Maritime Voice Philippines April - June 2022

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Vol 3. No 1. Apr - June 2022



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ABOUT THE EVENT The 7th Edition of PHILIPPINES MARINE (PHILMARINE) 2022 co-located with Shipbuild Philippines and Offshore Philippines 2022 is the only specialized maritime, shipbuilding, and offshore event in the Philippines that brings together an international congregation of maritime, shipbuilding, offshore, and their supporting industries gathered in the capital of Manila to showcase the latest developments in the maritime industry, to improve the current shipbuilding technology, and equipment and to maintain the Philippines’ current status as one of the world’s largest shipbuilding industry.








VICE ADMIRAL Engr. Ramon C. Robert A Empedrad Hernandez AFP RET (MARINA) (MARINA)

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Good news in the ASEAN region is finally anchoring here! Speedy inoculations and our regions preparations to live with Covid-19 in the endemic world had given us a fresh perspective on how the pandemic may bottom out. Despite the surges of the Omicron variant which threatens to dampen some spirits and put some border reopening plans backwards, we could see the regional governments moving forward at all costs with plan for boarder reopening as soon as more intel is gathered about this new variant. We could see Philippines starting to adapt various protocols in a bid to learn living with the virus. Face to face events, bazaars and concerts are back albeit with some limitations to capacity. On the ground now, it does feel like the worst is over as Filipinos come to grasp with how to live in a post pandemic world. With the experience of the Philippine government in containing the third wave and vaccinations moving at top speed, lockdowns could really be deemed a thing of the past with mandatory masking and mobile check-ins to malls and requiring full vaccination card upon entering establishments, unlike Europe (which is facing a new wave now), people here feel safer with masks and getting vaccinated. As expos begin to open, we are glad to be announcing that our exhibitions division would be running the 7th Edition of Philippines Marine & Offshore Expo (PhilMarine) 2022 co-located with Oil & Gas Philippines (OGAP) 2022 and Naval Defense Philippines 2022 in SMC Convention Center, MOA Pasay City, Manila. The Physical event would be held on 21-23 June 2022. Maritime Voice Philippines would be having a booth there and visitors would be able to get a copies of the hard copy magazines at the event! With this, I look forward to seeing everyone really soon as more vaccinated lanes in the regions opens!

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The content of Maritime Voice Philippines Magazine (and website) does not necessarily reflect the views of the editor or publishers and are the views of its contributors and advertisers. The digital edition may include hyperlinks to third-party content, advertising, or websites, provided for the sake of convenience and interest. The publishers accept no legal responsibility for loss arising from information in this publication and do not endorse any advertising or products available from external sources. Maritime Voice Philippines Magazine and its website do not warrant that the information in it will be error-free or will meet any particular criteria of performance or quality. Your use of the information contained in the Maritime Voice Philippines magazine and website is at your own risk. You assume full responsibility and risk of loss resulting from the use of this website or information in it. None of Maritime Voice Philippines, Fireworks Trade Exhibitions & Conferences Philippines, Inc. or its affiliates, or any partners, principals, stockholders or employees of any thereof will be liable for any special, indirect, incidental, consequential or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence) or otherwise, relating to the use of this website or information contained in it. No part of this publication may be reproduced or stored in a retrieval system without the written consent of the publishers. All rights reserved.







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Regional News

Marcopolo Shipyard Starts First Green Ship Recycling in Indonesia An Indonesia shipyard is planning to provide a green recycling operation to help shipowners meet the growing pressures to responsibly handle their end-of-life ships. While it will be smaller than the well-known operations in India, Pakistan, and Bangladesh, it represents the first regional expansion for the industry and an opportunity for shipowners to dispose of ships in compliance with the regulations.

are recycled in safe and environmentally sound facilities.”

The maritime industry continues to be under mounting pressure from various stakeholders to ensure vessels are recycled safely and responsibly. A range of programs has been developed in recent years including the Ship Recycling Transparency Initiative (SRTI), which includes as members The China Navigation Company, A.P. Moller-Maersk, Lloyd’s Register, and Standard Chartered Bank as well as and nonmembers that include GES International, Hapag-Lloyd, NORDEN, Nykredit, Stolt Tankers, and Wallenius Wilhelmsen. The new recycling operation in Indonesia will follow the standards established by these organizations.

In addition to being awarded the permit by local authorities to conduct ship recycling activities, the group has also become the first shipyard in Indonesia to be certified and awarded the ISO 30000:2009 certificate. The ISO 30000 certification is recognized globally and often a prerequisite by shipowners as the shipping industry looks to comply with the new European Union (EU) Regulation on Ship Recycling and the International Maritime Organization (IMO) Hong Kong Convention.

The P.T. Marcopolo Shipyard, located in Batam, Indonesia, is expanding its operations to offer green ship recycling to help shipowners recycle their endof-life ships in a safe and environmentally sound manner. The yard is operated by Singapore’s Marco Polo Marine group, a marine logistics company Problems and poor working conditions at the Asian that also provides offshore supply vessels, tugs, shipbreakers have been well documented. A series and barges for charter to the mining, commodities, of NGOs have sought to highlight the high rate of construction, infrastructure, and land reclamation workplace accidents and deaths, with NGO Ship- industries. breaking Platform calling the third quarter of 2021 the deadliest ever quarter for the shipbreaking in- The shipyard located south of Singapore dustry in Bangladesh. In addition to the deaths and encompasses approximately 80 acres with three dry injuries, shipbreaking is a dirty business handling a docks and more than 2,000 feet of seafront. It builds broad range of difficult materials removed from the ships as well as conducts repair, maintenance, and conversion services for small to mid-sized ships. ships including insulation and wiring.

As the first shipyard to earn the ISO certificates, the Marcopolo shipyard offers a significant advantage to shipowners. Several similar niche recycling “Given the growing interest in sustainability by the operations have been launched in Europe, such as shipping industry, we are excited to expand our Green Yard in Norway, and a recent announcement shipyard services to include green ship recycling,” about plans to launch a recycling operation in said Sean Lee, Chief Executive Officer of Marco Scotland for large vessels. Polo Marine. “With the ISO certification by ABS QE, shipowners can be assured that their vessels 8

April - June 2022 | Maritime Voice

Boating Industries Association of the Philippines ALS Building, 7393 Bakawan St., San Antonio Village Makati City Philippines

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Regional News

South Korea’s Naval Shipbuilders Are Stepping Up in Southeast Asia Unresolved disputes have prompted the region to look to Seoul to acquire stronger maritime deterrents. With maritime and territorial disputes in Southeast Asia intensifying in recent years, we have seen countries like the Philippines, Indonesia, and Malaysia start acquiring more big-ticket naval hardware. Given that China is often the aggressor in these disputes, it makes sense that much of these modernization programs would look to other suppliers. Along with the usual players in Europe, South Korea’s big naval shipbuilders – Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering – have consequently seen their footprints in the region expand. The Philippine Navy began planning and budgeting for a major upgrade of its aging fleet around 2010. This included the purchase of two amphibious landing and transport ships under a 2014 contract worth $92 million with Indonesia’s state-owned shipbuilder PT PAL. But the big acquisition so far has been a pair of guided missile frigates built by Hyundai Heavy Industries for 16 billion Philippine pesos (roughly $311 million). The first ship, the Jose Rizal, was commissioned in 2020. Despite some haggling over the weapons systems, the Philippines was apparently happy with the outcome and signed another deal with Hyundai Heavy Industries in December 2021 for a pair of corvettes with a $554 million price tag. One of the main reasons the Philippines may be 10

