Issuu on Google+

ISSUE 100 Early edition

Shipping &MARINE

The magazine for maritime management

The best

defence Putting in place a strong risk management system is a crucial factor in determining whether or not any port facility is a commercial success

complex contracts

There are strategies that can be adopted at the outset of a project to minimise cost blowouts and overruns in shipbuilding

a pragmatic approach

The recent advance of electronic bills of lading (eBLs) appears to confirm that this has now come of age

working together

With a 3D IT solution, marine and offshore organisations can now tackle the industry’s biggest challenges head-on


Health and SafetyIf you don’t have the time to read it all, read what you need Health and Safety Monitor is the newsletter of choice for professionals across all industries because it is: Clear, succinct and brief: With case summaries, indexes and bullet points so you can easily pick out what’s relevant to you Practical, informative and comprehensive: Health and safety news reported and analysed, with full references supplied for your ease of use Unbiased, trusted and critical: Gives you the facts

Request the latest issue free of charge

Subscriptions: £195 for 12 issues Contact: Maxine Quinton t: 01603 274280 e: mquinton@schof ieldpublishing.co.uk w: www.healthandsafetymonitor.com


Editor

ISSUE 100 2013 Early edition

www.shippingandmarine.co.uk

A new opportunity W

Shipping &MARinE

ThE magazInE for marITImE managEmEnT

The best

defence putting in place a strong risk management system is a crucial factor in determining whether or not any port facility is a commercial success

complex contracts

there are strategies that can be adopted at the outset of a project to minimise cost blowouts and overruns in shipbuilding

a pragmatic approach

the recent advance of electronic bills of lading (eBls) appears to confirm that this has now come of age

hen it comes to safety in port operations, operators have a raft of options available to them, from a man on the ground to an eye in the sky. But, according to this issue’s lead story, analysing the efficiency of security and monitoring operations is getting easier and easier, thanks to technology. “One of the biggest developments in security in recent years has been the growing volume of data that is collected during operations. This provides a significant opportunity for port operators to hone their security processes by using the insight gained from the data gathered,” says David Fairnie of G4S Global Port Solutions. See page 8 for the full story.

working together

With a 3D It solution, marine and offshore organisations can now tackle the industry’s biggest challenges head-on

One of the biggest developments in security in recent years has been the growing volume of data that is collected during operations

libbie@schofieldpublishing.co.uk

Schofield Publishing

Cringleford Business Centre, 10 Intwood Road, Cringleford, Norwich, NR4 6AU, U.K. Tel: +44 (0)1603 274130 Fax: +44 (0)1603 274131

www.shippingandmarine.co.uk. © 2013 Schofield Publishing Ltd

Chairman

Production Manager

BUSINESS DEVELOPMENT MANAGER

Andrew Schofield

Fleur Conway

Mark Cawston

Group Managing Director

ART EDITOR

Editorial Researchers

Mike Tulloch

David Howard

Sales director

DESIGN

David Garner

Jenni Newman Jamie Elvin

Editor Libbie Hammond

Please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

STAFF WRITERS Matthew High Kirsty Birkett-Stubbs Jo Cooper Drew Dann

EDITORIAL AdminISTRATOR Emma Harris

Production studio@schofieldpublishing.co.uk

Office Manager Tracy Chynoweth

Head of Research Philip Monument

Tim Eakins Laura Thompson Natalie Martin Gavin Watson Mark Cowles Joe Wright

Advertising Sales Joe Woolsgrove Dave King Darren Jolliffe Finlay Johnson Nick Davies

subscriptions ikidd@schofieldpublishing.co.uk

www.shippingandmarine.co.uk - 1


Contents FEATURES

PROFILES

3 News

17 karmsund

Updates and announcements from the shipping and maritime arena

21 hong lam marine

6 Complex contracts Addressing cost blowouts and project overruns in shipbuilding, and the lessons that can be learned from the oil & gas industry

24 remontowa SA 29 port of split 31 parkol marine engineering services 35 oman shipping company 37 ultratug

8 The best defence To maintain a high standard of risk mitigation, it’s vital that all security processes are continuously reviewed and when necessary, improved and reapplied

10 A pragmatic approach An eBL is not simply the electronic equivalent of the traditional paper-based bill of lading. Rather, it is a combination of a legal rulebook and technology

41 port of southampton 44 bestobell lng 47 suez canal container terminal 50 Workships Contractors 52 pd ports 54 vyborg shipyard

12 Fit for the future This is a period of change for shipping and as the industry evolves into more energy efficient and sustainable operations, lubricant providers must remain one step ahead

14 Working together As the industry adopts collaborative technology, the potential for the successful completion and launch of today’s complex vessels and platforms is boundless

