SHIP MANAGEMENT INTERNATIONAL – ISSUE 66 MARCH/APRIL 2017 » THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS

22 38 14 ESW17 30 Round Table 104 Debate » STRAIGHT TALK 8 – Strategy not stress » NOTEBOOK 10 – Shipping confidence remains steady – Swedish Club delivers 4% discount – MacGregor and Rolls-Royce to explore implications of autonomy for container ships – Thought Provoking: Something’s got to give

» SHIPMANAGEMENT 14 How I work – Terry Gidlow – Brent Bruun 22 ESW17 Round Table Debate » REGIONAL FOCUS 20 Vancouver – Vancouver: Geared up to do business with 38 Gibraltar – Gibraltar rocks – The Master of all Gibraltar surveys – The day the world’s largest superyacht was arrested in Gibraltar – How I Work: John Bassadone

» MARKET SECTOR 30 ECDIS & Navigation – Flying lessons – Hazard detection more essential than ever – Danger of navigation cyber-attacks 96 Paints & Coatings – New hull standard boost for vessel owners and operators 104 Technical Management Cover Story – Lifeboats built to combat icy regions

Issue 66 March/April 2017 Ship Management International 5 SHIP MANAGEMENT INTERNATIONAL – ISSUE 66 MARCH/APRIL 2017 » THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS 60 106??

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» COMMENTARY » 36 Alternative Viewpoint CYPRUS SPECIAL REPORT 65 – One man and a dog 66 Negotiating a strong furture ahead » 68 Cyprus Shipmanagement Round BUSINESS VIEWPOINT Table Debate P&I & Law 56 Limassol Marina – It’s a hard knock-for-knock life 95 – Limassol Marina: strengthening Cyprus’ – Crew arbitration clauses – what is happening? yachting credentials Good or bad? 58 Softship Data Processing – Liner companies must adapt in order to » compete MARINE PROPULSION 102 – New sulphur standards promote scrubber 60 Transas Global Conference usage – Must embrace the ‘perfect storm’ » OBJECTS OF DESIRE » CREW WELFARE 106 – Our pick of the most coveted creations 62 – Doctor launches new maritime health » company after ‘lightbulb’ moment REVIEW – UK P&I club advises on the importance of 108 – Bringing you the best in arts & culture dental hygiene in seafarers – Seafarers’ survey over medial care at sea » LIFESTYLE 110 – Do you have wi-fi, indoor plumbing and does anyone speak English around here?

6 Ship Management International Issue 66 March/April 2017

Straight Talk

March/April Issue 66 Welcome to www.shipmanagementinternational.com Ship Management International The shipping business magazine for today’s global ship owners and ship managers

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Sales/Accounts +44 (0) 1296 682108/682241 Editorial +44 (0) 1296 682089 call by 10 of Europe’s primary shipowning and shipping industry associations Fax: +44 (0) 1296 682156 Email:[email protected]/[email protected] for Brussels to fundamentally overhaul the EU’s Reporting Formalities’ www.elabor8.co.uk Directive to create a true European single window environment for maritime Editorial Director: Sean Moloney Journalists: Samantha Giltrow carriersA as well as develop a completely new shipping strategy to help shipping meet Chris Browne Regular Contributors: Michael Grey global challenges, could not have come at a better time. James Brewer Thomas Ország-Land Delivered during European Shipping Week, just when the industry and the EU Paul Slater Felicity Landon regulators – European Commission, European Parliament and EU Council of Ministers Margie Collins Motoring Journalist: Rob Auchterlonie – were getting to know each other better, the joint communique was aimed at creating a Technical Editor: David Tinsley Advertising Sales Manager: Karen Martin new set of rules that would promote Europe as a globally leading, high-quality region for Accounts: Sarah Jones Design and layout: Mike Argles shipping to do business in. Diptesh Chohan The signatories were clear that any initiative should require investment in

Editorial contributors: an attractive business climate, a highly skilled European workforce, consistent The best and most informed writers serving the global shipmanagement and shipowning industry. implementation of international environmental and safety standards as well as policies which are truly relevant and conducive to facilitating trade. The strategy should firmly Ship Management International (ISSN 2049- 10,221) is published 6 times a year (Feb, Apr, put shipping in its diversity at the heart of the maritime cluster. “The future EU shipping Jun, Aug, Oct, Dec) by Elaborate Communications strategy should particularly show leadership in assisting the shipping industry to meet and distributed in the USA by Mail Right Int., 1637 Stelton Road B4, Piscataway, NJ 08854. global challenges. In the face of increasing political uncertainties worldwide, the EU

Periodicals Postage Paid at Piscataway, NJ and should affirm its role as the world’s champion of free and fair trade. It should also help additional mailing offices the IMO shape a global strategy to ensure the shipping industry meets its climate POSTMASTER: Send address changes to Ship obligations in an environmentally, socially and economically sustainable way.” Management, Elaborate Communications, c/o 1637 Stelton Road B4, Piscataway, NJ 08854. Coming at a time when shipping is looking to recover and grow once again, Europe’s

Elaborate Communications, Wingbury Courtyard ship owners are right to call on the regulators to do their thing. Shipping is an uneven Business Village, Upper Wingbury Farm, Wingrave, playing field and while it is innovating hard to keep its head above the water, it can only Bucks, HP22 4LW, United Kingdom Tel: +44 (0)1296 682051/682241/682403 do it with the right regulatory help. Printed in the UK by Warners Midlands plc. Although every effort has been made to ensure that the information contained Happy reading. in this publication is correct, Elaborate Communications accepts no responsibility or liability for any inaccuracies that may occur or their consequences. The opinions expressed in this publication are not necessarily those of the publishers. All rights reserved. No part of this publication may be reproduced whole, or in part, stored in a retrieval system or transmitted in any form or by any means without prior permission from Elaborate Communications.

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8 Ship Management International Issue 66 Marach 2017

Notebook Shipping confidence remains steady hipping confidence held steady in the three months to end- February 2017, according to the latest Shipping Confidence Survey from international accountant and shipping adviser SMoore Stephens. In February 2017, the average confidence level expressed by respondents was 5.6 out of 10, unchanged from the previous survey in November 2016 and equal to the highest rating since August 2015. Owners were the only main category to show an improved level of confidence, up from 5.4 to 5.6. Confidence on the part of charterers was down from its all-time survey high of 6.8 to 5.9, while that of managers discipline and resist the blandishments of shipyards desperate fell from 6.4 to 6. Confidence levels in the broking sector, meanwhile, for business, there is hope that 2018 will see a return of dropped from 5.6 to 4.6. The survey launched in May 2008 with an market equilibrium, in which continued scrapping remains a overall confidence rating of 6.8. key element.” Confidence was up in Europe and North America, from 5.4 to Richard Greiner, Moore Stephens Partner, Shipping & 5.5 and 5.9 to 6.1 respectively, but down from 5.7 to 5.6 in Asia. Transport, said: “After three successive quarterly increases, Respondents generally felt that competition was shipping confidence has held steady. This is encouraging running at very high levels, while other familiar concerns given the continuing political uncertainty in the US and included overtonnaging and geopolitical uncertainty. Most Europe. Shipping is vulnerable to changes in the political respondents saw 2017 as a year of retrenchment rather landscape, and a slew of elections in leading industrialised than improvement. One said: “If owners can maintain their nations will render it particularly so this year.” l

Swedish Club delivers 4% discount he Swedish Club has maintained its members’ interests The Club’s end-year results demonstrated a 7.5% year-on-year at the heart of the business by offering a discount of 4% growth in P&I, from both existing and new members, well ahead to all P&I members 2017/2018. of the growth in the world fleet. Marine business was stable in a T“We respect our ship owners and the challenges they face,” challenging market and despite volatility in the investment sector, said Lars Rhodin, Managing Director of The Swedish Club. “This an overall surplus of $11.8 million was reported. discount, on our 145th anniversary, has been made possible Maintaining its focus on a balanced underwriting through a long-term risk management strategy which has also performance, The Swedish Club delivered a combined ratio of enabled us to set a 0% General Increase for two years in a row.” 98%, in line with its eight-year performance of 97%. l

10 Ship Management International Issue 66 March/April 2017 Notebook MacGregor and Rolls-Royce to explore implications of autonomy for container ships

acGregor, part of Cargotec, and Rolls-Royce have As a provider of cargo handling solutions and services for signed a Memorandum of Understanding (MOU) container vessels, MacGregor brings a detailed knowledge of to collaborate on research and development to the cargo sector and can provide valuable insights into marine Mexplore the impact of developments in autonomy for cargo ship cargo operations and the technology and systems needed to navigation and cargo systems onboard container ships. make them as efficient and safe as possible. This collaboration will harness both companies’ experience Pasi Lehtonen, Senior Vice President, Strategy, Business laying the groundwork for the development of autonomous Development and Marketing, MacGregor said: “MacGregor container ships. wants to reshape and transform the industry to make it much Asbjørn Skaro, Rolls-Royce, Director Digital and Systems, said: more efficient, safer and more sustainable. In the segments “Rolls-Royce is pioneering remotely controlled and autonomous where we operate, we see a lot of unnecessary waste in the forms ships and believes such a remote controlled ship will be in commercial of inefficiency, damage to cargo, and continuously dangerous use by the end of the decade and a common sight on the high seas by working conditions. Our aim is to minimise this waste from the 2030. For the full benefits of such a change to be realised many activities value network and this collaboration on autonomy for container currently done today manually will need to be done autonomously. ships is a good example of where industry leaders work together This research will help us explore how that might be achieved.” to transform the industry.” l

Issue 66 March/April 2017 Ship Management International 11 Notebook Thought Provoking Something’s got to give By Nigel Cleave

ue to the imbalance of supply and demand, the prolonged filters to the vessel that evening. Not only did the vessel meet its downturn has brought tremendous pressure on both ship laycan but the chandler charged only for the petrol consumed! owners and ship managers alike. This, in turn, has led to The moral of the story is that if you are fair and value your Downers switching into survival mode, with managers grappling to live partnership, beit a vendor or manager, they will look after you with management fees that, put frankly, have changed little over the when needed most… l past 20 years, despite more and more demands being placed upon them. Likewise, vendors are being squeezed to the point that they All-in-all, a cocktail that are indeed fortunate to be paid within 120 days, many having heavily ‘ discounted their product to secure business in the first place. All-in- does not auger well for all, a cocktail that does not auger well for our industry and, unless our industry and, unless addressed, something’s got to give. Both ship owners and ship managers today are facing crew addressed, something’s competency issues, with on board equipment and machinery also got to give becoming ever more complex. Good training, whilst an absolute ’ necessity to reduce incidents, quite often ranks low on the priority list of a number of ship owners. In addition, decisions today are invariably made ashore, adding further pressure to the already swamped superintendent. The way forward for ship managers is to both supplement and support their current soft skills by fully embracing the technology that is out there today and thus mitigate, to a degree, at least part of their overheads. The plethora of Big Data needs to be sensibly filtered and, when combined with good communication, will provide tremendous value and savings. Despite current market conditions, now is the time for the industry to revert to acknowledging service providers as partners rather than mere vendors. Regardless, the fact remains that each needs the other, more especially with shore-based personnel skills coming ever more into question today. Very early on in my career, the value of partnership became only too apparent when a vessel, passing through the Bay of Biscay in severe weather, experienced clogged filters due to fuel quality issues. It was bang on Christmas and the vessel desperately needed new filters, without which a delay of four days would incur, in addition to the vessel missing its laycan. Our trusted ship chandler, based in Avonmouth and still thriving today, found the warehouse keyholder of the manufacturer on Christmas day via the police, arranged to send his driver up to Birmingham, thereafter, driving all the way down to Falmouth, delivering the new

12 Ship Management International Issue 66 March/April 2017

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

Sharaf Shipping Agency and Ben Line LBH Group and Chemoil Energy, he Agencies and spearheaded by new CEO is driving forward the business with the Terry Gidlow. knowledge that the two agency shareholders Indeed, Mr Gidlow believes the involved in the venture – both private, timing is now ideal based on a number of family-controlled companies - also have drivers in the market. a great heritage in what they do. Indeed, Ben Line has a history of 191 years in the Chains are only shipping business and Sharaf, 41 years. “ Mr Gidlow said the drive behind the as strong as the setting up of the new venture came mainly weakest link from Ben Line and Sharaf who saw the ” ability to combine with other ‘like-minded’ players to tap into a whole new market. “That gives us a very solid foundation He explained: “A lot of people have not just in the terms of the geographic asked me ‘why would you go and start framework and network but also in terms a service business at a time when the of expertise and commodity expertise and shipping market is down in the doldrums?’ exposure to various different commodities “We have looked at a few different and markets,” said Mr Gidlow. drivers and first of all it is population. By “This isn’t a merger of the two the end of last year, the world population companies. They are retaining their had grown by 86 million people. To us, that existing brands and their existing translates into 86 million more mouths to identities, however, we can leverage off feed, more energy and more infrastructure the office network that they’ve got and and that then translates into an increase in the expertise they have got and we see this demand for more materials which means adding value to the existing customers, Terry Gidlow more demand for ocean freight and ships not diluting their value.” hence for solution providers at both ends WaterFront Maritime Services has CEO, WaterFront Maritime Services of those transactions. 299 proprietary offices across 49 countries “Irrespective of where the markets are, and has also set up a network of third party volumes are growing and more freight offices, which have been vetted rigorously. ith the shipping industry being moved on.” Mr Gidlow said it was important not only to facing some of the most Solution provider is exactly the find good people but the right people and to difficult times it has seen and term that Mr Gidlow believes sums up then monitor and manage the network. theW falling of commodity prices, most people WaterFront Marine Services which went “Chains are only as strong as the would regard the launch of a new global ship live as a company on 1st April and is weakest link,” he said. agency as a daring, if not illogical, move. headquartered in Dubai with commercial With the launch of the new company, However, it has not stopped the start- offices in Singapore and Miami as well as third parties have been announced in up of WaterFront Marine Services, a new operational hubs in Jakarta and the UAE. South America, North America and venture born from the joining of forces Drawing on his experience from senior Europe. Mr Gidlow explained: “If we are of Middle East and Asian port agencies positions with Inchcape Shipping Services, talking to somebody about crude oil we

14 Ship Management International Issue 66 March/April 2017

Shipmanagement: How I Work need to be able to have coverage in the consolidation between shipping agencies? US Gulf, Venezuela, Nigeria, Angola and “I sincerely hope this doesn’t sound Middle East countries and obviously key arrogant but I think there possibly would countries in the Far East.” be but I think it would be very difficult, He said one of the benefits of the new near impossible, for somebody, say in service would be bulk buying. my type of role, to find two shareholders “Between the two shareholders we’ve who have got the scope and services and got over 28,000 port calls a year being pedigree and history,” he said. handled already. This can then lead to “Will there be consolidation? I think them negotiating better rates on a number there will be consolidation. Will you see of different services.” small players going out of the market? I think Mr Gidlow said a full year was spent that is inevitable. I think one of the challenges making sure the fit between the shareholders we face as an industry is credit risk.” was right and making sure the correct He concluded: “At the end of the day processes and procedures were in place. with the local presence we have in all of Can he see more agents following in these locations, we have our finger on the WaterFront’s footsteps and there being more pulse in terms of what happens there.” l

Brent Bruun Chief Operating Officer, KVH Industries

s COO of the global satellite communications provider, KVH Industries, Brent Bruun needs to juggleA a variety of roles from staff manager, corporate strategy developer and satellite communications advisor to solutions- seeker and problem-solver. Mr Bruun joined KVH as Vice President of Global Sales and Business Management in 2008 from the satellite provider GE Americom where he was SVP of Strategic Initiatives. KVH had just introduced its mini-VSAT Broadband service and TracPhone V7, the first satellite communications antenna for the mini-VSAT Broadband network. “Coming from the satellite industry, I saw the innovative approach KVH was taking, and was excited to play a role in the growth and expansion of the company’s product and service offerings,” he said. As Chief Operating Officer, Mr Bruun has direct responsibility for KVH’s strategic corporate development, as well

Shipmanagement: How I Work as operational responsibility for mobile solution available from one company, that come from acquisitions of such connectivity products and services. “With namely KVH. leading maritime services and brands as maritime being such a global industry, we How large a part does travel play in his NEWSlink, Videotel and others.” have offices around the world, and the role as COO? “With our global presence, How does he view KVH’s role in need to look at things with that global I travel often, not only to meet with an increasingly connected maritime perspective is very important,” he said. customers around the world, but also to sector? “I look forward to seeing KVH Mr Bruun is based at KVH’s spend time with our regional teams. The continue to grow and attract customers, headquarters at Middletown, US, and international aspect of the job allows me particularly as connectivity services works with KVH staff in their offices in to continually improve my understanding become essential throughout the Singapore, Japan, Denmark, the UK and of the global aspects of the maritime maritime industry, and the move to “everywhere in between” he said. “We industry, while also helping me appreciate VSAT and high-throughput satellites emphasise the importance of the full local and regional variations,” he said. (HTS) accelerates. I’m thrilled that we’re customer experience— from how we What does Mr Bruun view as his able to provide such a complete solution, manufacture our equipment, through key challenges? “Making sure we are with big benefits for the customer. That its sales and marketing and customer solving our customers’ problems is includes the broadband connectivity for onboarding, to how we service and always paramount, and we must do so operations and crew; data collection and support them long-term—and my team by providing innovative solutions that analysis to help vessel managers attain plays a lead role in that entire customer keep us ahead of the competition. Some operational efficiencies; news, sports lifecycle,” said Mr Bruun. of the biggest challenges in the maritime and entertainment content that can help How does the COO manage his staff? industry are external, such as economic reduce recruiting and retention costs; “I try to find a good balance between uncertainties. Against that backdrop, ship our unique IP-MobileCast content a hands-on type of boss to a delegator. owners and ship managers are evaluating delivery service; and, industry-leading There are times when you must dig in many technological developments that maritime training from Videotel. directly to help close a big deal with an are still evolving rapidly. For example, “I hope to see customers benefiting important customer or run some numbers as the industry sees the benefits of from all our services, and realising the ease on a new initiative. The rest of the time I’m broadband connectivity for everything of working with one provider on a global very much a delegator, and I believe that from communications to crew welfare to basis,” he said. people need to take charge of their own big data and analytics, there are challenges When he is not working, Mr Bruun responsibilities to solve problems and get and opportunities in helping the industry likes to spend time with his family results. I like to hire top-notch people, let take full advantage of those offerings.” “whether it’s a big reunion with extended them know I believe in them and that I He said the most exciting part of family or a simple vacation with my wife expect great things from them, then let his role as COO is the chance to “direct and daughters.” He also enjoys watching them take it from there,” he said. KVH’s consolidated effort and to provide US college football and professional “There’s a need to make sure our our customers with the absolute best in baseball – and following Premier League teams have everything they need to get training, content and connectivity.” He football games in the UK. He also enjoys the message across to owners, managers said he was eager to “take full advantage skiing and “continuing to work on my and fleet IT directors that there is a simple of the synergies in commercial maritime golf game”. l

18 Ship Management International Issue 66 March/April 2017

Regional Focus: Vancouver Vancouver Geared up to do business with

he Port of Vancouver is Canada’s largest port and the most One of them, Seaspan ULC, the owner of Vancouver diversified maritime hub in North America. Its pivotal Shipyards, Vancouver Dry Docks and Victorian Shipyards, recently position on the Pacific Ocean Rim of north-west Canada won a significant C$8bn share of the Canadian Government’s Thas made the port, known locally as Port Metro Vancouver, National Shipbuilding Procurement Strategy (NSPS). In a two- Canada’s key hub for the Asia-North American axis. year C$150m project, Seaspan has since transformed its main Port Metro Vancouver has 27 major marine cargo terminals, Vancouver yard in the words of its President, Brian Park, “from a three major rail links and a regional short line railway. Its terminals Jurassic park into one of the most modern shipyards in the world”. serve five sectors – from vehicle transhipment annually handling Other major players include the German engine-maker almost 400,000 cars, almost all imported from Asia; breakbulk Wärtsilä, the classification society DNV GL, Teekay Corporation, cargo such as forest products, steel and machinery; dry and liquid Fairmont Shipping, Waterfront Shipping, Oldendorff Carriers, BC bulk cargos which make up approximately two-thirds of the port’s Ferries, Jotun Canada and Vard Marine. annual tonnage; and four containers terminals that handle just over Ms Arsoniadis-Stein said: “We have had tremendous interest in three million teu a year. As the homeport for the Vancouver-Alaska Vancouver as a place to establish and invest, with top-level crowds cruise industry it is also a focal point for cruise ships. at our marketing events around the world. Vancouver is ideally The port handles C$184bn worth of cargo a year, or 20% of situated geographically as a maritime hub, but there are so many Canada’s trade with goods imported and exported from more other things going on here as well. There have been huge changes than 170 countries and container traffic is projected to increase to over the last 10 years.” over 4.8m teu by 2025 and to 7.6m by 2050. The Canadian port’s Despite the current slump in shipping, she said experts were activities and support services are responsible for 100,000 jobs. forecasting global growth and renewed momentum towards 2030. Kaity Arsoniadis-Stein, Executive Director of the Vancouver Many were predicting that India and China would quadruple their International Maritime Centre, the organisation behind the city’s freight volumes by 2050 with Vancouver ideally placed to benefit. many expansion projects, said: “Vancouver and its global trade is While the drive to build Vancouver into a leading maritime expected to increase and shift towards the Pacific Rim due to the hub has gained momentum of late, the work of laying the forecasted demand for resources by China and India. Currently foundations has been going on for decades. The VIMC was there is no established maritime hub on the west coast of America founded in 1991 to head up a movement to modify Canada’s (just busy throughput ports) and the west coast of Canada is one maritime tax regime. The need for further modifications to the of the longest coastlines in the world and next door to the Asian regime has recently led to a series of tax initiatives devised by markets. Vancouver is also the most ‘Asian’ city in North America the Canadian Government and leading shipping companies for with a diverse culture and a diverse sector from mining, forestry foreign-owned shipping businesses “to modernise the income tax and resources, to technology, entertainment software companies, act” as Ms Arsoniadis-Stein put it. These include: incubators, film and research.” •• No tax on international shipping activities carried out in In the past two decades, a growing cluster of important Canada including management and financing activities shipping companies have either moved or set up their regional •• No tax on a non-resident company’s foreign sourced income headquarters in the city. •• No capital gains tax on vessels sold outside Canada

20 Ship Management International Issue 66 March/April 2017 Regional Focus: Vancouver

“Vancouver is ideally situated geographically as a maritime hub, but there are so many other things going on here as well. There have been huge changes over the last 10 years”

Kaity Arsoniadis-Stein, Executive Director of the Vancouver International Maritime Centre

•• Tax-friendly capital access and ship financing the world’s most sustainable port. One of its latest and most Ms Arsoniadis-Stein again: “We have a strong tech sector topical projects is called ECHO and was set up to reduce the that supports the maritime industry. Originally Vancouver was effects of vessel sounds and vibrations on whales, porpoises, a jumping-off point for companies headed for Silicon Valley or dolphins and seals. The project is a joint partnership between the Seattle, but the longer they stayed, the less they wanted to move.” port, the local operator BC Ferries and several local conservation One of the reasons for that is Vancouver’s quality of life, highlighted and environmental groups and scientists, with gold, silver and by a healthy work-life balance, she said. bronze medals awarded to vessel owners and managers who The natural surroundings were also a major bonus, with skiing, meet the lowest emissions levels. sailing, hiking just minutes away from the city, she said. Add to this Vancouver is also investing in future maritime expertise and Canada’s universal health care and free education and you have courses at its main universities. Apart from rebuilding its three a persuasive argument for attracting the talent needed to grow a Vancouver shipyards, Seaspan recently set up its own succession world-class maritime hub. plan. “Not only do we need to bring in engineers, naval architects The Canadian Government is spending billions of dollars on and project managers from all over the world, we also need to make infrastructure projects in the city. One of these is the C$3.5bn sure we are building experience here in Vancouver in order to build Asia-Pacific Gateway and Corridor Initiative (APGCI) to build a succession plan for the great people who emigrated to Canada,” a network of new roads and rail links which, when built, will said Jonathan Whitworth, Seaspan ULC’s CEO. improve the connections between North America and the Mr Whitworth has just led a Seaspan initiative that has invested booming Asian economies. more than C$2m in two chairs in marine engineering and naval As part of a Canadian maritime sector that is committed architecture at Vancouver’s University of British Columbia. As the to alternative fuels and hybrid technology, it is perhaps not Seaspan CEO put it: “Students coming out of this programme surprising that one of Port Metro Vancouver’s aims is to become today will be the future shipbuilders of tomorrow.” l

Issue 66 March/April 2017 Ship Management International 21 Shipmanagement: ESW17 Round Table Debate 2017

EUROPEAN SHIPPING WEEK Round Table Debate

SMI invited representatives from shipping’s leading companies and associations during European Shipping Week to discuss how sustainable the industry can be with regulation knocking at the door. Debating this thorny issue were: Edgar Dominic Milla, Chief Operating Office, PTC; Dirk Fry, Director, Columbia Shipmanagement; Karoliina Rasi, Public Affairs and Communications Director, European Community Shipowners’ Associations; Norbert Aschmann, CEO, Bernhard Schulte Shipmanagement; Chris Shirling-Rooke, CEO, Mersey Maritime; Kuba Szymanski, Secretary-General, InterManager; Bjørn Jebsen, Chairman, Jebsens and President, InterManager; George Hoyt, Founder, The Face of Shipping; Mark Woodhead, Senior Vice President for Training and Content, KVH/Videotel. The debate was moderated by our Editorial Director, Sean Moloney.