sticking with Hyundai Heavy Industries is because a single contractor can deliver ships that are all compatible across a range of systems. If you buy ships piecemeal from different suppliers, on the other hand, it may not be possible to integrate a single weapons control system across them all. Interestingly, this piecemeal approach is precisely the one being employed by Indonesia. Indonesia is in the midst of a naval modernization program, which also kicked off about a decade ago. And like in the Philippines, South Korean shipbuilders have been major players. Indonesia’s acquisition strategy is somewhat different, however. They aren’t necessarily interested in the most competitive bids, but are instead looking for the best overall deals that include some technology transfers and acquisition of indigenous production capabilities. All of the Philippine ships were built by Hyundai Heavy Industries in South Korea. When Indonesia does deals, it’s lately been looking to boost its domestic defense-industrial complex, and in particular make PAL into a regional manufacturing and export hub. South Korea, whose defense manufacturing ties with Indonesia go back several decades, has been a very accommodating partner in this respect. The amphibious transport ships that PAL built for the Philippines actually began with a $150 million deal struck with South Korea’s Daesun back in 2004. The first two ships were designed and built in South April - June 2022 | Maritime Voice

Regional News

Korea, then PAL built the final two at its shipyard in in Perak, but the program has been plagued by Surabaya. Could Indonesia have bought these ships delays and cost overruns and the first ship is not for less money from a different contractor? Maybe. expected to be commissioned until 2026. It also initially engaged China Shipbuilding and Offshore But by doing it this way PAL acquired the ability to International to provide four littoral mission ships, build them domestically, and it enabled them down the final two of which would be constructed in the road to indigenously produce a pair for export Malaysia. It was eventually decided all four ships would be built in China. to the Philippines. This is only a small cross-section of the naval modernization efforts underway in the region. But it seems clear that South Korea’s big shipbuilders are forging and consolidating long-term ties with important maritime players in Southeast Asia, moving into a primary supplier role for the Philippine Navy while helping Indonesia’s PAL to acquire indigenous production capabilities based on South Korean designs and technology. China’s role in Malaysia’s naval procurement, on the other hand, appears to hold less obvious long-term strategic value and did not result in any production being moved to Malaysia. If we are indeed on the Malaysia’s naval modernization, has been a bit cusp of a big naval arms build-up in the coming bumpier. Under license from French shipbuilder years, this dynamic could prove to be an important DCNS the country’s government undertook to build one. A similar strategy was employed in Indonesia’s submarine deal with Daewoo. In 2011, Daewoo agreed to supply Indonesia with three submarines for $1.1 billion. The first two were built in South Korea, and the final one by PAL in Surabaya. They have pursued similar deals with European companies for the acquisition of new frigates. Because they have been sourcing these ships from a variety of contractors, they may run into systems integration issues at some point, but that appears to be a trade-off Indonesia’s defense planners are willing to live with.


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Regional News

Strategic Marine buys shipyard in Singapore The new facility includes a 5,000dwt dry dock and 6,000dwt slipway. Singapore-based shipbuilder Strategic Marine has strengthened its presence in the city-state by concluding the purchase of a bigger shipbuilding centre. Through the deal, Strategic Marine aims to upscale its shipbuilding capacity and product range. The firm has taken over the fixed infrastructure and shipyard lease at 5 Benoi Road. Strategic Marine has concluded the lease transfer from the lessor of the shipyard, JTC Corporation. The facility, which includes a 5,000dwt dry dock and 6,000dwt slipway, is expected to enhance the company’s offerings. Apart from improving its shipbuilding capabilities, the new centre will also enable Strategic Marine to increase its product offering to provide larger ships as well as execute vessel repair and maintenance services. Furthermore, the firm’s ship building, repair and maintenance capacity will be expanded by the inclusion of a slipway and 105m long dry dock facility. 12

Strategic Marine CEO Chan Eng Yew said: “We are delighted with this new development as it immediately increases our operational footprint. We are already in discussions with existing and new clients on several projects, and we are hopeful these discussions will culminate in contracts in the next few months. “Thanks also to the Strategic Marine team as they have laid the foundation for our growing order book and brand name in the market. Aside from the ship construction, we are also looking to enhance our product line up to meet current conditions and needs. We have a team working on product development and we hope to be introducing new designs and new products within the next few months. At the same time, we are actively exploring additional yard capacity in this region as well in order to bolster the capabilities of our newly acquired facility.” As a specialist shipbuilder, Strategic Marine Group has a yard in Singapore and a presence in Australia, Germany, Indonesia, the Middle East and the UK. The group has constructed and handed over more than 600 ships for different clients in the maritime, offshore and defence segments. April - June 2022 | Maritime Voice

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Regional News

Asian shipyards step up tug newbuilding output Cheoy Lee Shipyards has delivered many series of harbour and terminal tugs to international owners from its shipyards in China. It constructs escort and port tugs to Robert Allan Ltd (RAL)’s designs, such as RAstar, RAmparts, Z-Tech and Rotortugs. In Q4 2021, Cheoy Lee delivered two Rotortugs, RT Imperieuse and RT Clerke, to Kotug International for its expanded operations in Port Hedland, Australia. It built these 32-m tugs to an ART 80-32 design with Caterpillar main engines, delivering a total output of 5,295 kW driving two thrusters. Both tugs have a sailing speed of 13 knots, bollard pull of 80 tonnes and are equipped with advanced DMT winches to escort the Capesize bulk carriers into the Port Hedland loading terminals.

Cheoy Lee Shipyards built a deepsea and offshore towage tug for Grupo CPT. Colossus was built to assist ships into the port of Talcahuano in Chile. It was constructed to Robert Allan Ltd’s Rastar 3200CL design as an escort tug with a FiFi1 fire-fighting system. The shipyard also supplied harbour tug Titan to PrimePort Timaru, New Zealand in 2021 with Caterpillar-manufactured main diesel engines and 62 tonnes of bollard pull.

Cheoy Lee has ordered two more harbour tugs with Wärtsilä main engines from Hin Lee Shipyard in China, according to BRL Shipping Consultants. These 42-m tugs will have a beam of 16 m and depth of 6.6 m. They are scheduled for delivery in These newbuilds replaced two Rotortugs, RT Q2 and Q3 2023. Sensation and RT Force, which Kotug transferred Indonesian builder from Port Hedland to Tasmania’s northern port. Vallianz Holdings operates a shipyard in Batam, Cheoy Lee built two new harbour tugs for Svitzer’s Indonesia and has newbuilding tugs on order from operations in Port Suez, Egypt. Svitzer Suez 1 and a Chinese shipyard. Svitzer Suez 2 arrived in Port Suez near the end of 2021. Its subsidiary PT United Sindo Perkasa (USP) owns and operates a shipyard in Kabil, Batam. USP was These RAstar 2800 azimuth stern drive (ASD) tugs established in 2006 in the Kabil Industry Zone of have a bollard pull of more than 70 tonnes and a Batam. pair of Caterpillar-manufactured Cat 3516 C diesel engines. Svitzer ordered these new tugs after According to Vallianz chief operating officer Elisa securing a contract extension from the Suez Canal Woodward, seven projects were underway in the Authority. shipyard in Q4 2021. 14

April - June 2022 | Maritime Voice

These include three harbour tugs with Voith Schneider propulsion, with an overall length of 32 m, beam of 11 m and draught of 6 m. With a service speed of 11 knots, accommodation for 12 people and bollard pull of 45 tonnes, they will be delivered from Q2 2022.