2 - www.shippingandmarine.co.uk


News Valve order UK-based Bestobell Valves, part of the President Engineering Group (PEGL), has won a major new contract to supply cryogenic valves to TGE (Marine Gas Engineering) in Germany for two fuel-efficient dual-fuel cruise liners. The valves are destined for Mitsubishi Heavy Industries in Japan where the 984ft long vessels are being built, on behalf of Aida cruise lines of Germany. Aida’s new cruise ships will be able to run on LNG (liquefied natural gas), which offers greater fuel efficiency, as well as marine diesel oil or heavy fuel oil. Bestobell Valves will supply around 40 globe valves, non-return valves and check valves for the contract, which are currently being made at its factory in Sheffield ready to be shipped out to TGE in August this year for incorporation in their fuel system. Mark Henley, managing director of President Engineering Group Ltd, said: “This is a major contract win for us in what is a growing area of our business – the use of LNG as a marine fuel. We have the expertise and technology to design and produce bespoke cryogenic valves to suit customers needs on an international basis and we are excited about future growth opportunities for our business in this sector.”

Access only

Varonis, the leading provider of comprehensive data governance software, has revealed details of its work with the Marine Institute. With a primary objective to ensure that only authorised people have access to the data that they are meant to have access to; the Marine Institute discovered Varonis DatAdvantage was capable of more than just reporting. Keith Manson, IT systems and operations manager for Marine Institute explains: “At the start of this project we were originally sourcing a reporting solution so we could determine where the [permissions] issues lay with the plan to subsequently go through them manually. The idea was to do everything by security groups. Using DatAdvantage I’m confident that we’ve done that as efficiently as possible. In a few months we’ve completed the audit, made the necessary changes required and we’re now in a position to control access moving forwards. We have only the correct personnel authorised to access the data that they require and no other data. But there’s a lot more to DatAdvantage than just reporting. It gives me the ability to exercise control, and to make actions based on the reports, which exceeds our original requirements. As data owners change over time, and that’s the nature of our sector which isn’t going to change anytime soon, it’s important to keep track of who the owners are and that’s where the software comes into its own – we can do that quickly and efficiently which was impossible previously.”

LNG for Lithuania The European Investment Bank (EIB) is lending EUR 87 million to Klaipedos Nafta for the construction and operation of a new liquefied natural gas (LNG) import facility located in the port of Klaipeda. This investment is critical for Lithuania to diversify and secure its energy supply as well as provide backup in the event of gas supply failures. The LNG terminal comprises a floating storage and regasification vessel (leased by Klaipedos Nafta), an offshore jetty including gas handling facilities and an 18 km pipeline connection to the Lithuanian gas grid, which are being financed by the EIB loan. The project is planned to be finalised by the end of 2014. “The EIB strongly promotes security and diversification of energy supply. We therefore particularly welcome this agreement with Klaipedos Nafta, as the project will ensure the sustained supply of a key source of energy and will increase competition in Lithuania. We would obviously like to see this as the first of a series of energy projects that we could finance in Lithuania,” said EIB vicepresident Pim van Ballekom at the signing ceremony. “We are delighted that Klaipedos Nafta concluded this loan agreement with the EIB. This long-term loan will be the backbone of the LNG terminal’s project financing and will ensure that the project will be completed in a timely fashion. This is very important as the LNG terminal will bring competition to the Lithuanian gas market for the first time ever,” remarked Rokas Masiulis, CEO of Klaipedos Nafta.

www.shippingandmarine.co.uk - 3


Double deckers

Continuous development

P&O Ferrymasters is boosting its hallmark tailor-made logistics capability with a state-ofthe-art fleet of Mega double deck box trailers that feature a height-adjustable second loading floor. With an average height of 1.4m per loading floor, the multifunctional trailers provide 27 metres of loading space for non-stackable palletised or packaged cargo - matching a standard trailer’s capacity of up to 66 stackable pallets while staying within the 26-tonne payload limit. The double deck loading facility also minimises the risk of damage to lightweight commodities. The company’s first ten double-deckers are now in service for contract customers in the Benelux region. The purpose-designed box trailers were specified with anti-theft measures to serve demand for the carriage of theft-attractive goods. Following the Benelux roll out, further units will be introduced across Europe in line with targeted market growth.

Strainstall Marine UK has announced the award of a contract for the supply of an Integrated Marine Monitoring System (IMMS), from Hyundai Heavy Industries (HHI) of Korea. The IMMS is for the Moho Nord Tension Leg Platform (TLP), of which HHI is the constructor and Total Oil the principal operator. The Moho Nord platform is to be located offshore Congo, West Africa. The multi-million dollar project is one of the largest contracts of this type awarded to Strainstall Marine, and is an example of the ever-developing integration capabilities of the company. The project has a wide brief with many integrated systems providing critical monitoring data to the platform operating team. The Integrated Marine Management System is based around a centralised architecture, utilising field-proven software, processors and input/output systems. The IMMS brings together the operation of a number of hull-based monitoring and control systems, including tendon tension monitoring, load cells, riser monitoring, draft gauging, load management software, winch monitoring, corrosion monitoring and a Metocean system to monitor a range of sea and air conditions. There will be provision for several-hundred lines of input/output running directly into the system. The project, due to be delivered to the customer in March 2014, shows the commitment of Strainstall Marine to the continuous development of technology and systems, enabling platform management teams to make informed judgments based on the provision of complex data from a diverse range of sensors and systems.