Sean Moloney shipping industry work, then shipping is sustainable. We have seen Welcome to this industry round table debate which is being held as this happen in the past two to three years where rising pressures, part of the second European Shipping Week (ESW) here in Brussels. mainly on ship owners, have trickled down to crewing managers. If ESW is a key event in the maritime calendar and gives the shipping everyone responds to what is required by the owners and the market, industry an opportunity to directly address European regulators - then shipping is sustainable. When it comes to regulation, crewing the European Commission, European Council of Ministers and managers in the Philippines have been very responsive to what is the European Parliament – about key issues facing shipping today. required by IMO and other regulatory authorities. I don’t see an issue Let’s kick off with the first question - Can we guarantee a sustainable with the mandate from the regulatory side shipping industry in today’s economic and regulatory landscape? Kuba Szymanski Edgar Dominic Milla The shipping industry always survives and actually thrives on Looking at the economic landscape, if all the elements in the difficult times. The quality of what is meant by sustainability is my

22 Ship Management International Issue 66 March/April 2017 Shipmanagement: ESW17 Round Table Debate question here. If you look around this room, why aren’t we raising the regulatory changes are targeting sustainability but shipping enough awareness about what is good about this industry? Why doesn’t have a choice. is shipping not seen as a ‘sexy’ proposition, even to the regulatory bodies? We invited the European Commission to attend today Sean Moloney but no one turned up which amazes me. We need to work much And I suppose shipping is there to serve world trade. Dirk, what are harder to maintain the quality we demand. your thoughts?

Sean Moloney Dirk Fry The whole point about this week is that the regulators are here to Shipping has never faced such a period of downturn as it is seeing meet the shipping industry. What is a sustainable shipping industry as now. But shipping is used to strong winds and high seas so we far as you’re concerned? have been able to overcome and survive these difficult periods in the past. What I see is a slow but sure balancing out of supply Kuba Szymanski and demand because, let’s not forget, the biggest problem we are I think I would love to see a win-win situation for every stakeholder facing is there are too many ships and not enough cargo. New so no advantage can be taken of any one person. I had an interesting orders for ships are now dropping and scrapping is picking up. We meeting in Cyprus where Dirk Fry was present, and on the last panel can’t live without regulation, but shipping needs global regulation, we heard owners saying “we need to be reasonable” when buying not the US or Europe doing what they dream up. I want uniform ships. Some statistics for you today: in 2008 there were 40,000 regulation worldwide. I think we will manage and shipping will get ships, by 2016 we had 80,000 ships. Is the shipping industry in crisis through this. especially if we have the money to buy ships? Sean Moloney Sean Moloney Just picking up on one thing you said about the balance between A lot of them are laid up though. supply and demand; the one thing that ship owners never do is learn from their mistakes. Are they going to finally learn and stop these Kuba Szymanski boom and bust scenarios? They are, but probably only 1,000. The world fleet grew by 40,000 over these years. Is somebody taking advantage of somebody else? Karoliina Rasi At ECSA we try and get the well-kept secret of shipping more widely Sean Moloney known here. I have identified three different challenges from the George, is shipping sexy? regulatory side. One is the slow economic growth and free trade under threat. The future of free trade, what is going to happen? The political George Hoyt situation in the world has changed and we don’t know what the future Nothing can be sexy unless it’s visible. For me, the biggest issue we will look like. This is important because trade is dependant on shipping have is our image and general awareness of the industry. Shipping and vice versa. The second is the regional legislation which Dirk is invisible in most countries around the world and maybe that is touched on. It’s not a level playing field. It reflects badly on shipping. why the regulators aren’t here. We need the man on the street to get Europe owns 40% of the world’s merchant fleet and these ships operate behind the people who make the decisions. They can’t do that when everywhere. We are talking about a completely global business so the we are invisible. So before we get sexy, we have to get visible. But the regional legislation model fits badly. The third is ship financing: access shipping industry will survive - it has to! to finance and cost of finance. Since the financial crisis in 2008 the investors and consumers have become shy, so they stopped spending. Sean Moloney Secondly, some of the players have left the market. Norbert, let me bring you in here. What do you think of this whole issue of shipping’s poor image? Sean Moloney When you talk to the European Commission and the Norbert Aschmann European Parliament, do they understand the role shipping We’ve been debating these issues for many years and what plays internationally, and that it needs to be regulated at an George says is valid but we haven’t found the key yet to solving international level? this problem. The industry is, to a large extent, invisible. But the shipping industry is sustainable - can there be a world without Karoliina Rasi shipping? No there can’t. As far as the regulatory environment is I think when they hear the story that 80% of the world’s goods are concerned, shipping has always been subject to change. Many of transported by ship, they understand that its role is important.

Issue 66 March/April 2017 Ship Management International 23 Shipmanagement: ESW17 Round Table Debate

Bjorn Jebsen is generated from the maritime sector. see the shipping industry as a way to go I think the answer to the first question is The problem is we all know this but it’s a on holiday. yes, shipping will continue. If you look at change of culture and we need to embrace the last six months, least of all in Norway, skills and education to tell people more. Dirk Fry hundreds of millions of pounds has I’m a positive person, so for me I find been raised in private equity to invest in Sean Moloney shipping sexy. Yes we will always have a shipping. There is interest there. Money Let’s open this up to the table now. This problem making the public aware of what is coming in, even if the banks aren’t issue of cultural change is important; shipping is. There have been multiple there. The biggest challenge from the shipping does have a great story. Norbert, attempts at making the public aware of investment side is regulation. It makes it your views on the cultural side? shipping: from port visits to the Adopt difficult to plan. a Ship campaign. This is a campaign Norbert Aschmann which aims to bring ships closer to those Sean Moloney Yes, but culture is another thing that at school. Allowing school children to A few months ago BIMCO came out changes constantly. I’ve been in this write to ships’ Masters to understand with a report which said that if dry industry a long time and I’ve seen a their routes, what they do and how they bulk owners stopped ordering now the lot of change. We are talking about the operate. We need other entities connected market would improve by 2019. If there same thing that George mentioned, to shipping to assist us in helping to was a 1% increase in ordering it would namely how do we convey this image improve the industry’s image. improve by 2023, if there is a 2% increase that shipping is important, dare I say it would never improve. That puts the sexy. The media plays a role but the George Hoyt situation into perspective - whether it is mainstream media is only interested We have a great story to tell. I’ve been right or wrong. in wrecks, explosions and human working in the industry for close to 40 years, trafficking. The public doesn’t seem to and have met thousands of seafarers. Every Bjorn Jebsen be respective of the role of shipping, one of them has a story and it is interesting. If you look at the market in the last quarter but then how long do you want to bore Shipping, like anything else, needs of 2016, it was strong. This year has gone people with the fact that shipping is personality. People need to understand that up by 20-30%. You read the statistics and responsible for moving 80% of goods? In seafarers are real people. This is one of the the order book and there is an economic many areas, I don’t share that pessimism. reasons we created the Seafarers Mosaic. force that can change rapidly. You ask why Shipping continues to transport goods, These tools are there and are free, and owners keep making these mistakes, and and that is probably what the public people are starting to use them. Likewise you think it is easy, but it’s not. is most concerned about. Maybe that the Adopt a Ship programme which we would make news. At the end of the day, started in 2006 with the Cyprus Shipping Chris Shirling-Rooke we can only blame ourselves. Chamber, now has more than 80 ships We represent an industry in Liverpool communicating with 80 classrooms. We’ve worth about £3.5bn, equating to about Kuba Szymanski recently just introduced it to the Philippines 12% of the GVA of the region. I look at I like the gist of Norbert’s speech. If we and now we are planting those very same this slightly differently perhaps and see an want to be in control, we should stop seeds where children talk to the ship once a opportunity for a culture change. When blaming others. If we want to influence week. Through this process the children are we look at the industry, we aren’t just something, we should take the lead. becoming our ambassadors because they go looking at shipping but we are looking There is so much young talent coming back home and talk about it. If we can attract at the supply chain in its entirety and to the industry but we are not taking school children now, perhaps in years to how it can support other industries. We them onboard. Look at the issue of come they will join the industry. have just invested £20m in our Maritime cadet berths - there are British cadets Knowledge Hub in Merseyside and who can’t get the necessary time at sea. Karoliina Rasi it is now an acknowledged centre of But then you look at Greece where all I find the industry very sexy. Concerning excellence. We need to modernise skills of a sudden we are seeing young Greeks the EU officials, during European and look at what is out there and bring willing to go to sea for a career. Shipping Shipping Week we have a lot participating it into our industry. Working in this is doing very well in one particular area, and surprisingly for us is we are organising industry is a job for life - you can’t often the cruise industry. If you look at the a master class for the shipping industry say that. We’ve just commissioned a film order books, the cruise sector is growing. which is fully booked. We targeted the saying Liverpool is back. 12p in every £1 So if you look at it that way the public EU decision makers. Concerning young

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Shipmanagement: ESW17 Round Table Debate people, I’ve been discussing with our member organisations owners, the Philippines government responded in a good and a lot of them have projects where they want to attract young way. They put legislation in place that regulated training people into the industry. There are many countries in Europe that institutions and that stopped the unfair institutions handing don’t have a problem at all in attracting seafarers. Of course the out qualifications left, right, and-centre. With regards to the world changes and professions change in popularity. attractiveness of the industry today, I agree. It is evident a lack of Filipino seafarers have entered the industry. At last count there Sean Moloney were about 400,000 Filipino seafarers, but most of them went I’m going to bring in the question here about seafarers. European to the cruise industry. A lot of people see shipping as a dirty shipping has been accused of turning its back on its own seafarer industry, meaning you get your hands dirty. when other countries, such as the Philippines, are actively encouraging shipping as a career. How soon will it be before we fail Sean Moloney to have an indigenous seafarer population here in Europe? Chris, let me bring you in on this, one element of this is does have a knock-on effect on shore-based industries within the shipping Dirk Fry sector. What are your members telling you? We are trying very hard to spread our cadet places across all the nationalities we employ, that includes Germany and the UK. Talking Chris Shirling-Rooke of the UK, one of the weird things that has happened is that we were Even with tomorrow’s seafarers, we suspect tomorrow’s seafarers getting calls from cadets in the UK who have completed their basic won’t be at sea. I think technology is going to play such an training and need more experience, but couldn’t find a place on a ship important role. If we are talking about how Europe captures a in the UK. For me this is unacceptable, so we accommodated them. market then it is with innovation and technology. Even with We have to concentrate on all the nationalities we employ. We need 3D technology where you can print off bits and bobs for your to make the best use of the available resources. I would like to have ships while at sea. This technology has been around in aerospace more support from European authorities to help us in this work and for a decade and it goes back to how we can learn from similar create a level playing field. industries. The aerospace industry has a team of 12 lobbyists at Westminster permanently: the maritime industry is just as big, Sean Moloney and how many do we have? None. I’m big into collaboration Do you think shipping needs to be supported in a different way with governments. Over the next 10-20 years, if we are looking at from other industries? When we had the conference system, skills, we have to look at 3D and 4D technology. What skills do conference lines were allowed to fix rates because they are there the ship managers of the future need? to service world trade. At the moment you’ve got a free for all and you’ve got shipping companies going out of business because Sean Moloney their revenues are way below their operating costs. Does shipping But the man on the street goes on holiday, he goes on flights - he need to have that regulatory allowance? doesn’t use a bulk carrier. I want to talk about this whole issue of connectivity. How prepared is Europe in embracing change in IT Dirk Fry and efficiencies? We are seeing it happening. I think we need some regulatory allowance, but I would never support protectionism. To work successfully we need certain Mark Woodhead tools. We have seen in the last 12 months, shipping companies I think shipping will have to change. It will drive better ask what they can do. I would see a better result if we would have efficiencies and better performance. Those who don’t change will the understanding and support from authorities/regulators to find themselves cut away from the rest of the industry. One of the help us to be successful. things I think shipping needs to do to improve itself is ask what is shipping? We don’t talk about the airline industry as those who Sean Moloney have flown planes; we talk about people who have worked in the Edgar, let’s get a Philippines’ perspective on this. Are you making airline industry. As shipping grows more, it needs to see itself as a hay while others are suffering? wider logistics business.

Edgar Dominic Milla Kuba Szymanski One good thing that regulatory bodies have done to the We’ve got a problem in the shipping industry because if you’re industry is that two years ago there was a scare that EMSA not a ship Master or Chief Engineer then who are you talking would stop recognising Filipino seafarers because of the to? On the other hand, as far as technology is concerned, certificates which were coming out. To the benefit of ship I think we are engaging with technology big style. But the

26 Ship Management International Issue 66 March/April 2017 Regional Focus: ????

Issue 66 March/April 2017 Ship Management International 27 Shipmanagement: ESW17 Round Table Debate problem is technology is not as good as That GPS is completely unavailable? the seafarer of the future have a screwdriver people are trying to paint it. I’ve started Sometimes I get suspicious because there and hammer or will they be an IT-savvy doing something silly; how many times are so many people selling technology. techno-kid as they call them. That may be a can I not connect to the internet in Whether it makes sense immediately way of continuing to attract young people the hotel or airport? 60% of the time I is debatable. I don’t want to promote in because it is dynamic industry. cannot connect. The US Coast Guard the principle of simple ships for simple and now US maritime colleagues have people. I am suspicious when new Chris Shirling-Rooke decided to return to sextants and start technologies are promoted for immediate It does. I’m very hopeful about Europe. again after six years of not training use. The more sophisticated shipping gets, This is our sweet spot with innovation people the art of Master Navigation. the more attractive it could become for and technology. That is what we are good European seafarers. What we often forget at. We won’t compete with the rest of the Mark Woodhead is that seafaring doesn’t have to be the end world in building big ships. Where we It depends where you want to be. of it. There are many CEOs who started are going to compete in is building the Connectivity is only one part of their career onboard ships. most advanced technological ships in the technology. I think vessels are very world. There is a research ship being built complicated. If we go back to the personnel Karoliina Rasi in the UK and it caught people’s attention side, one of the issues around engineers I have to agree. If shipping is a late mover because they asked the public to name and their skills, is they don’t strip down then we can benefit. We can take onboard the vessel - the number one name was engines like they used to. Technology technology that benefits our sector. Boaty McBoatface. This £300m-£400m has driven every industry. Shipping is in ECSA is involved in an initiative called research ship was going to be called Boaty a fortunate position that it can look at e-manifest that concerns the short sea McBoatface. It was going to cause a bit land-based business and five to 10 years shipping and administrative formalities of a problem! It was actually a genius bit later we can adapt technology. It is the related to the arrival of the ship to a port, of PR - really good news and a fantastic remotest industry in the world. I think if we e-manifest is a harmonised electronic European project. It was designed in take advantage of the technology when it cargo manifest. When I first saw the Norway and built in the UK. To actually is available, connectivity and the internet map where a truck leaves Rotterdam have people energised and understand why have changed the way we are on land, so and ends up in Gothenburg, they issue these types of vessels are important for the why not at sea? one document while at the same time a environment, for research. In the end it was ship does the same route and they have called the RRS Sir David Attenborough while Norbert Aschmann to issue 12 documents. We have to do the small submarine has been named Boaty I’m not quite sure whether I share the something to become more efficient. McBoatface. But it put maritime right at the same concern of the unavailability or top of people’s conversation. unreliability of technology. I think it is Sean Moloney pretty good. The question is how we I think, bringing the two elements together, Sean Moloney manage the remaining risks. I was a bit and what Chris was saying earlier, the What a very positive note to end on, ladies surprised to hear they are training people shipping of tomorrow will be a different and gentlemen. Can I thank you all very on sextants again. What does it mean? industry to how it was 20 years ago. Will much indeed for your participation today. l

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Market Sector: ECDIS & Navigation FLYING LESSONS mporting safety practices from aviation by a failure to take action to avoid an incident isn’t a panacea for the shipping industry, escalating. Accident investigations often reveal but there are opportunities to learn, argues that a chain of small decisions or unobserved ITransas CEO Frank Coles incidents leads to a larger one. Civil aviation stirs mixed emotions In a study carried out by Berg (2013), among seagoing types. It is often held up maritime was found to be 25 times riskier than as a shining beacon of what the shipping aviation, based on deaths per 100km travelled. industry could achieve if only it saw - and The simple explanation is that airlines prioritise followed - the light. Others argue that such safety because their ‘cargo’ is predominantly comparisons are unfair, inappropriate or human passengers. However, the crew dismiss them as an overly simplistic parallel. operating cargo planes have to adhere to the The truth probably lies somewhere in same training regime as those carrying people. between these two extremes. “Pilots must undergo a rigorous assessment For aircraft, the direction of travel has every six months,” noted Mr Coles. It’s almost always been towards standardised equipment, “There is nothing close to this in maritime. “ streamlined administration and procedures, I find that strange, given that a ship’s Captain as if the and centralised traffic control – tendencies takes the ultimate responsibility for delivering shipping that instil a culture of safety permeating every the food we eat, the clothes we wear, the fuel we level of activity. burn and everything else we take for granted. industry The disappearance of flight MH370 It’s almost as if the shipping industry lives in the lives in the reminds us that the aviation industry has shadows - behind a shield of invisibility. shortcomings of its own, not least its flawed “My worry is this ghostly existence affects shadows approach to asset tracking. In shipping, AIS has how shipping companies go about their - behind a proved a workable, industry-wide answer. business, trickling down as a lowest common shield of Nonetheless, shipping is most harshly denominator mentality in terms of the crew judged against aviation when the discussion hired, the training they receive, the salaries they invisibility” turns to human error and officer training. As are paid and the respect they are given.” is commonly acknowledged, up to 80% of Mr Coles believes there is a deep- Frank Coles, CEO, incidents and accidents in shipping are the rooted qualitative difference in the training Transas result of either mistakes in performing a task, or philosophies pursued in the two sectors.

