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T H E C O R P O R AT E M A G A Z I N E O F D E T N O R S K E V E R I TA S

NO.2/2001

FOCUS ON

bulk carrier safety Leading executives call for improved newbuilding standards

ALSO INSIDE: KNPC raises the safety bar Blue Stream: the world’s deepest pipeline Safety first at Virgin Trains Korea heads the newbuilding league


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CONTENTS

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EDITORIAL: Raising safety standards in shipping and in industry BULK CARRIER SAFETY

Three industry leaders speak out Arthur Bowring, Hong Kong Shipowners’ Assocn:

‘Ensure fitness for purpose’ 6

Frederick Tsao, Intercargo:

‘Shipping industry must unite’ 8

Peter Cremers of ISMA:

‘Class must act impartially’ 10 BLUE STREAM: Russian and Italian engineers

conquer the depths of the Black Sea 13 VIRGIN TRAINS promises world-class rail travel

by 2003

DNV Forum is the corporate magazine of Det Norske Veritas

16 GOLDEN VALE confirms that good safety

management shows ‘on the bottom line’ 18 KUWAIT: KNPC takes safety management

to new lengths 22 SOUTH KOREA heads the world’s newbuilding

PUBLISHED BY Corporate Communications N-1322 Høvik, Norway Tel: +47 67 57 99 00 Fax: +47 67 57 91 60 HEAD OF CORPORATE COMMUNICATIONS Tore Høifødt EDITOR Stuart Brewer

league 24 ROYAL AUSTRALIAN NAVY:

DNV helps sharpen the cutting edge 26 CRUDE OIL ACROSS ALASKA

a new safety challenge for Alyeska 28 ISO 14001 helps BP’s environmental drive

EDITORIAL CONSULTANT R.Keith Evans ADMINISTRATION Gro Huseby DESIGN DNVE Graphic Communications PRINT Gan Grafisk, Norway

on Alaska’s North Slope 30 LENVIK PRAWNS safely feed the European gourmet

... thanks to BRC certification 32 NEWS

No responsibility is accepted by the publishers for statements made by authors, nor for attributable comment. Reproduction permitted with acknowledgement of source. © Det Norske Veritas 2001 Det Norske Veritas is an independent, autonomous Foundation working to safeguard life, property and the environment. Det Norske Veritas comprises 300 offices in 100 countries, with 5,500 employees.

34 LAST WORD 35 DNV WORLDWIDE

Visit our website www.dnv.com

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EDITORIAL

Raising safety standards Raising safety standards R Raising sing safety standardsRaising safety standardsRaising safety standards safety standardsRaising safety standardsRaising saf Hans Viig

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Although safety has very much become part and parcel of today’s ‘quality and standard fashion’, its pursuit is as old as the shipping industry itself. A ship’s seaworthiness or fitness to be put to sea safely has always been of paramount importance in any ship operation aimed at achieving long-term profitability. Moreover, despite the publicity given to bad accidents, ships have become progressively safer, thanks to both technical and human improvements. Nonetheless, as recent cases show, parts of the industry continue to struggle with basic safety requirements, such as preventing bulk carriers from succumbing to sudden, catastrophic structural failure. Indeed, structural failure continues to cause the loss of many bulk carriers – 14 in the past year alone – which leads to the question: do standards for bulk carrier construction, operation and inspection require further strengthening, or is the system itself in need of a complete overhaul? DNV senior vice president and corporate marketing manager for bulk carriers, Hans Viig, is in no doubt: ‘The problem of bulk carrier losses is exacerbated as shipyards become “creative” in interpreting class rules, particularly when building new standard-type bulkers. To help combat this situation, the International Association of Classification Societies needs

to introduce a minimum standard for bulk carriers to make them suitable for their intended cargoes and, in turn, make the industry safer for the ship and cargo owners, crews and the environment.’ His views are echoed by three leading and influential shipping executives who, in this issue of DNV Forum, explain what they believe is the problem and how it should be addressed – views that will be of interest to a wide cross-section of the maritime industry. This issue of DNV Forum also addresses safety issues in other industries served by DNV. The Kuwait National Petroleum Company recently experienced a series of incidents at two of its refineries and, as a result, turned to DNV to develop and implement an integrated management system to help improve its safety and operational performance. Britain’s train operator Virgin Trains, Golden Vale Dairies, and the Russian/ Italian pipeline operator Blue Stream are all similarly focusing on safety issues in their respective industries. There is no doubt that land-based industries, as well as the maritime and offshore world, are making good use of DNV’s wide cross-discipline safety expertise.

STUART.D.BREWER@DNV.COM

EDITOR

DNV FORUM NO. 2/2001

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COVER STORY

In our forum for discussing important issues facing the maritime industry, Arthur Bowring, director of the Hong Kong Shipowners’ Association (HKSOA), Frederick Tsao, chairman of Intercargo, and Peter Cremers, president of the International Ship Managers’ Association (ISMA), give their views on issues concerning bulk carrier safety and what is perceived to be a general decline in newbuilding standards.

Arthur Bowring, HKSOA chief:

We must ensure bulk carriers are fit for their task TEXT: STUART.D.BREWER@DNV.COM

Arthur Bowring has often commented on broad yet important issues facing the shipping industry. Here he voices his concerns over the design of bulk carriers, which he feels are not always ‘fit for purpose’ when delivered.

Bulk concerns: ‘The shipowner wants ships that are designed and classed for worldwide trading with cargoes that would normally be carried in any bulk carrier, not ships that are designed and classed for limited and specific conditions in a loading manual,’ says HKSOA director Arthur Bowring.

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It is less than two years after the International Maritime Organisation (IMO) introduced regulations to eradicate the problems of bulk carrier safety. Those rules, however, now appear rather ambiguous, and the problem is exacerbated as shipyards become ‘creative’ in interpreting Class Rules. One example of this is the need to carefully optimise cargo placement during loading to fit the allowable strength, rather than design strength being based on expected loading conditions. This is the reason why some new bulk carriers, which appear to be fully classed, lack the ability to load certain cargoes. Citing ‘vicious circles of intense competition in which shipyards, classification societies and shipowners find themselves’, Bowring believes the way forward is to impose a ‘common minimum standard so that ships on delivery are “fit for purpose” and able to carry all common cargoes in unrestricted worldwide trade with a common design life’. FITNESS FOR PURPOSE Says Bowring: ‘We recently met representatives of the International Association of Classification Societies (IACS) to discuss our Technical Sub-Committee Bulk Carrier Initiative. During the meeting, we spent some time explaining our concept of a ship being “fit for purpose”. This is a philosophy rather than a technical specification, and therefore quite difficult to grasp. What it comes down to is whether the bulk


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COVER STORY

IN SUMMARY: • Fierce competition between shipbuilding nations has led to individual shipyards looking to design factors to save costs when building bulk carriers. • The issue has returned to the forefront less than two years after the IMO introduced regulations to eradicate the problems of bulk carrier safety. • The Hong Kong Shipowners’ Association has initiated talks with IACS to introduce a minimum unified standard for bulk carriers to make them suitable for their intended cargoes or ‘fit for purpose’. • This initiative, supported by DNV, is gaining the support of other industry bodies, including Intercargo, ISMA, the Union of Greek Shipowners and the Norwegian Shipowners’ Association.

carriers that have been built and are still being built are suitable for their intended trade.’ In its meeting with IACS, the HKSOA’s Technical Sub-Committee members highlighted some recent examples where they felt designs were deficient and how the design might have been different had the overall philosophy of being ‘fit for purpose’ been the guiding light. Bowring explains: ‘Our comments were related to the more frequent case of standard designs, such as bulk carriers, rather than one-off

‘Some large bulk carriers are so “optimised” that their trading can be severely limited’ specialised ship designs. We have many examples, especially of the larger bulk carriers delivered nowadays, that are optimised to such an extent that their trading can be severely limited. But this is not generally clear when the ship is ordered, nor from the predelivery specification. Often it is discovered only after delivery when the crew tries to load certain cargoes in certain sequences.’ However, Bowring agrees that if shipowners in the bulk trades are to have any real chance of remaining competitive, they have to ‘buy cheap’. This means taking shipyards’ standard designs, since any change in specification will boost the price tremendously.

‘Take, for example, the trade of a Capesize or Panamax bulk carrier, which is fairly uncomplicated. There are only a few commodities that are carried on these ships, and these vessels usually trade worldwide to any port that can take them. But the newbuilding yard will never supply more than the absolute minimum, since most faults will not show during the 12-month guarantee period and there is almost no collection of data by the industry that would identify shipyards that routinely build ships with faults.’ EXTENDED GUARANTEES? The HKSOA is now placing pressure on IACS to introduce a minimum unified standard. The goal is for these bulk carriers to be suitable for their intended cargoes – or ‘fit for purpose’. Says Bowring: ‘We are not alone in our concerns. Some owners are now calling for extended guarantees for newbuildings. Marc Saverys, MD of CMB, was recently reported in Fairplay to have asked why a shipyard only gave owners a one-year guarantee while the same company could offer a six-year warranty on cars that it built. John Lyras, president of the Union of Greek Shipowners, has also complained about modern construction quality. He recently called for minimum class standards to meet a 25-year, commercially viable life expectancy without major steel replacement.’ Hans Viig, senior vice president of DNV and an early supporter of HKSOA’s initiative, gave a paper at the recent Intercargo AGM in Rome to discuss whether bulk carriers are really fit for their mission. Says Viig, ‘DNV has long held the view that many standard bulk carriers offered and delivered by major shipbuilders are not really fit for a lifetime mission as general-purpose vessels. Experience shows that design criteria are usually minimal or “optimised” so that ships can be sold for the lowest possible price. Some owners are happy with lower-cost vessels for a specific trade. However, we are concerned that the vessels will be sold to owners that will use them for a wide range of cargoes for which they are not suited. This, of course, could have serious implications for the ship and cargo owners, not to mention the risk to human life and the environment.’ Concludes Bowring: ‘It is clear that our initiative is one part of an industry reaction to the continuing declining standards of newbuilding, especially seriesbuilt, construction. The fact that IACS has recently reconvened its bulk carrier safety steering committee is encouraging and will help address the questions that have been raised.’ ◆

