Its amazing diversity de Carabantes is credited with bringing the Atacama in the north to the icy fjords of of regions and climates means that it can turn first vines to Chile through the port of the south. its hand to just about any grape variety and Concepción in 1548. By the mid-1800s, The Puente Alto vineyard, where the wine style. In recent years the industry has interest in European-style fine wine finest of CyT’s wines originate, is superb been exploring new wine production had caught on. because of its location and climate. Located in regions and there are some “Chile has actually been producing the Upper Maipo Valley, at the foothills of the very exciting new wines wines since the late 1800s. In fact, the Andes and near the Maipo River, there is coming from the desert founder of Concha y Toro, Don a significant variation between day and vineyards in the north and Melchor, was one of the first Chilean night temperatures cool-climate aromatic wines business men to produce and sell wine,” “This special location benefits from cold from the Pacific coastal said Emidy Ritchie, The Fine Wine air currents blowing down from the regions.” Collection Brand Manager for Concha mountains. The temperature can drop by up to She said the Chilean y Toro (CyT). 20 degrees at night,” explained Marcelo Papa, share of the wine market Well-heeled families, such as Don one of CyT’s head winemakers. was growing year on year: Melchor’s, with fortunes from mining “These cool conditions are a key factor in “We’re seeing a lot of and early industry, built mansions the production of fine red wines. The soils in interest in fine Chilean beyond Santiago and surrounded them Puente Alto are absolutely ideal for Cabernet wines from both the on and with vineyards. Don Melchor Sauvignon – not dissimilar to the soils of off-trade and the number brought noble French grapevines the Left Bank in Bordeaux – and this is the of listings on the wine from Bordeaux to plant at grape variety we mainly grow here. The vines lists of fine dining Pirque in the Maipo Valley are quite old and low-yielding so we get restaurants is and this saw the formation of small grapes which are really concentrated steadily growing. Concha y Toro in 1883 – with flavour. “I think the www.conchaytoro.com now the country’s top wine From Puente Alto the grapes are picked to country’s www.winesofchile.org exporter and owner of 9,300 make Don Melchor. The first fine wine to be success hectares in over 50 made in Chile with its inaugural vintage in is down to a vineyards throughout Chile 1987, it has earned a reputation as one of combination of and Argentina. the country’s finest Cabernet Sauvignons a truly unique Winemaking grew and gathering accolades from around the world geography, a Don Melchor became very including 96 points from the prestigious Wine growing band of proud of his wine. Indeed Spectator for its 2003 and 2005 vintages. inspiring one of CyT’s now famous About 80% of the harvest from Puente winemakers and brands, Casillero del Diablo Alto goes towards making Don Melchor and a real drive to (The Devil’s Cellar), was so the rest goes into the second wine, Marques de produce top named because Melchor Casa Concha, whose 2007 vintage ranked quality wines.”

Tasting Note: Tasting Note: Almaviva 2008 Bouquet: Pure Don Melchor 2007 Bouquet: delicate aromas of ripe blackcurrant, Expressive and complex chocolate, strawberry and hints of vanilla, coffee, black cherry and ripe plum mingle licorice and spice. Taste: A persistent with coffee and cassis. Taste: Red fruit minerality harmoniously balanced by features in a dense, full-bodied wine great acidity and elegantly ripe whose fine, ripe tannins lead into a tannins. RRSP £75 big, long and juicy finish. RRSP £45