Regional News

Another green technology underway is development of fully electric tugs. Vallianz is collaborating with Singapore ship designer SeaTech Solutions International to develop the next generation of environmentally friendly harbour tugs based on SeaTech’s EVT-60 design. This project is currently in an engineering phase.

USP shipyard is also completing a 33-m mooring tug for another client with a beam of 11 m and draught Vallianz has a “two-faceted approach to the of 4 m, accommodation for 12 people, bollard pull development of vessels with battery-hybrid solutions, reducing carbon emissions by at least 28of 45 tonnes and service speed of 11 knots. 30%,” says Ms Woodward. “Conversion of existing USP shipyard is constructing a 35-m tugboat for vessels is currently in progress.” It plans to begin Taiwan International Ports Corp subsidiary TIPC constructing newbuilds later in 2022. Vallianz is also Marine Corp for delivery in Q2 2022 based on a interested in developing “semi-unmanned vessel design by Khiam Chuan Marine and ABS class. It will technology and remote-monitoring digitalisation,” have two azimuth thrusters, driven by two IHI Power says Ms Woodward. This could enable the vessel Systems’ Niigata 6L25HX medium-speed engines, to owner to “reduce the number of crewmembers per vessel and decrease the carbon footprint from the generate 40 tonnes of bollard pull. high rotation frequency of crew.” This 477-gt tug, with a beam of 11 m and draught of 4 m, will be equipped with two generators and two Vallianz also has its eye on developing hydrogenfire-fighting units driven by the main engine. When propelled vessels and is collaborating with other operational, it will assist merchant ships in berthing early adopters in the construction of hydrogenand unberthing operations, port entry and exit and battery hybrid vessels. Ms Woodward says this was undertake external fire-fighting duties at the main in progress. terminal in Kaohsiung Port, which is currently under In China, Jiangsu Zhenjiang Shipyard group in construction. China started 2022 by beginning construction of a Ms Woodward says the shipyard is also building new ASD tug for domestic owner Hainan Hongzhou an 85-m multipurpose support vessel with a beam Shipping Co. Steel was cut for a 4,020-kW tugboat, of 22 m and draught of 6 m. It will have dynamic which will have fire-fighting systems, on 8 January. positioning to DP2 class, speed of 13 knots, a deck The Zhenjiang Shipyard in Jiangsu province had a area of 730 m2 and passenger capacity for 116 busy end to 2021 as it delivered five tugs and laid the keel of five more in December. It also passed people when delivered mid-2022. a technical milestone by cutting steel on what In China, Vallianz is constructing three harbour will become the first intelligent tug with hybrid tugs and an anchor-handling tug. These harbour propulsion built in China. tugs will have an overall length of 39 m, draught of 5 m and beam of 14 m. They are scheduled to be In December, Zhenjiang Shipyard delivered four completed from Q2 2022. With a service speed of ASD tugs to Zhoushan Haitong. On 28 December, 11 knots, they will have a bollard pull ahead of 70 the shipyard handed over Zhou Gang Tuo 40 and tonnes and bollard pull from the stern of 65 tonnes. Zhou Gang Tuo 42, with different parameters and The anchor handling tug is near completion, with an performance. Zhenjiang Shipyard also delivered overall length of 61 m, beam of 16 m and draught of ASD, harbour and emergency response tugboat 5 m. It has a bollard pull of more than 70 tonnes and Haiye Tuo 1 to Qingdao Haiye Ruibang Shipping Co on 20 December. service speed of over 10 knots. Vallianz has a varied fleet of 74 vessels operating in different market sectors including harbour operations, offshore oilfield support and offshore renewables. Ms Woodward says one of its main technology developments is to incorporate a classapproved engine storage system (ESS) into its vessels. “ESS will greatly increase cost efficiency and additional redundancy, through fuel savings and reduced engine utilisation.”

April - June 2022 | Maritime Voice

This 3,780-kW tug has overall length of 42 m, beam of 12 m and depth of 6 m. It was built with bollard pull of 58 tonnes, speed of 13 knots and fuel capacity for 1,000 nautical miles. It has equipment for fire fighting and oil pollution recovery.


World News

A picture of the Estonian-owned cargo ship Helt from the Vista Shipping Agency website. (Photo: Vista Shipping Agency)

Chaos In The Black Sea Amidst Russia’s Invasion Of Ukraine DHAKA: An Estonian-owned cargo ship sank on Thursday (Mar 3) off Ukraine’s major Black Sea port of Odessa, hours after a Bangladeshi vessel was hit by a missile or bomb at another port, underlining the growing peril to merchant shipping following Russia’s invasion of Ukraine. Many shipping firms have suspended sailings to affected Black Sea ports and other terminals in Ukraine, with insurance premiums for voyages soaring in recent days. At least three commercial ships have been hit by projectiles since Feb 24. Two crew members from the Marshall Islandsflagged and Estonian-owned Helt cargo ship were in a life raft at sea while four others were unaccounted for, Igor Ilves, managing director of Tallinn-based manager Vista Shipping Agency, told Reuters.

Ilves said that the crew comprised four Ukrainian nationals, one Russian and one Belarusian. The North Atlantic Treaty Organization (NATO) Shipping Centre warned on Wednesday that there was “a high risk of collateral damage on civilian shipping in the north-western part of the Black Sea”, which included mines. “There are several open source reports of civilian ships being hit directly or indirectly as a result of the acts of war in the north-western Black Sea within Ukrainian territorial waters and adjacent international waters,” NATO said. “Civilian shipping is encouraged to exercise caution and be on high alert in the area.” SEAFARER KILLED

“The vessel has finally sunk,” he said. “Two of the crew are in a raft on the water and four others are Late on Wednesday evening, a missile or bomb missing. I don’t know where they are at the moment.” struck a Bangladeshi-owned cargo ship in the Black Sea port of Olvia, killing one of its crew members, Ilves said that the vessel might have struck a mine. and efforts were underway to rescue the others from the vessel, its owner said on Thursday. “It’s a big problem - nobody can help them. The Ukrainians cannot go to sea because it is under “The ship came under attack and one engineer was killed,” Pijush Dutta, executive director of the Russian control.” 16

April - June 2022 | Maritime Voice

World News

Bangladesh Shipping Corporation, told Reuters. “It was not clear whether it was a bomb or missile, or which side launched the attack. The other 28 crewmen are unharmed,” he said, without providing further details. The Bangladesh-flagged Banglar Samriddhi had been stuck at the port of Olvia since Russia’s invasion of Ukraine began on Feb 24, and was hit by a missile, a Bangladeshi foreign ministry official said earlier on Thursday. Olvia is located in the Dnipro-Bug river estuary on the Black Sea coast, 15km south of Mykolaiv and about 110km east of Odessa. In the Bangladeshi capital Dhaka, the Russian embassy said in an English-language statement on its Facebook page that the circumstances of the incident were “being established”. “We express deep condolences to the near and dear ones of the deceased. The Russian side bends every effort to ensure safe departure of the Bangladeshi ship from the port,” it said.

Videos on social media showed crew members asking for help after the ship was hit. In one video, the vessel’s second engineer said that the ship had been hit by a rocket with one crewmate already dead. “We have no power supply. Emergency generator power supply is running. We are on the verge of death. We have not been rescued yet. Please save us,” the seafarer said. In another video, another crew member called Asiful Islam Asif said: “Please rescue us.” The Bangladesh Shipping Corporation’s Dutta said that he was aware of the videos, declining further comment. Moscow has called its actions in Ukraine a “special military operation” designed not to occupy territory but to destroy Ukraine’s military capabilities and capture what it regards as dangerous nationalists - a pretext rejected by Ukraine and the West as baseless propaganda.