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COVER STORY

Frederick Tsao, chairman of Intercargo:

Balancing safety with lifetime costs TEXT: STUART.D.BREWER@DNV.COM PHOTO: KIM LARSEN

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Expressing Intercargo’s support for unified, minimum bulk carrier standards, its chairman and president, Frederick Tsao, tells DNV Forum: ‘It is time that all parties in the maritime industry moved forward in harmony to achieve the ultimate goal, the elimination of bulk carrier casualties due to structural failure. If the occurrence of such tragic accidents is to be prevented, what we need is not confrontation but co-operation.’ Last year alone 14 bulk carriers were lost, with 23 fatalities; the average age of the ships was 20.4 years. Explains Tsao, ‘Structural failure remains a consistent and significant cause of loss, while the presence of heavy cargoes features in many of the losses. Hence we are calling for an assessment of minimum shipbuilding standards, arguing that many standard bulk carrier designs have become too optimised.’ MINIMUM DESIGN STANDARDS ‘We are alive to the problem that yard specifications are generally too low for many bulk carriers, and our Executive Committee strongly supports the call by the Hong Kong Shipowners’ Association (HKSOA) for a common minimum bulk carrier design standard.’ Tsao acknowledges that a higher building specification will normally result in increased prices, and emphasises that overcapacity in the shipbuilding industry worldwide is giving rise to severe competition – not only between shipbuilders and suppliers but also between shipowners – which is having a negative impact on the market. ‘As an industry, we are subject to a vicious circle of endless cost-cutting. A typical example is the way that

Intercargo, the representative body of the international dry-bulk shipping sector, is calling for unity in the shipping industry over the issue of bulk carrier safety.

cost pressure forces shipowners to press for lower shipbuilding prices. The shipyards respond by refining their safety margins, through exerting pressure on classification societies.’ KEEPING THE BALANCE Tsao concedes that classification societies and regulating authorities face a complex situation when trying to improve bulk carrier safety. He believes industry bodies need to develop their own initiatives, as in

‘The industry is subject to a vicious circle of endless cost-cutting’ the case of the HKSOA, but stresses the importance of ‘working collectively and speaking with one voice’. Over the past two years, Intercargo has implemented a number of programmes, including the setting up of Asian and European panels to discuss issues in these regions. Various roundtable meetings and dialogue sessions have also been held in order to share industry experiences. Tsao continues, ‘Through the Asian panel, we are already talking to shipyards and classification societies to share with them our concerns. We want them to adopt clear criteria for ship design that take into account safety, environmental, manning and structural issues. This will enable a more holistic approach to ship design and will move us closer to the ideal ship forms. It will still allow for robust competition without the lowering of technical standards.’ ◆

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Peter Cremers, president of ISMA:

Class must act impartially TEXT: STUART.D.BREWER@DNV.COM

To discover the reason for the general decline in newbuilding standards, just examine the bottom line. Peter Cremers, president of the International Ship Managers’ Association (ISMA) is purposefully blunt in his assessment of the situation: ‘Owners build where they can get the cheapest ships possible.’ New regional loyalties and sentiments have little clout in the discussion of where to build. ‘Most yards deliver good quality, but some are cutting corners,’ laments Cremers, concluding that ‘Class must be prepared to act forcefully when it has identified a clear shortcoming in safety standards.’

ISMA president Peter Cremers: ‘Either Class acts to reduce bulk carrier risks, or we shall see yet more government regulation.’

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As president of ISMA and chairman of Hong Kongbased Anglo-Eastern Shipmanagement, Peter Cremers is well qualified to assess bulk carrier safety issues. He insists that Class, as the impartial arbiter of effective marine safety standards, must respond to reduce the risks inherent in many newbuildings. Among the items he suggests concerned owners pursue is greater accountability by both yards and classification societies. ‘The quality of ships turned out at some yards is a matter of grave concern to the industry. The problem is exacerbated through yards (and Class for that matter) bearing virtually no responsibility for the quality of their products. The 12-month guarantee they give is less than that for a kitchen toaster. Even when design problems in, say, one of a series of vessels is discovered, the yard is not obliged to inform the other series owners about the problem – something which is normal practice in other industries.’ ‘CONFIDENTIALITY’ CAN HIDE THE TRUTH Cremers believes transparency is vital to achieving enhanced levels of safety, and an important tool to ‘control the under-performers’. He also questions the practice of ‘confidentiality’ between a shipyard and class to the exclusion of the shipowner. Even though specifications for standard vessels remain the domain of the yards, Cremers feels a closer dialogue is required so that owners can communicate their needs to the yards. He believes three-way contracts could be the solution. Commenting on the Hong Kong Shipowners’ Association’s initiative to place pressure on the International Association of Classification Societies (IACS) to introduce a minimum unified standard, Cremers says: ‘We support this initiative and have, in fact, been pushing for this for some time. The HKSOA’s initiative serves as the latest evidence of support for our position on this issue.’

One of the items that particularly concerns Cremers is that ship-classification notations should be negative, not positive. ‘This means that the notation “Bulk Carrier” should describe a ship that is “fit for purpose”, meaning able to carry any normal

‘Class must be prepared to act forcefully when it has identified a clear shortcoming in safety standards.’ cargo in any area worldwide and with sufficient tolerance and strength reserve so that the crew on board can load and discharge the ship safely.’ Cremers argues that any restrictions on this should be shown in the class notation rather than as is the case at present, where ‘only additions to the basic description are shown’. IACS: TOO GREAT A SELF-INTEREST Explains Cremers: ‘It is my firm belief that IACS continues to be the most appropriate forum for addressing the technical aspects of further safety requirements. However, some IACS members have been accused of being too commercialised and more interested in preserving their client base than performing the role for which they are established.’ Cremers is insistent that class must respond to reduce the risks faced by these newbuildings. The alternative, he warns, is ‘further government regulation of the industry. Governments are well-intentioned, but they are not technical experts.’ ◆

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PIPELINE CERTIFICATION

Crossing the divide TEXT: PER.WIGGO.RICHARDSEN@DNV.COM

Early next year, the first gas will flow from Russia and under the Black Sea to Turkey. Turkey’s private and industrial consumers using this gas will be unaware of the problems solved in getting it to them.

T Saipem 7000 will be used to lay the deepest part of the Blue Stream pipelines at a depth of 2,150m. No gas pipeline has ever been laid in such deep waters. The rig’s J-lay tower is 134 metres high, and was lowered for the vessel to pass under the two bridges crossing the Bosporus Strait in late August.

The project to which Russian and Turkish authorities gave the go-ahead when they signed an InterGovernmental Agreement in December 1997 was a challenging one with a clear target – Russia’s Gazprom was to transport 16 billion cubic metres of gas from Russia to Turkey every year. The only common border between Russia and Turkey runs through the Black Sea – whose depth reaches more than 2,000m. This posed a major challenge that was made even greater due to the fact that Gazprom’s previous experience was mostly related to onshore pipelines, and that no pipelines have ever before been installed at such water depths. But the deep waters are only one of the technological challenges – a steeply sloping seabed with seismic activity along both coasts is another. Co-ordinating the project between the parties involved, financing the entire project and coping with the political challenges have also been demanding. ‘But’, says technical director Vladimir Borovik, formerly of Gazprom, ‘if we hadn’t been sure that we could overcome these challenges, we’d never have started on this project. Through an extensive collaboration with some of the foremost experts from outside Russia and Turkey, we’ve already put most of the challenges behind us and we’re well prepared for those we’re now facing – in actually laying the two pipelines.’ MERGING TO FORM BLUE STREAM The idea now being realised originated with Russia’s Gazprom. While Russia is the largest gas-producing nation in the world, with around 1/3 of all total

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PIPELINE CERTIFICATION

IN SUMMARY: • Blue Stream is the world’s deepest pipeline yet constructed, from Russia to Turkey beneath the Black Sea • The sponsors, Russia’s Gazprom and SNAM SpA of Italy, have moved the project through numerous political and technological challenges • DNV has signed a certification contract with the owner and operator of the project, the Blue Stream Pipeline Company, a 50/50 joint venture between Gazprom and SNAM • Offshore installation of the pipeline is scheduled to start in September 2001. In a year’s time the pipeline owners will deliver Russian gas to the shores of Europe’s fastest growing energy consumer – Turkey

proven reserves, Gazprom is the largest Russian energy company. It has over 300,000 employees and operates more than 140,000 km of gas pipelines. ‘The Russians were the ones who saw the opportunities and they contacted us,’ explains Borovik’s Italian counterpart, technical director Salvatore Caruso of SNAM. SNAM is a subsidiary of Italy’s ENI Group and deals with the supply, transportation and distribution of natural gas. ENI’s position in the Italian energy industry is similar to that of Gazprom in Russia. The ENI Group has a total of nearly 72,000 employees and is also the largest shareholder in SAIPEM, the company responsible for laying the pipelines. The two companies – Gazprom and ENI – own equal shares in their joint venture, Blue Stream Pipeline Company BV (BSPC). Both Borovik and Caruso are now employed by this company, with a staff of 20. Once the first gas comes through the pipelines to Turkey, Blue Stream’s staff will be cut back to a minimum. Gazprom will be responsible for regular gas deliveries. ‘That Blue Stream is currently operated by a joint Russian-Italian management team may seem cumbersome and inappropriate,’ comments Salvatore Caruso. ‘But we’ve found a way of working and collaborating. In Italy we have a saying – four eyes see better than two, and we practise this philosophy in Blue Stream.’ Borovik sees no reason to focus on the company’s internal organisation and work processes. Instead, he emphasises the practical division of labour – not just between the Italians and Russians, but also between

all those involved. ‘In a project worth more than two billion U.S. dollars, some decisions will be complex. But the way in which Blue Stream is organised has created an effective decision-making process.’ THE PROJECT AS A CASE STUDY Financing Blue Stream has also been a challenge. The Inter-Governmental Agreement entered into between the two countries’ authorities, which is of political significance to both these countries and their neighbours and under which Blue Stream has many industrial partners, is now used as a case study at academic conferences. ‘Most of the challenges have been solved by carrying out thorough feasibility studies. DNV has been extremely supportive here and is one of our most important business partners in this project. Risk analyses have made us aware of the possible risks,’ emphasises Borovik’s right hand man, offshore technical manager Andrey Voronov.