30 Ship Management International Issue 66 March/April 2017 Market Sector: ECDIS & Navigation

“In aviation, the focus is on skills, competencies and continually “In shipping, under SOLAS and honing their ability to react in STCW, the objective is certification. emergency situations Once certified, an officer or engineer ” can continue to work until revalidation is due five years later, which does not necessitate any refresher training. In aviation, the focus is on skills, competencies and continually honing One operator Mr Coles cites as from the front, he entrusts the control of their ability to react in emergency having successfully adapted lessons from the ship to his officers. situations.” aviation “to an extraordinary degree” has “This approach engenders trust in Shipping companies are of course free been Carnival. the team and gives the Captain greatly to go beyond minimum requirements, “Their training model is fascinating,” enhanced situational awareness,” noted but few see a compelling need to do he said. “After theCosta Concordia, they Mr Coles. so. “While some cruise and offshore spent a lot of time evaluating their bridge Counterintuitively, the more efficient operators understand the value of long- procedures. They went and studied the the automated system, the more crucial term investment in crew development, practices used at American Airlines. the human contribution made by the there are unscrupulous operators at the They took these home and absorbed key operators, Mr Coles observed. other end of the spectrum who choose elements into their bridge management “Humans are less involved, but their to ignore suspect paperwork that was and training systems.” involvement becomes more critical.” This obtained on the streets of Manila or Carnival changed the role of the ship’s is known as the paradox of automation, somewhere similar.” Captain, said Mr Coles. Instead of leading where an error in an automated system

Issue 66 March/April 2017 Ship Management International 31 Market Sector: ECDIS & Navigation multiplies until either it is fixed or the has targeted reducing administrative control systems provide the most telling system shuts down. duties in the cockpit through automation, opportunity to enhance the entire maritime Transas is preparing for the challenges while no such claim can be made in safety culture. Air traffic control, after all, is of this automatic future by positioning shipping; in fact, the opposite trend acknowledged as pivotal to the safety of the simulation training as one of the four legs prevails, with new regulation driving more skies and to smooth take-offs and landings. of its Thesis concept. paperwork required by the bridge. “ATC can see situations develop more Maritime quickly than an air pilot relying on visual needs to challenge sighting or his instrumentation,” said the Simulator training is going itself to accept Transas CEO. “ automated “While ships move at a more sedate to grow in importance as reporting and speed, the fact remains that the majority more and more routine monitoring, of collisions and incidents happen in busy suggested Mr shipping lanes and ports relatively close to aspects of vessel operation Coles. Reducing land, so increased maritime traffic control are automated the administrative and management could have a significant ” burden on crews impact on safety.” would have a Transas already installs vessel traffic “Simulator training is going to grow significant positive impact on the ability to monitoring infrastructure around the world, in importance as more and more routine perform better. from simple radar apparatus to full coastline aspects of vessel operation are automated,” Standardisation in the aviation management solutions covering half a dozen said Mr Coles. sector has been massively encouraged ports. But Mr Coles identified other drivers A significant problem within the by the fact that only two major suppliers that he believed were already nudging maritime industry is the temptation build civil aircraft, while ships and ships’ maritime towards a more coordinated vessel to find ‘workarounds’ to standard equipment come in all shapes and sizes. management future. With geopolitical operating procedures. Crew develop The competence of a ship’s crew may concerns rising, coastal states are likely to these behavioural adaptations to sometimes depend on their exposure to a take a keener interest in monitoring and cope with unrealistic or impractical particular maker’s equipment. managing the passage of all ships through operational demands and challenges. The Marine equipment could be further their territorial waters, he suggested. most common workarounds relate to standardised, making user interfaces “Flag states will be apprehensive about reporting paperwork, personal protective easier to understand and more consistent, increased traffic in unmanned and drone equipment, work-rest hours, and suggested Mr Coles. This would lessen ships passing through their economic navigational rules. the time spent by crew on ‘familiarisation’, waters – whatever their size - without Airlines are far less tolerant of make training more ‘portable’, and cut the knowing where they’re from and what deviations from accepted practice, risk of operator error. All this points to they might be carrying. It seems logical and aberrations are more likely to be safer operation. to me that a government wishing to challenged or reported. However, it is also For Mr Coles, however, the aviation protect its waters will make the jump from fair to point out that the aviation industry sector’s coordinated approach to traffic monitoring to a desire for control.” l

32 Ship Management International Issue 66 March/April 2017 Market Sector: ECDIS & Navigation Hazard detection more essential than ever

ith the size of today’s vessels, transfers, docking, super yachts and as its target, typically the leg or tower of more variable crew skills and wind farms. a wind turbine which removes the need greater bridge complexity, “There is an industry desire for more for physical targets to be installed which hazardW detection is more essential than safer and efficient operations,” said James makes the vessel completely independent. ever for safer operations. Grimshaw, Marketing Manager for “This can increase both safety and That’s according to Guidance Guidance Marine. decrease turnaround times,” explained Mr Marine, a developer and supplier of local The RangeGuard system measures Grimshaw. “There are alternative berthing position reference sensors for Dynamic the distance to the nearest object. Based approach systems but Guidance Marine’s Positioning (DP) and other vessel on radar technology, the unit is a plug RangeGuard is the first targetless system control systems. and play proximity sensor to detect that can safely position vessels using the Guidance Marine, headquartered unseen objects for vessel protection environment as a reference (such as the in the UK, provides expert relative and a number of RangeGuard sensors monopole wind turbine) without the positioning sensors including the located around a vessel act like a parking need for a fixed target. RangeGuard system – a targetless sensor, or electronic bumper, to provide The RangeGuard sensor is currently microwave situational awareness SafeSurround. being trialled onboard Østensjø Rederi’s and proximity sensor. Launched in The RangeGuard Monopole system platform supply vessel Edda Ferd. 2015, the system is suitable for use is a new type of position reference sensor Mounted port and starboard side, it was on mobile and fixed structures and that does not require a dedicated target installed to provide situational awareness for applications including ship to ship – instead it uses the local environment when near oil rigs. l

Issue 66 March/April 2017 Ship Management International 33 Market Sector: ECDIS & Navigation DANGER of navigation cyber-attacks

he dangers to safe navigation transition from paper and analogue “It is expected that shipping companies are becoming ever more methods of shipping to new, innovative and independent vessels could be next complex with weather and technologies when compared to industry on the list for major cybercrime activity Tgeographical features not the only rivals like aviation,” said George Ward, as it is as yet mainly unexplored territory hazards feared by seafarers. Project Support Manager, ECDIS Ltd. for hackers who are only now starting to With developments in navigational However, he said the seafaring realise its huge potential as a target. Attacks technology come new dangers in the community was becoming more aware now have the capability to obtain sensitive form of cyber security attacks. We of what can potentially happen with ECDIS, AIS and GPS data, to name but a worry about attacks on our laptops, PCs cyber security. few, so it is vital that the correct procedures and mobile phones but, according to “There is a real threat for cyber and processes are in place to stop the worst ECDIS (Electronic Chart Display and activists to start gaining and changing from happening.” Information System) training provider sensitive shipping data from our onboard ECDIS Ltd, based in Fareham, ECDIS Ltd, ECDIS systems which are equipment, such as changing the vessel’s UK, runs a Cyber Security Awareness essentially PCs are often forgotten about route to cause a grounding, gaining access (CSA) course – a one-day theoretical despite running very important software. to digitally controlled engine rooms and course which includes case studies “In the main, but certainly not causing alarm mute while an engine fails and discussions regarding examples of universally, the maritime industry has or even catches fire due to a ‘manual’ cyber security risks within the maritime a dismal record in its slow and painful overload by the hacker,” said Mr Ward. industry and universally.

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Mr Ward wrote the course and physical security method of ‘locking he has also devised a Cyber Security “There is a out’ their systems in order to intercept Management (CSM) Course, designed real threat for physical security threats altogether, but for management and IT teams within the cyber activists this ironically increases the complication maritime industry, which will be launched of applying security software updates. soon. Elements of all of the company’s to start gaining “This restriction can complicate a BTM, BRM and even ECDIS courses and changing shipping company’s decision to have an now include cyber prevention and integrated bridge system due to issues awareness modules. sensitive shipping with syncing and communication According to Mr Ward, the issue, data from between different software manufacturers, alongside a lack of awareness by employees also meaning only specialised engineers and users of operating systems, is the our onboard and trained software technicians are development speed of technology. The equipment allowed to apply updates,” said Mr Ward. digital age of super computers, 4D printing ” “Restrictions like these could mean and nano technology is like no other and is that your system is 80 per cent more proving to be self-accelerating, he said, with George Ward, Project Support susceptible to cyber threats.” one technology put into operation while Manager, ECDIS Ltd Mr Ward said it was important the next generation – more powerful and everybody was educated in cyber innovative – is being produced, thereby manage security flaws within the software, security awareness. creating an always expanding, developing while changes to future developments can “Cyber security isn’t an issue we can and aggressive cycle. help manage the constantly increasing ignore,” he said. “We often concentrate “After years of this development, cyber-crime threat; until the next global and develop robust procedures purely for technology companies are starting to adapt threat takes place or takes over,” he said. the few safety critical pieces of equipment, to the issue by developing and applying Mr Ward added that some maritime but the attack will take place on a tertiary software updates weekly which try to software manufacturers have used a system that is connected to it.” l Alternative

Viewpoint Michael Grey, MBE, is an internationally respected maritime commentator One man and a dog

hen toiling over a hot word- port on a ship which was much the same occurred to me at the time, seemed to be processor gets too much deadweight as the chemical tanker I had taking serious risks with life and limb, with for me, I like to get down to been watching. He is on the forecastle, but a single soul at each end of the ship, at myW nearest port and have a prowl around. photographed from a bigger company one of the most labour-intensive evolutions These days of high-security and full ship, alongside which they have been that is needed in any ship’s operations. application of the ISPS Code, it is all high lying, and from which they are letting go, The master, on the bridge with the fences and no admittance, but there are a before going to sea. There are 10 seamen pilot and with luck, a helmsman, could few vantage points where you can actually on the forecastle, while three more can have seen if the man on the forecastle had see a few ships alongside. And the other be glimpsed on the forward well-deck, got into trouble, had put his foot into a day I was rewarded by the movement of a attending to the spring. We can be assured bight, or something frightful had happened chemical tanker through the lock on her that down aft, there will be about the with a broken line. I doubt that he could way to sea, which was a great treat for me. same number, probably with the Chief have seen his chap down aft, unless he had She was a smart, beautifully-kept ship Officer in charge. good CCTV fitted. And if the seaman of around 3,500dwt (I checked when I There will clearly be a few more ropes struggling with the pilot ladder had missed returned home), only five years old and to handle, but fundamentally, the operation his footing, or plunged into the lock, he operating in the European trades. It was will not have changed that much over the would only have been alerted by the shouts also notable that as she went into the lock 80 or 90 years which have passed. of bystanders, unable to help on account of and tied up for 20 minutes or so, the lines On the chemical tanker, circa 2014, the security fence. were being handled by a single seaman the lines forward and aft are stored on When the whole shipping industry forward, and a single colleague down aft. the drums, so there is much less rope- is struggling with an almost total absence Indeed, there were more port employees handling required, although there are of reward, you might think it is the wrong on the quayside handling the ropes, which still winches and windlasses to be driven, time to be worrying about manning levels. comprised a line and a spring, at each end. heaving lines to be hove and the need to But then you read of the accidents that The two seamen knew what they were walk around from the winch controls to still happen when insufficient numbers of doing and there was nothing untoward the ship’s side to see what is going on. people try and do a job and get overtaken happening as the ship entered the lock, Doubtless the Master and operator by events. People have been maimed and settled down, and departed for sea. I was of the tanker would angrily protest that injured in such a fashion and the IMO, no slightly worried watching the chap down I had no business spying on them, and less, is conducting an exercise to try and aft as he left the poop to take up the pilot that their distribution of manpower on make mooring and unmooring safer. ladder, single handed and which was quite “stations for leaving harbour” was well It may be that I am terribly unfair. It a struggle on his own, as he hung over the tested and perfectly safe and adequate. You was a bright, sunny and calm day. Perhaps open rail. If it had been me, I would have could probably also argue that my uncle’s all the other hands were having their yelled for some help. little general cargo ship, even festooned, lunch, or asleep. But I’m sorry, to be safe, Among my old photo albums as she was, with derricks, was perhaps they could done with more, and it was inherited from my uncle, is a picture of over-generously manned. But the extreme perfectly clear that they weren’t there him as Second Mate in the 1920s, leaving lean-manning on the chemical tanker, it when they were needed. l

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Regional Focus: Gibraltar GIBRALTAR ROCKS

Europe’s number one bunkering port, a pivotal link between the Mediterranean and the Atlantic Ocean, a favourite stopping-off point for superyachts and a tiny city port with a burgeoning infrastructure base. Gibraltar has never been busier

spectacular landmark for passing ships? A UK Royal Navy base? Or an outcrop of southern Spain? TheA British Overseas Territory of Gibraltar has been all three of these at one time or another. However, its pivotal position on a major sea route has given it a far more modern role as Europe’s number one bunkering port and a favourite stopping off point for an almost unending procession of superyachts. and But its importance internationally has been highlighted population of extraordinarily as it looks set to become entwined in the 32,000. Gibraltar shares a 1.2km- negotiations between the UK, the European Union and now Spain long land border with Spain and lies 14km over Britain’s exit from the EU. north of the African coast of Morocco. Strategically perched on the route that links the Mediterranean, The numbers and volumes of projects in Gibraltar in the the Atlantic and the Caribbean and overlooking the Strait of last 12 months have exceeded every previous year. It is generally Gibraltar, the Rock is a vibrant and dynamic port city with a acknowledged in the region that the main reasons for this current bulging infrastructure that belies its tiny 6.7 square kilometre size upsurge in activity are greater global appreciation of its pretty

38 Ship Management International Issue 66 March/April 2017 Regional Focus: Gibraltar

and unique location, a Health, Safety and Environmental Management). While some dynamic and interdependent shipyards may be tempted to seek work based on aggressive pricing shipping sector and the alone, we know that safety and the environment in particular are key hands-on stewardship concerns for offshore owners and operators,” said Mr Beards. of Commodore Bob However, the offshore industry’s bleaker side – caused by Sanguinetti, the CEO the sector’s five-year trough in global trading – was reflected in an and Captain of the Gibraltar increase in local lay-ups of offshore supply and support vessels Port Authority (GPA). including the demise of one of the world’s largest and most futuristic Many of the sector’s pipelaying vessels which is worth an estimated €400m. companies are involved in One of Gibdock’s other specialities is repairing and refitting Gibraltar’s primary industry cruise ships – the shipyard is very close to Gibraltar’s cruise terminal – bunkering – which is – and it recently carried out a two-week repair and renewal project also the factor that has on Louis Cruises’ 41,000gt Thompson Majesty. “It is especially helped forge one of its satisfying when Gibdock’s capabilities for on-schedule high quality biggest success stories work are vindicated by a high-profile owner in the luxury cruise – the exponential growth market,” said Mr Beards. of Peninsular Petroleum, the In another sign of Gibdock’s year of prosperity, the company bunker supply and resale company has recruited 16 new trainees to its apprenticeship scheme. “We founded by John Bassadone, son are strongly committed to the programme so we can develop a of the founder and joint owner of succession plan to foster the ship repair technicians and managers of Gibunco. The younger Bassadone was the future,” added Mr Beards. a junior trader in London when he Like Gibraltar’s repair market, there are exciting changes planned started the company in 1996 with at Gibraltar’s Ship and Yacht Registries. The number of ships 75,000 tonnes of bunkered fuel registered at the Ship Registry in the last 14 months was 290 – a 2% oil from the Gibraltar refinery. Since increase on the previous year. The Yacht Registry, meanwhile, has then he has overseen recent average annual been through a near-revolution with almost 900 superyachts on its growth of 22%. Peninsula now supplies 13.1 million books. For owners and operators, one of the Registry’s unique selling metric tonnes of fuel and has a network of 20 global propositions (USPs) is its almost blemish-free white-listed record at offices including such global maritime hubs as Singapore, the Paris Mou and the US Coast Guard inspection regimes – and 18 Shanghai, ARA, Houston, Hong Kong and Tokyo (See months ago it was also elevated to the Tokyo MoU white list. ‘How I Work’ article on John Bassadone on p52). On a more political note, Britain’s decision to leave the EU could Another local sector that has continued to prosper have a profound impact on the Registry. Richard Montado, Maritime despite the global downturn is ship repair. Among recent Administrator at the Gibraltar Maritime Administration (GMA), contracts at Gibraltar repair specialist Gibdock last year were the government body that runs it, said: “Brexit has had a similar scrubber retrofits for five Vroon Offshore Services-operated psychological impact on the Registry to the UK Registry. It looks as if offshore support vessels and, backed by a favourable, post-Brexit one-third of the fleet who have registered here for domestic taxation exchange rate, repairs to a range of German-owned general advantages could be looking to flag out.” cargo ships, container ships, reefers and bulk carriers. “We are More encouragingly, the Gibraltar government has provisionally maintaining a strong ferry and ro-ro business, have started new approved the formation of a new ‘post-Brexit’ Registry, as Mr cluster work from the UK Ministry of Defence, are getting more Montado describes it. “The idea is to operate the Registry 24/7 ballast water appliance work and pipework contracts, while Dutch- and in different time zones. We also aim to increase the size of the owned dredgers have proved a good source of repairwork too,” said Registry and maintain our same high standards. We’re looking to Gibdock’s enthusiastic Managing Director, Richard Beards. offer products to Far East owners and also owners in the US where The weekSMI visited Gibdock in February this year the yard we are recognised as a white-listed, high performing flag,” he said. was technically full with eight vessels berthed at the quayside Two other structural improvements that will appeal to ship including the multifunctional subsea vessel (MSV) Olympic owners and managers is a recent decision to move the two Registries Intervention and several ferries and offshore vessels. online – a project that is due to be completed in the autumn of this Gibdock’s recently opened specialised prefabrication area, Pad 1, year. It means that all registering and other services offered by the has enabled the company to take on more complex offshore projects, Registries such as seafarers’ certificates will be computerised. On the many of them from repeat customers. “In line with our offshore new Registries, owners will be able to register ships while they are successes, we are also continually improving our QHSE (Quality, still being constructed.

Issue 66 March/April 2017 Ship Management International 39 Regional Focus: Gibraltar

“One of the advantages of registering in Gibraltar is that Cruises – than in previous years and 238 cruise liners were everything is close by. You can walk to the post office or the hospital scheduled to call in 2017, said Mr Dyke. Two new cruise liner and when you are fed up with going local you can go across the berths are also planned for the port. Although it had all the right border to Spain. Most of our customers live in Gibraltar and as a service facilities, Gibraltar needed more accommodation for the region it feels very safe. Education is paid for by the Government, crews of longer-staying ships, said Mr Dyke. Although a Holiday buses are free, there is no inheritance tax or VAT and in 2011 Express hotel is opening in 2017, Mr Dyke said the region corporation tax fell from 30% to 10%. If somebody gets mugged needed more beds “to compete with Algeciras where you can here it is headline news,” said Jens Sorensen, Managing Director of stay for €70-a-night while it is much more expensive here.” ships’ registrations provider Sorek Group. The Algeciras question was raised by Ian Penfold, Director From registering to refuelling. The number of bunkering visits of Gibraltar’s largest port agency, MH Bland, which was founded by commercial vessels to Gibraltar hit record levels in 2016-2017. in 1810. Mr Penfold, who was a member of the Government- The number of superyachts visiting to refuel has also risen to led marketing groups who recently visited Singapore and Hong unprecedented levels matched by newly opened and expanded Kong, said the initiative had attracted a lot of new business to anchorages in Gibraltar’s Mid-Harbour Marina, the Ocean Village Gibraltar. “We have had to do it as we have been getting so much Marina and Marina Bay giving visiting vessels up to 90m-long competition from Algeciras which runs its own marketing trips,” some 600m of berthing facilities. Albert Isola, Gibraltar’s Minister he said. MH Bland handles an average of 140 to 150 ships a of Commerce, said it was “fantastic to be doing that well in the month and is aiming to top 200. It has also expanded its agency current economic climate”. Many yachts were staying longer after and support services to 13 overseas offices – the latest will be in refuelling and enjoying Gibraltar’s hotels and restaurants and such Casablanca this spring. Because of the recent surge in superyacht tourist attractions as cable car rides, scenic tours of the Rock as well visits, the company plans to open a separate department to as exploring its intriguing underground cave network. service the sector. And more vessel visits means more potential business for One reason for the Gibraltar shipping sector’s recent buoyancy the Gibraltar Port Authority (GPA), the Gibraltar Tourist Board has been the weakening pound, said Alex Lavarello, Director of and the region’s ship and port agencies. There were 25 local ship port agency Turner Shipping. “The devaluation of the pound agencies at the last count. One of the larger ones is INCARGO, against the Euro virtually gave us a 20% advantage overnight, part of the INCARGO Group. Its director George Dyke said allowing for more flexible trading and making Gibraltar feel less the agency has handled 60 to 65 ships a month in 2016-2017. hemmed in,” he said. Another cause for optimism was a new “Bunkering dictates 90% of the shipping business in Gibraltar plus flight service from Tangiers airport which has brought Chinese the support services – husbandry, crew changes, storage and minor businesspeople to the region for the first time, said Mr Lavarello. repairs. That’s why I would like to see permanent bunkering storage He said globalisation and the rise of the internet had prompted in Gibraltar. We also have more anchorage space than the Port the number of local shipping agencies to grow from 10 to 12 around of Algeciras [which lies the other side of the Bay of Gibraltar], so 15 years ago to “a lot more now – approximately 25 – and means that theoretically we should be doing our bunkering more effectively. eventually all agents will have to work together or diversify”. We bunkered 3.8m tonnes last year, though during our peak period “Gibraltar is giving out a lot of licences. However a bunker call in 2007-2009 we reached 4.5m tonnes,” he said. is something that is very easy to do and any agent can do it. It is INCARGO handled more cruise ships – notably from the when something goes wrong that an agent is worth his money as Royal Caribbean Group, Celebrity Cruises and Thomsons we’ve seen time and time again. The biggest issue is when agents

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Regional Focus: Gibraltar set up business in Gibraltar and then set up another agency in Mr Gabay said the number of systematic checks at Algeciras where getting a licence is cheaper,” he said. Gibraltar’s border with Spain, which is outside the EU’s Gibraltar was in a position to react quickly to Brexit and Customs Union but inside the Schengen area (the European “shipping may be the pillar to support the Gibraltar economy like area of passport-free, unrestricted borders between 26 it did once before,” he said. The only real snag was the colony’s member countries) on the Spanish side, was increasing due relationship with Spain, which has periodically contested to an upgraded system that was introduced in March this ownership of the colony with the UK. The solution could be to year. He said it involved “more red tape and hold-ups” but move to “joint sovereignty” said Mr Lavarello. he did not believe Brexit would have a negative effect on his Danny Gabay, Director of logistics service provider own company’s business activities. “The problem will be the Redwood International, said the buoyant bunkering market and movement of people, not goods, and on the positive side we are the increase in visiting ships had created a brisker trade in the no longer seeing the seven-hour queues that used to build up at delivery and collection of spare parts in 2016-2017. Another the border,” he said. “At the moment it is easier to procure parts “cash booster” was the increased activity of the shipyard and the and supplies from Spain than anywhere else as it is next door,” demand for spare parts for ship repairs. “Whenever a ship stays in Karl Alecio, Redwood’s Operations Manager, observed. the yard for a month or so we get a lot of orders for spares coming One person who will help to oversee Gibraltar’s transition in and going out,” he said. to a post-Brexit future is its Minister for Commerce, Albert Isola. Mr Isola, who was until recently the region’s Minister for Shipping, said: “Although it is brutally competitive in the bunkering sector and equally so in the superyachts sector, if we raise the bar in terms of the quality we deliver we will see more business coming through – as we have seen in the past two years.” He said the Government’s decision to allow future ships to be put on the Registry during construction was “an innovative way of providing security during a time of economic uncertainty when a shipyard could go bust while a ship is still hallway built.” He said that by registering and putting a mortgage on the vessel, it became the owner’s asset and they could “pull it out of the yard and finish it somewhere else”. Apart from improving the blending of bunkering fuel and reducing the sulphur content, another commercial innovation was to introduce land storage for bunkering. “We have gone out publicly and had expressions of interest and engaged with a number of companies,” he said. “It is a necessary investment for the long-term future of the sector here which we can deliver in a relatively short time. A proper land- based bunkering facility will enable us to meet our standards much more easily than we would with floating storage.” An area Mr Isola would like to expand is shipmanagement. “One of the areas we think we should be much better at is shipmanagement – we think we are ideally located for companies to have their shipmanagement based in Gibraltar, particularly with the volume of shipping that is coming through the Strait of Gibraltar,” he said. l

Regional Focus: Gibraltar The Master of all Gibraltar surveys

n the three years since he took over as CEO and Captain and will replace Gibraltar’s existing VTS system which has been of the Gibraltar Port Authority (GPA), Commodore in service since 2011. The web-based information management Bob Sanguinetti has overseen a revival of the shipping system will include infra-red CCTV cameras to give the VTS Isector, helped to foster a series of key port improvements and team sharper monitoring and control of ship activities. The size of important infrastructure projects and launched an aggressive the VTS team has also been increased from five to 10 operators marketing campaign. by the GPA in the past five years. Born and bred in Gibraltar, Commodore Sanguinetti “The new VTS system will enable the flow of information served in the Royal Navy for 30 years, commanding several across Gibraltar’s stakeholders to be far more fluid than it has Royal Navy warships and rising to the rank of Commodore. been in the past. In addition to increased functionality, the After working at the UK Government’s Ministry of Defence, contract includes a maintenance package, together with software Cdre Sanguinetti was Head of Intelligence at the UK’s London- updates and upgrades over the next five years and future- based National Operations Headquarters before taking up his proofing for the planned introduction of e-Navigation,” said Cdre current post at the GPA. Sanguinetti. In 2016-2017 he has helped to plan, foster and oversee a The new Mid-Harbour Marina which was completed series of upgraded bunkering projects, new facilities for cruise in 2016 has 500 metres of deepwater berthing facilities for ships and superyachts and the GPA’s move to a new and superyachts with a minimum depth of six metres and deeper in impressive headquarters. The major items on his 2016-2017 most areas. Responding to rising demand from superyachts, extra agenda have been the extension of a former bunkering jetty into berths have also been added to the marinas at Marina Bay and new berths for superyachts and small coastal craft plus a new Ocean Village, the glamorous apartment complex overlooking range of concierge services for crew members as well as ship the Bay of Gibraltar with capacity for yachts up to 90m-long. repairs and general husbandry such as water supply and slops Cdre Sanguinetti’s efforts to invigorate the Gibraltar shipping discharge facilities. One of Cdre Sanguinetti’s key strategies sector have included a series of marketing trips headed by Albert behind this is to encourage longer stays in Gibraltar. “We have Isola, the Minister for Commerce, to study overseas shipping introduced a more comprehensive package for visiting ships and sectors and attract potential new business to Gibraltar. So far their crews, one of the key reasons for this being to encourage the groups of up to 12 people including members of leading ships to stay longer when they refuel in Gibraltar. Some companies and Gibraltar’s maritime trade bodies, have visited superyachts have even stayed for several weeks recently,” said Hong Kong and Singapore with a third trip to China scheduled Cdre Sanguinetti. in the near future. “It’s an aggressive marketing campaign Another major project is a new state-of-the-art Vessel Traffic supported by the Government with direct engagement with Service (VTS) which will be based in a purpose-built four-storey ship owners to better understand their needs. The campaign will tower on a limestone promontory on the side of the Rock and continue throughout 2017 to ensure that the Port of Gibraltar give the VTS team a bird’s eye view of the movements of ships in continues to provide the best possible support to the shipping the Strait of Gibraltar. The project will be launched in the autumn community,” said Cdre Sanguinetti.