Operational error Speaking at the industry forum, ASEAN Ports and Shipping in Ho Chi Minh City, Vietnam, TT Club’s regional director for Asia Pacific, Phillip Emmanuel, showed evidence that a very high percentage of the insurer’s claims were due to some kind of operational error. The vast majority could have been avoided through good management practice. Leading transport and logistics insurer TT Club’s latest analysis of 9500 claims over the past seven years, valued at US$ 400m, confirmed an on-going trend in avoidable damaging events that resulted in claims. Phillip showed that the majority were due to poor operations and processes and a further 14 per cent resulted from maintenance related issues. Only 18 per cent were caused by weather related issues, seemingly out of the control of the operator, but an amount of these could have been avoided through more adequate preparation. “Effective procedures, training and safety technology will reduce risk and bring other commercial benefits such as lower insurance premiums and higher customer satisfaction,” advised Phillip.

4 - www.shippingandmarine.co.uk

Keeping sailors in touch Globecomm Maritime is supporting British charity, the Jubilee Sailing Trust, by keeping its two tall ships STS Lord Nelson and STS Tenacious connected to friends and family during their ground-breaking itineraries. Lord Nelson and Tenacious are the only vessels in the world specially modified to be accessible for disabled and able bodied sailors alike. Lord Nelson is the first vessel of its type to sail around the world while Tenacious is heading for the UK and then the Baltic Sea to take part in the international Tall Ship Race series over the summer. To keep the ships connected while they are at sea, Globecomm partnered with Iridium to install OpenPort terminals on both vessels and equip them for Wi-Fi connectivity below decks. “Knowing that Lord Nelson was due to undertake a round the world voyage, which included Antarctica, Iridium was the only viable option since it is the only satellite provider to cover entire globe from pole to pole,” explains Globecomm Maritime vice-president of sales, Asia Pacific Trevor Whitworth. “The entire team at Globecomm were tremendously impressed by the work that the Jubilee Sailing Trust does with people of all ages in what can be very tough conditions at sea. Staying in touch is a vital part of living and working at sea and we wanted to assist in making sure the crew and volunteers could get online and update friends and family with the experience of life onboard.” In addition to the Iridium Pilot antennas and below decks units, Globecomm Maritime has supplied two crew phones and a master’s phone along with a Wi-Fi access point.


News Descending to the deep

Following a cross-country journey with stops at science institutions, museums and even Capitol Hill, filmmaker and explorer James Cameron recently handed over the Deepsea Challenger, the only human occupied vehicle currently able to access the very deepest parts of the ocean, to Woods Hole Oceanographic Institution (WHOI). Here, this impressive submersible system will be put to good use as a state-of-the-art scientific platform for future deep sea missions. Almost everything on the Deepsea Challenger is custom designed and tailor-made for its specific purpose, James Cameron (image courtesy of James Cameron) as the vehicle can rely on only the most expertly engineered systems and components, designed to function unfailingly under enormous strain. Amongst these, however, the many stainless steel PBOF and bulkhead SubConn connectors, supplied by Ocean Innovations, mark an impressive exception to prove the rule. Tested explicitly to work at extreme depths, these industry standard connectors are used to interface the vehicle battery packs, the powerful spot and LED panel lighting arrays, HD and IMAX quality 3D cameras, along with and other vital instruments and sensors used on the Deepsea Challenger. In addition, SubConn connectors, including glass sphere modified units, were widely used to interface the two unmanned robotic landers that descended to perform pre-programmed tasks in the abyss - prior to the arrival of the Deepsea Challenger.

3400 mile journey Super tug Fairmount Glacier has delivered rig Falcon 100 safely offshore Pointe-Noire, Congo. The rig was towed from Rio de Janeiro via the South Atlantic Ocean over a distance of over 3400 miles. The Falcon 100 is a 1974 build semi-submersible drilling rig, owned by US based Transocean and capable to drill to a depth of 7620 metres. The rig has a length of 79 metres and a breadth of 66 metres. For this job the Fairmount Glacier was mobilised from Trinidad. First the tug towed the Falcon 100 from her drilling location offshore Macae, Brazil, to offshore Rio de Janeiro. Then Fairmount Glacier assisted the rig in anchor handling activities and loading all kinds of equipment. Also the Fairmount Glacier assisted in installing a new ‘bridle’ – the connection between rig and towing line. After arrival in Pointe Noire the Fairmount Glacier assisted in keeping the rig in position during the deployment of her anchors. Also the Fairmount Glacier took over equipment and other cargo from Falcon 100 which was discharged in the port of Pointe Noire.