‘Four eyes see better than two, and we practise this philosophy in Blue Stream’

Salvatore Caruso

The practical division of this project has mainly been along the coast of the Black Sea. The Russians have more experience than anyone else of laying onshore pipelines, and of the intermediate compressor stations. The Italians have the necessary offshore experience from laying pipelines to their own country from Africa and from participation in international projects. An example is the Transmed Project, where Italian offshore technical manager Stefano Dicorrado was in

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PIPELINE CERTIFICATION

Blue Stream’s top executives. From left: Vladimir Borovik, technical director, Salvatore Caruso, technical director, Stefano Dicorrado, offshore technical manager, Andrey Voronov, offshore technical manager.

charge of following the construction activities. ‘The underwater pipelines from Tunis to Italy through the Mediterranean Sea at a maximum water depth of 610 metres remains – for some more months – a world record for such large diameter sealines.’ TO DNV’S PIPELINE RULES All four top executives emphasise that DNV’s offshore experience has been vital throughout the entire project, from planning to pipelaying. Says Voronov, ‘The Russian authorities didn’t have national standards or sets of requirements relating to pipelines in deep waters. Blue Stream is based in its entirety on DNV’s Pipeline Rules. Once this pipeline has been completed, Russian standard requirements will probably be established and the experience gained on Blue Stream will be incorporated into and help to modify the original DNV standard.’ Blue Stream will supply 16 billion cubic metres of gas to Turkish consumers annually. Turkey’s total gas requirements are expected to increase to approximately 80 billion cubic metres by 2020. The entire European gas market is expanding rapidly, and restrictions on a free energy market in the EU are being lifted. The need for energy, particularly gas, is also expected to grow in the politically unstable Middle East. TURKEY THE STRATEGIC BRIDGE ‘In the gas market of the future, Turkey may be in the position of a bridge-builder between three continents,’ forecasts Caruso. ‘It’s no secret that all the parties involved in Blue Stream see these opportuni-

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ties and the advantages that this project may then give. The need for energy will grow and this means that the knowledge and experience we’re now gaining in Blue Stream will be much sought after.’ Russia in general and Gazprom in particular play an extremely important role in the development of the energy market in this part of the world. Around 1/3 of the world’s proven gas reserves are in Russia. Gazprom’s gas sales last year amounted to 430 billion cubic metres, around 30% of which were sold to Europe. Gazprom’s deputy chairman, Sergey Dubinin, offers two examples of projects that may be developed to transport gas out of Russia over the next few years: ‘The Yamal-Europe gas pipeline and Northern European gas pipeline from Russia’s Barents Sea may considerably increase the volume of gas exported from Russia. Feasibility studies being carried out on our northernmost gas field Shtokmanovskoye show that this field alone may produce 90 billion cubic metres of gas each year.’ For Blue Stream’s management and business partners, this proves that there will be an opportunity to utilise the experience now being gained in Moscow, Milan, on the shores of the Black Sea and, not least, 2,150 metres below its surface. ◆


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RAILWAY SAFETY

World-class rail travel by 2003 TEXT: HARALD.BRATHEN@DNV.COM PHOTO: COURTESY OF VIRGIN TRAINS

Virgin Trains aims to be delivering world-class transport services by 2003. ‘Our company will be the best in the world,’ says Chris Green, managing director of Virgin Trains. The train operator is concentrating on five main areas in order to achieve this goal: safety, reliability, customer service, product development, and human resources. ‘Without safety we should just give up. There is no point in being reliable if we cannot guarantee safety. There is no point in developing customer services if we cannot back them up with safety. Britain’s railways have experienced a number of recent high-profile accidents, and public concern for safety has grown.’

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Virgin’s first Voyager went into service in May.

Railtrack and the train companies, and the third parties acting as maintenance contractors. It is possible in the future that the train operating companies will have to take responsibility for maintaining their own infrastructure.’

C

Chris Green is a voice to be listened to in the British railway industry. He is a railwayman through and through, working in the railway business from 1965 to 1995, and then coming back to it in 1999. He takes a train every day to and from his office at London’s Euston station and understands the need for the train system to operate well. ‘I travel on a competitor’s train. In that way I get an even better insight into what’s happening in the industry,’ he says, while underlining that he is happy to be with Virgin. ‘But I think the industry is too fragmented. Complex relationships exist in the rail industry between Railtrack, Virgin, the other rail companies, and the Government’s Railway Inspectorate – everyone has interlocking responsibilities in the area of safety. Fragmentation makes the safety issues far more critical, and several recent accidents involving different companies and management systems controlling the trains and track have highlighted this. The biggest concern has been the interfaces between

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STEP CHANGES IN SAFETY MANAGEMENT As part of its approach to dealing with these issues, Virgin is working towards making step changes in its own safety management system. A detailed review of the Virgin safety management system is to be carried out using the Rail Operators’ Audit Rating System, ROARS, which will look at areas of major risk facing Virgin Trains. The assessment will cover such aspects as leadership, communications, organisational structure, policy, planning, management of subcontractors, training, client liaison, incident reporting and follow-up, as well as Virgin’s own audit process. Both Virgin’s West Coast Main Line and Cross Country routes will be covered by this review. Virgin is commissioning Det Norske Veritas to take a look at the company in an international context and to benchmark it against world best practice. ‘Virgin is aiming for a cultural change in safety: nothing will be accepted as unavoidable,’ states Green. ‘Most people in Virgin are committed to making a big step forward – detailed safety plans and processes are in place and these are now being widened to include quality.’ Virgin is using the ROARS system to find out exactly where the company lies in terms of safety and quality. With a current score of just five it is merely average. Accidents involving passengers are running at one a day, those involving staff at one every three days. New rolling stock will help reduce these as all slam doors on coaches will be phased out, new interior sliding doors will be installed and TPWS signalling


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‘Virgin is aiming for a cultural change in safety: nothing will be accepted as unavoidable.’

Chris Green

introduced. ‘The biggest problem is Virgin itself, where the need to provide customer service sometimes overrides safety,’ Green admits. NEW TRAINS AND A CHANGE IN CULTURE Green believes that when safety and quality are right, then train performance and customer service will follow. Results will then speak for themselves. The core company of Richard Branson’s Virgin Group is very much the airline, which is itself driven by safety and so provides relevant support. ‘We have doubled our emphasis on safety,’ Green explains. ‘We use benchmarking, and we are making real progress. The most important thing now is to get that change in culture. We have caught up a long way, but we still have a distance to go. But I believe much of that will occur when we get our new trains.’

‘The need to provide customer service sometimes overrides safety’ Virgin’s new trains, the Voyagers, have been created in a partnership between Virgin and manufacturer Bombardier, and much was learnt about safety and quality in the process. The first Voyager went into service in May, with more to follow soon, while the tilting Pendolino is scheduled to enter service on the West Coast line in May 2002. Green is enthusiastic. ‘The new Voyagers are 125 mph diesel units; with the first one commissioned in May, we have started to take delivery of our GBP 1 billion fleet of new trains at a rate of one per week for the next two years.’ Delivery of the fleet of 140 mph electric Pendolino trains is not far behind the Voyagers. Now undergoing intensive testing, the first Pendolino will enter service early next year. Both fleets will have virtually identical interiors and will bring radical improvements in reliability, speed and comfort. They will be

the first trains in Britain to have audio entertainment at every seat and they will also boast an onboard shop, sockets for recharging laptops, destination indicators in every coach and electronic seat reservation. ‘We are impatient to see the end of the old trains – but we intend to maintain a high quality of service on the existing trains in the meantime,’ confirms Green. AN IMPRESSIVE NETWORK – AND A PROFIT Virgin Trains operates a comprehensive network, with lines from Aberdeen in the north of Scotland to Penzance in the southwest, from Brighton in the southeast to Glasgow in the northwest. 5,500 staff oversee the traffic. Like other parts of the Branson empire, the train operations have also been able to earn several distinctions. For example, Virgin Trains received four awards in 2000: ‘Train Innovation of the Year’, ‘Operator of the Year’, ‘Integrated Transport Scheme of the Year’, ‘Rail Marketing Campaign of the Year’, plus one from 1999: ‘Station Innovation of the Year’. Chris Green expects Virgin to make a profit in 2002. He is also positive about deregulation of the railways both in the U.K. and in other countries. ‘Privatisation has given the railways fresh venture capital. We can also see great innovations in service attitude, marketing and investments in modern stock that would have been difficult to implement if we had kept British Rail as a monopoly.’ The Heathrow Express and the Thames Link are examples of these new developments that would not have been possible without deregulation. Today, 26 operating companies share the British rail network, five of them major players like Virgin. ‘It is important that when new franchises are awarded, they are sufficiently long to allow the train companies time to invest,’ concludes Green, who would not say no to possible subsidising of the railways either. ‘The state is building motorways for road traffic. Why shouldn’t it also build railways for train traffic?’ ◆

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FOOD SAFETY

Good safety management

shows on the bottom line ‘No fads, no trends, no buzzwords – just good management directly improving our business results,’ says group safety manager Peter Drillingcourt about DNV’s safety management system used at Golden Vale Dairies. TEXT: KRISTIAN.LINDOE@DNV.COM

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Peter Drillingcourt explains: ‘We have an obligation to make sure our employees are safe, and through a systematic approach to safety we also monitor loss control and involve all employees and managers in the process.’ When introducing the system Sexton Cahill, Human Resources Director, challenged Golden Vale’s managers and employees: ‘Try to find one element in this system that does not add value to the company!’ DNV’s safety management system looked good on paper, and after implementing it, some of the group’s plants asked permission to go for higher safety levels than planned. Another initiative was to develop a Safety Improvement Scheme, where problems encountered in daily operations are recorded in a systematic manner and the management ensures funding for quick implementing of solutions.