46 Ship Management International Issue 66 March/April 2017

Regional Focus: Gibraltar

“The new VTS system will enable the flow of information across Gibraltar’s stakeholders to be far more fluid than it has been in the past“

Commodore Sanguinetti, GPA

Despite the slump in the global shipping market, there has construction of the facility which will have a minimum storage been an upsurge in the number of ships bunkering in Gibraltar capacity of 225,000m². Two other developments by Gibraltar’s with more than 245m gt of vessel calls in 2016 consolidating Peninsular Petroleum and Macoil will add more capacity to the Gibraltar’s reputation as the largest bunkering port in the Rock’s existing floating bunker infrastructure. Mediterranean. In the past 14 months visits by commercial ships The go-ahead for another important fuel-related project was have increased while the number of yachts and superyachts given by the Government in 2016 after it signed an agreement berthing in Gibraltar has hit an all-time peak. As the tourist with Shell subsidiary Gasnor for the building of a regasification attractions of Gibraltar reach a wider global audience, the number unit to receive, store and regasify liquid naturalised gas (LNG). of cruise liner calls have been increasing. The LNG will be used in a new dual-fuel gas-fired power station A project that has been discussed for several years by which is being built in the Port and is due to open at the end of Gibraltar’s main stakeholders is the need for a permanent this year. A purpose-built jetty will allow an LNG carrier to berth land-based marine fuels and bunkering facility, particularly with alongside and discharge the gas. Cdre Sanguinetti said the project the recent upsurge in the bunkering of ships and superyachts. was a “significant milestone” that offered refuelling ships a green The Government recently invited proposals for the design and alternative to conventional HFO. Future initiatives include increased accommodation, eating-places and facilities for ships’ crews including the building of a new Holiday Inn which is due to open in 2018 and the introduction of rigorous training programmes run by the GPA with two specialist companies, Oil Spill Response Ltd (OSRL) and the Resolve Marine Group, to strengthen the Port’s crisis and emergency response levels and “make sure we are ready to deal with a major crisis if it occurs”, said Cdre Sanguinetti. Official Government figures show that the Gibraltar maritime sector contributes between 5% and 10% to the region’s GBP. “The Port finished 2016 and started 2017 very strongly with an estimated 25% increase in output,” said Cdre Sanguinetti. So despite a few gloomy predictions about the effects of Brexit and sovereignty issues about its shared border with Spain, the Commodore’s efforts to consolidate and modernise Gibraltar’s maritime sector have met their targets. l

48 Ship Management International Issue 66 March/April 2017

Regional Focus: ????Gibraltar

The day the world’s largest superyacht was arrested in Gibraltar

ne of Gibraltar’s biggest talking points of 2017 has vessels do not abscond. This would have been one of the more been the arrest of the world’s largest superyacht , unusual assignments for ship keepers” said Mr Stagnetto. There were the Russian-owned and Philippe Starck-designed 18 ship arrests in Gibraltar in 2016 and this was undoubtedly a more Osuperyacht known simply as A. glamorous version of the average ship arrest which can involve having The 143m-long Bermuda-registered vessel which has three masts to clamber up a ladder on the side of a vessel and dealing with a crew taller than the UK’s Big Ben arrived in the Bay of Gibraltar in February who may not have been paid. for refuelling before starting her final sea trials. The futuristic-looking The A stayed in the Bay of Gibraltar for six days and was then superyacht was promptly arrested – launching a flurry of emails and released following a series of court hearings which were widely phone calls between lawyers in London and Gibraltar. reported in the international press. The interest from the world media Guy Stagnetto QC, a partner at Gibraltar’s TSN Barristers & was obvious from the numerous daily attempts by them to obtain Solicitors, said: “As usual with these things time is of the essence and we information about the arrest and the proceedings. “Certainly the had to move very quickly following her arrival at dawn for refuelling. incident reaffirmed Gibraltar in the wider press as a key destination As is evident from the Court papers and the press reports, Nobiskrug for ship arrests,” added Mr Stagnetto (pictured). shipyard, the vessel’s builder, arrested the yacht as part of a dispute over a The Gibraltar law firm Hassans applied for the ship’s release. final construction invoice and other claims totalling €15.3m.” Hassans, which is Gibraltar’s largest law firm, has extensive experience Inevitably while the legal arrest paperwork was drafted, Gibraltar’s of dealing with maritime claims including the arrest of superyachts. Admiralty Marshal, Liam Yeats, the court officer responsible for ship Anne Rose, a Senior Associate at Hassans, represented the A’s arrests, was put on notice of an impending arrest. owner Valla Yachts Ltd. Lewis Baglietto QC, a Partner at Hassans, Mr Yeats then sent his bailiff to serve notice on the €350m represented Hill Dickinson as the escrow [money held by a third vessel and take custody of its papers. The operation involves close party on behalf of transacting parties] agent under the yacht’s cooperation between various bodies including the Gibraltar Port construction agreement. l Authority. “One normally puts ship keepers onboard the vessel to make sure there are no problems with the crew and ensure “As usual with these things time is of the essence and we had to move very quickly following her arrival at dawn for refuelling”

Guy Stagnetto, TSN Lawyer

50 Ship Management International Issue 66 March/April 2017

Regional Focus: Gibraltar

John Bassadone Founder and Managing Director of Peninsula Petroleum

f you ask John Bassadone, the Founder and Managing The first office Director of Peninsula Petroleum, the secret of his company’s was in Athens. Two success, he will probably say ‘people’. years later, in 2006, Peninsula opened an office in Singapore, IA Gibraltarian by birth, Mr Bassadone started Peninsula in the largest bunkering port in the world. More offices were 1996 with two employees. He was working as a junior trader in opened in Shanghai, Dubai, Geneva, Montevideo in Uruguay, London when “the opportunity came up to get a 75,000-tonnes- Tokyo, and Norway. a-year bunkering contract from the Gibraltar refinery. I started “By 2010 we had set up a strong platform with a good small with a small office in Gibraltar and took on a friend of mine customer base,” said Mr Bassadone. His next aim was to set up who had just left university,” he said. new physical supply locations. “We looked at places where we Peninsula’s first customer was P&O Cruises which was “quite were doing a lot of reselling that didn’t have any physical presence a big call”. It was then that Mr Bassadone created his business and then turning them into physical supply locations,” he said. philosophy of always giving clients ‘added value’. The first ones were set up in Houston, Panama, New Orleans, At the time, he deliberately kept his fuel prices competitive Algeciras and ARA (Amsterdam, Rotterdam and Antwerp), the which meant Peninsula Petroleum “grew quite quickly and our world’s second largest bunkering group. clients started to divert more product to us”. He realised that instead “In the last four years we have become a fully integrated of relying on third parties or intermediaries to provide extra oil company. We have basically gone up the supply chain both volumes, his company needed to launch its own global network. globally and here in Gibraltar as well and have turned what is He opened a new office and started setting up a network of offices known in the industry as physical light into physical heavy,” in hub countries so that Peninsula could access markets directly. he said. l

52 Ship Management International Issue 66 March/April 2017

Business Viewpoint: P&I & Law It’s a hard knock- for-knock life

Robert Hodge, Senior Account Executive, International Transport Intermediaries Club (ITIC), explains why knock-for-knock liability can cause problems for ship managers

TIC insures ship managers on the understanding that fees would inevitably increase. If ship managers have to agree to management agreements are on terms no more onerous than knock-for-knock liability, they must make it clear that it does not BIMCO Shipman 2009. The Shipman contract states that ship apply to any crew member or worker onboard the vessel, whether Iowners must indemnify their managers for all losses unless they have employed by them or not. been caused solely by the negligence of the manager. It is common Liability for the manager to indemnify owners for damage to practice in the offshore sector, however, for the liability regime to be their property is not so problematic. The vessel and any equipment on a knock-for-knock basis, and offshore owners are trying to adopt are not normally owned by a third-party ship manager. In some this in ship management contracts. circumstances, however, ITIC has seen included in the definition Knock-for-knock liability provides that each party to the contract of property that which is within the manager’s ‘care, custody and agrees to take responsibility for, and to indemnify and hold the other control’. As the holder of a Document of Compliance, the ship harmless in respect of, death and injury to its own personnel, and loss manager could be deemed to be in control of the vessel, because the and damage to its own property. This is intended to be effective even ship manager is defined as the operator of the vessel for the purposes if the incident is caused by the negligence of the indemnified party. of the International Safety Management (ISM) Code. Managers In shipmanagement, knock-for-knock liability can cause should therefore never agree to this definition of property. problems. This includes the definition of employees, property and A knock-for-knock liability regime provides that neither party the inclusion of gross negligence. shall be liable to the other even where the loss which has occurred A simplified knock-for-knock clause that ITIC has recently is due to the negligence of one party. However, in some cases, we reviewed stated the following: The manager shall be responsible for see the clause amended to state that this does not apply in instances and shall indemnify and hold harmless the owner from all liabilities of gross negligence. Therefore, if one of the parties is found to be in respect of: grossly negligent, it will not be held harmless. This might be fine if a. personal injury, including death or disease to any person the contract is pursuant to Norwegian or US law, where there is a employed by the manager concept of gross negligence. Unfortunately, however, there is no such b. loss of or damage to property of the manager concept of gross negligence under English law. This is problematic if the manager is the actual employer of the While the English courts are open to the concept that the term crew. If so, then the manager has effectively waived its right to be means that the parties understand that there is something more than indemnified by the owner in the event it is held liable for the death or just simple negligence, it is hard for them to establish when an act bodily injury of a crew member. crosses from being just negligent to something more. In the offshore sector, insurances are set up to handle these The inclusion of gross negligence within a knock-for-knock circumstances. In the shipping sector, however, the manager and the clause in a contract pursuant to English law can lead to uncertainty owner rely upon crew P&I insurances for claims made against them and increased litigation costs. Ship managers presented with a by the crew. Managers could buy their own P&I insurance, but then contract which includes knock-for-knock liability must read the two parties would be paying for the same cover, and management clauses with care and be prepared to re-negotiate. l

56 Ship Management International Issue 66 March/April 2017

Business Viewpoint: Softship Data Processing

Liner companies must adapt in order to compete By Lars Fischer, Managing Director, Softship Data Processing, Singapore

he container shipping market and product owners and also take individual companies, while offering has experienced yet another year responsibility for booking space aboard exactly the same functions provided of significant change in the face the containership. by bespoke solutions utilised by the Tof low freight rates, increased regulatory In today’s hyper-competitive market, leading container lines, but available pressures and higher operating costs on doing so requires agents to offer more at a fraction of the price of a custom- one hand, and a self-imposed ‘upscaling’ value than ever before. It means looking made alternative. Such technology can in the name of efficiency savings on the at every avenue for improving their own provide more fluid, reliable and future- other hand. service offering; including embracing proof solutions that are fully integrated Last year marked a quickening in the technological innovations that enable across departments, clients, partners pace of change for the global container them to work faster, provide increased and service providers. Importantly, it is market, with headlines dominated by a reliably and operate with greater agility. simple to use and does not ‘design-out’ series of mergers and acquisitions, further In order to compete and ‘add value’ skilled personnel in favour of faceless fleet consolidation and the collapse of independent liner agents not only have data, which is particularly valuable in an carriers both large and small. to be the fastest to respond to enquiries, industry that continues to trade on the Hapag Lloyd and UASC teamed but also have to be accurate, informed ‘personal relationship’. up, CMA-CGM took over NOL and and articulate in sharing their offer with Looking ahead, all signs point to the Chinese giants COSCO and China potential customers. another difficult year for the container Shipping settled in together; the Japanese It is important to keep in mind, shipping sector and for those third- lines clubbed together and Hanjin sank. however, that embracing technology party suppliers and service providers In response to the changing shipping in order to compete in this changing that keep these vessels afloat. Analysts market, liner agents worldwide have market is not about large-scale have suggested that the murmurs been scrambling to ‘upscale’ to service automation or replacing skilled of realignment and ringfencing mega containerships, and many have lost individuals with ‘smart’ applications; it’s activities by the likes of Maersk (and business from consolidation and pooling about utilising networked, remote-access their “strategic review”) signalling a agreements between lines. technologies to improve the capabilities continued risk on the horizon for the Much like ship agents, liner agents of knowledgeable, experienced, and container market, for which all involved are responsible for coordinating the trained personnel. parties must be prepared. quay-side requirements of the vessel: ship As a software solutions provider, it is For operators in the sector, the supplies, spares and maintenance services, our job to develop solutions that benefit feverish need for ever-more efficient crew changes, husbandry, customs, and both liner agents and their principals, operations and cost saving initiatives will immigration formalities. However, liner which can be built to meet the exact inevitably continue, and their service agents also act as vessel owners’ trusted needs of their business.Packaged providers are going to have to adapt if they go-between for the manufacturers software can be easily customised to suit are to survive. l

58 Ship Management International Issue 66 March/April 2017 Business Viewpoint: P&I & Law

CREW ARBITRATION CLAUSES – what is happening? Good or bad?

By Sarah Barnes, Associate in Hill Dickinson’s Marine, Trade and Energy team

he cost of crew personal injury claims can be significant, that the claimant had not provided sufficient evidence of the in particular when brought in jurisdictions, such as amount of arbitration costs he would incur and therefore had the US. In order to keep foreign seaman’s claims out of not provided sufficient factual evidence of his inability to pay. Tthese jurisdictions, crew employment contracts were introduced This therefore shows that the US federal courts are receptive to requiring disputes to be resolved by arbitration in specified enforcing arbitration clauses which provide for a foreign forum. jurisdictions. This has included London and, in some instances, Employers are agreeing to be responsible for the arbitration in accordance with London Maritime Arbitrators Association costs in the crew contract to ensure the arbitration occurs in (LMAA) rules. the forum specified in the contract and such clauses are being Initially, whilst the US Courts upheld arbitration clauses, the drafted in crew contracts on the basis the claimant will repay employer was required to apply US substantive law in the foreign these costs from damages. Given a successful claimant is likely arbitration. This did not therefore assist in later cases; this has not to recover its costs in an arbitration when will the defendant be been required. Personal injury/fatal claims are specialist areas reimbursed? Given that English law has non-delegable duties of and not the most common type of cases our experienced English care for employer’s liability and applies vicarious liability making arbitrators have to deal with on a daily basis. the employer liable for the negligence of its employees’ liability is How has this progressed to date? difficult to defend. The discount rate which applies from March We have seen many cases commenced but not many have 2017 for future damages has gone from 2.5% to 75% increasing so far, to our knowledge, proceeded to a hearing in London. awards significantly. Arbitrations are not subject to the Qualified One Way Cost Is arbitration in the U.K. really a solution? l Shifting rules introduced by Civil Procedure Rules in 2013 and so a successful defendant can recover costs. This is definitely a plus. One reason why many claims have not progressed is that the cost of arbitration is higher because claimants have to pay arbitrators fees as well as medical and other expert reports and eventually the hire of rooms. Arbitrators’ fees are difficult for claimants’ to cover under the new age Conditional Fee Agreements. Some claimants use their disability compensation to advance their claims - others have to rely on US lawyers being involved and US contingency fees. We have seen claimants arguing that they should not be forced to arbitrate in foreign forums, notwithstanding the provisions in the crew contract, as they are unable to afford the arbitration costs. In some cases this has led to the courts ruling that the claimant must pay their share of the arbitration costs which has resulted in long stays. In the US case of Suazo v NCL (Bahamas Ltd) 2016, the claimant argued that he was unable to pay the high costs of arbitration in a foreign forum, and so the arbitration agreement was unenforceable because it prevented him from asserting his statutory rights. The Circuit Court found

Issue 66 March/April 2017 Ship Management International 59 Business Viewpoint: Transas Global Conference

Shipping Industry Must embrace the ‘perfect storm’ hipping companies must be prepared to embrace the industry. It is one which will disrupt all elements of the ‘perfect storm’ that will hit the industry over the next couple shipping industry, is technology-driven and in some cases is of years – Transas CEOFrank Coles told a packed room of also self-inflicted” Sover 400 delegates at its Transas Global Conference in Malta. Mr Coles added communication suppliers could be at risk as The two-day conference in March brought together high- automated ships are introduced. level professionals from the maritime industry and beyond with He said: “As long as there are crew onboard, there will be a an agenda that was designed to inspire change. need for more communications for welfare purposes. But I think Mr Coles said: “We are faced with the perfect storm in the maritime communications suppliers could be particularly at risk next few years. Many will conclude it is the fault of President in the same way as Kodak/Blackberry once were. The levels of Trump, but in fact it is actually nothing to do with him. If capacity coming online, along with the race to the bottom in anything, he is going to enable the industry to think smarter pricing, is going to make communications yields very hard to because he is also bringing change. The perfect storm is the achieve. However this pans out, the maritime industry is going to one confronting the maritime be the winner.”

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The conference, which was moderated by Craig Eason, However this pans Editorial Director of Fathom Maritime Intelligence, included “ lively debates and discussions from leading members of both the out, the maritime maritime and aviation industries. industry is going to Captain Harry Nelson, Operational Advisor to Safety at Airbus, spoke on what lessons the maritime industry could be the winner” learn from aviation, placing an emphasis on giving the right amount of time to training and allowing crews to digest what Frank Coles, CEO, Transas they have learned. Capt Nelson told the packed audience: “We have spent a lot market, and obviously there’s a race to control these big of our training time checking people and I would counsel you autonomous networks.” not to go too far in that direction. I’m not saying don’t check at He added: “Autonomous travel is coming more quickly than all, but make sure the teaching is happening first. We have fallen we think, partly because the insurance services are pushing for into the trap of spending too much time on training and then it. The World Health Organization thinks 1.2million people die checking. There is no time given for downtime or discussion.” on our roads from human error. Health services are going to David Rowan, Editor-At-Large of technology publication mandate autonomous regulation sooner than we think.” WIRED, offered the audience a humorous overview of a On the subject of transport, Mr Rowan also spoke about number of successful wacky start-up businesses, and warned a far-fetched idea that would see a new transportation method the shipping industry to not dismiss any idea regardless of how transporting people and cargo in vacuum tubes over long distances. unbelievable it is. He explained: “It was a bit science fiction until they start Mr Rowan cited the example of a former Google Product making partnerships and talking about how they’re going to not Manager who left Google for his own start-up company. After eight just use land, but sea as well. These people could potentially be months the company had not made any revenue nor did it have your new competitors. They’ve done deals with people like DP any customers, but it was bought out for a huge sum of money. World, in fact DP World is very excited. So there’s people with He explained: “After eight months the company was big bank accounts that are buying into these crazy science fiction bought for $680million by a company called Uber. Why ideas and turning them into more competition for you.” would Uber buy an eight-month-old, no-revenue, no- Remembering how critics slammed the likes of Skype, Netflix customer business? Because the company was developing and the iPhone saying they would never catch on, he concluded by autonomous trucks, which is a pretty big potential saying: “I would warn you not to dismiss these changes.” l

Issue 66 March/April 2017 Ship Management International 61 Crew Welfare Doctor launches new maritime health company after ‘lightbulb’ moment

US physician with over 30 years’ experience including “It went off when a very important person in the fishing industry treating seafarer emergencies has decided to put his asked me if I could help decrease the frequency of air medical expertise to good use and has launched a new healthcare evacuations. I thought that answering that question directly was not initiativeA to help maritime companies successfully manage the health the right answer if a medevac represents the breakdown of multiple and Fitness-for-Duty of their crew. opportunities that were missed.” However, rather than taking a reactive approach, Dr Ray Jarris, Dr Jarris said illnesses constituted over half the medical cases in says Discovery Healthcare LLC – which he has set up with his his 20 years of treating those at sea and was where the real risk lied. physician wife Dr Ann Jarris – is focused on changing the way “Trauma is relatively straight forward but illness and chronic healthcare is delivered to the maritime sector. disease are very important factors,” he said. “For the duration of my involvement in the industry, it’s been a In terms of acute illness, upper respiratory infections are most very reactive approach. Ships call when there’s a medical problem and prevalent, including potentially fatal pneumonia, and skin infections this is just not adequate any longer,” he said. are also high on the list. For chronic disease, the main one without “We’re not just waiting for the call. We are working with our question is diabetes – either recognised diabetes that is poorly clients to prepare, to train and to have the best resources available and controlled or unrecognised diabetes that manifests for the first time. immediate access to a physician for advice,” he said. “Diabetes kills at sea. This can be minimised and it can be avoided, Discovery Health – named in recognition of explorer Captain so we are really dedicated to providing what we are calling ‘hire to retire George Vancouver and the HMS Discovery – is backed by a team of oversight’ so we preserve the health of professional mariners who are in experienced maritime nurses and physicians, and services include short supply and also because it’s the right thing to do,” said Dr Jarris. 24/7 physician consultations, co-ordination of ship diversions and Being based in Seattle, Discovery Health is working with clients medical evacuations, pharmaceutical supply and what, it says, are in the North West US , Pacific coast, Alaska and Hawaii but says it has unique Fitness-for-Duty and Respirator Clearance Platforms. partnered with an international assistance company to integrate its However, health education and illness and injury prevention are work with a global response capability. equally high priorities. One of the things Discovery Health is doing “One of the things that distinguishes us from others, including is actively monitoring ships’ medical logs. Dr Jarris explained: “Once coast guards around the world that do a fabulous job, is that we a week we are asking medical officers to send us their logs. We will follow events from the moment of conception. We are calling it Time review them and look for individuals who are attracting our attention Zero Occupational Healthcare. and also look for educational opportunities.” “We follow it all the way through to interface with land, the For instance, the use of antibiotics is something Discovery coordination with the medevac to ship diversion to first contact on Health is trying to address by helping the medical officer land, because there is risk at every point and it has to be managed discern between a viral and potentially bacterial illness. Part of really aggressively and tightly.” the concern is where there are a number of people on a vessel Dr Jarris knows only too well the types of problems that occur that have the ‘flu’. on vessels, having served for the last few years as a medical officer “There can often be one or two people that slip through that on expeditions to the Arctic and Antarctic. He has also served as a actually have pneumonia and become gravely ill and have bad medical expert on multiple maritime medical complaints. outcomes. We try to anticipate and avoid that.” “I’ve been able to dissect, through this exposure, where it has Dr Jarris said the ‘lightbulb’ moment went off a couple of years broken down. It’s the lack of integration, of awareness, of the work ago and he and wife Ann have spent the last two years preparing to environment and any of the medical providers who are caring for the launch the company. mariner. That is what we want to change.” l