Regenerating iconic site North Tyneside Council has named Kier Property as its development partner to bring forward the regeneration of the former Swan Hunter shipyard. The appointment follows a competitive tendering process and, under the contract, Kier Property will now deliver a master plan to transform the 34-acre site, secure occupiers for the high-tech industrial and office complex and build bespoke units over the next three years to meet the needs of individual occupiers. The site will be marketed to advanced manufacturing companies specialising in the offshore industry, which will benefit from the easy access to the North Sea, a fully operational 300m quay, heavy-load lay down areas together with associated facilities and infrastructure. The site has been identified as ‘strategically significant’ in the on-going regeneration of the north-east and North Tyneside Council has already been successful in securing £13.8m of funding from the European Regional Development Fund (ERDF), the Homes and Communities Agency and the Local Enterprise Partnership Growing Places Fund. This will fund infrastructure improvements, which have already commenced on the site to provide utilities, access improvements, quay edge improvements and dredging to allow for larger vessels to berth. As the riverside quay will be an essential facility for new tenants on the wider site, North Tyneside Council has also agreed to begin procurement to appoint an experienced quay operator to deliver services at the site on behalf of the Council. The successful bidder will be expected to manage the increased use of the quay as a result of the improved facilities on site. Kier Property associate director, Mark Robinson, said: “We’re delighted to have been selected to regenerate this iconic site. It has great potential to breathe new life into the area by attracting high-tech businesses, inward investment and creating new jobs. “The new development will be of particular interest to advanced manufacturing companies that specialise in off-shore activity due to the great location of the site and purpose-built high-spec units.”

www.shippingandmarine.co.uk - 5


CONTRACT MANAGEMENT

Complex

contracts

Clare Colhoun looks at addressing cost blowouts and project overruns in shipbuilding, and the lessons that can be learned from the oil & gas industry

T

he international shipbuilding industry is becoming a dynamic and competitive sector that continues to innovate across an incredibly diverse range of projects. By nature, shipbuilding projects are complex and just like any large capital project are subject to delays in completion plus significant cost overruns. This problem is a well-recognised one and to some degree accepted, but it need not be. There are strategies that can be adopted at the outset of a project to minimise cost blowouts and overruns. In order to address the issue, we need to take a look at the root causes. In a recent paper, the Fisher Maritime Consulting Group identified the importance of establishing a comprehensive contracting strategy from the outset of a project. They identified a scenario which commonly occurs in the shipbuilding industry whereby shipyards want the structural design of a vessel

6 - www.shippingandmarine.co.uk

completed rapidly to enable construction to commence, yet the design team has not finished their work. Often, this leads to design compromises and to significant cost and schedule overruns. At the heart of the problem is the fact that decisions are often made based on hopes and assumptions rather than careful analysis of capabilities, experience and risks. Perhaps as a result of the pressure that is often exerted by the shipyard to commence construction while the design process is on-going, ship owners and design consultancies often try to shift the responsibility for many aspects of the design of the ship onto the shipyard. However, there’s a growing recognition in the industry based on recent legal judgements that this situation is unsustainable. It is becoming understood that legally, owners and designers cannot assign responsibility and liability to the shipbuilder, especially concerning errors and design


inconsistencies, which are now being viewed as pre-contract information and a shared responsibility. Another issue that often leads to cost overruns relates to additional deliverables, in addition to the ship itself and spare parts. The problem here is that often in ship conversion and construction contracts, the owner expects the shipyard and contractor to provide these deliverables, yet they aren’t often adequately addressed contractually, prior to the commencement of work. Examples include engineering analysis reports, condition-found reports, equipment selection reports and regulatory approvals. By improving contract management processes, which surface all of the above issues in time, this situation can be completely avoided. Fisher Maritime Consulting Group also cited this in their recent paper. We’ve outlined here just a few industry-wide problems related to contract management but there are others. The shipbuilding industry would be well advised to take a leaf from the book of the oil and gas industry, which is embracing capital project contract management software solutions, such as ProCon from 8over8, to support the awarding and execution of large contracts.