New product development and continued investment and research are critical to Golden Vale's success.

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Says Cahill: ‘The positive effects are so obvious that both employees and managers want to take as much advantage of the system as possible, and the pace is adjusted to the individual plant’s needs.’ According to Drillingcourt, the employees now think differently about their jobs. The influence over their own work and safety is greater, and systematically backed by funding of good initiatives. PINPOINTING RESPONSIBILITY Sexton Cahill explains how it is done: ‘In Golden Vale, the group as a whole is funding the safety work, but we let the individual plants carry their own insurance costs. That way, every plant can clearly see the direct consequences of their safety management work – whether it is good or bad. This surely speeds the process, leading to lower insurance costs.’ DNV’s safety management system has created an awareness of loss control in a broader sense. For example, the reduction of lost days at one of the plants speaks for itself: 152 man-days in 1999, 24 in 2000 and just one so far this year (July 2001). Says Peter Drillingcourt: ‘There is a direct connection between a plant’s safety rating and its overall business results. Poor safety management is poor management – and vice versa.’ RISK MANAGEMENT AND QUALITY A dairy may not be the most obvious example of a high-risk business. But Golden Vale is much more than a dairy. In large-scale production there are always safety hazards. The industrial blow dryers used to make powder out of the milk are just one of the most obvious risk factors. Pressure tanks are another hazard. Last but not least, the quality of the products is crucial in the food industry.


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FOOD SAFETY

Golden Vale’s Peter Drillingcourt (left) and Sexton Cahill have backgrounds in heavy industries (aviation and alumina, respectively) where systematic safety management is vital for existence.

‘Previously there was an ad-hoc approach to safety issues and there was no systematic reporting of incidents and what was being done to avoid them,’ says Cahill. ‘But we could clearly see that our insurance costs were high and rising. Now everything is transparent and measurable. And things are more likely to be done when they are measured.’ DNV’s uniform and transparent system was chosen because it can be implemented in large companies with a variety of production systems. The methodology can be customised and at the same time the safety rating makes it transparent and uniform. As a result knowledge is less dependent on individuals – instead it becomes an integral part of production. Cahill explains, ‘Our most critical plants now have a rating of level 3 or higher in the International Safety Rating System (ISRS). They will go on to achieve higher levels. At the same time we will gradually apply the DNV system to all our 20 plants.’ Golden Vale will also train its own auditors to carry out continuous evaluations, and periodically use DNV’s external auditors. A SOUND SAFETY INVESTMENT The improved business results are now paying off. The Board of Golden Vale has accepted a bid from the three times bigger Kerry Group. ‘Five years ago, no one would have touched us – a former co-op. Now the bids are coming, because we have improved considerably. I know this methodology is one of the reasons,’ says Sexton Cahill, who underlines how safety has always been an integral part of all the group’s investments. He is keen to bring this value into the bigger, merged company in due time. ‘I can guarantee that plants which are running good safety systems and scoring well on the ISRS will

GOLDEN VALE PLC The Irish company Golden Vale is a marketfocused food company with operations spanning the manufacture and sale of a wide range of branded and customer-label food products for international retail, industrial and food service markets. For example, Golden Vale supplies dried milk powder to Nestle and is the largest supplier of cheese slices to McDonald’s throughout Europe. Golden Vale employs approximately 2,600 people.

MODERN SAFETY MANAGEMENT SYSTEM DNV’s safety management system is based on the International Safety Rating System, where a company’s safety management is rated on a scale from 1–9. It is a comprehensive and systematic approach to all safety and loss control aspects. It deals with root causes of loss and hazards without any appreciable increase in documentation.

have the fewest industrial problems, the best working environment, managers who understand their business and objectives that are met.’ ◆

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Raising the Safety Bar Kuwait National Petroleum Company is taking SHE management to new heights, establishing as part of its Policy Statement a management programme covering all aspects of its operation. DNV Consulting is actively co-operating in the programme’s development and implementation.

TEXT: STUART.D.BREWER@DNV.COM PHOTO: COURTESY OF KNPC


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INTEGRATED MANAGEMENT

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Kuwait National Petroleum Company (KNPC) operates a major oil and gas processing complex near Kuwait City. This consists of three refineries, one gas processing plant and a local marketing department which distributes and markets petroleum products to the general public. The three refineries (Shuaiba, Mina Abdullah and Mina Al-Ahmadi) together process some 1 million barrels of crude oil each day. Says Sami Al-Rushaid, executive assistant managing director of KNPC, ‘Our company specialises in crude oil refining and gas liquefaction operations. One of our main goals is to achieve full integration among the three refineries, and operate them as one efficient refining complex in order to achieve a high level of flexibility in meeting the requirements of the world market.’ Al-Rushaid believes that the safety management programme is key to the success of KNPC. He explains, ‘Maintaining Safety, Health and the Environment is a core value for KNPC. Our overall aim is to run a successful business with no accidents, no injuries, and no harm to the environment. This is a firm commitment of management, and the responsibility of all staff and contractors on our sites.’ According to Al-Rushaid, KNPC recently experienced a series of incidents resulting in both fatalities and significant loss of production. ‘Although we have always paid special attention to safety and security at our plants and installations, we experienced two serious incidents in June 2000. The first was a leak of H2S gas that led to two fatalities during the inspection of the Isomax reactor unit at the Shuaiba refinery. Shortly after, we suffered a major blast at the Mina Al-Ahmadi refinery, bringing its units to a complete shutdown and inflicting heavy damage.’ DNV ASSESSMENT STUDY ‘Subsequent to these incidents’, says Al-Rushaid, ‘KNPC management took immediate steps to analyse the weaknesses in its safety management system, with

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IN SUMMARY: • In the complex, fast-moving world of the oil, gas and process industries it can be a challenge to meet all the various stakeholders’ Safety, Health and Environment (SHE) goals and expectations. • The ability to handle risk effectively pays dividends in terms of improved SHE, direct savings and enhanced public confidence. • DNV Consulting has been commissioned by the Kuwait National Petroleum Company to help optimise SHE management systems on its three refineries and a gas processing plant. • In the ongoing projects, DNV personnel are joining KNPC teams in an effort to make the work process an empowering one. The work includes behavioural analysis, risk assessment, change management, training, environmental support and management systems development.

KNPC and DNV staff at a behavioural element session

the aim of effecting positive and long-lasting improvements.’ As part of its SHE management system (K-SMS) development, KNPC called in Det Norske Veritas to conduct an assessment study of its facilities, systems and procedures. The key elements of the K-SMS include: • Leadership, commitment and accountability • Management system and audit • Training, competence and behaviour • Emergency preparedness • Incident investigation and reporting • Risk assessment and management of change


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INTEGRATED MANAGEMENT

Says Al-Rushaid, ‘A major emphasis of the programme must be on people and their safety attitudes, as the majority of accidents can be shown to be caused by human failure. Therefore training is a key element of this programme, and the aim will be to train everyone in the system from the Chairman down to the youngest recruit. Everyone must appreciate how the system works and their role in making it happen. ‘The reason that this approach delivers long-term safety improvements is the better understanding that comes from the risk reviews which identify causes of accidents and whether safeguards are in place.

‘Major emphasis must be on people and their safety attitudes ...’ These may be people, procedure or hardware based and must be adequate to prevent incidents. The understanding of every employee of their role in those safeguards is crucial. Over time, the “continual improvement” element of the management system will drive the residual risk lower and lower as weaknesses in operation and safeguarding are identified and addressed.’ Mohamed Ibrahim, head of K-SMS, adds: ‘DNV has used benchmark industry approaches for each of the 14 elements and these have been presented to our “Element Champions” and their teams along with the findings from the baseline assessment. DNV has then facilitated workshop sessions with each team to come up with a practical programme to meet the expectations of senior management. ‘DNV is taking these results and developing a set of suitable performance indicators, in conjunction with the Element Champions. DNV has also developed a series of audit-based measurement questions

‘The oil and petrochemical industries must be built upon high standards in safety, health and the environment’ – Sami Al-Rushaid

that will support each element. Taken together, these element questions will become the KNPC audit measurement tool.’ 100 PER CENT COMPLIANCE A Higher Safety Committee has been established to provide safety management leadership and keep track of progress, and to identify areas that need attention. Through this process, KNPC aims to achieve continuous all-round improvement. Concludes Sami Al-Rushaid, ‘Over the past 25 years, the process industry worldwide has experienced many disasters and much has been learned from those accidents. It is an established fact that safe operations come from well-structured and well thought-out safety management systems that address all aspects of the process facility and start from a thorough understanding of the process hazards. Consequently, we strive to implement the best programmes available and push for 100 per cent compliance with all our Health, Safety and Environment standards and policies. I am confident that with the co-operation of DNV, we will achieve this goal.’ ◆

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SHIP NEWBUILDING MARKET

South Korea heads the league TEXT: BEATE.V.ORBECK@DNV.COM

South Korea is today’s leading shipbuilding nation, with 43% of all ships on order. Traditionally strong shipbuilders in Europe and Japan are dropping behind, while the Chinese market is slowly catching up. Three top Korean executives here explain the reasons behind its shipbuilding success.