62 Ship Management International Issue 66 March/April 2017 Crew Welfare: Medical Care UK P&I Club advises on the importance of dental hygiene in seafarers

ophia Bullard, Crew Health Programme Director at UK “Toothache, whether mild or severe, may be further P&I Club, has warned of the importance of dental hygiene aggravated without surgical intervention. Onboard most ships among seafarers and the serious consequences that can there will only be pain relief treatment available, which will give Sarise if mouths are not looked after. short-term relief but will not fix the underlying problem. This “Dental problems can be a major cause for concern amongst can have a detrimental effect on the seafarers’ performance, seafarers. We often see claims arising from dental problems that require concentration and wellbeing, not to mention a significant impact urgent medical treatment and even repatriation of crew,” she said. on sleep, eating and other daily activities.” “On an individual basis these claims may not be in the higher Ms Bullard said symptoms of periodontal disease are seldom claim cost bracket, however, they often result in repatriation of crew, noticed until the disease is at an advanced stage. They include which has a further impact on the safe manning of the ship and other persistent bad breath, swollen gums, bleeding or tender gums, painful delays to ship operation.” chewing and loose or sensitive teeth. With seafarers frequently at sea for long periods of time, they are “Good dental hygiene is extremely important to ensure your often unable to attend regular dental check-ups ashore and this may teeth are not at risk. Effective cleaning removes dental plaque and lead to dental problems developing unchecked, said Ms Bullard. tartar from the teeth, preventing cavities, gingivitis, gum disease, tooth She added: “Long working hours and minimal physical exercise decay and periodontal disease. can result in the excessive consumption of highly caffeinated and “Encouraging and reminding seafarers to take the correct steps to very sugary drinks, unhealthy snacking and high levels of nicotine avoid dental problems will not only ensure their own wellbeing, but inhalation. In these circumstances, if oral health is neglected, gum will also reduce costs for members, and will improve the safety of the disease, tooth decay and toothache can readily occur. ship by helping to maintain a full complement of crew.” l

Seafarers’ survey over medical care at sea eafarers are being surveyed to see what they really think Martek Marine recently launched its own telemedicine offering, about the accessibility and quality of medical assistance iVital, to bridge the gap between medical provisions on land and at onboard their vessels. sea. It combines state-of-the-art medical monitoring equipment with SGlobal maritime technology company Martek Marine has 24/7 access to a team of experienced medical professionals on shore. teamed up with maritime professionals’ trade union Nautilus Paul Luen, Chief Executive, Martek Marine, said: “Crew International to launch the survey which, it is hoped, will fill a safety is of paramount importance to us and forms a large part of void of knowledge in the area of maritime healthcare. our work. We’re always trying to find new solutions to problems Nearly 1.5 million seafarers are at sea at any given time and and if this survey reveals some limitations to medical provisions each year around 7% of them will be evacuated from the vessel onboard vessels, we will strive to offer a resolution benefiting both they are working on due to ill health, often at great financial employers and their staff. Crew welfare is a serious issue, so much cost. A quarter of these evacuations are proved unnecessary, so that the information generated from the survey could quite questioning the efficiency of the measures in place to deal with literally be lifesaving.” medical emergencies. Nautilus General Secretary Mark Dickinson said: “Getting a The Maritime Labour Convention (MLC) states that all true representation of the medical assistance available to seafarers can ships carrying over 100 crew members and passengers for help us answer the question of whether provisions are acceptable and voyages of three days or more must have a medical doctor where there is room for improvement. onboard, however as the majority of merchant vessels are “If, off the back of the survey, measures can be taken to improve crewed by fewer than 25 people, they rely on assistance from medical support at sea, then it will be a win-win situation for both professionals on land. seafarers and their employers all around the world.” l

Issue 66 March/April 2017 Ship Management International 63

CYPRUS SPECIAL REPORT Cyprus Special Report Negotiating a

futurestrong ahead yprus is undergoing an “Last year saw nearly 3% growth (GDP) the proactive steps we are taking to grow interesting period in its and similar levels are predicted for 2017. the maritime industry in Cyprus, we are economic history with several Business sentiment is high, and so is expecting this to grow to 9% over the next Cpotential game changers poised to the determination of the local shipping three years,” he added. kick in if the right actions are taken. At community to strive and to grow the cluster.” While Cyprus as a cluster and as a the heart of it all is resolution of the This was a point echoed by Thomas flag may have grown extensively over Turkish crisis which involves a ban on Kazakos, that ebullient and charismatic the past 30 years, it is the interest the Cypriot flagged ships visiting Turkish champion of Cyprus shipping. In his Government has seen from several ports as well as the island’s emergence capacity as Director General of the sectors such as containers, tankers and gas from its banking problems of 2013 and Cyprus Shipping Chamber, Thomas is carriers, where ship owners are looking 2015 and the discovery of natural gas accepting of the important role shipping for a well-established and quality flag with off its shores. continues to play in the Cypriot economy, a strong and reliable professional services Yes, the Turkish situation remains especially when you consider the dire infrastructure that provides a round- unresolved and the true benefits of the freight rate situation shipping has had the-clock service, as well as a package of estimated 30 trillion cubic feet of natural to bear over the last eight to nine years favourable incentives. gas, valued at over $50bn, has yet to and when compared to how other Despina Panayiotou Theodosiou, Chief be realised, but there are some Cyprus international maritime clusters have fared. Executive Officer of Tototheo Maritime, watchers who believe that one could Marios Demetriades, Cyprus Minister added to the debate: “Cyprus offers the almost certainly influence the other. for Transport, Communications and environment for companies to grow. It is An accord has never been closer, as the Works, went even further. Talking to SMI strategically located, the infrastructure is European Union eyes Cyprus as a future he said: “The maritime industry is essential advanced, as a member of the EU it also energy hub that would give Turkey and to Cyprus, and with plans for further offers stability and safety. Furthermore, there Europe access to gas deposits discovered significant growth, maritime is an integral is human talent, well-educated and skilled in the eastern Mediterranean. part of our economic future. To this end, professionals, there is a transparent and And that leaves the financial crisis. But as the government has prepared a draft bill uncomplicated legal framework as well as an Dieter Rohdenburg, CEO of shipping giant to create a shipping portfolio assigned to a attractive tax regime. All these advantages, Intership Navigation, claims, development deputy minister, who will be responsible to combined with the resident shipping of the Cypriot economy since the banking handle all issues related to shipping. community, have allowed the maritime crisis in 2013 is absolutely “Shipping currently contributes cluster to grow and shipping related services remarkable. around 7% to Cyprus’ GDP, however, to be on an advanced level. with the new strategy we have put in “Our group of companies was place and established and has its headquarters in

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Cyprus and through the years we have developed, allowing us to help shape the largest crew management centres in the developed and grown into one major regulations,” he said. world. A large number of shipowning, maritime communication provider Now more than ever before, the ship management and shipping related globally and are expanding our physical role of flag states as a conduit between companies maintain fully-fledged presence in other countries. Cyprus regulators and the industry is critical. “By offices and conduct their international provided the perfect setting for us to grow working in close cooperation with clients operations and activities from Cyprus. our business and allowed us to create the and organisations such as the Cyprus Despite these positive sentiments, resources and capacity to enter such a Shipping Chamber and Cyprus Union of Ioannis Efstratiou, Acting Director at competitive industry.” Shipowners, the Cyprus flag conveys the the Department of Merchant Shipping, Mr Demetriades again: “Cyprus’ thoughts and opinions of those affected, remains realistic about the flag situation: tonnage tax system” (TTS) is of significant directly influencing how legislation is “It seems that since last year, we have seen interest for quality ships and shipping created and implemented. This is a great a slight increase in numbers but, of course, companies. Approved by the European benefit to those vessels flagged with we should also take into consideration Commission in March 2010, the Cyprus,” said the Minister. the situation as a percentage in respect of simplified tonnage tax system extends the “We know that a personal approach the world fleet. For the last 20 years we favourable benefits applicable to owners and continuous flow of communication have seen a decrease of about 20% - not in of Cyprus-flagged vessels and ship is extremely important to owners and absolute numbers but as a percentage of managers to owners of foreign flagged operators. This is why the Cyprus the world fleet; this means that the world vessels and charterers. It also extends the flag has maritime offices in Piraeus, fleet has doubled and we have stayed tax benefits that previously covered only London, Hamburg, Rotterdam, and stable at about 22 million gross tonnes.” profits from the operation of vessels in New York City, comprising a highly The main problem has been the Turkish shipping activities, to cover profits on the skilled and multilingual workforce. We embargo, but as Mr Efstratiou admitted, sale of vessels, interest earned on funds pride ourselves on our accessibility and measures were being taken to try and used other than for investment purposes, personal, consultative approach. But let’s remedy the situation. and dividends paid directly or indirectly be clear – this is far from the norm; many “Since 2013, we have been taking a from shipping related profits. flags have only a skeleton staff to answer more proactive approach in promoting “Cyprus has negotiated more than emails and issue certificates,” he said. the Cyprus flag and have increased 50 double tax avoidance treaties and is An estimated 4% of the world’s fleet tonnage numbers by around 1.2% or the only open registry in Europe to have and around 20% of global third-party 300,000gt in the year to 2016. The a TTS approved by the EC, providing ship management activities are controlled Cyprus flag is currently eleventh in assurance of a stable fiscal environment from Cyprus, and with the eleventh largest the world but our short-term target is for the long term. Additionally, Cyprus merchant fleet worldwide and the third to return to the top 10. “We are now understands that the evolution of largest in Europe, Cyprus is continually targeting new markets, for example existing regulations and the prospect looking to drive significant growth whilst in Asia, because we want to find of new regulations on the horizon maintaining a strong focus on delivering companies and ships whose trading have a significant impact on owners value to shipowners and operators. programmes are outside the Mediterranean and operators. Our experts play Cyprus currently flags over 1,000 because if anybody is trading within the a significant role in, not only, oceangoing vessels with a total gross Mediterranean, of course in the back of their helping owners and operators tonnage exceeding 22 million. It is the mind is always the possibility of visiting ensure compliance, but we are largest third-party ship management Turkish ports,” he said. also actively taking part in the centre in Europe and discussion as legislation is being one of the Continues on page 88

Issue 66 March/April 2017 Ship Management International 67 Cyprus Special Report: Round Table Debate

CYPRUS SHIPMANAGEMENT ROUND TABLE DEBATE

In the latest in our series of round table debates, SMI drew together leaders of the Cyprus shipping cluster to discuss key issues facing shipping. Chaired by SMI Editorial Director Sean Moloney, panellists included Giles Heimann, Corporate Director Fleet Personnel, Bernhard Schulte Shipmanagement; Capt Eberhard Koch, Chairman, CEO and Partner of Oesterreichischer Lloyd Shipping; Mark O’Neil, Future CEO of the intended Columbia Marlow merger; Andrew Brown, Group Technical Director, Interorient Shipmanagement; Andreas Chrysostomou, Independent Maritime Expert; Capt Eugen Adami, Immediate Past President of the Cyprus Shipping Chamber and owner and Managing Director of the Mastermind Group; Ilias Tsakiris, CEO American Hellenic Hull Insurance Company; and Alexandros Josephides, Deputy Director General of the Cyprus Shipping Chamber. Other members of the cluster who were unable to attend in person, have contributed written answers to the questions posed.

Sean Moloney and they are understandably looking for higher efficiency and One year on from the last round table debate, the freight markets safety, but also at the lowest possible OpEx. I am slightly concerned are still struggling. But there are seeds of recovery coming by the use of the words ‘seeds of recovery’ – we have heard those through. How have the last years of poor revenue for ship owners words many times in the past couple of years – but there has been impacted on the way you manage their ships? little sign of this recovery really occurring. With regards to financial matters though, interestingly enough, BSM has recently been Giles Heimann participating in a Boston Consulting Group study where BCG Continued challenges in the shipping industry have affected the compares our results with the results of other ship managers and way ship owners utilise the services offered by ship managers, ship owners. Judging by the results of the last survey they ran, our

68 Ship Management International Issue 66 March/April 2017 Cyprus Special Report: Round Table Debate operating costs are 10%-11% lower than the average of other ship managers and, more importantly, owners participating in the same survey. You can put that down, to a certain extent , to economies of Capt Andrei scale; with a fleet of over 600 ships we have increased purchasing power and we also have the ability, with a much larger crew pool of Hudźasvili 18,000 seafarers, to control our costs in perhaps a better way than Managing Director, Cymare many owners are able to do so. Shipmanagement Investment in IT and Big Data are is very important, but they are not necessarily items that the ultimate client, the ship owner, is going to write a blank cheque for. These are things that we, as a ship management company, know we need to invest money in, because the ultimate outcome will be that our operating efficiency is improved, and we will be able to offer a better deal for our clients. We are already investing significantly in our own internal systems, ship management software and customer web access, as well as mobile applications to track and monitor all aspects of ship management, whether it is crewing, or pure operations. It is an important area we will continue to invest in, to grow and support our customers. “The only way to manage ships when trading conditions and charter rates are Capt Eberhard Koch so weak is to keep an extremely stringent We are not involved in third-party management, we manage our control over operating costs to help owners ships in-house. But we strongly believe that lower revenues should remain afloat. In short, you need to stretch not be any reason for lowering the maintenance and standard your budget without sacrificing vessel of our ships. We are known for delivering a very high level of maintenance, quality of overall operations maintenance and safety on our ships but my shareholders have and your loyal, most experienced and not asked me to reduce any of my presented budgets because they well-paid crew and shore personnel. Some know that the charterers expect even higher service in times of low people say that shipping has faced much revenues. Yes, we also see seeds of recovery in some segments but I worse in the past, and eventually prevailed. am worried about bulk carriers. When it comes to containerships, However, the intensity of the current due to the high level of scrapping, we are starting to see a recovery. challenges and setbacks was never known or experienced before. The time has never Sean Moloney been so unfavourable if not hostile to ship But how long can owners exist when you sometimes have owners and small owners in particular. I revenues up to 30% below OpEx? Are owners altering their think we have now to admit that apart from operating strategies to take this into account? the low freight markets, shipping is in a serious crisis. Capt Eberhard Koch Costs have all risen consistently since We have kept OpEX at a stable level over the last couple of years, 2008. So, if there are seeds for recovery while at the same time, by undertaking pre-maintenance, we are coming through then they must hurry up… avoiding times off-hire. “The Cyprus shipmanagement cluster has the potential to develop further but Mark O’Neil there should be a strong will between the I think the question here is how have the last few years of low revenue Government and all political parties on the impacted on the way we manage owners’ ships. I know that everyone island to invent some essential preconditions around the table here will say that proper safe management is proper and find an ultimate resolution of the safe management and that cannot change as a paradigm irrespective Cyprus-Turkey issue. Up to now words speak of the revenue received. The challenge for us as ship managers is, a lot louder than actions and regrettably therefore, to optimise the service we provide in the circumstances, the recent round of negotiations and talks and this involves greater efficiency, greater efficacy, reducing fees came to a diplomatic standstill again, so the and minimising costs, doing what we do better and working in uncertainty still remains. partnership with ship owners and understanding their particular cash

Issue 66 March/April 2017 Ship Management International 69 Cyprus Special Report: Round Table Debate

doing an excellent job because we are seeing a decline in insurance claims, but 80% of claims are crew-related so there are certain things that the manager can’t control and these tend to be related to the people. The manager can train the crew but he can’t actually control what they do when they are on their watch. Big is beautiful as far as insurance is concerned, because the bigger the fleet then the bigger the discounts that can be secured. But our main concern as underwriters is that third-party shipmanagement has to be extremely professional. As a result of bankruptcies, we see third-party ship

Andrew Brown managers being given vessels to manage by the banks and sometimes Group Technical when banks are the owners, the insurance risk could be higher. Director, Interorient Shipmanagement Sean Moloney Can I get feedback from the managers here about the need for more professionalism among third party managers and maybe flow difficulties. A lot of people talk about “partnership”. Partnership is bring in the element of crew competency as well? a word that is used too readily in the industry, but there are very few of us who really understand the concept and demonstrate it in their day- Giles Heimann to-day business. As an industry sector, in order to survive and prosper, I think there is a general level of professionalism among the major we need to make ourselves and our products compelling to ship third-party ship managers, we all benchmark against each other. owners; to manage vessels as well, if not better, than ship owners can; Because of the continual financial downturn, the interesting thing and to achieve economies of scale, which are essential. The argument is that we are seeing a lot more ships coming under the control of behind consolidation and growth of the larger shipmanagement banks, and the banks are looking to us to be professional and operate companies, is compelling and we are on that path. those vessels safely, but at the very best cost basis. So, all third-party ship managers are trying to achieve that high level of service. Some Sean Moloney succeed, this goes back to the economies of scale argument, again So big is beautiful as far as shipmanagement is concerned? where I would agree that bigger is better from that point of view. I don’t think some of the smaller shipmanagement companies can Mark O’Neil offer that same economy of scale. From the crew competency point That is oversimplifying it. I think big is perhaps necessary but with of view, the ability for a larger group to attract a wider demographic the associated and necessary attention to detail and attention to the of nationalities, is an advantage. It allows us to look at the skills and owners’ needs. Big is only beautiful if you manage to achieve that competencies of seafarers from many different countries, rather than partnership element, where you can treat each client on an individual restrict ourselves to the traditional groups, such as The Philippines basis and according to their individual needs. Big is beautiful from the point of view of economies of scale for sure, and that has to be a As an industry sector, compelling argument, but we have to also remember that each client “ is different with his own particular needs and demands. in order to survive and

Andrew Brown prosper, we need to make As ship managers, we have access to a large crew resource which ourselves and our products ship owners don’t have. We can train the crew which is important compelling to ship owners; and keep the ships maintained well. I don’t see seeds of growth in many sectors and I agree the contracts we have with suppliers to manage vessels as well, and with shipyards will work to improve OpEx in the end. if not better, than ship

Ilias Tsakiris owners can; and to achieve I don’t see any optimism in the markets. Since the crisis started economies of scale, which in 2008, we have 50% more vessels sailing around so there is are essential overcapacity. On the other hand, we see a lot of third-party ” shipmanagement companies appearing. As far as insurance is Mark O’Neil, Future CEO of the intended Columbia concerned, and I will concur that professional ship managers are Marlow merger

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Cyprus Special Report: Round Table Debate and India. Crew competency is something that has been on the Further the low freight rates provide third-party ship managers the agenda for many years now, but it has never been a future lack of advantage of making use of the economies of scale. Or as I would supply of officers but a future lack of quality and competence. Again, call it, to do more with less. Ship managers, whether in-house or the larger organisations have their own training facilities, and are able third-party, can influence profitability because if they retain the to invest money in developing seafarers’ competencies, which again I same prices as before when it comes to their management fee or would suggest the smaller companies are sometimes unable to do. their management services, it means that the gap between the profit of the owner and the manager is becoming smaller. And we Mark O’Neil know that managers cannot exist in the system, if they are running a I would go along with what has been said. Every manager, large or ship more expensively than the ship owner is. So the management small, tries to do his or her best for their clients. When you look at service is relevant because is actually cheaper. I would say that crew competency, you have a number of different issues to consider managers do have bargaining power when it comes to profitability and one of them is recruitment. Of course, you have to be out there in in an environment of lower freight rates, by using their powers of those jurisdictions that have a crew resource. Then there is training, and economies of scale. Banks could be a very good example where this the bigger the manager the greater the ability to invest in training and gap between the management fee and profitability is much smaller. facilities. Then there is retention. You need to be able to bring quality Even the in-house manager can do more with less; synergies can exist personnel through your operation and retain them in order to increase between two or three companies with small fleets especially if they the experience level. There is therefore a need to invest heavily in all are not competitors. these areas, and this is what most managers try to do. If being bigger better lends itself to the ability to invest, then it must be more beautiful. Capt Eugen Adami Of course the Cyprus Shipping Chamber (CSC) has recognised Andreas Chrysostomou that when it comes to ship management, we are not in the In response to the question about whether owners would behave shipping business but we are in the people business. And this differently when it comes to the management of their ships, because means that our maritime infrastructure can only be sustainable of the drop in freight rate income, the answer cannot be yes because in the future when we emphasise the importance of the workforce, of the whole regime around it – the relation to safety and security. shore-based as well as onboard our ships. The CSC has worked

Cyprus Special Report: Round Table Debate hard over the years to work with universities as well as with the to benefit from economies of scale. Smaller owners are heavily Government and the Institute of Chartered Shipbrokers to help penalised by the banks, and have the regulatory workload concerns educate over 1,000 graduates to date on the Understanding of as well, so it all becomes rather cumbersome for the smaller guys Shipping course. We have also pushed another 700 graduates to pull through. When you look to the future, and in embracing through other universities. That is almost 40% of the existing new technology, we have to open up our systems to our clients workforce here in Cyprus and we could be working hard to increase and our charterers and to our future investors. We need to have a this number. This means we will have highly educated European new infrastructure on the IT side which allows people to plug-in people, concentrated in the eastern Mediterranean, to strengthen conveniently. We must accept that we must become fully transparent the Cyprus shipping cluster when the markets take off. A domestic and consider clustering, ie to team up with other companies such local workforce will be here and available. With regards to how my as on the supply side to invest in purchasing alliances, and run these company has fared through these dreadful years, I can only say that purchasing alliances with intelligent supply chain management; drill we are trying to do what everybody else is doing, and that is to offer down to the individual machinery to the smallest component, find more for less cost. Economy of scale is very important, however, where these components are produced and share this information how are you going to translate your better buying power into a among members of the purchasing alliance. better operation onboard ship, for example lower maintenance costs and higher revenues. This only works when you include the Mark O’Neil seafarers in your company’s policies. Seafarers have to take the I agree with everything that has been said, but I think there is too cost-cutting decisions as their own. I operate in the break bulk, much focus on more for less, when we should be focusing on general cargo business and I depend on seafarers taking commercial more and better for (potentially) less. We have to do things better decisions; seafarers who clean cargo holds, who motivate the cook than we have done before and look at trying to make ourselves etc. and this only happens when you embrace and motivate them. I compelling and relevant to the market; there is no doubt that an believe that owners today can only operate in niche markets; when owner who has the infrastructure available to him, will do just as owners operate in the main upstream markets like containers and well with his vessels as we would do as third party managers. We tankers, these owners must team up with professional third-party must therefore be compelling and relevant and a way to do that is ship managers to find ways to get employment of their ships and to look at the services we provide, whether it is individually in the

Cyprus Special Report: Round Table Debate larger companies or in the form of an association in the case of the When you look to the smaller companies. We have to look to provide other services “ around the basic management function. So, we are not just future, and in embracing providing management, we have to view ourselves as maritime new technology, we services providers generally. We will not survive as an industry if all that we are providing is third-party shipmanagement. have to open up our Within the intended Columbia Marlow extended platform, we systems to our clients will provide a whole raft of services modules that involve taking responsibility for all those expensive functions that the owner and our charterers and does not need (or want) to bother with any more – whether it to our future investors. is flag administration, or insurance/ claims, recycling, or IT – in We need to have a new addition to the standard crewing and the technical management of the vessel. We cannot be just a third party manager any more, infrastructure on the IT we must be a maritime services provider. We do not want to side which allows people be stuck in the rut of previous definition of ship management. Progress is progress and we need to move forward with this. to plug-in conveniently”

Capt Adami Capt Eugen Adami, Immediate Past President, Cyprus I totally agree with Mark and what I meant was more services for Shipping Chamber and Owner and Managing Director, less cost and that is clustering and buying power. Mastermind Group

Giles Heimann Capt Eberhard Koch Just picking up on the expression ‘the maritime service provider’, It is also worth noting that the first Cyprus Maritime Academy this is a key point. It is not just about providing a ship management opened its doors in August last year and we are getting a lot of or a crew management service, it is about providing all the support from the Cyprus industry. Hopefully in four years’ time surrounding services that go with it, such as travel, insurance, ship we will have our first Cypriot and Greek officers, educated in repair and chartering, and more. Yes, ship owners are looking to Cyprus. There is also cadet career funding in place so the cadet ship managers to run an efficient service. If you look at the larger knows that after the second semester where he’ll be working after ship owners, such as Maersk, who have traditionally not used third four years’ time and get financial support at the same time. party ship managers – they have put ships under our management for benchmarking purposes and to gain the benefits of knowledge, Sean Moloney information and best practice exchange. Ship owners and ship You don’t use third party ship managers but the manager of the managers all have the same challenges and it is through sharing future will be a one stop shop provider of quality services who knowledge and information that, not only third party managers, will be going one step further to help and work with you in but the owners themselves, find there are more efficient and safer partnership. Could ship owners be buying into this and are you ways of operating vessels. getting excited about this?