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Cover Story

Importance of seafarers in Ukraine crisis It’s a digital jungle out there: shipowners face challenge of software selection in decarbonisation Data-driven operational efficiencies on existing ships will be necessary to achieve emissions cuts required to reach IMO targets. But a proliferation of new digital solutions in recent years has resulted in an “overwhelming” software market that is difficult to navigate for shipowners, according to Kongsberg Digital. The number of ship software vendors has increased from around 170 in 2017 when Kongsberg first issued its annual overview of the maritime software landscape to over 550 at last count, despite M&A transactions that have led to some consolidation in this market. This has left shipowners with the enormous challenge of selecting from a bewildering array of different digital applications from multiple vendors in categories such as vessel performance monitoring, voyage management and optimisation, navigation, cargo & vessel tracking, port operations, logistics and procurement and document handling. Without benchmarking of different applications in relation to their operational benefits, there is a risk that shipowners can make poorly informed software decisions that can, paradoxically, compromise fleet efficiency gains they are trying to achieve from software intended to support decision-making. “The software landscape can be very confusing for shipowners, given the overwhelming number of April - June 2022 | Maritime Voice

vendors out there, and they are really dependent on data scientists to assess the different solutions existing in the market,” says Kim Evanger, who leads Maritime Partnerships at Kongsberg Digital. “They must, for example, determine whether to build on an existing legacy platform by adding cloud connectivity or overhaul their fleets with an entirely new digital platform that has greater flexibility to integrate with other solutions.”

‘Relative newcomers’ Lloyd’s Register’s head of marketing for maritime performance services, Mark Warner, says “many shipowners and operators are still relative newcomers to the advantages digital transformation can bring”. However, industry studies have shown that around 50% of decarbonisation gains required to meet the IMO goal for a 50% reduction in emissions by 2050 will have to come from operational efficiencies on existing ships, apart from new fuel technologies. These efficiencies are expected to be driven by extant and evolving technologies that use datadriven artificial intelligence (AI) and machine learning to support decision-making in areas such as fuel consumption, engine efficiency, navigation and preventive maintenance. This has been backed up by the IMO’s Secretary 19

Cover Story

General Kitack Lim who said: “Increased data provider OrbitMI. collection, processing and interconnectivity capabilities enable automated systems to be Stena Bulk’s sustainability and transformation controlled remotely or through artificial intelligence. manager Peter Bjorkborg believes “digital solutions will be totally necessary” due to the increasing need “Increased automation in shipping has the potential for data transparency to meet regulatory compliance to enhance safety, to improve environmental on emissions, class and other requirements, as well performance, and to ensure more efficient and as demands from stakeholders such as banks and sustainable shipping.” charterers for green ship operations.

Mushrooming digital market

Shipowners are scrambling to expand digitalisation of their fleets to achieve fuel efficiencies for emissions cuts to comply with the IMO’s EEXI (Energy Efficiency Existing Ship Index) and CII (Carbon Intensity Indicator) measures due to come into force over the next two years. In addition, the prospective implementation of the EU’s Emissions Trading System for shipping from 2023 poses the risk of financial penalties and possible detentions for pollutive vessels plying European waters, while there is also growing commercial pressure for green operations from cargo owners, consumers and financial institutions. Consequently, a raft of vendors has sprung up in recent years offering a vast number of software systems to cash in on the massive vessel market created by the decarbonisation drive. The digitalisation trend has been fuelled by the Covid-19 pandemic due to the increased need for remote online working in areas such as crew training, pilotage and surveying, which resulted in average data consumption per vessel increasing from 3.4 to 9.8 gigabytes between January 2020 and March 2021, according to a recent study by UKbased research firm Thetius. The global maritime digital products and services market was set to reach $159 billion last year – an increase of $24 billion, or 18%, on pre-pandemic estimates – and is expected to more than double to $345 billion by 2030, up from a previous estimate of $279 billion, the study stated.

Data transparency The current overcrowded maritime software market is a far cry from only six years ago when Swedish tanker owner Stena Bulk embarked on a pioneering digitalisation journey to upgrade systems across its fleet by developing its own software platform for vessel performance management, which has since been spun off into US-based software-as-a-service 20

“We realised there were inefficiencies in the way we operated and saw the potential of digital technology to tackle these issues to run our ships more efficiently by combining operational data from different sources into a common platform,” Bjorkborg says. “At the same time, we foresaw the trend toward decarbonisation would require the industry to shift towards digital systems for data transparency and that this would enable us to become more lightweight, agile and adaptable, rather than being held back by legacy processes and systems. “Adopting innovative software solutions was a move to future-proof our fleet. While there was a risk and costs involved, there was a sound business case as it would enable us to develop ahead of our competitors. So it also made commercial sense.”

‘Harder to navigate’ He believes the software investment has more than paid off in terms of bunker savings due to rationalised fuel consumption, as well as other efficiency gains, as it has been implemented across its fleet of 74 owned and chartered-in ships. These have been achieved, for example, through datadriven speed adjustments and optimisation of voyage routing to avoid port congestion. Stena Bulk developed its own solution as there were few such systems available when it started its evolutionary digital journey, but Bjorkborg says “the software market is now much harder to navigate for shipowners” due to the explosion of different shipboard applications in recent years. “Different platforms have different flavours. So the shipowner needs to determine what benefits he is after and what each system can offer so that it can provide relevant operational data,” he explains. Stena Bulk has categorised decarbonisation technology into three different areas – traditional April - June 2022 | Maritime Voice

ship equipment such as hydrodynamics, propellers and engines; operational technology such as performance monitoring and optimisation; and commercial technology such as optimising protocols and avoiding congestion.

Shift in thinking Bjorkborg says “all these categories are dependent on having good data for efficient execution and improvement”, for example, relevant weather data for optimal vessel routing as well as AI and machine learning from digitalised systems to improve a ship’s performance over time.

Cover Story

“Shipowners now really do not have a choice as they will need the right digital systems in place. And data-sharing driven by sustainability is potentially an enabler for greater transparency that can yield wider commercial benefits for the entire industry,” he says. Kongsberg has already taken a big step in the direction of data collaboration with its Kognifai Marketplace that includes a range of different vendors, consuming data from Vessel Insight data infrastructure, as the company seeks to assist shipowners on their digital journey.

Stena Bulk is now moving in the direction of a shipboard internet of things with the intersection of physical equipment and digital technology that he believes “opens up new opportunities for efficiency gains”.

‘“We take a system agnostic approach and also want our competitors to join the marketplace as we believe greater collaboration is key to digitalise the industry,” Evanger says.

But he says this will necessitate common standards for system integration, as well as a shift in the industry’s traditional competitive resistance to transparency and data-sharing.

However, shipping clearly still has a long way to go to establish an API economy that will enable it to reap the full commercial benefits of harnessing and sharing big data.

April - June 2022 | Maritime Voice


Special Report

Ship design by Wallenius Marine and Knud E Hansen

How to design for less emissions? Sustainable shipping is about more than fuel choices. The design itself plays a big part in reducing emissions and the overall environmental footprint that we leave behind. Wallenius Marine and the Danish design firm Knud E Hansen have worked together on several projects before. This time, we put our heads together to eliminate something that is considered one of the basics in ship design since the time of the Wasa ship – the need for ballast.