Why does the shipbuilding industry need contract management solutions? The parallels between the shipbuilding and oil & gas sectors are striking. In both industries, at the start of a project, the operator and contractor set out the ‘Rules of the Game’ in the contract document, whereby the parties agree business processes for handling technical queries, design change notices, site instructions, change orders, variation requests, variation orders, contract amendments, and claims. Effective contract execution calls for efficient management of all of these interparty communications and instructions. Unfortunately, however, when it comes to changes, the contract manager is often informed about significant site instructions that have potential contractual significance after the event. On major projects, this often has serious consequences, as instructions given for change can later emerge as disputed variation requests and possibly develop into expensive claims. To address these issues, many oil & gas operators have adopted central, reliable contract management systems, utilised by all parties to the contract. These play a valuable role in capital projects, preventing a hung jury situation when claims are being negotiated. The system establishes who made what decision and when, as the contract is executed and unforeseen events unfold. It adds context-sensitive information and prevents the blame game because all decisions and authorisations for contract changes and amendments are captured in real-time in a central safety net – the contract management system. Like the offshore oil and gas industry, shipbuilding is indeed a very risky business and the contracts that govern the contractual relationships must clearly define the ownership and allocation of risk amongst the various parties. Although contracts are drafted to be as specific and iron clad in relation to the ownership of risk, there is always room for interpretation. In particular, the complex interfaces in these projects add to the risk profile – allocating risk

at the interface is never a clear cut situation. Once signed, the contract progresses to the execution phase and throughout this phase a plethora of contract amendments, design changes, change orders, contract variations and typically, claims will ensue. Each so called ‘change order’ carried out by the operator or supplier incurs significant, unintended cost. Add up tens or hundreds of these and it is easy to understand how a large project can veer off its original budget. Whilst clear allocation of risk through strong indemnity clauses was the primary challenge in drafting and negotiating the contract, pro-active identification management and mitigation of risk become the new challenge in executing the contract. Adopting a reliable enterprise-ready contract management system overcomes these issues and has the potential to generate significant savings on capital expenditure, as well as helping to avoid project overruns. v Capital project contract issues common to Shipbuilding and Oil & Gas projects l High value, high risk contracts with a high propensity to

scope change, design clashes and unforeseen external events catastrophes. l Frequent interaction between the contractor and the operator on contractual issues that may subsequently feature in a claim. l Business critical contracts with binding obligations concerning turn-around times of contractor requests and contractor claims. l A unique project contract strategy that divides the project scope into discrete contract packages to be developed and taken to market in line with the project schedule. l Contract approvals and significant changes to contracts including scope, contract value and project schedule are governed by ‘external’ Boards comprising representatives from joint venture partners. l Success is highly dependent on the expertise of project professionals. l Milestone-driven, fast paced environment, frequently 24/7 with back to back staff. Little or no time to ‘learn’ new systems.

Clare Colhoun

Clare Colhoun is the chief executive officer at 8over8. 8over8 provides enterprise-grade contract management software solutions for organisations that build and operate assets. It creates value in mega projects, by unifying stakeholders onto a single web-based platform to protect investment and drive performance and profitability. At the heart of its offer is ProCon - a contract management platform that works together with or independent of ERP solutions, offering a best practice solution to planning, management and execution. For further information visit: www.8over8.com.

www.shippingandmarine.co.uk - 7


safety & security

The best defence

David Fairnie highlights the need for port operators to have a robust risk management system in place

O

ne of the toughest challenges for port operations directors is to ensure that a safe and secure environment is maintained at all times. Port operations carry a myriad of associated risks so it’s important to have a clear and effective strategy in place to deal with them. To achieve this effectively, the first stage must always be the initial risk assessment. Following this, operations directors will need to develop and agree risk mitigation strategies, as well as consider how the effectiveness of these strategies will be monitored. To maintain a high standard of risk mitigation, it’s vital that all security processes are continuously reviewed and when necessary, improved and reapplied. Companies must ensure that their risk management systems are rigorous at every level – not simply a tick box exercise. With a constantly evolving range of risks threatening port operations, it’s essential that processes are kept in a continual state of progression and are not allowed to stagnate. It’s also important that risk processes and management procedures across an entire port operation are properly linked and working effectively together. All elements of a port’s risk management strategy such as health and safety, environment,

8 - www.shippingandmarine.co.uk

and security itself, need to be based on a model of continuous improvement. This is the essence of enterprise risk management and to make this work, port operators must understand how all the different parts of their operation can work effectively together. It is important to identify where security can help mitigate health and safety issues, as well as supporting environmental strategies. A simple example of this would be in surveillance. In our operations at Gothenburg, we use security mechanisms already in place, such CCTV, which allow security providers to monitor health and safety risks around the geography of the port and quickly identify any breaches. This can also be achieved through patrols in which security staff can identify potentially unhealthy practices and either bring these to the attention of health and safety management teams, or act quickly to prevent accidents or more serious issues. The interplay of security provision and maintaining health and safety standards is also visible at port entry points. At ports where G4S is the security solutions provider, we regularly use our security staff to monitor those entering a terminal to not only ensure that they have the appropriate accreditation to enter the site, but also the appropriate health & safety inductions and PPE (personal protection equipment) clothing. By combining oversight of both security and safety maintenance, it is possible to