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The outstanding productivity growth of the South Korean shipbuilding industry is a result of various factors. There has been a move of traditional heavy industry from Western countries to Asia during the past 20 years. Korea has been faced with a more competitive open economy and integrated products and capital markets in the 1990s, which has resulted in a more market-oriented approach. Since financial turbulence swept through Asia during 1997, Korea has managed to recover from the severe recession. The country’s ability to put a new, market-oriented system into place has proved its success in the shipbuilding industry. Priorities have been given to encourage foreign investments, industrial and land regulations liberalise industrial activities, and new business regulations promote competition. INVESTING IN NEW TECHNOLOGY The history of modern Korean shipbuilding is relatively short, about a quarter century of full-scale operation. More than 20 years ago Europe enjoyed high productivity in shipbuilding. From the 1980s the industry moved to Asia, where Japan held the

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lead until recently overtaken by Korea. Korean shipyards have primarily built bulk carriers and container ships. In recent years they have invested heavily in R&D, and can now deliver complex vessels such as LNG and LPG carriers, offshore rigs and FPSOs (Floating Production, Storage and Offloading Units). Shipbuilding is a labour-intensive industry, and increased labour costs are considered a major factor in the shift from European to Asian dominance. One reason for Korea’s shipbuilding success might be the ready supply of a cheap, educated and skilled workforce. However, labour costs are now increasing in Korea, which helps explain the growing Chinese shipbuilding market. The shipbuilding industry employs approximately 46,000 with an average age of 39 – much younger than their Japanese counterparts. While Japan experiences difficulties in recruiting skilled staff to the shipyards, Korea has no recruitment problems. This is in part due to the perception of shipbuilding as high-status employment by those working in the industry.


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SHIP NEWBUILDING MARKET

‘A high degree of engineering capability is crucial for the Korean yards to succeed,’ believes Moon-Kyu Lim, senior vice president at Daewoo Shipbuilding & Marine Engineering.

INDEPENDENT SHIPBUILDERS ON THE INTERNATIONAL SCENE South Korea’s three major shipbuilders are Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering. All emphasise the importance of being independent companies competing on the international market. They are now reaping the benefits of the country’s industrial regulations to liberalise business activities and promote competition. From being part of large industry conglomerates, they are now independent firms quoted on the Stock Market. This new freedom has made them more flexible to meet market needs, and enabled them to reinvest in new facilities. The three main yards have together delivered over 1,400 ships and numerous steel structures and offshore rigs. Their order books are full until 2003, with a variety of ship types. FLEXIBILITY THE KEY According to the head of the Shipbuilding Division at Ulsan Shipyard, Jae Byoung Song, the main reason for the South Korean lead is the yards’ ability to meet market needs by being flexible. ‘We have to change according to market needs,’ he says. ‘There is a perceived need for approximately 100 new LNG vessels worldwide in the next four years. There are limits on how many we can build at the same time, but we can manage by being flexible and spread the activity to other yards, or allocate docks for special assignments.’ Hyundai Heavy Industries runs the Ulsan Shipyard; it is the biggest shipbuilder in the world, with a capacity of about 60 commercial and naval vessels per year. Nine dry docks can be allocated individually according to demand. ENGINEERING CAPABILITY ‘A high degree of engineering capability is crucial for the Korean yards to succeed,’ says Moon-Kyu Lim, senior vice president at Daewoo Shipbuilding & Marine Engineering. ‘We have to provide our work-

‘Shipbuilding without focus on safety, health and the environment cannot survive,’ says C.H.Park, vice president of Samsung Heavy Industries.

force with continuous training and education. If we fail, they will leave.’ Daewoo has its own training package for all new employees. Additional training is provided by Det Norske Veritas, to maintain workers’ understanding of the most important technology developments and requirements in the industry. TREATMENT OF WASTE ‘Shipbuilding without consideration for safety, health and the environment cannot survive,’ says C.H.Park, vice president of Samsung Heavy Industries. ‘The treatment of waste has moved to seaborn areas and the shipping industry has to follow up with environmentally friendly transportation. National bodies and the public at large are watching us closely.’ Samsung Heavy Industries is meeting the new standards by being the first shipyard in the world certified according to the environmental standard ISO 14001. In addition it has been certified according to the new environmental standard OHSAS 18001. ◆

700

Ship types on order by country/region

600 500 Number of ships

According to head of Shipbuilding Division at Ulsan Shipyard, Jae Byoung Song, the main reason for the South Korean lead is their ability to meet the market needs by being flexible.

400 300 200 100 0

Tanker

S Korea

Bulker

EU

Container

Japan

Dry Cargo

Passenger

Roro

China

The Korean ministry of commerce expects the value of ships built or exported to pass USD9Bn this year against USD8.23Bn last year. During the first half of the year, Korean shipbuilders exported ships worth USD5.7Bn, over 44 per cent higher than the same period last year when USD3.9Bn worth of ships was built. The value of Korean ship exports has maintained a 20 per cent rise annually for many years.

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SHIP CLASSIFICATION

DNV helps sharpen Royal Australian Navy’s cutting edge TEXT: TIMOTHY.L.DILLENBECK@DNV.COM PHOTO: COMMONWEALTH OF AUSTRALIA

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The Royal Australian Navy is a small but professional and capable force. The fleet is varied – American and Australian-built FFG frigates, Australian-built FFH frigates derived from the German Meko class, modernised Landing Platforms Amphibious (LPA) which used to be in USN service, a French AOR Replenishment Ship Tanker, an ex-RFA British AO Replenishment Ship, Australian-built Minehunters, Coastal MHCs of Italian design, old Fremantle class Patrol Boats, Australian-designed and built Collins submarines of Swedish design heritage, and new Hydrographic Ships. More than 25 new vessels are planned over the next decade or so. DNV is helping RAN improve overall safety and integrity. Capt. Drew McKinnie is director general of the Navy Certification and Acceptance Agency; he points out that the fleet is facing some real challenges in ‘Parent Navy’ responsibilities and overheads. ‘Our uniquely mixed fleet is undergoing major renewal and this will stretch our resources. We are small in manpower terms – only about 12,500 in uniform, and a similar number of defence civilians. We do not have the capacity to do everything in-house like the major powers. Our relationship with the defence and maritime industries is strategically vital. Classification societies such as DNV are important links in helping us to deliver capability, to operate safely, to fight and win at sea.’

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An unusual characteristic of the RAN fleet is its diversity: a challenge to safe and reliable operation. With many new vessels also on the stocks, DNV is a vital partner in the Navy’s future plans.

ADOPTING COMMERCIAL STANDARDS Like many nations, the Royal Australian Navy has seen a major shift from in-house to commercial outsourcing. The former Naval Dockyards have been superseded by commercial yards, and centralised design and maintenance bureaux have devolved much of this work to industry arranged through the Systems Project Offices. Says Capt. McKinnie, ‘This is not without risk – the challenge is to do it safely, and again DNV is a partner, helping us to gain required assurances of safety and integrity. Also, in our new acquisitions of weapons platforms, we are moving towards greater use of commercial standards and class rules, simpler specification and less reliance on military specifications. The opportunity to contribute to the “navalising” of ship rules and commercial standards is good for us, for industry, for government, and for the classification societies.’ DNV in Australia has been successful in winning contracts for Classification services for Huon Class Minehunter coastal vessels and two Landing Platform Amphibious (LPA) vessels. The scope of work involves establishing a ship-specific Rule set to provide a basis for appropriate through-life survey and maintenance requirements.


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SHIP CLASSIFICATION

‘We need to improve the application of sound risk management in our contractor support and classification society relationships’ – Capt. Drew McKinnie.

CULTURE OF ACCOUNTABILITY Capt. McKinnie reminds us that the Navy had a serious ‘wakeup call’ with the Westralia fire that claimed the lives of four sailors. The importance of effective regulation and management of safety was highlighted. ‘As a Navy, we were starkly reminded that we needed to take certification, safety and classification seriously and build stronger ties with the commercial maritime community. DNV is helping us to reduce the risk of future tragedies. Crew at sea risking their lives daily in our grey ships, in an inherently dangerous environment, are the real customers. We are protecting their lives, and Australia’s naval capability.’ Vice-Admiral David Shackleton took over as Chief of Navy in July 1999, and one of his first tasks in the top job was to assemble senior leaders and spell out his challenge to redefine the Navy as a high-performance, capability-focused organisation. He commissioned a report from six middle-ranking offers, who became known as Tomorrow’s Navy Team (TNT), to identify major problems and come up with solutions. The TNT plan was for a Navy with a flatter organisational structure, with Navy Headquarters responsible for overall performance, and Maritime Command responsible for operations in a military theatre, sitting above seven so-called Force Element Groups (FEGs) to manage the different aspects of the Navy’s weapons arsenal. The intention of the groups was to align accountability and reduce the diffuse management structure which previously made it difficult to pinpoint management problems. TRAINING IN SAFETY & RISK MANAGEMENT Navy executives place a very high value on DNV’s contribution to training in ship safety and certification. Training and education are vital in changing attitudes, engendering better safety case management, better decisions, and a more robust and professional approach. McKinnie comments, ‘It’s making a real difference in our operations and maintenance. The SSMO course provided by DNV is great value. We’re looking at Australianising it – our Force Element Group structure in our Navy, the integration of acquisition and support in our Defence Materiel Organisation,

plus the regulatory roles and functions embedded in Navy Systems Command, all affect the responsibility and accountability framework for safety case management. But the methodologies, skills and knowledge are all entirely applicable. Our AS4360 risk management standard is world’s best practice, and interleaves very well with the SSMO approach.’ THE CHALLENGES AHEAD The Royal Australian Navy has some significant challenges ahead in improving the regulation of design, maintenance and safety, whilst still ensuring costeffective, affordable support. ‘We need to improve the application of sound risk management in our contractor support and classification society relationships,’ says McKinnie, ‘a more collaborative approach, with shared use of safety case systems. We cannot go on accepting or ignoring risk. DNV could help us make more informed risk assessments in many areas, assisting with surveys and risk data management.’ He believes that there is real benefit in early engagement of the Navy and Defence Materiel Organisation with strong and credible classification societies, such as DNV, in developing the design of future combatant ships. ‘We have tended to let the prime shipbuilder contractors do this in the past. I think we should work more closely with Class in the future, particularly where we are the Parent Navy.’ ◆

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PIPELINE OPERATION

Crude oil across Alaska A Safety Challenge TEXT: BEATE.V.ORBECK@DNV.COM PHOTO: FRED HIRSCHMANN

The trans-Alaska pipeline is part of the world’s longest pipeline system, transporting oil from Alaska’s North Slope 800 miles south to the Port of Valdez. The trans-Alaska pipeline system, known as TAPS, also traverses one of the world’s most vulnerable environmental areas, and is under constant surveillance by regulators, interest groups and the public. Alyeska Pipeline Service Company operates TAPS for six owner companies: British Petroleum, ExxonMobil, Phillips, Williams, Unocal and Amerada Hess. Alyeska has operated TAPS since startup in 1977 and has achieved an overall reliability factor of 99.78%.