Why eliminate ballast water? Cargo vessels use ballast water to balance their weight and keep them stable during a voyage. Approximately 10 billion tonnes of ballast water are transported every year. Not only does it cost lots of fuel to lug the extra weight around, but it also spreads invasive species across the oceans with the risk of crashing local eco systems. In 2017, the UN International Ballast Water Convention entered into force. The convention entailed stricter rules on the management of ballast water, but as a result, many purify their ballast water with chemicals. So, a lot of problems would be solved if a vessel didn’t need ballast water at all. But how could you achieve that? “We moved the deckhouse forward and down, which creates better balance for hull optimisation and a lower center of gravity,” says Christian April - June 2022 | Maritime Voice

Damsgaard, Head of Naval Architecture at Knud E Hansen. “These adjustments contributed to a lower hull resistance and removal of ballast water. This vessel will not need to carry any ballast water when fully loaded, and therefore the fuel consumption can be reduced.” Generator cuts up to 10% of emissions Another fuel saving feature was made with the introduction of an active front end-type shaft generator. Instead of producing power for fans and accommodation etc by 4-stroke generator sets, the power is produced by a more fuel-efficient 2-stroke main engine. Depending on the operation point, the fuel saving of the generated power can be as much as 10 %. A shaft generator means less CO2 at an additional initial cost, but one that will pay off in the long run thanks to lower fuel consumption.

Faster loadings thanks to optimized ramp “The layout of the ramp system is also highly optimised for loading cars, having one long ramp that serves all the decks. Loading and unloading the ship can be done faster, which is time saving when in port and thus allows for lower speed at sea. That’s extremely important – because at higher speed, fuel consumption increases exponentially. For example, a 1 % reduction in speed results in fuel saving of 23

Special Report

a 1 % reduction in speed results in fuel saving of Carl Fagergren, Naval Architect at Wallenius Marine, about 3 %,” says Christian Damsgaard. predicts that choosing the “right” kind of fuel will be crucial over the next 10 years. Aerodynamic shape “I´ll think we will see more variation in the supply of Much thought has also gone into the look of sustainable fuels, based on what can be produced the vessels, with their aerodynamic shape that locally and the purpose of the ship. Changes are helps reduce wind drag by a third compared to necessary, since there is a shortage of sustainable conventional designs. The ambition was to make fuels, and prices are high. It’s matter of all-handsit as sleek as possible, for example by putting on-deck now to lower energy consumption. all ventilation below the weather deck to limit protruding objects. The ship’s design follows that of “Technology that sets new a car in many ways. standards” “It’s both practical and aesthetic. It gives the ship The design concept Sleipner was recently nominated some character”, says Francesca Arini, Senior as one of four designs for Next Generation Ship Designer at Knud E Hansen. Award at Nor-Shipping 2022. “It’s been a challenging year for the industry, and Adaptable engine society in general, but the disruption has not slowed Of course, the fuel choice is also of great importance. down the speed of innovation – and the depth of The vessels will be equipped with multi-fuel engines ambition – defining the maritime world at present. that can run on LNG and LBG as well as both regular These four vessels are the embodiment of that and synthetic diesel. Looking even further ahead, drive, demonstrating breakthrough technology the engines will also be adaptable for fuels that that has the potential to set new standards for don’t even exist yet. owners and operators worldwide. There can only be one winner, but they should all be applauded,” says Sidsel Norvik, Nor-Shipping Director.


April - June 2022 | Maritime Voice

Going Green

Is green ammonia fit to decarbonize shipping? ‘If you want to burn something without emitting carbon dioxide, ammonia’s the answer’ Fuels such as liquefied natural gas, methanol and Designing an ammoniahydrogen are being considered to decarbonize the shipping industry. But some experts believe powered engine green ammonia also has potential due to its unique makeup. Green ammonia, or e-ammonia, is produced by combining nitrogen from the air with green hydrogen, which is produced using renewable electricity-powered electrolyzers that split water into hydrogen and oxygen. Unlike e-methanol and LNG, ammonia contains no carbon molecules, so if ammonia is produced using renewable electricity, it does not result in carbon emissions. “Other than crude oil and crude oil products, ammonia is one of the most produced chemicals in the world,” Torben Nørgaard, head of energy and fuels at Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, told FreightWaves. So the global supply chain and infrastructure for ammonia are in place already, unlike hydrogen. Ammonia is considered a hydrogen carrier. Hydrogen is not being widely considered as a fuel for long-distance shipping because it is very expensive to store at cryogenic temperatures and is much less energy dense than ammonia. But there is not currently an ammonia-powered engine for shipping on the market, and the fuel raises safety concerns. April - June 2022 | Maritime Voice

Augsburg, Germany-based Marine propulsion and engine designer Man Energy Solutions is developing a dual-fuel ammonia engine for marine use. “There’s no precedent for running big engines on ammonia. … It’s the fuel itself and the combustion process that is simply unknown,” Peter Kirkeby, promotion manager and business development of dual fuel engines at Man Energy Solutions, told FreightWaves. The company is conducting its first full-scale two-stroke dual-fuel ammonia engine test at its headquarters for development of two-stroke engines in Copenhagen, Denmark, this summer. After the testing is complete, Man Energy will design engine iterations. This should lead to delivery of the first ammonia engine to a shipyard by the end of 2024. Other stakeholders working on designing newbuild ammonia-powered vessels “are looking at us because without the engine, designing other parts of the ship for ammonia doesn’t make a whole lot of sense,” Kirkeby said. Considering how quickly the industry has to change and lower emissions, focusing solely on new vessel 25

Going Green

builds is not enough to meet the targets set by Kirkeby said the planned ratio of ammonia to diesel some organizations and companies. and the resulting emissions are “significantly better” than anything else that has been done or planned. Man Energy is using a modular design that does not drastically change the layout of the propulsion Using a reliable fuel that is well known, inexpensive system, which could make it easier to retrofit and widely available such as diesel for the backup existing vessels to run on ammonia and potentially fuel in an ammonia-powered dual fuel engine is the speed up the green ammonia adoption process in “cheapest way to make ship propulsion redundant shipping. on board,” Kirkeby said. “By not making any fundamental changes to the propulsion layout of these ships, it actually allows shipping to adopt new fuels without having to rethink entire ship designs in an easy way and in a short period,” Kirkeby said.