create significant financial savings for port operators. The good news for port operators is that analysing the efficiency of security and monitoring operations is getting easier and easier. One of the biggest developments in security in recent years has been the growing volume of data that is collected during operations. This provides a significant opportunity for port operators to hone their security processes by using the insight gained from the data gathered. To assist our clients in getting the most out of the data they collect, we provide in-depth risk analysis to highlight trends and incident hotspots. This is shared with our customers during continual improvement meetings so that security procedures can evolve to account for risks accordingly. The opportunity presented by data to improve security processes is too good to miss. Progressive port operators need seize the opportunity by working with their security providers to maximise the benefits they can obtain from data to improve their risk management services. Before a port is constructed, security solutions providers can provide vital input in planning its future operations - effective risk management is best initiated at the design phase of a new facility. As awareness of the importance of mitigating security risks has grown in recent years, so port operators and security solutions providers are increasingly collaborating at this stage. Involving risk management consultants at the outset has proved a hugely effective way of maintaining operational efficiency in ports once they are built and in operation. One of the biggest advantages of this approach is the ability to plan for and prevent localised environmental incidents, which could result in the closure of a port. For example, it is perfectly possible to plan for endemic risks such as incorrect movement of containers containing hazardous goods that could cause spillages.

When such incidents occur, it may be possible at the design phase to develop features, which minimise disruption, providing a potentially huge commercial upside for port operators. The key point for all port operations is that no security provision should ever be an ‘off-the-shelf’, purely price-based service. Current risk profiles require truly bespoke solutions to effectively serve the fast-changing ports industry. Poor security processes can have broad impacts. Some are direct such as the immediate loss or damage of goods or hardware, and others such as reputational and brand damage, are intangible but potentially hugely expensive. In extreme circumstances, poor processes can result in security breaches leading to terrorism, and subsequent injury or fatalities. Putting in place a strong risk management system is a crucial factor in determining whether or not any port facility is a commercial success. v

David Fairnie

David Fairnie is director, G4S Global Port Solutions. G4S Ports Solution is the world’s largest ports security provider, offering best-practice innovative solutions to global port operators which face an increasing number of legislative demands and modern-day safety concerns. In the past three years G4S’s ports portfolio has more than doubled its global presence from 70 terminals to 170 in 125 countries. The business is largely focused on cruise and passenger traffic, dry bulk and containers. In addition to traditional security services, G4S Ports Solutions now provides consultancy, and cutting-edge technology. For further information visit: www.g4s.com

www.shippingandmarine.co.uk - 9


who

electronic bills of lading

A pragmatic

approach T Tom Rahder makes the case for electronic bills of lading

he bill of lading has always been a mainstay of the maritime import-export process. Principally serving as a contract between the carrier and the shipper which details the type, quantity and destination of the goods being carried, it is transferred through the trade chain via the banks. Ultimately, it will end up with the consignee who returns the bill of lading to the carrier in exchange for the goods. Dating back to medieval times, this historic and well-established practice is also notoriously inefficient, with goods frequently arriving faster than the bill of lading, due to processing delays or loss of all or part of the relevant paperwork. For this reason, it is often necessary to generate letters of indemnity (LOI) to secure release of the goods where the bill of lading is absent. In many cases, this is the only way to keep the chain moving and plug the gaps in what is a highly labour-intensive, manual process – ultimately culminating in greater risk, work and expense. To overcome these inherent procedural inefficiencies, speed up the slow-moving chain and ultimately get paid faster, exporters have recently shown renewed interest in an electronic version of this essential document. The recent advance of electronic bills of lading (eBLs) appears to confirm that this has now come of age in terms of industry credibility and acceptance, with today’s best examples providing customers with a simple, rapid and open approach to eBLs. And, with no fees or charges for carriers, agents or port authorities for using this system, there are no negative cost implications to act as a barrier to broader adoption.

10 - www.shippingandmarine.co.uk

Benefits for all

The pressure to automate the complex, multi-stage process of handling bills of lading process is not coming, as one might expect, principally from the carrier community. Rather, customers are driving change, as they recognise the benefits of efficiency and certainty which derives from electronic processing. This forms an integral part of a broader shift towards the dematerialisation of documentation within the commercial shipping world, something which has been talked about for many years but which is now gaining momentum in an industry which is now under increasing volume and margin pressure . However, although the impetus for change is coming from the buy-side, there are also a number of important benefits to the carrier. With capacity currently outstripping demand in many areas, the ability to offer an eBL capability is becoming a valuable differentiator against competitors unwilling to move away from traditional ways of working. In some smaller bulk carrier markets using Handy, Handymax and Panamax vessels, for example, the adoption of eBL has moved on a stage further, as the ability to offer this capability has become an essential pre-requisite to trade with some major commodity suppliers. In an industry in which carriers typically know relatively little about their customer base, the ability to offer eBL also improves competitiveness as it enables the carrier to get closer to, and so understand better, individual customer needs and challenges. Customers typically see eBL as a valuable way to help them cut


costs, reduce time to cash, cut opportunities for fraud, enhance process transparency and increase certainty, by reducing errors and delays in the shipping process. As a result, the carrier that is able to a have a detailed and constructive conversation on why they are the right partner to meet such challenges will be much better placed to secure the contract. And the carrier can enhance their competitive position by aligning their existing technologies more effectively in this way, without major investment or rebuilding of existing processes.