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The TAPS right-of-way crosses land owned by the Federal government, the State of Alaska and Alaska Native Corporations. The original right-of-way has been in place since 1974 and will expire in 2004. Now the TAPS owners are in the process of seeking a 30-year renewal. According to Steve Jones, TAPS ROW Renewal Manager, ‘under the laws governing TAPS, the ROW can be renewed so long as TAPS is in compliance with the existing Federal grant, State lease and other applicable laws’. Dan Hisey, Chief Operating Officer for Alyeska, says ‘operating a pipeline through Alaska is like working in a fish bowl. The amount of regulatory oversight focused on TAPS is unique in the U.S. pipeline industry.’ Primary government oversight is exercised through the Joint Pipeline Office (JPO). The JPO is composed of Federal and State agencies, led by the Federal Bureau of Land Management (BLM) and the State of Alaska Department of Natural Resources (DNR). In all there are more than 20 regulatory agencies that have TAPS oversight responsibility.

The trans-Alaska pipeline crosses hundreds of miles of Federal and state lands in Alaska. Its owners are in the process of renewing permits for another 30 years of operation.

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RENEWAL PLAN As part of the renewal process, Alyeska is evaluating how to bring a less bureaucratic and more systematic approach to its business processes. The company’s


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‘DNV examined our operations and told us what we were doing right and what we could do better to improve our management systems.’

Dan Hisey

management systems have been reviewed and diagnosed by DNV, and a renewal plan is being implemented throughout the organisation. Explains Hisey, ‘Over the past twenty-four years Alyeska has made and continues to make improvements to TAPS operations. Now we’re in the process of revising our management systems and business processes to be sure we are prepared for future operations. In order to get an independent evaluation of our compliance processes and management systems, we hired DNV to carry out a third-party audit.’ Most significantly, the audit included a roll-up of detailed findings into root cause system findings. According to Hisey, this review made it clear that Alyeska needed to improve the way it worked across the company. ‘DNV examined all our operations and told us what we could do better from both a detail and a systems perspective.’ During the first 24 years of operation, changes in regulatory requirements, training standards, technology and operational parameters led to a significant increase in the number of manuals and reporting procedures. According to Jim F. Johnson, Right-of-Way Compliance Director, the time had come to integrate the company’s processes into one simplified management system. ‘Previously we were tied up in details which prevented us from seeing the system as a whole,’ Johnson says. ‘The new approach has allowed us to improve management effectiveness by making it more intuitive – by reducing complexity we will ensure that Alyeska’s compliance and regulatory responsibilities are fully understood and effectively managed.’ CONTINUOUS PROCESS OF COMPLIANCE Alyeska’s definition of compliance is not a momentin-time happening but rather an ongoing process. ‘This is not a traffic-ticket approach’, says Johnson. ‘Instead, we are focusing our management systems in a systematic way so we can assure our stakeholders that we have processes in place to ensure continuing compliance.’

TRANS ALASKA PIPELINE SYSTEM (TAPS) • Operator: Alyeska Pipeline Service Company • Owners: BP, ExxonMobil, Phillips, Williams, Unocal, Amerada Hess • TAPS transports approximately 17% of annual U.S. crude oil production • Some 20 state and federal regulatory agencies monitor TAPS on a regular basis, making it the most heavily regulated pipeline in the U.S. • In 1974 TAPS’ owners obtained a 30-year, renewable right-of-way to build and operate the pipeline system on state and federal lands. This lease expires in 2004.

Dan Hisey has been assigned accountability for implementing the changes in the organisation. ‘We recognise that the transition will require a full commitment to change by the entire organisation, starting at the very top,’ says Hisey. ‘The new path will not be easy or short, and transition to a new system will involve behavioural and cultural changes along with new programmes. Our management team has given unanimous support to this improvement plan.’ Since TAPS will continue to supply a significant portion of U.S. crude oil for the foreseeable future, renewal of the right-of-way is in the public interest. TAPS owners anticipate that the renewal process will entail a rigorous review of a number of complex issues. Redesigning the company business processes and management system will ensure TAPS continues to meet the high standards the public and regulators expect. ◆

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ENVIRONMENTAL MANAGEMENT

BP reaps the benefits of ISO 14001 TEXT: BEATE.V.ORBECK@DNV.COM PHOTO: RANDY LISSAY

Oil major BP realises significant benefits from implementing the environmental standard ISO 14001. By committing to a structured approach on a long-term basis, it is already reaping the benefits of this environmental journey. Air emissions from greenhouse gases have been reduced by 5% worldwide, and on one installation performance improvements have resulted in 50% annual waste reduction.

A Performance improvements in spill reduction through product elimination at the Endicott oil field on the North Slope have resulted in overall annual cost savings of $525,000.

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‘A structured approach is important for a company like BP where individuals periodically transfer from one location to another,’ says Norman Ingram, Manager of Compliance Assurance & Continual Improvement at BP Exploration Alaska (BPXA). ‘A universal system open to everyone is power for an organisation. We save money and time, and add value in the long term. A business as large as ours benefits from a structured Environmental Management System (EMS) in order to manage the change associated with legal and other requirements. The complexity of the U.S. and State of Alaska regulatory framework makes this a daunting task, but we are committed to getting it right through our compliance assurance process.’ In many cases BP’s initial environment objectives have been greatly exceeded through the new approach. A great deal can be achieved when all parties involved focus on clear and specific goals. Reducing the impact of emissions to air is one of BP’s key objectives. Having already achieved a 5% reduction in greenhouse gas air emissions, BP is halfway to its goal of 10% by 2009. Since BPXA is a collection of separately managed business units facing different sets of operating circumstances, it could be a challenging task to maintain a consistent EMS approach while allowing flexibility to meet the unique operating needs of each asset. According to Ingram, implementation of the ISO 14001 standard in Alaska has provided BP with


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‘A universal system open to everyone is power for an organisation.’

Norman Ingram

a common framework to allow the assets to develop individual EMSs that are aligned and standardised to the greatest extent practical. BPXA operates under unique and sensitive environmental conditions on Alaska’s North Slope, bordering the Arctic Sea. Its operations require minimising impact on the environment wherever possible. Environmental laws and regulations affect every aspect of BPXA’s operations in the area. Each oil field is continually enhancing its EMS to ensure that compliance requirements and responsibilities are clearly defined. IDENTIFIABLE SAVINGS Performance improvements in spill reduction at the Endicott oil field on the North Slope have resulted in overall annual cost savings of $525,000. ‘These are not “fuzzy” numbers like deferred costs,’ says Ingram. ‘These are real dollars of annual expenditure for the asset. By standardising our EMS we have managed to reduce complexity in the existing system, which in turn has translated into efficiency. Overall we believe that the efficiencies gained from a structured versus ad hoc approach are significant.’ Documentation of the EMS is on-line and available at all BP’s operational assets worldwide. The company has made great strides during its initial implementation to use web technology and eliminate paper in the process. ‘This part of the EMS is very important to us since the records demonstrate overall conformance, but additionally it is our key in demonstrating compliance with the rigorous legal requirements in Alaska,’ says Ingram. BPXA has a standardised process to periodically identify significant environmental aspects across all operations on the North Slope. The process looks at the environmental severity associated with each aspect, the frequency of incidents, and the degree of operational control in place. Many BP regions around the world have adopted the process as best practice. The environmental aspects they are currently focused on basically break down into impact from spills, emissions from rotating equipment and

flares, solid and hazardous waste generation and disposal, and impact on wildlife. THIRD-PARTY ASSURANCE BP was the first international oil major certified to ISO 14001 by DNV, starting in 1997. It is now able to provide third-party assurance to external parties that the EMS meets rigorous international standards for environmental management. ‘BPXA has demonstrated continual improvements in meeting environmental objectives and targets since the certification, specifically in the area of air-emissions reduction,’ says Dolores Mick Tankersley, DNV’s lead auditor assessing BPXA through annual maintenance audits since initial certification. ‘In addition BP continues to improve the processes of the EMS through enhancing the consistency of the system throughout its assets in the U.S.A.’ BPXA requires a documented EMS for selected contractors on the North Slope, who represent the greatest environmental exposure through the nature of the services they provide. ‘We realise significant benefits from the implementation of ISO 14001, but we are still relatively early in the journey,’ says Norman Ingram. ‘As the organisation seeks further improvements, the challenge becomes greater to identify and take preventive actions. In Alaska we are growing and developing new assets on the North Slope and Kenai Peninsula. By taking full advantage of our EMS in these new operations, we will continue to drive environmental improvement.’ ◆

‘By seeking ISO 14001 compliance, BP has committed itself not only to a smarter way of doing business, but also to responsible stewardship of Alaska’s valuable resources.’ Tony Knowles, Governor of the State of Alaska

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When the boat comes in‌ BRC certification helps prawn producer swim with the big fish in quality-driven food market

TEXT: STEVE-M@ONLINE.NO PHOTO: CORBIS


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CERTIFICATION

Health scares caused by recent outbreaks of BSE and Foot-andMouth disease among livestock in Europe – and the accompanying media publicity – have served to sharpen focus on quality control in all links of the food chain. Strict regulation and monitoring of food production, from sourcing of the raw materials through processing, production and final distribution to the consumer, are now considered a prerequisite by an increasingly discerning public. Implementation of quality standards can mean the difference between success and failure for foodstuff producers in today’s highly health-conscious retail market.