Capt Eugen Adami Owner and Managing Director, Mastermind Group

Alexandros Josephides Deputy Director General, Cyprus Shipping Chamber

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Cyprus Special Report: Round Table Debate

Left to right: Capt Eberhard Koch, Chairman, CEO and Partner, Oesterreichischer Lloyd Shipping; Mark O’Neil, Future CEO of the intended Columbia Marlow merger; Ilias Tsakiris, CEO, American Hellenic Hull Insurance Company; and Andreas Chrysostomou, Independent Maritime Expert

Capt Eberhard Koch Columbia and Marlow have invested in their own IT company Blue We will always, as a company, undertake our own in-house Dynamics, in which we have 50 software programmers developing shipmanagement; we are not looking for third party ship relevant programmes around our services and improving efficiencies management. Pricewise, if you have a small fleet and you have time and efficacy for us and our clients. The IT revolution is part of our enough to tender your orders and get the same price as the larger lives and we all have to embrace IT developments into our systems, managers, then you will benefit. Some owners are afraid of the which is what we are doing. numbers of ships that some of the larger managers are managing and have installed in-house fleet managers for control; yes, you Giles Heimann must have a very close relationship with your future owners but I wouldn’t agree that it is either easier or harder for larger ship if you have 500, 600 or 700 ships you might find it difficult in the managers to maintain good client relations than small managers, future to keep the same relationship with the owner as in the past. as a great deal depends on the organisation. At BSM, for example, And this is not what owners want. They want a close relationship. we have individual shipmanagement centres in key parts of the world, where that client relationship is managed locally from that Andrew Brown office. So, it is both possible and important, even though we are a You have got to have a close day-to-day relationship with the ship large organisation, to have very good direct client relationships. owners because more and more of them are installing their own managers, and they are watching the managers, which is unusual and Andreas Chrysostomou costly for them but this is what is happening. Ship owners want to How can we, as an industry, ensure that it is not one size fits all in our see what we are doing on a daily basis and what steps we’re taking to solutions? We have to personalise the solutions we have on offer to overcome whatever problems may occur. They also want to analyse meet the needs of the customer. When we have a very precise product, accounts on a daily basis to see what we are spending the money on. we can ensure, in a way, that one size fits all. But when we diversify the product to include many different things, and then go onto the issue of Giles Heimann offering a complete package to customers, or a full maritime services IT is an area where we are seeing this type of attitude, if you like, product, then we should customise it and we should be very careful to through tools such as customer web access. We are always under the maintain the correct customer/client relationship. microscope and we are always being studied – are we doing things the right way; are we doing things the way owners expect us to do them? Capt Adami Don’t forget there is a difference between the various ship types, Mark O’Neil and there are certain ship types that are predestined to go to third I think we are all in the business of relationships aren’t we? Whether party ship managers: these are the standard vessel types such as it is with our clients, our staff or our suppliers, and by our staff I also containerships and tankers. The ship owner is looking for the added mean our crew. The larger you become as a manager, the challenge value from this, especially when it comes to what the manager can you have is to ensure that the relationships you have still remain do better than the owner can do himself. And the ship owner will strong, and that these are tailored relationships. You cannot provide a ask himself in handing the business to a third party manager, am I standard Columbia Marlow, BSM or VShips’ approach for everyone, losing contact with the vessel? Who will the seafarers identify with you have to ensure that every client gets precisely what he wants out when they serve onboard my ship? Will they take my company’s of his relationship. The relationship needs to be tailored and personal identity or will they take the identity of the third party ship manager? and this is what we work so hard to ensure. IT helps, which is why I believe that ship managers today must be good communicators;

80 Ship Management International Issue 66 March/April 2017 Cyprus Special Report: Round Table Debate they must be able to bring the various interests together – seafarers, to crew retention. The higher the retention level you have the better the charterers and the owners; they must establish key account your operational results. For us in insurance, the professional third management so that the small ship owner finds himself identified in party managers are very useful; they have improved a lot of things the big management company, and the big management company when it comes to what traditional owners used to do. Third party is able to make him feel accommodated within their structure. The managers are investing heavily in crew. But whether we like it or bottom line today is do we survive or do we not survive, and after the not, while crew costs represent 50% of OpEx, they still represent recovery the question will be how much money do we make? For 80% of the claims. Talking about IT and computerisation, we have that to happen we have to work together, we have to be shoulder-to- invested millions of dollars in this area because we wanted to try shoulder and we have to look for the added value. Maybe that ship and identify how claims arise. To us this is the $1 million question. owner is investment driven or that other ship owner is a third- Are the claims related to the engine type or the amount of hours a generation family ship owner, if so, then the values may be completely day being worked?; and is there a link to the training of the crew? different but we have to adjust to these all the time. The modern All this data is being recorded but we are processing less and less of ship managers do this to a greater extent – they help the ship owners it because of the sheer volumes involved. So, I agree that third party get through their financial restructuring; they help them do better shipmanagement is essential for quality of shipping and if we are to reporting. This is a lot of the added value that we don’t talk about. see a drop in claims. As long as there is no conflict of interest and ship managers are regulated like the rest of the insurance industry Sean Moloney we take no issue with them being insurance brokers. Ilias, let me bring you into this point. Are ship managers good communicators and do you welcome some of them potentially Sean Moloney becoming insurance brokers? This question that 80% of accidents are due to crew related issues is something I was reporting on 30 years ago but why are we still Ilias Tsakiris seeing it in today’s industry? I agree the managers are doing a great job in protecting their clients, but it cannot all be good. What we have seen are third party Giles Heimann managers who have excelled themselves, especially when it comes The reality is, that over time, we are placing more and more

Dieter Rohdenburg CEO, Intership Navigation Co

“The first months of 2017 have seen a remarkable upswing in the dry bulk markets. There are signs that this development may be sustained - provided there are no new waves of placing orders for new vessels. “Clearly the last years of depressed markets have taught ship owners and managers to be more cost-conscious as the only way to continue to have an active interest in the improve the bottom line. We have used this condition and performance of their vessels, but as opportunity to improve our management use managers as they are better geared to meet systems and to increase the emphasize on safe all the requirements – economic, regulatory, ship operation and incident/accident prevention. technical etc. Economies of scale help managers This will no doubt lead to improved results in to perform their duties more efficiently than future - not only financially, but more importantly smaller owners could, and I am certain that we in less incidents and safer ships. will see further consolidation of the industry in “The service of managing ships is typically the near future (both by mergers of technical outsourced by owners who do not see this as managers as well as owners outsourcing their core business. These owners typically technical management to larger managers).“

Issue 66 March/April 2017 Ship Management International 81 Cyprus Special Report: Round Table Debate “Investment in IT and Big Data is all very important, but they are not necessarily items that the ultimate client, the ship owner, is going to write a blank cheque for”

Giles Heimann, (pictured) Corporate Director Fleet Personnel, Bernhard Schulte Shipmanagement responsibilities on our seafarers in terms of systems, procedures and all trained to the highest required standards, but that the qualified and paperwork. If you turn the clock back 25 years, when I seafarers have continuous and regular ongoing training and that the was at sea, yes, we had procedures and systems, but they were senior individuals are then retained within the organisation, having generally simpler. Now we are putting more and more technology loyalty to the organisation, and then passing their experience down. onboard our ships; we have reduced the number of crew that are It is all about having the complete package. Most incidents occur not operating the ships; the commercial pressure on vessels is greater; necessarily because of the guy on deck at the time, but more to do the nationality demographic on today’s vessels is varied; and the with the inadequacy of the support infrastructure behind him – is he welfare provision and social atmosphere onboard today’s ship is being probably looked after and properly supported? very different than it used to be. This is particularly relevant when you look at issues such as behavioural-based safety (BBS). The Sean Moloney cold hard reality is that whilst it is a problem that everyone in It begs the question, what will the future seafarer look like? Will the industry is facing; there is no rapid solution. All we can do is he be holding a screwdriver and a hammer or will he be some increase levels of competence, provide as much support as possible IT savvy techno kid, totally in tune with up-to-date technology to the seafarers, try to provide consistent management systems and the Internet? that work for them, rather than pieces of paper just to maintain our compliance as employers. It is a huge challenge and unfortunately Mark O’Neil human error will always be there. All the training in the world will I think they are, inevitably, more tech savvy these days. The younger not completely take the statistics away. All we can do is continue to generation are for more tech savvy than any of us around this table try and support our crews and provide high levels of training and will ever be. Retention rates within our intended company are this, together with good BBS will hopefully control the statistics. around the 95% mark and words like ‘family’ are key. You cannot invest this money in the seafarer as an individual and then allow Sean Moloney them to go elsewhere. Those companies that invest and retain will Mark do you have any views on this? minimise the incidents that are happening out there.

Mark O’Neil Giles Heimann I think the answer is invest, invest and invest – time, effort and money. I do agree with Mark but I want to come back to your question The intended Columbia Marlow merger looks at training in a very about what the seafarer of the future will be like. Again, we can sophisticated way. It is not just taking your raw recruit at one end turn the clock back 20 years, where a deck officer standing on and spitting out a seafarer at the other who may have done all the the bridge would be using an old-fashioned ARPA, and now training requirements and ticked all the boxes. It is about the ongoing we’re looking at digital chart systems, dynamic positioning and pastoral and professional management of that seafarer. Capt Adami ECDIS. The seafarer of today has already evolved enormously, talked about looking after the seafarers and being mindful of their but that doesn’t only come down to the jobs they are doing, concerns and welfare at home. It is not about treating them as cogs such as navigating the vessel or controlling the systems onboard, in an engine, but looking after them comprehensively and looking suddenly we are sitting them in front of a computer and asking after their families, careers and their ongoing training requirements as them to answer email on a regular basis. We are asking them well. It is vital that we not only have recruits going through the system to compile online reports and monitor complex technological

82 Ship Management International Issue 66 March/April 2017

Cyprus Special Report: Round Table Debate “As far as insurance is concerned, and I will concur that professional ship managers are doing an excellent job because we are seeing a decline in insurance claims, but 80% of claims are crew-related so there are certain things that the manager can’t control and these tend to be related to the people”

Ilias Tsakiris, CEO American Hellenic Hull Insurance Company systems, so they will naturally evolve into becoming more look at how do we develop leadership in these guys and that is technologically advanced. missing. A master of a ship is like a CEO of a business.

Capt Eberhard Koch Mark O’Neil Investing the time that Mark mentioned, is very important, We are in an environment which is becoming increasingly and we strongly believe that the briefings in the office are commoditised. A lot of the questions being posed today ignore sometimes better than a bunch of new regulations that what is happening in the wider food chain – the talk now is all we are sending onboard ship. Investing time from the top about commoditised vertical structures with the supply of cargo management is very important. at one end and the market at the other. The challenge for the ship owner is to adapt to that environment as well. And I completely Capt Adami agree with Capt Adami in keeping the culture, because we are the When we talk about training here we are looking at it in too human element in such a commoditised chain and if we don’t look short a time-frame window. We are talking today, 30 years after the human element then the whole chain will break down. after theHerald of Free Enterprise disaster in Zeebrugge where Within that chain, shipping must remain relevant and compelling. 193 people lost their lives. The result of this was that the ISM Code was enacted. And now we talk about training and Sean Moloney checklists. Now Giles said that when he was onboard ship Thank you gentlemen. I want to talk about Cyprus as a maritime there was a system, albeit a different system, but it was a culture: cluster now. How positive is business here on the island, and what the shipping companies had a culture and that culture drove are the prospects in the next few years in terms of cluster growth everybody else onboard to do the job correctly and we have and new opportunities? to grow a culture. We don’t have to grow an STCW-compliant training system, we have to go back to a real shipping culture Alexandros Josephides and that has to start with recognising the professionalism of We are investing strongly in developing a cluster here on the island the seafarer as a person. We should not criminalise these young where we can deliver the services that the businesses here require guys and we should do exactly what Eberhard has said, and and I am personally very optimistic about our future here on the

84 Ship Management International Issue 66 March/April 2017 Cyprus Special Report: Round Table Debate island. Cyprus started as a cluster, composed mainly of third party Sean Moloney shipmanagement companies but we are looking at a cluster today Andreas, let me bring you in on this. Is the future of the cluster in which is populated with ship owners, ship managers and a whole global shipping assured for the future and will Cyprus continue range of shipping-related services. We have seen growth and to play a pivotal role in that? development of maritime education here on the island, something we have promoted from the beginning, so that our children can Andreas Chrysostomou be educated in this industry and come back and work for the From my experience, the Cyprus cluster can flourish. It can be companies here on the island. We have approximately 50 young everything that Alex has said, pro-vided that there are no external people a year passing through maritime academies both on the threats from its own internal market. The worries are not directly island and abroad. Hopefully when these people return as full related to the Cyprus Shipping Cluster but the European Cluster professionals and fully trained Masters and Chief Engineers, their as a whole. Here in Cyprus two years ago we identified that the involvement in the island will boost the attraction of Cyprus as a centre of our cluster was third party shipmanagement and we saw place to do business. What brought people here in the first place that the cluster had the potential to grow irrespective of its core was the overall legal and financial working environment, the supply by adding in all the services that Alex mentioned. Since we do of qualified people and the availability of professional services such not live in isolation from the European Union, the single market as law and accountancy. We also worked very hard on our taxation influence should be taken into consideration. system which was fully approved by the European Union in 2010. We also have to be very careful when it comes to tax incentives, We have a maritime administration here which is very strong because the others are watching us very closely. Times are changing and very competent, and we are working with the Government but Cyprus has a huge understanding of how to turn threats into to make that even more efficient, flexible and self-standing. We opportunities. Don’t forget, we are the only peaceful nation at have banks here now developing their own shipfinance services the moment in this region. People want to maintain that position which we didn’t have in the past, and we have people investing in a in Cyprus so let’s take advantage of it. The Turkish em-bargo is a floating dock to offer a ship repair services here on the island. These major issue and we cannot change it alone but the Government is services coming together will only increase the attractiveness of working very hard to re-solve the issue. The problem is can we go Cyprus as a shipping centre. around it? We must find ways to resolve it. Mark O’Neil Sometimes when you have been here for a while, you can close your eyes and be blind to what you have. But being new to living here, I am perhaps better able than most to see what we have. As long as a place remains compelling and relevant it will do well. If it is a good place to do business it will do well. In my experience, and I see it more clearly now, Cyprus is a good place to do business; it has all the relevant components of the cluster that we need; it has a highly educated population and an increasingly maritime-educated population; it has professional services available and has a secure and safe court system which we would expect, so it is a very good place to do business in. What surprises me though, is the commitment of the shipping industry here to Cyprus and that cuts completely across competition. There is coopetition in selling Cyprus as a good place to do business.

Giles Heimann As probably the second newest person to the island here, the taxation regime on the island is advantageous. The cluster is safe and is growing and I believe there are about 140 maritime-related companies based in Cyprus. I believe that the maritime cluster’s contribution to the country’s GDP is around 5.5%. We are also starting to see developments like the Cyprus Maritime Academy, which BSM is supporting through provision of our owned training centre; we’re starting to see more commitment to develop the maritime industry. I can even say from a personal point of view, that when I moved here two years ago, I firstly looked at all the major shipmanagement centres – Singapore, Hong Kong and Cyprus. Cyprus was the one that had the greatest interest for me because of its location, because of its connections, because of the companies that are based here, and the huge amount that Cyprus has to offer the shipping and maritime industry.

Ilias Tsakiris When we commenced our negotiations with the American P&I as to where we should set up our insurance company, various jurisdictions were under consideration within the EU. However, the choice could not have been easier. Cyprus, by every respect, has one of the best business environments to set up any type of business. For starters, the Superintendent of Insurance demonstrated extreme professionalism and efficiency. The authorities assisted us during our licensing process by pointing to the correct steps that we had to follow since Solvency II had just been implemented. American Hellenic Hull’s Board was so impressed with the level of expertise within Cyprus, and this had as a result to appoint risk managers, actuaries, internal and extrenal auditors, and compliance officers, all from Cyprus. At this point a note of gratitude should be addressed to the Cyprus Shipping Chamber and the Minister of Transport, Communications and Works, Marios Demetriades, for their valuable assistance.

Sean Moloney Gentlemen, thank you very much for your time today. l

Cyprus Special Report

not customary for the younger generation to follow into traditional shipping professions. This is starting to change Bucking the cost trend slowly, with more young Cypriots now joining training academies,” he said. Cyprus remains a very cost-effective place to run a The Department has been staging some shipmanagement business from, with not only operational costs campaigns in High Schools and would like dropping but also salaries reducing often by as much as 10%, to see at least 100 students coming through according to one of the industry’s leading players. each year. It will also look to the bigger Sunil Kapoor, Director of FML Ship Management, said that maritime companies in Cyprus to start Nicosia had become a more popular destination on the island offering jobs to Cypriot ex-seafarers. for ship managers because of the lower rents and also because Another significant development of the quality of the English schools for the ex-pats. is the decision by the Government to “The recession which took place in 2013 also brought down submit a bill to establish an independent the cost of operation in Cyprus. The salaries of the local people Deputy Ministry of Shipping, as already reduced by 10%. We did not reduce our salaries but you could alluded to by the Minister. That means see there was a significant reduction in the day to day operation that the political leadership can have of our office,” he said. the power to take political decisions According to FML, during the recession, lots of Greek owners directly to the Council of Ministers and registered their companies on the island so if things became the President of Cyprus. The Minister worse they could quickly move to Cyprus. A lot of Greek people will also be responsible for drafting and also came to Cyprus looking for jobs. monitoring national shipping policy This was a point echoed by Louis Nicholas P. Loyal, Managing and politically responsible for the day- Director of Esmeralda Shipmanagement, a company established to-day provision of the Department of as a crew management concern in 2002 before moving onto full Merchant Shipping. More significantly, management before becoming ship owners in 2008. the new Deputy Ministry will also “It is a very small community here on the island so we know each permanently represent Cyprus shipping other. That means if I need something, I can get it right away.” in the European Union, IMO as well as be responsible for the promotion of Cyprus shipping as an autonomous govt agency. Continued from page 67 Development of the Cyprus cluster But as Thomas Kazakos stressed, if, The flag carried out a study last is high on the island’s agenda, especially and when, a resolution to the Turkish year which took into consideration when it comes to financial services. But as ban is reached, and there has been a shipping routes and trading patterns by Maria Hajivarnava, Shipping Department massive amount of intense negotiation a variety of companies and ship types. Advocate at the Nicosia-based law firm already undertaken and common ground The Department is still analysing the Christodoulos G Vassiliades & Co reached, it is acknowledged that shipping results but is expected to target specific explains, while the cluster may be showing will remain one of the few federal services companies and specific ships during the signs of growth, the industry is still having in the country. second quarter of 2017. However, the to deal with the aftermath of what has “A lot of preparation is being done preliminary findings of the study indicate been one of the toughest global economic to ensure that the existing operational the flag should concentrate on the Asian crises in generations. system of shipping in Cyprus such market because of where the vessels trade. “We have shipmanagement companies as the tonnage tax, one flag, will be “We try to develop the cluster in as clients and more are coming to Cyprus adhered to. So far, the assurances suggest general and not just the flag. We are and we are also starting to see ship owners that will be the case. Couple that with also interested in ship owners and ship coming over from Greece. the geopolitical developments in the managers that want to join our tonnage “There is optimism with reservation. region, and ongoing discussions for the tax system because we want to develop We do know that the industry is still exploration of natural gas in Cyprus, the industry,” said Mr Efstratiou. having a lot of problems and it’s going to then this can only work to more positive And this includes motivating more take a lot of years to come out of this. We understanding by Turkey to resolve the young people to think of maritime and still see the closing of companies and the Cyprus issue,” he said. the sea as a possible career. “In Cyprus it is restructuring of loans.