An evolutionary process An eBL is not simply the electronic equivalent of the traditional paper-based bill of lading. Rather, it is a combination of a legal rule book and technology which can replicate the functions of a traditional paper bill of lading. A best practice eBL solution will contain three key elements: a rule book, which is a common legal agreement entered into by all users as part of an enrolment agreement; a title registry, which acts both as a repository and an application which manages the transfer of title of the eBL; and an exchange platform. This platform offers a number of advantages over database solutions, in that it allows the eBL to replicate the traditional paper process which supports the sending of the eBL between parties, and delivers to the holder of the eBL without the need for the holder to interact directly with the application. This less invasive alternative requires less process change, as part of a more evolutionary approach to operational improvement. An eBL is generated in an exactly similar way to that of a standard bill of lading, with a single additional process. This practical approach means that carriers can continue to follow their existing processes and simply incorporate one further step. This responds to strong feedback from the market, which typically does not see the need to build new automated systems but is keen to explore options which build on, rather than replace, established technologies. As a result, a best practice eBL solution is designed to work in conjunction with the corporate and carrier communities’ existing systems, rather than forcing all parties to converge on a single platform. Such a pragmatic approach is likely to encourage a more rapid adoption of the eBL, enabling all participants in the trade to chain to achieve maximum benefit. v

Tom Rahder

Tom Rahder is VP product strategy at Bolero International. Bolero is a cloud-based platform, which provides a different way to implement multi-bank trade finance solutions. Unlike traditional point-to-point approaches that are costly, complex and uncertain, Bolero’s cloud architecture ensures fast deployment, ease of use and global access together with no infrastructure costs. For further information visit: www.bolero.net.

www.shippingandmarine.co.uk - 11


marine lubricants

Fit for the

future

Preparing for the Vessel General Permit with bio lubricants. By Serge Dal-Farr

T

ightening environmental legislation means that protecting the global marine environment is increasingly becoming a priority for ship owners and operators. Although operations across the board are being affected, lubrication is an area that has remained out of scope, until now that is. Greater responsibility for the environment drives innovation and the demand for new solutions that enable the shipping industry to maintain and improve delivery of its daily operations is growing. Port and harbour areas in particular are subject to the industry’s most stringent regulations and here, environmental protection is considered an absolute priority. A key challenge for all vessel operators is stern tubes lubricant leakage, which can remain undetected until the vessel’s next dry

12 - www.shippingandmarine.co.uk

dock. In some cases, this may last up to four to five years. With the global fleet totaling more than 100,000, the cumulative effect of oil leaks, no matter how miniscule, must be regarded as a critical factor in environmental protection. According to the US Environmental Protection Agency, one litre of mineral lubricant pollutes 1,000,000 litres of seawater. Lubricant oil spills involve response costs as well as socioeconomic and environmental damage costs. Frequent low-volume operational discharges of lubricants are unlikely to result in the type of response generally applied in major oil spills. For this reason, it is important that all possible measures are taken to ensure that the harmful effects of leaks are neutralised. According to a study published by Environmental Research Consulting, total estimated costs for lubricating oil operational leak and discharge worldwide, based on the probabilities of operational discharges by vessel type in the 4708 global ports are estimated to be $322 million annually. Legislation can be one of the most powerful tools behind the move towards increasingly sustainable shipping. Historically, legislation governing the lubricants used onboard vessels has simply not existed. However, earlier this year the US Environmental Protection Agency (EPA) issued the 2013 Vessel General Permit (VGP) with regulations that will enter into force December of this year. The VGP states that: “all vessels constructed on or after December 19, 2013 must use an environmentally acceptable lubricant in all oil-to-sea interfaces. For all vessels built before December 19, 2013, unless technically infeasible, owners/ operators must use an environmentally acceptable lubricant in all oil to sea interfaces’. ‘Environmentally acceptable lubricants’ means lubricants that are ‘biodegradable’ and ‘non-toxic’ and are not ‘bio-accumulative’...” Ship owners worldwide will now have to use lubricants that are compliant with this new legislation if they want to transit through US waters. To aid in the fight against this issue, bio lubricants have been developed that cover bearings, gears, hydraulic systems, wire ropes and stern tubes. For example, TOTAL Lubmarine’s range of bio-lubricants includes Bioneptan, a synthetic ester, biodegradable stern tube lubricant that is manufactured with synthetic base oils. This makes it non-toxic and biodegradable