L

Lenvik Fiskeindustri, which produces peeled and cooked prawns primarily for the European market from its factory in remote Kårvikhamn in northern Norway, has recognised that third-party certification of its processes represents not only a vital safeguard but also a significant competitive advantage. ‘Product safety and traceability are undoubtedly the key factors driving consumer demand in the retail market,’ explains Øystein Pettersen, marketing director of Lenvik’s wholly-owned marketing arm Stella Polaris. Lenvik recently became the first Norwegian company to earn DNV certification to the BRC Technical Standard 2000, a relatively new quality standard established by the British Retail Consortium (BRC) to ensure food products conform to stringent health demands. The company was established in 1968 as a producer of salted and dried fish and fillets, and has specialised in prawn production since 1984. The factory produced 2,300 tonnes of prawns last year, with 90% of this exported to its main markets of Sweden, Finland and the U.K. Most major European retail chains now require that their suppliers conform to this common standard. These big retailers account for the lion’s share of food turnover, and take their responsibility for the health and safety of the consumer seriously. With the U.K. as one of its most important markets, Lenvik boss Hans Ove Semmingsen believes certification has secured the company’s future. MONITORED BY DNV He explains: ‘We have tried to anticipate the consumer’s demands. Product quality, safety and security of delivery must take a high priority if a producer is to be recognised as a serious and professional player in the market. We have taken on board the consequences of these market signals and built up our systems, routines and technical standards in line with these demands.’

Implementation of the BRC standard required completion of HACCP (Hazard Analysis Critical Control Points) – a thorough examination of key phases in the production process. Secondly, it necessitated documentation of a quality management system and, lastly, control of the production environment, products, processes and personnel. Lenvik achieved the BRC’s ‘high-level’ grading – a notch above the basic level – after successfully demonstrating it had remedied faults revealed by the DNV checks. Lenvik already had a quality system in place, having gained ISO 9002 approval in 1993, but BRC regulation with its focus on consumer health requirements still ‘represented a difficult challenge and a lot of work for us’, according to Pettersen. QUALITY BENCHMARK ‘We have always been in agreement with third-party approval in principle, and we opted for the BRC standard because it represented a higher quality benchmark for us,’ he says. ‘Our business strategy is to maintain and improve this quality system. We are working directly towards the end-users – supermarkets and caterers – and this places upon us a much higher degree of responsibility for our products and processes.’ DNV certification has now given Lenvik recognition as a BRC-approved supplier, raising its profile in the market and expanding its potential customer base. According to Pettersen: ‘This approval has given us access to a wider market and enabled us to win business with new customers that have BRC as a primary requirement and which we otherwise could not have approached.’ Many of Lenvik’s biggest customers have indicated, on the basis of BRC certification by DNV, that they will not undertake their own audit of the company. ‘For us, this means greater security, less disruption and reduced costs,’ says Semmingsen. ◆

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NEWS

DNV Strategy Plan defines Business Areas At its meeting on 21–22 June,

medium- and heavy-duty trucks, trailers and off-highway equipment and speciality vehicles, including military, bus and coach. The second is Rescue and Light Vehicle Systems, a major supplier of roof, door, automotive body, access control and suspension systems, and wheel products for passenger cars, light trucks and sport utility vehicles.

DNV’s board of directors approved the company’s new four-year Helge Midttun, Chief Executive Officer of DNV

leading

Strategy Plan. This mandates DNV becoming by 2005 the world’s

Classification

Society

and

LNG plant risk study

leading

DNV is developing risk-engineering expertise in

Certification company. It will also be a major

the fast-growing LNG (liquefied natural gas) mar-

Consultant in technology and business risk.

ket. A new LNG plant to be built in the north of

Three Business Areas are defined – DNV Maritime, headed by Tom Virik; DNV Certification (Miklos Konkoly-Thege); and DNV Consulting (Iain Light). Explaining the new Strategy Plan, CEO Helge Midttun says ‘Its implementation is based on more accountable and market-focused Business Areas; each is responsible for managing the business worldwide. We shall introduce separate Regional structures for each Business Area, with one person in each country responsible for cross-BA cooperation.’ A new unit at corporate level is DNV Innovation, charged with commercialising new ideas developed throughout the organisation. In addition, there are four Independent Business Units – Argus RTM, Avitas, DNV Eiendom and DNV Software. The new Strategy, says Midttun, ‘places stronger focus on innovation and business development.’

Norway has been subjected to extensive risk

Certification for 135 ArvinMeritor plants

analyses by DNV. It is the first time the contractor, Linde Engineering and Contracting in Germany, has made use of risk calculations in the layout concept instead of using only engineering standards. A consortium comprising Statoil, TotalFinaElf and Gaz de France will own the LNG plant. One of the challenges facing the DNV engineers was the requirement to perform an extensive escalation analysis for a fire and fragmentation explosion. Based on the results of this analysis, the plant-layout design was refined to meet Statoil’s safety requirements. A taskforce of five engineers has been responsible for these studies, which involved Hazops in different stages of the project, calculating safety distances, developing a safe layout for the facility and conducting a full quantitative risk analysis. This project is one of several similar projects in which DNV is engaged in risk studies for LNG plants and terminals worldwide.

DNV has secured a worldwide contract to perform ISO 9000 and QS 9000 certification for all 135 sites of ArvinMeritor. With 1999 sales of USD 4.5 billion, the company has established its reputation as a global automotive supplier of a broad range of components and systems for commercial, speciality and light vehicles and the aftermarket. The Meritor product line consists of two businesses: Commercial Vehicle Systems, a leading supplier of complete drivetrain systems and components for Risk contours for LNG production facility

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NEWS

Camaçari improves safety management The Camaçari petrochemical complex, one of the biggest and most important in Brazil, has commissioned DNV to perform risk assessments at 52 companies operating in the industrial complex. Camaçari petrochemical complex, Brazil.

‘This project will bring a significant improvement in safety management to the Camaçari complex,’ says Luiz Fernado Garcia Lampeiro, Polibrasil’s superintendent in Camaçari. Embracing all 52 companies within the Camaçari complex, the project schedule is 30 months with an investment of USD 1.5 million. The project comprises training of personnel, identification, mapping and assessment of hazards, risk assessments, recommendation of mitigation measures and the implementation of risk management and reduction programmes in all companies involved.

DNVPS welcomes bunker move DNV Petroleum Services has welcomed Singapore’s latest amendments to its bunkering procedures.

EU Project 16 organisations from eight European countries are represented in the EU-funded Research and Technology Development project RIMAP. The project is part of DNV’s strategic research programme Energy and Resources. The overall goal of the project is to develop a unified approach to make risk-based decisions in the field of maintenance and inspection. This is particularly important for pressure equipment when the new Pressure Equipment Directive (PED) comes into force in 2002. The present PED does not address the in-service phase, only the design phase. The main deliverables from the work will include a method describing a unified approach to maintenance and inspection planning based on risk-decision criteria and cost optimisation. Also, documented validation and testing of the method within the industry sectors represented in the project will be established, as will a technical framework for a European standard for inspection and maintenance planning.

The new standard procedure, to be implemented from January 2002, requires that bunker sampling for the delivery of bunkers to ships will take place at the ‘point of custody transfer’, which is at the vessel’s main bunker receiving manifold. DNVPS welcomes this important news and supports the position adopted by the MPA (Singapore’s Maritime and Port Authority) as it sets a standard for other bunkering ports to follow. DNVPS has been involved in the review of the new procedures, and is presently lobbying for international support for custody transfer sampling. The amendments have been endorsed by BIMCO, Intertanko, IBIA and a number of major ship operators.

Related links: http://research.dnv.com/rimap

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LAST WORD The following article has been taken from Association News, the newsletter of the Hong Kong Shipowners’ Association. The article, by an outside contributor, does not necessarily reflect the views or policy of the Association, nor of Det Norske Veritas.

CLASS:

The perception and the reality It seems fashionable nowadays to criticise Class. As several newspapers have put it, to kick them when they are down. But what is the real issue here, is Class a convenient but innocent victim or is there lacking a redundancy to that particular link in the Intertanko ‘Chain of Responsibility’?