Storage requirements

Ammonia is typically stored as a liquid in a pressurized tank, a refrigerated tank or a hybrid tank. When stored in refrigerated tanks, it is cooled to a temperature of minus 28 degrees Fahrenheit, whereas hydrogen requires cryogenic storage at Emissions impacts minus 423 degrees F, according to a paper on green Marine fuels emit a mixture of air pollutants and ammonia by the Environmental Defense Fund greenhouse gases. Compared to marine gas oil (EDF). (MGO) and other fuels, ammonia emits much less particulate matter. It also emits zero sulfur dioxide, Therefore, ammonia requires much less money and carbon monoxide, heavy metals and hydrocarbons, energy to liquefy and store than hydrogen. which can harm human health, according to a 2020 International Conference on Energy, Environment Hydrogen requires 7.6 times more storage space and Storage of Energy paper. than MGO, whereas ammonia requires 4.1 times more storage space, according to the EDF paper. One air pollutant that is not eliminated when Methanol and LNG require 2.3 times more storage combusting ammonia is nitrogen oxides (NOx). NOx space than MGO, even less than ammonia and GHG emissions are prevalent in the transport sector, hydrogen. but vessels can use selective catalytic reduction equipment to reduce those emissions, the paper Because many sustainable alternative marine fuels said. have lower energy densities than MGO, sacrificing cargo space to store more fuel is a common trade-off. Because ammonia contains no carbon molecules, To accommodate increasing emissions regulations it theoretically could be produced and combusted by adopting lower-emission fuels, shippers may without any carbon emissions. have to choose between dedicating more space to fuel storage and shortening their shipping routes. “If you want to burn something without emitting carbon dioxide, ammonia’s the answer,” Nørgaard Safety considerations said. “Provided that we can manage potential One of the biggest safety technologies for ammonia NOx emissions, it’s very effective in terms of is use of double-walled pipes, which are used for decarbonizing as a fuel and as an energy carrier.” other fuels such as LNG. They allow space between the inner and outer layers of the pipes for a However, Kirkeby said Man Energy’s first ammonia ventilation air system, which can detect leaks easily, dual-fuel engines will reduce GHG emissions by Kirkeby said. about 95% from tank to propeller compared to engines that run on MGO. Double-walled pipes and other safety procedures could be crucial to preventing what Steve Crolius, The 5% of emissions that will remain at least in the president of Carbon Neutral Consulting, called an short term are due to using a small pilot flame to ignite “ammonia slip,” in which ammonia escapes into the the ammonia. The company is currently targeting atmosphere during production, transportation or conventional diesel oil as the pilot fuel. storage. 26

April - June 2022 | Maritime Voice

“The safety risks associated with ammonia are well understood and manageable,” the EDF paper noted. “It is less flammable than other fuels, so it poses a lower fire risk, and risks from cryogenic burns are lower than for liquid hydrogen or LNG.” Another safety mechanism the Man Energy team is using for its ammonia engine project is a “double block and bleed.” It separates systems and has the capability to purge areas with nitrogen that previously held ammonia. As ammonia is purged from certain areas, Man Energy’s concept captures that ammonia and prevents it from going into the atmosphere, only emitting nitrogen, Kirkeby said. For engines and other equipment, this is important because crews will need to be able to safely troubleshoot and do maintenance. “We take responsibility for our engine,” Kirkeby said. “We go through all of the different scenarios that might cause a dangerous situation.” While working with manufacturers and creators of equipment that interfaces with theirs to address potential dangerous scenarios, if any safety concerns are raised, they will put a countermeasure in place for that situation. Crolius said: “Ammonia as a chemical substance is acutely hazardous. It is not to be taken lightly at all.” Ammonia can cause eye damage, severe skin burns and acute respiratory symptoms. It is dangerous to animals and plants as well. Ammonia leaked from a pressurized tank could create a large cloud of toxic ammonia quickly and kill “pretty much all forms of life in close proximity,” Crolius said. It would eventually rise farther into the atmosphere and disperse since it is less dense than air. Refrigerated ammonia would have similar impacts on marine life if it were spilled into the ocean. But in contrast to ammonia stored in pressurized tanks, it would release slower in the event of a leak and could be more easily contained, according to Crolius. He said that would give emergency responders a greater chance of limiting the harm, and he predicted that nearly all ammonia on board a ship will be in a refrigerated or hybrid tank. Nørgaard said several safety standards and April - June 2022 | Maritime Voice

Going Green

procedures are in place for producing and handling ammonia, but operating with it and combusting it on a vessel with a crew and minimal evacuation space is completely different. Safe design and operation is something that “needs to be demonstrated,” he said.

Cost of production, implementation The cost to produce ammonia using renewable electricity is about three or four times more expensive than MGO today, Nørgaard said. Like most sustainable solutions, improving the economies of scale helps bring down costs. Crolius said one exercise estimated the cost of green ammonia to be nearly twice the cost of gray ammonia to produce. Gray ammonia is produced using natural gas instead of renewable electricity. An EDF financial analysis estimated that up to $6 trillion in green ammonia and renewable energy plants would be required to decarbonize about 40% of international shipping between now and 2050. “Of the fuels available to decarbonize the maritime transport sector, green ammonia is one of the most technically feasible in the short term,” the paper noted. Nørgaard said that some models show green ammonia adoption picking up in the mid-2030s, but it is very sensitive to the cost of renewable electricity.

Scaling and timeline Nørgaard said decarbonizing the entire maritime industry using green ammonia would take about 500 million tons of ammonia per year, which is two and a half times more than the 180 million tons of ammonia the world currently produces annually. Therefore, one single fuel such as ammonia will “unlikely be able to decarbonize the whole sector.” “One of the challenges related to e-ammonia, or any e-fuel, is the scale and the implementation rate,” Nørgaard said. “The scaling of this is so tremendous, it’s so significant, that it’s not done overnight.” Scaling of green ammonia, like many e-fuels and green fuels, relies on economies of scale and the cost and availability of renewable electricity. An implemented carbon price would also help close the gap between fossil fuels and more sustainable fuels. 27

Going Green

Crolius said shippers like Ikea and members of the Cargo Owners for Zero Emission Vessels are expressing increasing interest in green fuels. They understand how important their role is in demanding green fuels from suppliers, he said.

countries — have huge potential when it comes to renewable electricity production. Nørgaard said that regions such as the Middle East, Australia and Chile, “areas where we expect the cost of electricity to come down first and dramatically,” are looking into green ammonia.

“It doesn’t matter whether they have any awareness of ammonia,” Crolius said. “They need to put on the The EDF paper said, “Demand for green ammonia pressure, and the carriers are going to find the ways as a marine fuel could provide a dependable longterm revenue stream — supported by long-term to meet their customers’ demands.” supply agreements — to justify investment in largeOne positive impact of scaling green ammonia scale renewable plants in developing nations.” production is that it “presents an opportunity for developing countries around the world to attract It said adoption of green ammonia would need to investment in sustainable industrial growth,” the begin in the 2020s to reduce absolute shippingEDF paper said. It could create jobs, spur economic related emissions by at least 50% by 2050, compared to 2008 levels, which is the International Maritime growth and support supply chains. Organization’s current emission-reduction target. Select countries — including some developing


April - June 2022 | Maritime Voice

April - June 2022 | Maritime Voice

Going Green


Naval Defence & Maritime Security

Scorpene Submarine Meets Indonesia Navy Requirements

According to local media, the Chief of the Indonesian Navy (TNI AL) sees eye to eye with Indonesia’s Ministry of Defence regarding the procurement of two Scorpene submarines from Naval Group. Caption: A Scorpene submarine. Admiral Yudho Margono, Chief of Staff of the Indonesian Navy (TNI AL), stated to local media KOMPAS that the Scorpene submarines proposed by French shipbuilder Naval Group met the requirements to operate in Indonesian waters, and thus the Indonesian Navy has agreed to the Indonesia MoD’s plan to procure the submarines. The admiral also indicated that the Indonesian Navy initially desired to procure submarines with a gross tonnage of more than 1,300 gross tons (GT). Meanwhile, the Indonesian Navy and the Ministry of Defense have determined that the Scorpene meets the required standards. The statements were made shortly after a high level visit of the Republic of Korea Navy’s CNO who was supporting a second batch submarines contract from South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME). Contacted by Naval News, a Naval Group spokesperson said he had no comments to make about the media reports. Indonesian shipbuilder PT PAL issued in early February a request for information (RFI) “to propose to provide Ship Lift – Design & Build Scheme solution(s)”. The documentation contained the aim of this ship lift will be to support PT PAL’s future submarine production activities. Two weeks later, Naval Group and PT Pal signed a Memorandum of Understanding seeking to leverage the capabilities of both partners to meet the growing requirements of the Indonesian Navy. The signing came a visit by Naval Group’s CEO to the local shipyard PT PAL Indonesia. The MoU covers the purchase of two Scorpene-type submarines along with support, weapons, and training. 30