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If you’re happy ,

clap your handsBy Margie Collins

e have sent men to the moon; You would think we would be happier, and arrows without a moment’s notice? decoded the human genome; but the signs and studies point to rising When, daily, every hour on the hour, we are Wmade huge advances in gloom and disconnect. If an alien life form bombarded with news of troubles around technology which generations ago, were came to visit our sceptred isles, he would the world? black arts for which men were sent to the be perplexed at our existential angst; if he The UK has one of the highest rates of gallows. We can buy anything, in shops had the requisite waterworks, he would be family breakdown, teen suicides, teen anywhere in the world that stay open all moved to tears. He’d say we do great pregnancies, divorce, mental illness, day and all night. There are no more exotic cappuccino, pomp and pageantry, alcoholism and drug-taking in the world. places on earth that charter and budget resplendent royal weddings, but we don’t But even in a world of danger, inequality airlines don’t fly to three times a day. do happy. Which is richly ironic since there and unfairness, amid a culture mired in We have the four-bedroom, two-car is an epidemic of happiness sweeping coarseness, crudity and cruelty, it’s easy to garage, gizmo and gadget-laden house in through our shores and beyond, leaving in look the other way, bury our heads in the leafy exurbia; the 35-hour work week; its wake a huge smiley-happy clappy sand, become morally disengaged, take summer and winter holidays and weekend industry that threatens not only to take the another anti-depressant and retreat – breaks in between; three meals a day (not pleasure of melancholy out of being sad, anxious and careworn – into our own including elevenses, tea breaks, the happy but also to recalibrate our excessive slough of despond, there to lie exhausted hour and nightcaps); shoe collections; expectations in a world of constantly and alienated. designer labels: all the stuff we think we diminishing returns. Except we don’t have to anymore, need and more besides which we don’t. How can we take this enterprise because there are vast armies of people – We are living longer; science and seriously when there are wars being fought, positive psychologists, behavioural medicine have discovered cures for the people going hungry, human rights abuses analysts, psychotherapists, happiness ailments, depression and distemper modern and acts of terrorism being committed, and economists, researchers, counsellors, self- life serves up. We are moving so fast, in while natural disasters wreak dystopian help gurus, think tanks, charities, schools, a blur; we can be connected to anyone, devastations, and a steady decline in moral universities, governments – marching for at anytime, anywhere in this small values erodes old-fashioned virtues of happiness on our behalf! Happiness is the overwired world through warp-speed respect, honesty and tolerance? When the new nirvana, the new Eden, the next new aviation, the click of a mouse, the ping of a ineluctable arbitrariness of life means thing! Because we are so wretchedly mobile telephone. anyone could be in the path of life’s slings miserable, happiness has become this big

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commercial endeavour offering anything obsessed, materialistic and unfulfilling comfortable with who you are; 10) Be part from mood-altering drugs, easy fixes and behaviour. AfH is backed by a host of of something bigger. Few things in life are psychoanalysis to thousands and thousands illustrious thinkers from the fields of ever this deceptively simple. of books on happiness. education, politics and economics, and by “Last century, we believed that ever The economists David Blanchflower the Dalai Lama. greater material affluence would make us and Andrew Oswald organised the world’s “Our living standards are happier. This century, the gravy train will first-ever conference on the economics of unprecedented,” said Lord Layard, “and yet run dry and we are going to have to make happiness, at the London School of our happiness is no higher than 50 years do with less. We will be forced to realise Economics (LSE), in 1993. “We stuck up ago.” He cites support for the movement that ever greater quantity will never make posters, we put out 100 chairs, about eight from people in all walks of life, in 68 us happy, but an enhanced quality of life people turned up,” said Oswald, whose countries, with more than 5,000 members will...We have merely to value the present principal work is on the ‘economic and already signed up. It’s catching! and stop living in the future and the past,” social determinants of mental health and “Action for Happiness is about said Dr Seldon. happiness’. Just 18 years later, happiness encouraging the shift to a happier society, At the top boarding school Wellington events are guaranteed to be oversubscribed; where more people are leading happy, College (annual tuition fees: £29,000) in people are queuing in long lines to get in, balanced and fulfilling lives,” said Mark Berkshire, where Seldon is headmaster, to listen, perchance to have their souls Williamson, Director of AfH. “It requires a they have been teaching wellbeing, positive stirred, their spirits lifted. big cultural change, challenging us to live psychology and happiness to 14 year-olds In April 2011, three intellectual leading in a way that prioritises the things that since 2006. If we are going to change the lights – Lord Layard, founder/director of really matter most.” attitudes of a lifetime, the argument goes, the Centre for Economic Performance at the According to AfH, the ‘10 keys to start with what Lord Layard describes as LSE and the UK’s ‘happiness tsar’’; Geoff happiness’ are: 1) Do things for others and “an educational revolution in which the Mulgan, director of the Young Foundation, giving of your time; 2) Connect with central purpose of our schools becomes to and Dr Anthony Seldon – launched ‘Action people; 3) Take care of your body; 4) help young people learn the secrets of a for Happiness’ (AfH), a campaign and mass Notice the world around you; 5) Keep happy life and the happy society”. movement for social change that, it claims, learning new things; 6) Have goals to look Inspired by the pioneers of positive puts people’s happiness first before forward to; 7) Find ways to bounce back; psychology at Harvard University, Seldon economic growth and away from self- 8) Take a positive approach; 9) Be was convinced that emotional intelligence and happiness could be taught to young people. “A lot of people were sceptical and dismissed it as psychobabble, but in five years, there’s been a change of attitude, a recognition that Milton was right to say that we create a heaven or a hell in our own mind,” he said. At Harvard, the trailblazer was positive psychology lecturer Tal Ben-Shahar, who told his students to keep a ‘gratitude journal’, writing down five things each day for which they were grateful. “Until recently, the realm of self-help has been dominated by pop psychology. It’s usually empty promise. On the other side, we have academia, with research that is substantive, but doesn’t find its way into most households,” he said. Ben-Shahar’s own academic research found that people who