C

Class acts for the shipyard when the ship is being built. The ship is built to Class, which means that Class Rules are met. In many cases nowadays only just met, as shipyards squeeze the specification in order to compete in their competitive market. If the owner wants an amendment to the specification, the shipyard will charge sufficient to ensure its profit for the entire building deal remains, or becomes, positive. The ship is classed on delivery as ‘fit for purpose’. But is it really fit? Is the engine actually powerful enough to push the ship through a Force 5 headwind? And are the holds actually suitable to load, carry and discharge the cargoes that such a ship would normally carry for the 15 to 20-year life of the ship? Or is the capesize bulker, for example, an ocean greyhound, to be handled with care, as one Class representative recently put it? Class then acts for the Owner after the ship is delivered. Perhaps a difficult role for an audit body, to act for the supplier before delivery and then for the customer after delivery. Class also

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acts in many cases for the Flag State, auditing for statutory certification, but is paid by the Owner. Again, a difficult role: Class as the supplier of other services auditing a customer for statutory requirements. Why has this difficult situation come about? Basically because there was no one else there. And why is Class now finding itself the victim? Perhaps because the role expected of Class has expanded but Class has not changed to fit that role. There has developed a gap between perception and reality as Class takes on more responsibilities, giving the impression of being able to guarantee something that is demanded of it by its customers and the general public. Something that it cannot, or is not yet prepared to, deliver. It is interesting to see the Flag State of a ship recently detained in Cape Town apologising to the Port State, but it is disappointing to hear Class saying very little, sticking to the line that maintenance is the owner’s responsibility. It is also interesting to see in the press pictures of the Paris MOU ‘rustbucket of the month’, with Class denying that the certificates were valid when the ship was detained but admitting that they were acting in a consultative role for the owner. And it is also interesting to see the differences in PSC detention statistics for the worst and best Flag States for which the same Class Society has performed the statutory and classification surveys. This is a problem that the industry must solve. The general public and the industry expect Class to play a certain role in international shipping, and if Class is not prepared to undergo the massive changes necessary to be able to offer the performance required for that role then the industry must find an alternative to fill the gap. ◆


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DNV WORLDWIDE

CORPORATE HEADQUARTERS Høvik (Oslo) Veritasveien 1 N-1322 Høvik Norway Tel: +47 67 57 99 00

ABERDEEN Cromarty House 67-72 Regent Quay Aberdeen AB115AR United Kingdom Tel: +44 (0) 1224 335000 COPENHAGEN Tuborg Parkvej 8, 3rd Floor 2900 Hellerup Denmark Tel: +45 39 45 48 00 DUBAI PO Box 11539, Jumeirah Dubai United Arab Emirates Tel: +971 4 3526626 ESSEN Businesspark Essen - Nord Schnieringshof 14 45329 Essen Germany Tel: +49 201 7296 0 GOTHENBURG Neongatan 4B 43153 Mölndal Gothenburg Sweden Tel: +46 31 771 2600 HELSINKI Nahkahousuntie 3 (Skinnbyxvägen 3) 00210 Helsinki Finland Tel: +358 9 681 691 HOUSTON 16340 Park Ten Place Suite 100 Houston, TX 77084 United States Tel: +1 281 721 6600 KOBE Sannomiya Chuo Bldg., 9th Floor 4-2-20 Goko-dori Chuo-ku Kobe 6510087 Japan Tel: +81 78 291 1302 KUALA LUMPUR 24th Floor, Menara Weld Jalan Raja Chulan 50200 Kuala Lumpur Tel: +603 2722 6900

LONDON Palace House, 3 Cathedral Street London SE1 9DE United Kingdom Tel: +44 (0) 20 7357 6080

SHANGHAI House No. 9, 1591 Hong Qiao Road Shanghai 200336 China Tel: +86 21 6278 8076

MADRID Campus Empresarial Jose Mª de Churruca, Edificio III, c/Almansa 105- 1ª Pta.- Ofic. 2 28040 Madrid Spain Tel: +34 91 4561600

SINGAPORE DNV Technology Centre 10 Science Park Drive Singapore 118224 Singapore Tel: +65 779 1266

MILAN Centro Direzionale Colleoni Palazzo Sirio 2, Viale Colleoni 9 20041 Agrate Brianza (MI) Tel: +39 039 6899 905 MUMBAI Emgeen Chambers, 10, C.S.T. Road, Vidyanagari, Kalina Mumbai 400098 India Tel: +91 22 6160909 / 6124606 NEW JERSEY 70 Grand Avenue Suite 106 River Edge, NJ 07661 USA Tel: +1 201 343 0800

STOCKHOLM Warfvinges väg 19B Box 30234 10425 Stockholm Sweden Tel: +46 8 587 940 00 SYDNEY Level 19, Northpoint 100 Miller Street North Sydney, NSW 2060 Australia Tel: +61 2 9922 1966 DNV PETROLEUM SERVICES PTE LTD 27 Changi South Street 1 Singapore 486071 Tel: +65 779 2475 DNV INTERNET HOME PAGE www.dnv.com

OSLO Veritasveien 1 N-1322 Høvik Norway Tel: +47 67 57 99 00 PIRAEUS 26-28 Akti Kondyli Piraeus 18545 Greece Tel: +30 1 41 00 200 RIO DE JANEIRO Rua Sete de Setembro, 55/17 Floor 20050-004-Rio de Janeiro, RJ, Brazil Tel: +55 21 517 7232 ROTTERDAM Haastrechtstraat 7 3079DC Rotterdam Netherlands Tel: +31 (0) 10 2922600 SEOUL Room 2110, Kyobo Bldg., 1, 1-KA, Jongro, Jongro-Ku Seoul 110121 Republic of Korea Tel: +82 2 734 7327

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CORPORATE HEADQUARTERS Høvik (Oslo)

KOBE Region Japan

ROTTERDAM Region Western Europe

Veritasveien 1 N-1322 Høvik Norway Tel: +47 67 57 99 00 Fax: +47 67 57 99 11

Sannomiya Chuo Bldg., 9th Floor 4-2-20 Goko-dori Chuo-ku Kobe 6510087 Japan Tel: +81 78 291 1302 Fax: +81 78 291 1330

Haastrechtstraat 7 3079DC Rotterdam Netherlands Tel: +31 (0) 10 2922600 Fax: +31 (0) 10 4797141

LONDON Region Great Britain & Ireland

Room 2110, Kyobo Bldg., 1, 1-KA, Jongro, Jongro-Ku Seoul 110121 Republic of Korea Tel: +82 2 734 7327 Fax: +82 2 739 9069

CORPORATE TECHNOLOGY AND INNOVATION Høvik (Oslo) Veritasveien 1 N-1322 Høvik Norway Tel: +47 67 57 99 00 Fax: +47 67 57 99 11 COPENHAGEN Region Denmark and Poland Tuborg Parkvej 8, 3rd Floor 2900 Hellerup Denmark Tel: +45 39 45 48 00 Fax: +45 39 45 48 01 DUBAI Region Middle East PO Box 11539, Jumeirah Dubai United Arab Emirates Tel: +971 4 3526626 Fax: +971 4 3520524 ESSEN Region Central Europe Businesspark Essen - Nord Schnieringshof 14 45329 Essen Germany Tel: +49 201 7296 0 Fax: +49 201 7296 102/103 HELSINKI Region East Baltic Nahkahousuntie 3 (Skinnbyxvägen 3) 00210 Helsinki Finland Tel: +358 9 681 691 Fax: +358 9 692 6827 HOUSTON Region North America 16340 Park Ten Place Suite 100 Houston, TX 77084 United States Tel: +1 281 721 6600 Fax: +1 281 721 6901

Palace House, 3 Cathedral Street London SE1 9DE United Kingdom Tel: +44 (0) 20 7357 6080 Fax: +44 (0) 20 7357 6048 MADRID Region Iberia Campus Empresarial Jose Mª de Churruca, Edificio III, c/Almansa 105- 1ª Pta.- Ofic. 2 28040 Madrid Spain Tel: +34 91 4561600 Fax: +34 91 4561599 MILAN Region Italy and Adriatic Countries Centro Direzionale Colleoni Palazzo Sirio 2, Viale Colleoni 9 20041 Agrate Brianza (MI) Tel: +39 039 6899 905 Fax: +39 039 6899 930 MUMBAI Region India & Sri Lanka Emgeen Chambers, 10, C.S.T. Road, Vidyanagari, Kalina Mumbai 400098 India Tel: +91 22 6160909 / 6124606 Fax: +91 22 6191380 OSLO Region Norway Veritasveien 1 N-1322 Høvik Norway Tel: +47 67 57 99 00 Fax: +47 67 57 99 11 PIRAEUS Region East Mediterranean & Black Sea 26-28 Akti Kondyli Piraeus 18545 Greece Tel: +30 1 41 00 200 Fax: +30 1 42 23 059 RIO DE JANEIRO Region South America Rua Sete de Setembro, 55/17 Floor 20050-004-Rio de Janeiro, RJ Brazil Tel: +55 21 517 7232

SEOUL Region Korea

SHANGHAI Region Greater China House No. 9, 1591 Hong Qiao Road Shanghai 200336 China Tel: +86 21 6278 8076 Fax: +86 21 6278 8090 SINGAPORE Region South East Asia DNV Technology Centre 10 Science Park Drive Singapore 118224 Singapore Tel: +65 779 1266 Fax: +65 779 7949 STOCKHOLM Region Sweden Warfvinges väg 19B Box 30234 10425 Stockholm Sweden Tel: +46 8 587 940 00 Fax: +46 8 651 70 43 SYDNEY Region Australia & New Zealand Level 19, Northpoint 100 Miller Street North Sydney, NSW 2060 Australia Tel: +61 2 9922 1966 Fax: +61 2 9929 8792 DNV PETROLEUM SERVICES PTE LTD 27 Changi South Street 1 Singapore 486071 Tel: +65 779 2475 Fax: +65 779 5636 DNV INTERNET HOME PAGE www.dnv.com


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PS

NEW MOVES ON BULK CARRIERS Despite numerous initiatives by Classification Societies and the International Maritime Organisation, bulk-carrier losses continue to occur with worrying frequency – 14 in the past year alone. The problem is far from new: DNV has analysed such incidents for many years. Now, however, influential shipping executives are themselves putting forward solutions (see our pages 4–9), and DNV believes that all classification societies, through IACS, must introduce minimum standards for bulk carriers that will fit them for their intended cargoes. Meanwhile, as here, DNV surveyors carry out their close inspection of bulker newbuildings around the world.


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