April - June 2022 | Maritime Voice

Naval Defence & Maritime Security

An Israelian made Unmanned Naval Boat

US Navy eyes Israeli robot boats as Bennett visits Bahrain: Official MANAMA: The US Navy is considering adding unmanned Israeli boats to its Middle East operations, a US official said, a move that could deepen Israel’s growing role in regional military arrangements as it normalises ties with former foes in the Gulf. Bahrain, home to the US Navy’s Fifth Fleet and several international naval task forces, is hosting a visit by Israeli Prime Minister Naftali Bennett, the first by any Israeli leader following the 2020 normalisation of ties between the two states. Israel is due to become the 29th country to post an attache to the fleet’s Manama headquarters, officials said, adding the as-yet unnamed envoy would likely be of navy captain or commander rank. “It’s about keeping the lines of communication open” bilaterally between Israel and the fleet, a US official said, referring to the plan to station the envoy in the Gulf kingdom. Israel has not formally confirmed the appointment. Fleet chief Vice Admiral Brad Cooper met Bennett on Tuesday (Feb 15), with Bennett telling Cooper he expected “the cooperation among the region’s countries and powerful ally the United States will keep getting closer”, Bennett’s office said. The US official said the fleet was examining dozens of unmanned vessels as part of current Gulf exercises, and it was interested in Israeli-made surface drones as possible complements to flying and underwater drones. “The Israelis are definitely vested in leveraging this technology,” the official 32

said, adding that a fleet commander had in recent weeks visited Haifa in Israel to study the surface drones. An Israeli military spokeswoman had no immediate comment. In November, Forces from the United Arab Emirates, Bahrain, Israel and the Bahrain-based US Naval Forces Central Command (NAVCENT) took part in a security exercise in the Red Sea, the first publicly acknowledged naval exercise between the United States, Israel and the two Gulf countries. Bennett described his two-day Manama trip as a chance to forge a common stand against Iran and its allies like Yemen’s Houthis, whose attacks on the UAE this year have jarred the oil-producing region. Sunni-ruled Bahrain accuses Sh’ite Iran of stoking unrest in Bahrain, a charge Tehran denies. Bennett is due to meet Bahrain’s King Hamad bin Isa Al Khalifa and other officials to discuss bilateral relations on Tuesday. Earlier this month Israel and Bahrain signed a security cooperation agreement, Israel’s first with a Gulf nation. “Israel and Bahrain are dealing with major security challenges stemming from the same source; the Islamic Republic of Iran,” Bennett told Bahraini newspaper Alayam on Tuesday. Bahrain, a small island state striving to fix its heavily indebted-finances, is a close ally of Saudi Arabia with whom Israel has no formal relationship. April - June 2022 | Maritime Voice

Local News


A nationally-integrated and globally-competitive Philippine maritime industry by 2028? That’s what the Maritime Industry Authority (MARINA)’s aspiration since then. As we all know, our maritime industry made notable contributions to the Philippine economy for the past years. Up until now, the Philippines consistently prevails as one of the leading sources of competent seafarers across the globe. Sea-based deployment remains as a major contributor to the country’s economy. However, the world has come to a complete standstill because of the coronavirus disease-2019 (COVID-19) pandemic that has spread to almost all parts of the globe. A number of industries have been affected by the global health crisis, and the maritime community is of no exception. In the middle of a global pandemic, the MARINA remains relentless in pursuing its 10-year Maritime Industry Development Plan (MIDP), with its strong vision of achieving a nationally-integrated and globally-competitive Philippine maritime industry by 2028. “Our continuing battle with the present public health pandemic has directly exposed us to our 34

own vulnerabilities in performing our respective roles in the maritime industry. It has tested us of our readiness to respond to similar challenges as a result of unforeseen calamities or disruptions in the future,” MARINA Administrator Vice Admiral Robert A Empedrad AFP (Ret) expressed. With this, the MARINA updated the plans and programs of the MIDP, integrating the recommendations made, and committed by the agency during the industry-stakeholders workshop in September 2020, to include the establishment of a separate program for Filipino Maritime Professionals; and in September 2021, the inclusion of the implementation of the Philippine Strategy on Marine Environment Protection as additional MIDP Priority Program. Through the establishment of MIDP, the MARINA envisions to accelerate and expand domestic shipping services that renders the country’s economic environment more conducive for flourishing of businesses, influx of investments and facilitation of trade within the country; build modern and seaworthy ships through a globally competitive ship building, ship repair and ship breaking industry; and promote and develop the Philippines as human resource capital for ship management and other maritime services. April - June 2022 | Maritime Voice

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Taking into consideration the insights from the maritime stakeholders, major components of the priority programs were transformed to become more inclusive, and responsive to the current and future challenges of the national and global maritime industry through adoption of appropriate parameters. In its abridged edition, the MIDP features ten (10) priority programs to be implemented till 2028, as follows: Program 1: Upgrading of Domestic Shipping in Support of the Philippine Nautical Highway Development; Program 2: Development of Shipping Services for Tourist Destination Areas; Program 3: Development of Coastal and Inland Waterways Transport (CIWT) System; Program 4: Strengthening the Safety Standards of Philippine-Registered Fishing Vessels; Program 5: Development of a Global Maritime Hub;

Program 6: Enhancement of Maritime Safety in the Philippines; Program 7: Enhancement of Maritime Transport Security in the Philippines; Program 8: Maritime Innovation and Knowledge Center; Program 9: Development of Competitive and Highly Skilled Filipino Maritime Professionals; and Program 10: Implementation of the Philippine Strategy on Maritime Environment Protection. This year, 2022, the MIDP will undergo a comprehensive assessment by using the Results Matrices as indicators to determine how far the Priority Programs have contributed to the attainment of the goals and objectives through a series of focus group discussions and consultations with government and private sector representatives. With the implementation of the MIDP, the Philippines is seen to be a strong, and dynamic maritime nation.



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April - June 2022 | Maritime Voice


Local News

MARITIME LEAGUE Supports BOHOL RELIEF ASSISTANCE by Vicky Viray Mendoza Typhoon Odette on December 16, 2021 left the province of Bohol in a devastated environment: with uprooted trees, flooding, roofs ripped from schools and buildings, and collapsed numerous homes! RADM MARGARITO V SANCHEZ JR AFP(RET), Chairperson of SEABEES and ENGINEER RETIREES GENEREAL SERVICES COOPERATIVE (SERGS Coop) organized a relief drive to benefit victims of this typhoon as what they carried out during the past Bohol earthquake. The Maritime League (ML) heeded the call for help to the victims of the natural disaster through the efforts of ML Trustee Sanchez. Trustee Sanchez, who hails from Inabanga, Bohol, spearheaded the BOHOL RELIEF ASSISTANCE, a joint Humanitarian Assistance and Disaster Relief mission to benefit the victims of the typhoon. Also, he rounded up the support of PNSLAI, Philippine Military Academy (PMA) Magilas Class of 1976,


Topserve Manpower Solutions Inc. and donations from his former commanders, colleagues and friends to provide assistance to Bohol’s most stricken areas hit by Typhoon Odette. On January 23, 2022, Trustee Sanchez successfully distributed food packs and used clothings to 600 Inabanga households composed of about 2,400 family members. Cash assistance was also given to families with the most heavily-damaged dwellings in Barangays Luyo and Bugang. “On behalf of my townsfolk in Inabanga, Bohol, we would like to extend our heartfelt gratitude for your generosity and support. May God bless us more!”, Trustee Sanchez expressed with gratification. The Maritime League continues to support missions of compassion and worthwhile endeavors that uplift the spirits of our countrymen in need.