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) )

“We have merely to value the present ) and stop living in the future and the past” “ “Wh ” ) of ha “

Money talks, but so often rarely has anything meaningful to say. satisfaction with the country’s pace of economic and social development; their Money buys lots of things – a bride, but not her love; a house, sense of cultural and national identity. but not a home; a new heart, but not health Prime Minister Jigme Thinley launched the GNH index to inform and guide public policy towards an enlightened society in did the journals were happier, more happiness by getting more pleasure out of which happiness and wellbeing is optimistic and more likely to achieve their life, becoming more engaged in what we do the ultimate purpose of governance. goals. “The goal is not constant ecstasy or and finding ways of making our lives feel “Development must be about furthering gratification,” he said, “it’s deeper, more more meaningful. However, in recent human civilisation,” he said. “We are lasting, more meaningful and flourishing. months, Seligman has been distancing talking of happiness not of a sensory kind. Pleasure and ecstasy can be part of a happy himself from what he decries as The human being has material, as well as life, but they can also be part of a very ‘happyology’ – a derided ‘happiness emotional, psychological and spiritual unhappy life. A happy life will have the agenda’. needs.” Those needs are met by the usual vicissitudes, and trying to avoid those, “The word ‘happiness’ always bothered prescribed meditation, prayer and the or hoping not to experience those, me because it is scientifically unwieldy and ‘consideration of karmic effects in one’s inevitably leads to unhappiness and meant a lot of different things to different life.’ In the Land of the Thunder Dragon, frustration.” Hundreds of American people,” he said. Seligman has just the sale of tobacco is banned; foreign universities followed Harvard’s example published his latest tome, ‘Flourish: A visitors must pay $200 a day to control and are now offering very well-attended Visionary New Understanding of tourist inflow and protect the environment. happiness classes. Happiness and Well-being’, in which he Bhutanese are required to wear the national The world-renowned founder of says “humans want not just happiness. If dress and buildings have to be built positive psychology and ‘father of that were all people were interested in, we according to the national architecture in happiness’ is Martin Seligman, director of should have been extinguished a long time order to preserve their culture and 60% of the University of Pennsylvania’s Positive ago. Humans also want justice. They want the land must be forested. Psychology Center, who wrote the seminal meaning. I think you can be depressed and Where Bhutan led, Canada and the book Authentic Happiness: Using the New flourish; you can have cancer and flourish, Organisation for Economic Co-operation Positive Psychology to Realize Your be divorced and flourish.” and Development soon followed, Potential for Lasting Fulfillment. Professor If all this sounds like grandiloquent measuring happiness levels along with Seligman posited that evolution imbued our wibbling and vaporous chatter, take note of economic and social data. In 2009, French brains with a tendency towards negative the Royal Government of Bhutan, in the President Nicholas Sarkozy deployed two thinking, and that ‘learned helplessness’, Himalayas of South Asia, which since 2008 Nobel Prize winners – the economists resulting in depression and other mental has been measuring its progress by the level Joseph Stiglitz and Amartya Sen – to illnesses, comes from a sense of of happiness among its people. The then measure the nation’s health in terms of their powerlessness over our situation – a state King Jigme Singye Wangchuck coined the psychological wellbeing and environmental he likened to walking around like a nimbus neologism ‘gross national happiness’ to sustainability. France’s new Commission cloud, enduring mostly wet weather in our measure his subjects’ (all 700,000 of them) on the Measurement of Economic souls. He said we can increase our levels of relationship with the environment; their Performance & Social Progress aims to

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) “ ”

“ ” ) at makes life worth living is not the pursuit appiness, but the happiness of pursuit” ) ”