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But how strong is the legal sector on Lloyds brokers, and we’re growing According to Costas Joannides, CEO the island? business from the German market. of Marsh, the insurance sector has come “People in Cyprus are very well- The Greek broking market is a very under a lot of pricing pressure in view educated and most of the lawyers have important market for us accounting for of superfluous capacity which has been been educated in some of the UK’s best more than 45% of our book. partly the result of heavy investment universities. Many of them have worked “We are currently road showing in in the insurance sector, as well as due abroad and this is great experience the Far East and we will be road showing to underwriters understanding of the because we are an international centre in the US; the plan is to grow even more difficulties that our clients face with and deal with international lawyers and by the end of the year and to increase the freight markets. situations all the time. I believe corporate number of our vessels. Our clients on the island take a services and legal services here are of a “Looking at Cyprus as a cluster, there balanced approach as they do not wish to very high standard. are certainly stronger prospects than most compromise long term relationships and While restructuring of loans was think in growing business down here. broadness of insurance cover, and they insist making up a large part of the workload at Cyprus is better located than several other on utilizing first class insurance companies. the moment, Ms Hajivarnava said there clusters and is a crossroads geographically, “While we are under significant pressure to were also smaller companies coming to which is why it is extremely resilient to push prices down there is no relaxation on Cyprus looking for a more advantageous disasters,” he said. the quality of the products we offer”. solution to help them survive the crisis in the shipping markets. “It is very easy to set up a company here in Cyprus and the system is very solid and straightforward. We are also Cyprus Cluster Provides noticing a movement from Limassol to Nicosia because rents are lower here. The Growth Opportunities cluster is spreading out from Limassol very, very slowly. Indeed, some of the More Greek Ship Owners are basing their operations from big shipping companies have offices in Cyprus due to the booming maritime industry there, says Marine Nicosia,” she added. Catering Training Consultancy (MCTC). Growth of the insurance sector on MCTC, a Cyprus-based company that was founded in 2013, the island has been strong with existing offers expertise in training catering crews onboard vessels. In the players strengthening their market last four years it has gone from providing catering training on share while others are building stronger several vessels to currently just under 300. footholds. Managing Director Christian Ioannou says MCTC’s heart The American Hellenic Hull will always lie in Cyprus, which he believes to be a vital part Insurance Company is one such of the global maritime industry. positive example, having more than Mr Ioannou said: “Cyprus has always being a vital part of the doubled the number of ships on its maritime industry with a growing number of ship owners and books since its launch in the middle of managers. Some of the largest ship management companies last year. The Cyprus-based insurance have a base in Cyprus. company, a wholly owned subsidiary of “The Cyprus cluster is important to MCTC as a lot of crew- New York-based American Steamship related matters, such as training is handled by Cyprus-based Owners Mutual Protection and companies. Having our base in Cyprus and being half-Cypriot Indemnity Association, inherited myself, means our hearts lie here. MCTC is regularly approached business originally written by the by Cyprus-based companies, who like the fact that we are close Hellenic Hull Mutual, which is now in by to their offices. run-off. About 610 ships transferred “The Ministry of Transport has been actively involved in projects cover under a novation deal but that provide growth opportunities for Cyprus. Greek owners move the fleet on the books of American into Cyprus to operate their offices with a professional approach Hellenic has now passed 1,286 vessels. from the Cyprus Department of Merchant Shipping. This definitely Ilias Tsakiris, CEO, told SMI: “We makes things easier for them to move here.” get a lot of our business still from the

Issue 66 March/April 2017 Ship Management International 89 Cyprus Special Report

“The majority of the local shipping your existing clients taking the drastic are very quick in copying new ideas industry is very loyal, preferring to rely on measures. So, we are in a constant attack and we are developing new ways of high levels of continuity as well as long and defend situation where we are trying making the process faster. The whole term relationships. I have not seen any large to take advantage of situations while at the thing could be a logistics nightmare breakouts or any claims unsettled. When same time defending what we have. The but if you organise it properly it is we present a claim, it is looked at positively majority of the market hasn’t been making doable,” he stressed. rather than at how it can be avoided. Insurers big changes because they have been trying “The Cyprus market has always been know that the systems that our clients are to lay low to see themselves through. a very important market to companies using are so advanced and so transparent; “Our main strategy is to maintain like ours,” said Asad Salameh, President they visit the island several times each year our portfolio and look for opportunities of SatComms specialists World-Link and can audit their systems. The change where real opportunities lie. We are lucky Communications, “and will become even that we are seeing in the insurance market that we have very loyal clients throughout. more important following Brexit and the is underwriters focusing not only on the Most of our clients have been with us for a influx of EU regulations. operational risk of the ship, which of course minimum of 10 years,” she added. “It has become more of an attractive is one element, but on the quality of the Professional average adjuster and shipmanagement centre than it ever has; management systems. They want to explore marine claims consultants Albatross a fact demonstrated by the influx of Greek key people’s knowledge and ability to handle Adjusters is one such business on the companies to the island,” he added. the ordinary day-to-day business as well as island which has seen its role in the Cyprus has become so important ascertain how responsive they are when it market strengthen. As Michael Steemers, to World-Link that it now manages its comes to crisis management. Director, told SMI: “The company was operations in Cyprus, Greece, Germany “On the claims side, our clients established in 1983 and we now find as well as the UAE from the island as well are not keen to put through attritional ourselves dealing with almost all of the as global technical support. “From here we or borderline claims because they use shipping companies on the island. support our clients 24/7 as well as attend insurance for medium to catastrophic “We are one of a small number of to vessels worldwide from our base here casualties, where they need the input and companies who will handle large general in Cyprus,” he said. the financial support,” he said. average cases such as large salvage cases on But what are the challenges Anna Vourgos, Director of Aphentrica a general average basis. We have a facility facing Cyprus as a maritime cluster? Marine Insurance Brokers, added to to collect general average guarantees and Asad Salameh again: “I think the the debate: “What we are trying to general average bonds and we have been implementation of more rigid EU do is understand the challenges our doing this quite successfully,” he said. rules and regulation may hinder some clients are facing. “We haven’t seen an Getting to this stage of market respect is growth, but so far it has not been too big increase in demand because of the state not only driven by the paper exercise of of an issue. While many Greeks have of the market. In a bad market, certain collecting the information, but it also has a come to island, we’ve seen a few Greek people make big changes if they need lot to do with the number and the quality companies move through Dubai to the to take drastic measures, which can of the people employed. UAE for instance against coming to be an opportunity if you are not the “This expertise has been developed Cyprus, so that basically is competition broker involved, or a threat if it is one of in-house; unfortunately competitors for the Cyprus market.”

90 Ship Management International Issue 66 March/April 2017

Cyprus Special Report

Antonis Kasios, Operations they gather back for analysis. The goal operators, thus driving the adoption of new Manager at Helica Maritime, added is to harness this data to learn about technologies that provide smart operations. to the debate about the changing face patterns and trends that can be used to Another driving factor is the growing and of shipping towards a smarter future: make a positive impact on our health, different needs of the shipping companies in “Digital transformation and Big Data transportation, energy conservation, and a very competitive environment. The need revolution in shipping are inevitable. The lifestyle. However, the data itself doesn’t for improved performance has introduced fact that shipping companies are trying produce these objectives, but rather it’s concepts like the ‘connected ship’ and to have more efficient vessels, utilising solutions that arise from analysing it and shipping companies are taking initiatives for IoT (Internet of Things) and Real Time finding the answers we need. Two terms organisational change which is significant. performance data in combination with that have been discussed in relation to Almost every aspect of maritime operations Historical Repository Data for each vessel, this future: big data and The Internet of is re-designed to better measure activity and means this revolution has become a reality. Things (IoT); It’s hard to talk about one optimise processes. “The cultural challenges are enormous, without the other, and although they are “During the last few years, Tototheo and, of course, privacy concerns are only not the same thing, the two practices are Maritime has been developing and going to become more significant. But the closely intertwined. specialising its offerings as well as underlying trends, both in the technology and “This disruptive technology requires adding new services and products to its in the business payoff, are unmistakable. Data- new infrastructures, including hardware and portfolio. Our services now range from driven decisions tend to be better decisions. software applications, as well as an operating satellite communications to the sale of Leaders will either embrace this fact or be system; enterprises will need to deal with navigational equipment, the development replaced by others who do,” he said. the influx of data that starts flowing in and of IT solutions and applications and “The future of technology lies in analyse it in real-time,” he added. engineering projects, etc. “Onboard data and its analysis,” said Vassilis A. As Despina Panayiotou Theodosiou, technologies and software are changing Kakampakos from SetelCyprus. “More from Tototheo Maritime, emphasised: and evolving more than ever before and objects and devices are now connected to “Satellite communications and data speeds this is the area that we as a company invest the Internet, transmitting the information are now available at affordable pricing to ship and concentrate on,” she said. l

Cyprus Special Report: Limassol Marina

strengthening Cyprus’ Limassol Marina: yachting credentials

evelopment of the Limassol the interest of high-end tourism, high their unit out through our own Limassol Marina may have captured net worth individuals, businesses and Marina property management team. the imagination of the Cyprus investors. We are very much looking “Where the marina is concerned, we Dmaritime cluster as indicative of the way forward to the fruition of more golf seem to have a 50:50 split of Cypriots the island is received internationally, but courses, the Casino and other marinas and foreigners berthing with us. Most as Andreas Christodoulides, CEO of too,” Mr Christodoulides said. of the vessels up to 20m are owned by Limassol Marina, asserts, while it may But where is most of the interest Cypriots, with foreigners (some also have changed the face of Limassol, its coming from – not only when it comes local) mainly here with 20m plus sizes. creation was part of a broader strategy to the high end properties on sale but also The majority of non-Cypriots with to improve the calibre of tourism to the berthing space at the marine itself? Mr yachts are from Russia, Lebanon, Israel, island and to boost the Cypriot economy. Christodoulides again: “We have already other Middle Eastern countries, the UK, “This first superyacht marina was sold properties to over 25 nationalities, Germany and US/Canada. They tend to integral to positioning Cyprus on the something we feel emphasises the be affluent businessmen and families with nautical yachting map and continues to product’s broad international appeal and high disposable income. Some are living improve the island’s image on a global unique nature. There is continued high in Cyprus, some are cruising the Med, scale,” he told SMI. demand from Russian buyers, but we some have a Cyprus link and, therefore, “It has been the catalyst to many also have ongoing interest from those in base their yacht here. Most of the Cypriot improvements in our city; it has boosted Cyprus (including foreigners based here yacht owners are either middle-income local businesses; created hundreds of with their companies), the Middle East, enthusiasts (sailors/fishermen/water jobs; attracted visitors to Cyprus; and Europe and Asia. sports fans) or successful business owners continues to encourage investments in “The majority are local and foreign with high disposable income,” he added. the area,” he said. Being able to finally high net worth individuals looking for “We have sold all our completed associate Cyprus with a mixed-use a second home (holiday home) for apartments and 65% of our villas. development of this standard, offering a themselves and their families. The safe Demand for luxury waterfront homes combination of berths for yachts up to environment here, the security, the central in prime locations continues to rise, 100m, elegant residences and a thriving concierge, range of services and facilities so property sales on the higher end of commercial area with dining, shopping, available within the development are a the market are doing well. We are now leisure and cultural facilities, is seen as huge draw for them,” he said. There are preparing to launch our final residential something hugely valuable to everyone also instances where buyers have used phase. These upcoming apartments, on the island. their properties as a permanent residence. surrounded by water, are one of a kind “And we need more infrastructure Many have also purchased property for so we are confident 2017 will be another projects of this calibre to maintain investment purposes and are renting good year for us.” l

Photo: f8grapher / Shutterstock.com

Issue 66 March/April 2017 Ship Management International 95 Market Sector: Paints & Coatings

Newhull standard boost for vessel owners and operators

fficient hull and propeller performance are two owners and operators accurate and transparent predictions of the key factors that help owners, operators and on the fuel and CO₂ savings potential of fouling control managers reduce vessel costs and improve financial coatings before they are applied, is also based on the new ISO Eresults year-on-year. In November 2016 a new standard ISO 19030 standard. A free service for owners and operators, it is 19030 was introduced by the International Organization for delivered via specially trained consultants and was devised after Standardization to measure the effectiveness of all the devices a four-year R&D project with collaboration from University that are used to improve these performances. College London Energy Institute and more than 30 owners The new standard, which was devised during a three-year and operators. collaboration by 53 shipping industry stakeholders, could not Intertrac Vision is the shipping industry’s first Big Data have been more timely. Geir Axel Oftedahl, Business Director solution to accurately predict the performance of a coating for Hull Performance Solutions at coatings specialist Jotun, said: technology before it is applied and is made up of hundreds of “This is a huge leap forward for shipping and the environment. thousands of datasets. It also uses computational fluid dynamics The standard provides a transparency that has been lacking in the (CFD) studies on different hull forms to make accurate industry and will be a central driver for enhancing environmental predictions on the impact of fouling control coatings on the performance and vessel efficiency.” power sources of vessels. The costs of poor hull and propeller performance were By using the ISO 19030 standard a vessel’s fouling control the equivalent of 10% of the energy costs and greenhouse gas performance predictions from Intertrac Vision can be verified emissions (GH) of the world fleet – a total of $30bn. “With against actual performance using an ISO 19030-compliant this standard we can finally quantify how solutions such as monitoring process. advanced antifouling coatings can tackle this issue – providing One key issue that concerns owners is the extra drag created accountability and return on investment (ROI) for ship owners by fouling organisms and invasive species that attach themselves while detailing the enormous potential for GHG and cost to a vessel’s hull. Extra drag means more fuel and thus greater reductions,” he said. cost. So the advantages of smooth hulls that reduce friction Jotun has used the standard to give a high performance between the ship and the sea are self-evident. Smoother hulls guarantee on its Hull Performance Solution (HPS) coatings. mean less money and the right coating can significantly improve “As the guarantee concerns a very small speed loss – under vessel efficiency. Coatings manufacturer Hempel Marine has 1.5% - only the most precise measurement criteria will suffice,” produced Hempaguard which it claims can give owners fuel explained Stein Kjolberg, Jotun’s Global Sales Director for savings of up to 6%. “It also retains its effectiveness when a vessel High Performance Solutions. “Our Hull Performance Solution switches from regular to slow steaming,” said Andreas Glud, combines state-of-the-art coatings and application technologies Hempel’s Group Segment Manager for Marine and Dry Dock. with ISO-CD-19030-2 compliant performance measurements The coating which was launched after a five-year and high performance guarantees – helping customers reduce development programme, uses Actiguard technology which fuel costs and emissions by up to 16%.” integrates silicone-hydrogel and full diffusion control of biocides A consultancy tool, Intertrac Vision, which was launched in a single coating, releasing 95% less biocide than a Speciality last year by coatings specialist AkzoNobel and gives ship Polymer Coating (SPC) antifouling paint.

96 Ship Management International Issue 66 March/April 2017 Market Sector: Paints & Coatings

Before image of the corroded water ballast tanks on a crude oil tanker

After image of the corroded water ballast tanks on a crude oil tanker

“This is a huge leap forward for shipping and the environment. The standard provides a transparency that has been lacking in the industry and will be a central driver for enhancing environmental performance and vessel efficiency”

Geir Axel Oftedahl, Business Director for Hull Performance Solutions, Jotun

Issue 66 March/April 2017 Ship Management International 97 Market Sector: Paints & Coatings

“Environmental concerns are high impact on the world’s oceans,” said crude oil tanker which needed urgent on a ship operator’s agenda and they are Mr Glud. treatment. The vessel’s owner asked consistently searching for efficiencies in “Coatings with a high solids ratio paints and coatings specialist Chemco, the current depressed shipping market. and low biocide content are fast to find a solution. Ian Gold, Chemco’s The increasing competitiveness within becoming the choice of all responsible Marketing Coordinator, said: “There the market means that operating costs ship owners. Additionally, we devote was severe corrosion damage and it are continuing to rise and operators much effort to developing highly was particularly bad around the weld need to find sustainable solutions to efficient fouling defence coating areas and edges as this is where most improve their energy efficiency whilst systems that maintain a clean and corrosion normally begins, due to complying with ever more stringent smooth hull which, in turn, enhances typically less thick coating coverage. environmental regulations. This is energy efficiency,” he said. Over 35,000m² had to be recoated so where the right coating solution can Another problem area is corrosion the vessel went into dry-dock. significantly impact the efficiency of a on ballast water tanks. A recent project “There was other maintenance and vessel, whilst also minimising a vessel’s featured the ballast water tanks of a repair work going on throughout the vessel and there could be no disruption to these services. Therefore grit blasting and the use of solvent-based paints were prohibited. High pressure water jetting was used to prepare the surface with mechanical preparation being used in inaccessible areas.” Chemco applied two spray coats – a spray coat is applied when the majority of the surface is coated without fully coating the whole surface – of Chemco’s solvent- free, wet and rust tolerant Epo-chem RS 500P treatment. Between the two coats, a stripe coat of RS 500P was applied to the ballast water tanks’ edges, welds, scallops and inaccessible areas. “By using the solution the client received substantial time and cost savings and there was no disruption to other ongoing trades which led to further savings being achieved. If budgets are tight, it becomes even more important for shipping companies to find the right coating system for their vessels and so offer them long-term, cost-effective solutions,” said Mr Gold. Anti-corrosion protection can also be used to improve and reinforce the hulls of newbuildings. A coatings contract for the polar research vessel, Sir David Attenborough, was recently awarded to Subsea Industries, the Antwerp-based hard coatings specialist. The 128m-long, £200m research vessel is being built in the UK’s Birkenhead for the Natural Environment Research Council (NERC) by shipbuilder

98 Ship Management International Issue 66 March/April 2017

Market Sector: Paints & Coatings “The increasing competitiveness within the market means that operating costs are continuing to rise and operators need to find sustainable solutions to improve their energy efficiency whilst complying with ever more stringent environmental regulations”

Andreas Glud, Segment Manager for Marine and Dry Dock, Hempel Group

Cammell Laird to a Rolls-Royce design and is due to be Manuel Hof, Subsea Industries’ Production Executive operated by British Antarctic Survey (BAS) in the Antarctic and NACE Coating Inspector, said: “The coating is proven to in 2019. reduce fuel consumption so the vessel is not burning as much Subsea’s non-toxic hard -coating system Ecospeed fuel, thus reducing ship exhaust emissions and the Sir David will be applied to the vessel’s hull. A prerequisite was an Attenborough ’s carbon footprint. It also correlates directly to environmentally-sound hull coating that would reduce fuel lower operational costs.” consumption without detriment to performance in ice. Ecospeed was previously applied to the UK royal research “With Ecospeed there are no special docking requirements vessels Ernest Shackleton and James Clark Ross . “The Sir David or specialist equipment, which means that any remedial work Attenborough requires a fully ice-strengthened coating for can be part of the vessel’s normal refit schedule. The coating’s operations in Antarctica as well as providing effective antifouling simple application and maintenance procedures also help drive between the Polar regions without being harmful to the down the vessel’s through-life costs, and Ecospeed fulfils that environment which Ecospeed offers,” said Mr White. requirement” said Rob White, Senior Marine Engineer at British “It bonds very well to the bare steel on application and Antarctic Survey. provides a tough, effective barrier against the sea and ice. From Market Sector: Paints & Coatings the experience we have gained through benefits help reduce operational costs and completely mitigates against the leaching using Ecospeed on Ernest Shackleton and makes the Sir David Attenborough a better of chemicals into the marine environment James Clark Ross we were adamant that research ship for Polar science,” he added. and this, along with ‘green’ technologies the hull coating for the newbuild should Subsea’s Chairman Boud Van will make the Sir David Attenborough one also be Ecospeed. Through-life coats, ease Rompay said: “The hard coating of the most environmentally-safe ships of maintenance and the environmental afloat.” l Marine Propulsion By David Tinsley New sulphur standards promote scrubber usage

arlier antipathy in certain quarters Short payback times are claimed for Its ECO-EGC systems enable of the industry to exhaust gas new systems, whether in retrofit or newbuild Carnival to meet the 0.1% maximum ‘scrubber’ plant on cost outlay, applications, indicative of improvements in sulphur ruling cost-effectively in all Eoperational and design grounds is giving design and installation practices of the past circumstances, and give teeth to a policy way to an accelerating rate of uptake. The several years. It is clear that the more time of improving emissions performance as technology is attracting new proponents a vessel spends within an ECA, the more a whole, including reducing CO2. The across-the-board, convinced of its attractive the return on investment. group’s wider strategy is also implicit benefits over other solutions in ensuring High profile endorsement of scrubber in the planned use of full LNG power compliance with tightening environmental systems, which virtually eliminate on seven newbuilds due from 2019 legislation and galvanised by the emissions of sulphur oxides(SOx), onwards. These will be the first cruise impending, new global sulphur standard. and also cut particulate matter(PM), is ships to routinely use LNG at sea as well Following the 2015 introduction of expressed in the programme rolled-out as during port stays. a 0.1% limit in sulphur Emission Control across the fleet and multiple brands A recent large-scale contract for Areas(ECAs), the IMO’s decision to controlled by Carnival Corporation. In scrubber technology involves one of the make the long-mooted 0.5% global cap February this year, the group announced leading ro-ro exponents, the Grimaldi on the sulphur content of marine fuel that it had completed the installation Group. The Italian operator has mandatory from 2020, rather than defer and certification of exhaust gas cleaning nominated hybrid Alfa Laval PureSOx implementation until 2025, has given systems(EGCS) on 60 ships, representing systems for seven 66,700gt vehicle added urgency to ship owners’ technical an investment of $400m to date. carriers ordered from China’s Yangfan strategy deliberations. The European From an initial commitment to the use Shipyard. In each case, the emission Union had already agreed that the 0.5% of the technology on 32 vessels, Carnival reduction plant will be connected to the limit would be imposed in 2020 within now intends to have systems on at least 85 MAN two-stroke propulsion engine. 200 miles of member countries’ coasts. ships by the end of 2020 and reports that it Hybrid systems offering both open-loop Furthermore, China has instigated a plan is on track to achieve that objective. and closed-loop functioning modes that will see a 0.5% sulphur limit brought The Miami- and London-based were chosen because the ships are to bear on shipping in a steadily increasing organisation, the world’s largest cruise intended to trade between Italy and the number of ports and zones. operator, has not only championed US, where Vessel General Permit(VGP) The options of using ultra-low industry advances in marine engineering legislation applies. sulphur distillate, or burning alternative and environmental systems, but has also Closed-loop scrubbing is necessary fuels such as LNG, are the chosen paths taken an active role in the developmental so as to meet the very strict VGP wash of many operators faced with the most process. It broke new ground in 2013 water discharge criteria. PureSOx stringent pollution controls. However, with a proprietary technology to fit incorporates proven water cleaning based scrubbers are increasingly seen as a and function optimally within the on centrifugal separation, which will be mature technology, which today takes confines of a cruise ship to reduce used when sailing in closed-loop mode. a more compact form and entails sulphur compounds and particulates Grimaldi has emerged as a more competitive pricing than earlier- from engine exhaust throughout a prominent advocate of the technology, generation equipment that reflected the ship’s operating profile, at sea, during since the latest deal will bring its total substantial R&D costs borne by vendors. manoeuvring and in port. number of PureSOx systems to 19.