April - June 2022 | Maritime Voice

Local News

Below are some of the photos taken during the activities for your appreciation, with RADM Sanchez himself overseeing the operation in Bohol.

Correspondingly, RADM SANCHEZ an honorary member of PMA Magilas Class ’76 also formally turnedover the Class’76 financial aid to typhoon victims in LILA, Bohol. This is through the efforts of CARLOS CAGAANAN, an original member of Class’76 and a native son of LILA Bohol. Shown is Mayor Jed Piollo accepting the class donation in the presence of the LGU Department Heads.

April - June 2022 | Maritime Voice


Local News

In a related development, Gov Hermogenes E Ebdane Jr of the Province of Zambales also responded the call for a relief assistance initiated by Trustee MV Sanchez Jr. On January 25, 2022, the Provincial Government of Zambales donated to LGU-Inabanga, Bohol the amount of FIVE HUNDRED THOUSAND PESOS (P500,000.00) as relief assistance to typhoon victims.





RADM MARGARITO V SANCHEZ JR AFP(RET) CHAIRPERSON Globe No: 0917-311-4147 Smart No: 0908-881-0418 April - June 2022 | Maritime Voice

THE MARITIME LEAGUE A Filipino maritime Foundation

The Maritime League is a Philippine maritime foundation, an apolitical, nonstock non-profit and non-sectarian organization with the purpose of advancing the interest of the maritime profession and industry. Many organizations have been attempted in the past to achieve some of the goals envisioned for The Maritime League. With encouragement from the leaders of maritime establishment, we have organized this institution to lead in the conduct of studies and research, and the dissemination of information and material designed to encourage the maritime profession and maritime corporations as progressive instruments for national development in this maritime country. We hope that believers in our national capacity and prospects for growth and supremacy in the maritime area will support this endeavor. The government has seen it fit to incorporate among its many priorities for the next millennium the development of the country as a maritime power. We find it more urgent now for all of us to join hands in a unified manner. The League is an effective vehicle to promote friendship and camaraderie, unity and cooperation among its members and many players in the various maritime disciplines and activities.

Who are our Members? Membership is open to any interested person directly or indirectly involved in the maritime profession. Several key leaders in government, in both the public and private sectors of the maritime industry.

Membership Application Form

The Maritime League, Inc. G/F Unit B, Way Point Building #4 Bayani Road, Taguig City 1630

Sir/Madam: I wish to apply as member of THE MARITIME LEAGUE as indicated below and enjoy the privileges of membership including a free subscription to the MARITIME REVIEW.

Please make checks payable to THE MARITIME LEAGUE, INC. You may also deposit the check to: BPI Current Account No: 0091-0683-03

Account Name - The Maritime League, Inc. Please email a copy of validated deposit slip to Tel No. 8715-74-12

Local News

Adverse effects •

When an LGU no longer welcomes a shipyard in its locality

“……with over P12 trillion in national debt, 3.27 million Filipinos unemployed (as of February) and thousands of businesses shuttered, the country is in dire need of foreign investments that can help it recover from the pandemic’s adverse economic effects.”1

In September 2019, one of our members was on the cusp of closing a joint venture contract with a Japanese firm to build ships in Consolacion, Cebu. As part of its documentation, the Japanese firm undertook a background check on the local shipyard by visiting the Consolacion Local Government Unit (LGU), where they spoke with an official. Much to the Japanese investor’s surprise, the official informed them that the local shipyard would no longer be given a business permit, as the LGU would embark on a reclamation project where the shipyard was located. Privilege Without any public scoping, without any consultation with the affected shipyards, the Consolacion LGU, on its own, decided to takeover the area where our shipyards have been operating, some, for more than 50 years. The Consolacion LGU formed a joint venture with La Consolacion Seafront Development Corporation (LCSC) to undertake this 235.8 hectare reclamation project. LCSC was registered with SEC in October Existing Map of Tayud Consolacion where 7 shipyards are located: 2019 with a paid up capital of only P10 million.



April - June 2022 | Maritime Voice

Local News

In January 2021, the LGU convened us shipyard operators, announcing that we have to move out because they have a reclamation project. Without consultation, we were informed that business permits would no longer be issued. The LGU further stated that business permits could be given, but only for the use of dry land, adding a firm reminder that doing business in Consolacion was a privilege, not a right.

Proposed Seafront City Reclamation Project:

Standstill It has been 16 months now since the start of this big controversy but the so called Seafront City Reclamation project has neither been issued an Environmental Compliance Certificate (ECC) nor an Area Clearance. The Consolacion LGU has not even entered into a Memorandum of Agreement with the Philippine Reclamation Authority (PRA) for the reclamation project. Yet, the Consolacion LGU has denied and has continually denied the issuance of business 1

April - June 2022 | Maritime Voice


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permits to shipyards that do not have Maritime Industry Authority (MARINA) licenses. The shipyards are currently facing a gridlock as MARINA licenses cannot be renewed without business permits. Effect on shipyard capacity The shipyards at Consolacion, Cebu account for almost 70% of dry docking services in the Visayas and Mindanao areas. Due to the damage caused by typhoon Odette, capacity has dropped to around 50% and will further drop due to the non-issuance of business permits by the LGU. With the imminent closure of the shipyards, hundreds of shipyard workers will lose their jobs, adding to the 3.27 million unemployed Filipinos. Protests by the shipyard workers

Meanwhile, the Consolacion LGU is promising jobs that will be created out of the reclamation project while it does not even hold any legal documents to proceed with the project. Although we welcome President Rodrigo Duterte’s directive to stop all reclamation projects, the shipyards’ fate still remain uncertain especially with the upcoming elections. Effect on the local community Not only will the shipyards be affected but the local community will face environmental damage and the loss of livelihood. The current rich biodiversity can sustain the livelihood of



April - June 2022 | Maritime Voice

Local News

about 500 local fisherfolks. With the reclamation, the area will no longer have waters for fishing. And mountains would be destroyed as source of filling materials for the reclamation. Protests by local fisherfolks

Bigger picture The situation does not bode well for the shipyard industry. If an LGU no longer welcomes an existing shipyard, it will be very difficult for a shipyard to recover its investments. There will be no incentive to further improve facilities, no incentive to increase capacities. As investments are not guaranteed, chances to recoup are poor. If it can happen to the Consolacion shipyards, it can happen to any shipyard in the Philippines. And to answer the question, did the Japanese joint venture proceed? Obviously not. No foreign company would be interested in partnering with a local business when the climate is unfriendly to nurturing a business.


April - June 2022 | Maritime Voice


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fireworks business information

FIREWORKS BUSINESS INFORMATION (FBI) PHILIPPINES c/o FIREWORKS TRADE EXHIBITIONS AND CONFERENCES PHILIPPINES,INC. Tel. No.: +632 8790 0168 to 69 Mobile No.: +63 917 178 0902 E-mail: Website: www.philmarinenews. com Address: Level 24 BGC Corporate Center, 30th St. corner 11th Avenue, Bonifacio Global City, Taguig 1634