encode wellbeing at the heart of politics and ONS reports its findings next year, but for her love; a house, but not a home; a new public consciousness. society’s poor, disenfranchised and lonely, heart, but not health. Walter Radermacher, chief statistician this wellbeing business might prove a tough In 1974, the American economist of the European Union’s statistics agency and cynical sell. Richard Easterlin argued in what became the Eurostat, recently announced that the EU Frank Furedi, Professor of Sociology at Easterlin Paradox that economic growth does is coordinating task forces on the Kent University, sounds a loud dissenting not necessarily improve the human ‘multidimensional measurement of the voice. “Happiness,” he said, “has become the predicament, nor lead to more satisfaction or quality of life, going beyond GDP to get latest ‘big idea’ to capture the attention of a happiness. It brings, instead, a wealth of good quality statistics on emotional political class which is otherwise running on diminishing returns. Easterlin said that people wellbeing.’ To hard-pressed Greeks, empty. Of course, the idea is not so new. in poor countries became happier once they Portuguese and Irish, who have been bailed Stalin affectionately referred to himself as the could afford the basic necessities. That within out of their humongous sovereign debts, ‘constructor of happiness’ and took great a society, rich people tend to be happier than this is scant comfort and will not contribute interest in imaginatively inventing statistics poor people, but rich societies tend not to be an iota to the re-profiling of their balance to prove it. Uncle Joe was entirely cynical, happier than poor societies, and as countries of payments. mass-producing pictures of smiley faces to get richer, they do not become happier. Life Last year, at the behest of the British distract attention from the destructive gets better, he said, but people feel worse. Prime Minister, the UK is having a national consequence of his terrible policies. In What is the legitimacy of a system that happiness audit. For the first time in its contrast, many of today’s political elites who pursued economic growth for its own sake, history, the Office for National Statistics has are bereft of any ideas and projects have with wilful disregard for whether it produced included questions on wellbeing in its genuinely and desperately embraced the good life, asked economic historian Integrated Household Survey, which came happiness as their one big cause.” Robert Skidelsky. out in April this year. It asks how happy or It’s true that, despite dramatically According to research, beyond an annual anxious people feel; how satisfied they are improved living standards in the last three salary of £60,000, increases in salary do not with their lives; to what extent they feel decades, no amount of material benefits has lead to a significantly greater increase in things they do in their lives are worthwhile. seemingly been able to buy us a meaningful, happiness. “It’s time we focused not on GDP but on or indeed, a happy life. Money talks, but so The psychologist Brian Little said: GWB – general wellbeing,” David Cameron, often rarely has anything meaningful to say. “What makes life worth living is not the a sunny and sanguine sort, said, adding: Money buys lots of things – a bride, but not pursuit of happiness, but the happiness of “Improving society’s sense of wellbeing is the central political challenge of our time.” In the face of the most savage spending cuts, a Pleasure and ecstasy can be part of a happy life, but they

tide of job losses, the tightest squeeze on “can also be part of a very unhappy life. A happy life will have household incomes, health care problems, a rapidly ageing population and the lack of the usual vicissitudes,“ and trying to avoid those, or hoping not opportunity for social mobility, Cameron to experience those, inevitably leads to unhappiness and exhorts: “It’s time we admitted that there’s more to life than money. Let optimism beat frustration pessimism. Let sunshine win the day.” The Tal Ben-Shahar, Positive Psychology Lecturer, Harvard University

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“

” ) “humans want not just happiness”

! ) ) “Last century, we believed that ever greater material affluence would make us happier. This century, the gravy train will run dry and we are going to have to make do with less”

Improving society’s sense slow our pace down. “If we’re fortunate, the present, stopping to smell the roses and happiness is a place we visit from time to noticing what is good about life. Older people “of wellbeing is the central time, rather than inhabit permanently,” wrote are increasingly aware that the time they have political challenge of our time. Tony Schwartz in the Harvard Business in life is growing shorter.” Something to look Review. forward to in one’s dotage then. It’s time we admitted that If it isn’t money and if it isn’t the things It is an elusive quantity, and often we are

there’s more to life than and contentments it can buy, what then makes only aware of how happy we are after the us happy? According to yet more research, moment has passed. “To strive for happiness money. Let “ optimism beat it’s having a work-life balance; absorbing means that we regard our life as a journey in pessimism. Let sunshine win interests; regular exercise; a few true and which we move purposefully toward that reliable friends; being engaged in the world ultimate goal,” wrote Richard Schoch, the day around us; learning something new; spending Professor of History & Culture at Queen David Cameron, time with family; acts of kindness; generosity Mary College, London, who wrote the to others gratitude. bestselling ‘The Secrets of Happiness.’ “To British Prime Minister A recently published study also found become not someone else, but a better that the elderly are happier than the young, version of the person we are. We are always pursuit.” If the cause of human suffering because they adopted the ‘life-is-too-short’ in the right place, though we do our best to is the burden of expectation, perhaps it attitude and they are better able to deal with forget it. This theme of accepting our is necessary to educate ourselves in problems because of their life experience. ordinariness appears in many versions of disappointment and disillusion, to rearrange “Older people do not dwell in the past, but happiness.” our hopes and aspirations. If we are paralysed they don’t think as much about the future as All this effort just to cheer us up! Is it by the fear of losing what we have, perhaps younger people do,” said Prof. Lauren because, given a chance to postulate, we all we need to get into the habit of giving and Carstensen of Stanford University, who have an opinion on the human condition? sharing. In a world seemingly spinning out of conducted the study with Dr Susan Charles Maybe if we just stopped trying so hard to be control, we fasten ourselves to a moral of the University of California. “Much of the happy, we might in fact actually have a jolly framework; we get back to human scale and benefit to mental health comes from living in good time! ■

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