102 Ship Management International Issue 66 March/April 2017 Marine Propulsion

The first of the newbuilds, offering a car- equivalent unit(CEU) capacity in excess of 7,000, is due in mid-2017. Receptivity to scrubber technology is widespread in the Great Lakes maritime community. Extensive recourse one to exhaust cleaning systems is being of its made through both retrofit and newbuild existing schemes, enabling unfettered use of self-unloaders. heavy fuel oil(HFO) within the aegis An early trial of of the North America SECA. Canada’s a prototype exhaust gas Algoma Central Corporation had put cleaning system on a Maersk down a marker for traders on the Lakes/ deepsea containership, stemming Seaway network by specifying Wärtsilä from a 2010 agreement between the closed-loop, freshwater-based plant for an Danish group and DuPont, is considered eight-ship bulker newbuild programme to have contributed significantly to in China, opened by the 37,500dwt self- operational and retrofit installation know- unloader Algoma Equinox in 2014. how, helping to shape design progression. exhaust 1/ Vulica Shipping, a wholly-owned A series of 20,600m3-capacity LPG streams to affiliate of US company Vulcan carriers delivered to a Norwegian owner meet the 0.1% Materials, has chosen DuPont scrubber last year are technically distinguished sulphur content systems for two newbuild self-unloaders in each having a dual SOx and NOx threshold in ECA waters. due to be assigned to trade within the emissions cleaning installation. It is At the same time, the SCR Gulf of Mexico following completion by claimed that the lead vessel, the Yara Sea, element cuts NOx emissions to China’s Jiangsu Hantong yard later this provided the first case wordwide of both the IMO Tier III limit. year. Developed by DuPont subsidiary technologies successfully working in New market entrants and extended Belco, each shipset will comprise conjunction on the same ship. product portfolios have widened the one single-inlet scrubber dedicated The owner of the Hyundai Mipo choice of systems available to owners, to the main engine and one multi- Dockyard-built trio, Yara International, builders and designers. A degree of inlet scrubber, handling exhaust from ranks as the world’s largest producer of standardisation is necessary to keep multiple auxiliaries. ammonia, nitrates and NPK compound manufacturing and acquisition costs The systems fulfil US washwater fertiliser. The SOx/NOx abatement down, although the variance in ship requirements as well as achieving systems were delivered by subsidiary type, tonnage and powering, operational virtually complete SOx emission Yara Marine Technologies, the former divergence and regulatory jurisdictions removal. The DuPont “run-dry” Green Tech Marine. The multi-inlet, necessarily rule out a single ‘one size fits capability facilitates vessel trading in in-line SOx treatment comprises one all’ solution. l and out of the Emission Control Area. scrubber connected to the 7,620kW Vulica has subsequently nominated a MAN propulsion engine, and one single-stream, Belco-designed DuPont scrubber serving the three 1,320kW 1/ Scrubber installation in one of Carnival’s AIDA scrubber for retrofit by April 2017 to diesel genset engines, cleaning the cruiseships

Issue 66 March/April 2017 Ship Management International 103 Market Sector: Technical Management

Lifeboats built to combat icy regions

he growth of trade and industry in Norsafe carried out tests on lifecycle issues with the polar regions and a burgeoning fleet Lifesaving (LSA) Equipment exposed to polar conditions of modern icebreakers has made the need and made a full-scale study to find out how to avoid loss of for a robustT safety regime to improve vessel safety and prevent warmth from a heated lifeboat in conditions of -30° C. Full- accidents ever greater. Thus the Polar Code – which was scale tests were also made to test the performance of installed introduced on 1st January 2017 – was a timely move for vessels sprinklers on lifeboats in icy conditions. built for and operating in the two Poles’ icy, sub-zero seas. As a result of the tests, Norsafe was selected as the supplier A key priority was the need for strong, weather-resistant of LSA for the British Antarctic Survey Polar Research vessel Sir search and rescue craft – from lifeboats and life rafts to fast rescue David Attenborough which is currently being built at Cammell boats. Under the Code all lifeboats must be partly or totally Laid shipyard in the UK’s Birkenhead. Among the vessels to enclosed and all crews supplied with thermal clothing. At the be used for the project will be Norsafe’s JYN 100 conventional same time all onboard personal survival equipment (PSE) must lifeboats for 90 people and its Merlin 915 and Magnum 750 fast be thermally insulated. rescue boats. The Norwegian lifeboat manufacturer Norsafe has carried Yet, however robust and weatherproof most lifeboats are, out a series of tests and trials to simulate the potential hazards they are not infallible and need regular care and servicing. They and risks lifeboats and their crews face in polar regions. are also heavily regulated and have to be operationally ready and Using a standard Norsafe Miriam 8.5 lifeboat, a five-day trial fit for purpose at all times. If anything doesn’t work on a lifeboat which included simulating a full-scale escape and an evacuation or its davit release system, Port State Control can detain their and rescue operation, was held in icy waters north of the Barents main carrier ship which could cause the vessel owner or manager Sea. During the trial, Norsafe was supported by teams from the serious problems such as loss of charter. Norwegian Coast Guard, the Norwegian Maritime Authorities, Under the SOLAS Convention, a lifeboat must be inspected the Norwegian Petroleum Safety Authorities, the Italian oil and and certified as fit for purpose and be ready for immediate use gas multinational Eni, the classification societies ABS and DNV during its annual class survey by a third party service company GL and five universities. authorised by a flag authority or else the vessel’s equipment maker.

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One such service provider, SeaSafe Marine, takes this process a stage further. “Crews can be wary of using a “Not only does this lifeboat’s equipment, resulting in critical lifeboat launch drills promote better safety and being performed incorrectly, not completely or in some cases even neglected. Although logbooks are dutifully filled result in fewer accidents, it in, the reality is often that crews are not practising with the also keeps overall running equipment, so their familiarity and experience declines over costs down for the owner time. The potential for accidents and incidents is therefore ” higher,” said Andrew Lemmis, Managing Director of SeaSafe Marine. Andrew Lemmis, Managing Director, SeaSafe Marine SeaSafe, which is part of the Wallem Group, provides a lifeboat maintenance service for owners and managers. This Then six months after a lifeboat has had its annual service includes servicing lifeboats at least twice a year, maintaining and class renewal, a SeaSafe engineer will visit it to make sure its their equipment to a high standard, regularly training and crew have no issues with its systems. This includes supervising familiarising crews with the equipment and making sure a simulated launch on freefall systems and an overall audit specialist teams monitor serviced ships. “Not only does this assessment of the crew’s competence level. promote better safety and result in fewer accidents, it also “Today’s crews have endless checklists to complete and can keeps overall running costs down for the owner,” said become complacent with some procedures. For example, you Mr Lemmis. are required to swing lifeboats out every week and make sure the SeaSafe also carries out pre-docking surveys. The lifeboat’s engine works,” said Mr Lemmis. lifeboat is surveyed three to four months ahead of its Whenever a particularly tricky technical and mechanical issue dry docking. “We go through everything to establish the occurs, SeaSafe can call on a global team of engineers to resolve the complete work scope of what is needed for the dry docking. problem. If, for instance, a vessel cannot be certified due to davit or It means all issues, necessary spares and any non-standard equipment repairs or parts that need replacing while its mothership is work is identified in advance. The superintendent can then in port, SeaSafe’s engineers work with the vessel’s owner or manager prepare the dry-docking specification for the shipyard with to find a solution. If, however, the engineers find a major problem issues included and quotes prepared, thereby avoiding any with a lifeboat or its davits that cannot be completed during a port unnecessary premiums being levied by the shipyard,” call, the engineer or engineers will sometimes stay onboard to fix the he said. issue while the ship is travelling to its next port. l

Issue 66 March/April 2017 Ship Management International 105 Objects of desire

» Added range

Tesla has released the 100D upgrade option to its Model S giving it an extra 20-mile range. The luxury all-electric five-door vehicle now has a total range of 335 miles but still manages to reach 60mph in 4.2 seconds with a top speed of 155mph. As with all new Teslas coming off the production line since last year, the new model options will include all the hardware onboard to achieve full self-driving capabilities once the software is ready to make that possible, which is likely to be next year.

Tesla Model S 100D £93,000 www.tesla.com

» Record your ride

Anything can happen while you are on the road which is why it’s a good idea to record your ride with the Drive HD Dash Cam by Cobra. Whether you need evidence in an accident or want to watch funny footage from your journey, the dash cam means you never need to miss a moment again. The CDR 900 allows you to share those moments from your smartphone and the series’ Wi-Fi enabled flagship model goes the next step in video capture and sharing through the free Cobra Drive HD App. Through the App, users can remotely command the CDR 900 to start recording as well as control its settings and the CDR 900 utilises Continuous Loop Recording which automatically overwrites the oldest footage when the memory card gets full.

Cobra CDR 900 Drive HD Dash Cam with Wi-Fi $299.95 www.cobra.com

» Camera returns

The Fujifilm GF670 Rangefinder Camera is making a limited return engagement which will delight fans of its images after production stopped three years ago. It is dual format capable, so can shoot both 6 x 7 and 6 x 6 images and can handle 120 and 220 film. Thanks to its bellows system, its lens neatly folds closed when it is not in use.

Fujifilm GF670 Rangefinder Camera £1,799 www.fujifilm.co.uk

106 Ship Management International Issue 66 March/April 2017 Objects of Desire

» Limited timepiece

Last year, Chanel released The Monsieur de Chanel Caliber 1 watch, which was well received by luxury watch collectors. Following the release of the Caliber 1, Chanel has introduced the Monsieur de Chanel Limited Edition in platinum. Powered by the same Caliber 1 movement, the platinum version isn’t that much different to its predecessor in its build. This one is more limited with a 40mm platinum case, black dial and sapphire caseback. Despite the differences, it still has the 240-degree retrograde minute display, seconds subdial and jumping hour display. Limited to just 100 pieces.

Monsieur de Chanel Platinum Black Watch $63,000 www.chanel.com

» Perfect put

The new Odyssey O-Works Microhinge putter features new technology in the face for more top spin and better roll. The Microhinge Face Insert is crafted from a stainless steel plate that is co-molded with a Thermoplastic Elastomer Feel Layer. This plate is then populated with microhinges, small hinges across the whole of the face that flex into the polymer at impact and rebond to create an immediate forward roll on the golf ball.

Odyssey O-Works Microhinge Putter $230 www.odysseygolf.com

» Picture perfect

This television is so unbelievably thin at just 2.57mm that it practically blends into your wall. This is because the set’s internals are housed in a Dolby Atmos-certified sound bar connected via a transparent ribbon cable. The picture quality is superb with pixel dimming control, ultra luminance technology and HDR with Dolby Vision Support. The built-in webOS smart features let you access lots of worthy content without adding an extra box. The TV comes in 65in and 77in screen sizes.

LG Signature OLED TV W $8,000 www.lg.com/uk

Issue 66 March/April 2017 Ship Management International 107 Review

»Little Fictions Elbow Polydor

This is the seventh studio album from the Mercury winners and is the follow-up to 2014’s The Take Off And Landing Of Everything. Recorded in Scotland and Manchester and featuring session drummer Alex Reeves, string players from the Hallé Orchestra, backing vocals from Hallé Ancoats Community Choir and London Contemporary Voices, Little Fictions is the fourth album to be produced by Craig Potter. Frontman Guy Garvey has described the album as quite chunky and beat-heavy and states that the themes range from concerns for the world to falling in love. The lead single, Magnificent (She Says) is a great example of the joyous, uplifting sounds the band can produce.

»The Upstarts By Brad Stone Transworld

In 2007, the crash had Wall Street and Silicon Valley reeling. The original renegades like Steve Jobs were now the establishment, and tech had become a way of life for suburban mums as much as for visionaries. The Valley was ready for the new revolution. Enter The Upstarts. Genius entrepreneurs with no lack of self- confidence created companies that turned our expectations on their heads. Travis Kalanick of Uber and Brian Chesky of Airbnb are just two of the disruptors Brad Stone examines in this fly-on-the-wall look at the intersection of tech, business, and culture. With unprecedented access to all the key players, Stone illuminates the smart, driven and often comically flawed people who are upending industries and changing the way we all live and work.

108 Ship Management International Issue 66 March/April 2017 books, theatre, dining, events, culture, films, festival, music, art, dvd, wine

»4 3 2 1 »Veeraswamy By Paul Auster www.veeraswamy.com Faber London

On 3rd March, 1947 in the maternity ward of Beth Israel Hospital, New Jersey, Archibald Isaac Ferguson, the only son of Rose and Stanley Ferguson, is born. From that single beginning, Ferguson’s life will take four simultaneous and independent fictional paths. Four Fergusons made of the same genetic material, four boys who are the same boy, will go on to lead four parallel and The UK’s oldest Indian restaurant entirely different lives. has just been awarded its first Family fortunes diverge. Loves and Michelin Star, 90 years after it friendships and intellectual passions opened in 1926. contrast. Chapter by chapter, the Veeraswamy, which overlooks rotating narratives evolve into an London’s Regent Street, serves up elaborate dance of inner worlds enfolded within the outer forces of history as, one by classical Indian cuisine with a fine one, the intimate plot of each Ferguson’s story rushes on across the tumultuous and dining edge. The menu is constantly fractured terrain of mid-20th century America. adapted according to the seasons A boy grows up-again and again and again… and along with superb classical cuisine is a fabulous selection of dishes from the clay ovens of the North West frontier – the tandoors. First course dishes include such delights as Tandoori Green Prawn »Tracey Emin and while mains include Roast Duck William Blake in Vindaloo. For dessert there is Rose Kulfi – Indian ice cream flavoured Focus with fresh rose. Showing now until 3rd September, 2017 www.tate.org.uk This free exhibition compares important works by Tracey Emin and William Blake, demonstrating a shared concern with birth, death and spirituality. At the heart is one of Britain’s most renowned artworks of the past 20 years, Tracey Emin’s My Bed 1998, which offers an unflinching self-portait in which the artist herself is absent. It will be shown, along with drawings by Emin from the Tate Collection, alongside those of visionary British poet and artist William Blake. They include The Blasphemer (c.1800) and The Crucifixion: Behold Thy Mother (c.1805).

Issue 66 March/April 2017 Ship Management International 109 Lifestyle

Do you have wi-fi, indoor plumbing and does anyone speak English around here? By Margie Collins his is the time of year when travel brochures land on our doormats with a satisfactory thump, to tickle our whim and fancy, and with felicitous prose further inflame an untreatable and idiopathic case of TFrancophilia. Sun! Sea! Sancerre! The time of year when we plan our holidays: whether to drool over beauteous Tuscan landscapes, pistachio gelato and rustic focaccia ovens in Liguria, or to squint into maps and guidebooks while pootling around ruins of stone monuments. Holidays that pass happily without any incident, except for the verbal tussle with the fat and florid couple from Baden-Wurttemberg who fought you for the sun loungers in St Barths. But what if well-trodden destinations - with their villas and eternity pools, spectacular views out to remote atolls, turbocharged nightlife, shopping and entertainment - have become too homogenised? What if, like Andy McGinlay - a Scottish teacher based in Saudi Arabia - your wandering heart hankers to leave behind the safe, comfortable and familiar to venture into the unknown, the unpredictable and dangerous? McGinlay told Barcroft Media: “I never feel more alive than when I step off the plane in some far-flung war zone or despotic country. It’s a dangerous cocktail of adrenaline and I live for this feeling!” When President George W Bush branded Iran, Iraq and North Korea as the “axis of evil”, McGinlay immediately booked his flights there. “Many of these so-called dangerous countries do turn out to be quite friendly,” he said. “They receive so few visitors that the tourists who do venture there are made to feel extra welcome.” He was kidnapped in New Delhi, and in Syria was arrested for suspected spying. In “How Stuff Works: Adventure”, Charles Bryant wrote: “A country may be war- torn and full of desperate marauders. The problem is that some places are still worth visiting despite the dangers. Not every traveller wants an umbrella drink in their hand and their toes in the sand.” Adventure travel, sometimes described as extreme tourism, explores unusual and out- of-the-ordinary destinations, including war zones, tribal hotspots that modern life forgot and

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passed by, dystopian countries torn by violence, chaos and on the road between the historical sites of Bamiyan and political strife, but have a tantalising allure. Adventure travellers Herat. Six people were injured. to countries in conflict and turmoil may find themselves Last year, Anatoly Aronov’s Megapolis travel company engaged in activities that include perceived and actual risk. launched the “Assad Tour” of Syria, a country brutally riven by And that, perhaps, is the intractable draw. civil war since 2011, with hundreds of thousands of civilians “It’s a dangerous business going out your door. You dead and over six million refugees seeking asylum or living step into the road and if you don’t keep your feet, there’s no precarious lives in Jordanian and Lebanese camps. “We will be telling where you might be swept 1km away from the front. It’s safe. On off to,” wrote JRR Tolkien. More of no occasion will we be giving weapons us are travelling more. The travel I never feel more to tourists,” Aronov said. agents’ association ABTA said the “ Iran, which welcomed over five number of Britons taking holidays alive than when million tourists in 2015, is on the increased last year; early bookings I step off the itineraries of a few adventure travel for summer 2017 are already companies and had a significant up 11% year-on-year - despite plane in some far- exhibitor presence this year at ITB disease outbreaks, natural disasters flung war zone or Berlin, the world’s leading travel trade and tourists rejecting traditional show. “Iran’s image of being terrorist- European holiday destinations despotic country. driven, nuclear-weapon holding, following terrorist atrocities in Paris, It’s a dangerous burka-clad society is something that’s Nice, Munich, Berlin and Brussels. cocktail of been driven by western media. While Egypt and Tunisia - once favourite breaking the rules of the Islamic society beach-resort destinations - are adrenaline and I live (drinking alcohol, taking drugs and for the time being virtually no-go for this feeling! engaging in sexual activity with locals) areas for British tourists, thanks to ” can result in deportation, arrest or travel restrictions surrounding poor worse, general travel here is safe,” said security and screaming terror- Andy McGinlay Borders of Adventure. “Don’t assume headlines. But while it’s not going you can break any rules and play the to topple long-haul destinations - Australia, New Zealand, dumb tourist. This is an Islamic state and if you can’t play by the Far East, North America - off the popular charts any time the rules, don’t go.” Or land inside Evin Prison as guest of the soon, adventure travel is on the up. Revolutionary Guard. Paula Froelich, Yahoo Travel Editor, tells why travelling to The battle to retake the IS-held city of Mosul in Iraq far-flung places, with a bomb going off in the distance, sets her continues, with heavy casualties on both sides. One of pulse racing. “I do it to learn because it’s interesting. I’d rather the oldest cradles of civilisations, the historic country of go by camel than car. It makes me come alive and the people Babylon and Mesopotamia, Iraq is one of the most popular you meet are not what you expected or see in the news.” adventure-travel destinations today. At a recent Airbnb event, John Simpson, the BBC’s Why risk life and limb in Somalia, the Democratic veteran World Affairs Editor, urged the audience to visit Republic of the Congo, Sudan, Honduras and other a “must-see destination”. He said: “I’d advise everyone to benighted countries, rogue states, theocracies and go on holiday in Afghanistan because it’s beautiful and dictatorships where kidnappings, homicide, civil unrest and fantastic.” Airbnb advertises 60 homes for rent - in Kabul and violence are rife? Leyla, a foreign correspondent, writes in Kandahar - for $12 each a night. her blog: “This is your chance to get in before every shred of Afghanistan?! Where resurgent Taliban continue to authenticity is wiped away. Maybe you like living on the edge lay siege to major cities; American troops are still fighting a and have a case of the it-won’t-happen-to-me syndrome.” campaign now in its 17th year which has cost the American Adrenaline junkies and thrill-seekers with cast-iron purse over £1.6 trillion, where over 450 British servicemen derring-do travel to some of the most dangerous places and women and 2,400 American soldiers have lost their on earth because they are also seen as some of the most lives? It was reported, in 2016, that a bus carrying 11 desirable destinations, sizzling with menace but also bristling American, German and British tourists, accompanied by a with excitement. Once the exclusive preserve of journalists, military escort, was hit by a rocket fired by Taliban insurgents humanitarians and NGOs, travel to these places is now

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easier than ever, and adventure travel companies, with immense Untamed Borders’ trips to Mogadishu, the autonomous knowledge and experience of these places, have made them region of Somaliland and Puntland include visits to the bombed- accessible with intelligently curated itineraries and networks of out Italian colonial waterfront, beaches and local markets and local guides and security offer plenty of interaction with personnel. locals. “The trip - from one to Wild Frontiers runs three in a group - is expensive, trips to Iraqi Kurdistan, but comes with a high level of the ‘Stans’ of central Asia, security, with a four-man detail sub-Saharan Africa including and a translator/fixer,” said the Democratic Republic of Willcox. A highlight is a meal the Congo and Rwanda, to in a local restaurant that “serves Latin America including El 3/ excellent camel burgers.” Salvador and Honduras. “We “We want clients to feel they’re explain to people the risk on the edge of a very dangerous assessments we make, but we leave it up to individuals to make up situation,” said Rick Sweeney to Departures magazine. “There’s their own mind as to whether that is a risk that they are prepared to definitely risk and a lot of waivers involved.” Sweeney, a former make,” WF’s Marc Leaderman told NPR public radio. security professional, founded War Zone Tours, which organises Untamed Borders offers access to some of the world’s ‘extreme travel’ for very small groups to Iraq, Sudan, Somalia and most inaccessible and inhospitable places, including areas in the DRC, and to cities in Mexico which are run by veritable armies, Afghanistan that have never been taken by the Taliban: Herat, the drug lords and traffickers, and networks of kidnappers and assassins. lakes of Band-e-Amir, the remote Wakhan Corridor of mountain “We’re very clear,” said Sweeney, “I’m not going to give you an AK-47; valleys where the Pamir Range meets the Hindu Kush. Itineraries we’re not there to get shot at.” also include Iraq’s mountainous terrain in semi-autonomous Before you buy a flak jacket and ballistic helmet, check out Kurdistan, the Republic of Tuva in southern Siberia, Iran, the the travel advice on the Foreign Office website, which ranks heart of Genghis Khan’s Karakorum in Mongolia, Mogadishu levels of travellers’ safety in foreign countries and issues advice on and Puntland, Dagestan and Chechnya. They take people to hotspots to avoid. Likewise the US State Department’s website destinations they would find it difficult - or impossible - to on country-specific travel warnings and alerts. arrange themselves. Travel operators always stress they take utmost care in avoiding “We guide men and women, of all ages, some in their 70s, conflict areas. But before packing your bags, it is essential to from all professions, who love travel, want to broaden their research your destination, to have a plan of action for minimising knowledge and horizons, and know that there’s always much risks, and to purchase the right travel insurance. At all times obey more to a country than the stereotype. These are people with local laws and respect your host country’s culture, religion and some amount of disposable income as our destinations are not dress codes. Avoid making snarky comments: some peoples are budget trips by any stretch,” James Willcox, co-founder with irony-deficient and British humour doesn’t always travel well. Kausar Hussain of Untamed Borders, told SMI. “Toto,” said Dorothy in The Wizard of Oz, “I have a feeling we’re Hussain and Willcox are largely credited with bringing ski not in Kansas anymore.” Perhaps our hermetically sealed lives need a tourism to Afghanistan when they became the first company to little turbulence and that to appreciate the miracle of this wondrous take tourists to the mountains of Bamiyan, the Panjshir Valley, world is also to explore the risky and unknown. “I haven’t been Badakshan province in the far northeast and to Salang Pass. everywhere,” said the writer Susan Sontag. “But it’s on my list.” l Their Afghan Ski Challenge is a “race through some of the most beautiful landscape.” So long as you don’t expect Gstaad or Whistler apres-ski jollies, Afghanistan, say Hussain and Willcox, 1/ Off the coast of Puntland. James Willcox pictured on left 2/ Female Marathon winners - Photo by Kausar Hussain is the “new frontier for skiing and boarding.” 3/ Guests after marathon - Photo by Kausar Hussain

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