to nearly 80 per cent of its ultimate state of carbon and water within 28 days. Bioneptan has been through rigorous independent testing under the OECD 301 B requirements. It is an environmentally acceptable lubricant (EAL), fulfils the European Ecolabel criteria and is, therefore, fully VGP compliant. Experience shows that ester-based products are more durable than mineral lubricants, which are high in toxicity for the marine environment. They also perform much better than mineral oils due to excellent thermal and oxidation stability. Given the indisputable impact of lubricants on the marine environment and the fact that all machinery uses lubricants, the risk of spills and leaks is impossible to eliminate. Bio lubricants address the need for greater sustainability, especially for stern tubes and propeller shafts - areas where leaks are most common. There have also been significant advances through alternative engineering designs for stern tubes that eliminate or reduce the amount of lubricating oil in use, such as seawater-lubricated propeller shaft bearings. Also, since a certain proportion of lubricant lost to the sea comes from mechanical failure, regular equipment inspection by port authorities and modernisation of fleets, are all valid ways of reducing leakage impact. The final VGP also contains more stringent effluent limits for oil to sea interfaces and exhaust gas scrubber wash water, which will assist in the environmental protection of US waters. The EPA has also improved the efficiency of several of the VGP’s administrative requirements. This includes allowing electronic recordkeeping, allowing combined annual reports for some vessel operators and reduced inspection frequency for vessels in a prolonged idle status, among others.

This is a period of change for shipping and as the industry evolves into more energy efficient and sustainable operations, lubricant providers must remain one step ahead to ensure that the global fleet is protected and fully equipped to take up evolving eco-efficiency technology solutions of the future. It is crucial that lubricant providers continue to work closely with both OEMs and customers to demonstrate that the combination of innovative technology and lubricants can safeguard efficient operations for the future, improving performance, whilst also reducing environmental impact. v

Serge Dal-Farr

Serge Dal-Farr is marketing director at TOTAL Lubmarine. TOTAL Lubmarine provides the shipping industry with pioneering marine lubricants and greases. The company is dedicated to engaging in partnership with its customers to provide solutions to their lubricant needs. A genuinely local partner, TOTAL Lubmarine provides the world’s largest network of delivery hubs supplying to over 1000 ports worldwide. For further information visit: www.lubmarine.com.

www.shippingandmarine.co.uk - 13


it

Working

together

Alain Houard discusses how a 3D IT solution can enable a collaborative approach to vessel creation

T

oday’s marine and offshore industry faces increasing challenges: the need to work faster on more complex marine products with an extended supply chain in a very competitive environment; deliver on-time information to customers on the project’s status at any time; and reduce programme management costs as well as design and production time. In order to keep a competitive advantage, shipyard executives are pressuring their suppliers and their own organisations to integrate and consolidate existing business practices and technology for information management to optimise programme management activities and foster collaboration. Marine and Offshore organisations are increasingly taking advantage of the 3DEXPERIENCE Platform to plan and manage complex projects with an interactive 360 degree programme management approach, ensuring on time and on budget delivery. Because of this technology, these organisations can now tackle head-on the industry’s biggest challenges:

Supply chain collaboration With up to 80 per cent of all ship vessel and platform components provided by the marine industry’s supply chain, shipyards are more and more playing the role of integrators. A lack of

14 - www.shippingandmarine.co.uk

co-ordination along the supply chain can cause costly delays. Effective collaboration with suppliers is, therefore, key to the success of any shipbuilding marine and offshore project. This includes careful orchestration of the request for quotation (RFx) process as well as efficient access to data for successful project execution. With the 3DEXPERIENCE Platform, the entire RFx process lifecycle takes place in a single collaborative environment. Suppliers have secure access to up-to-date product information for efficient collaboration in real time, enabling companies to make the most of their supplier network. Additionally, the sharing of realtime data results in fewer changes. As every stakeholder is working off a single version of the truth, there are no more mistakes coming from users accessing different versions of the documents.

Contract management & cost containment Building a naval or cargo vessel is a massive undertaking. Many of these vessels are built to order, with tailored features and capabilities that make each ship a one-of-a-kind endeavour. With programmes totaling in the millions of dollars, contracts have become essential to any ship owner-shipyard relationship. At the same time, military shipbuilding contracts are changing.


Gone are the days when shipbuilding companies could easily increase the price of a particular ship if costs went up due to a Navy request for a last minute change. The United States and other countries have now moved to a ‘fixed contract’ approach, where the price is defined once and for all. The US Navy, for instance, will indicate precisely what they need and the shipyard will agree to a set amount in advance of starting the work. Keeping track of the cost of the ship, until it is finally delivered, becomes a critical activity. With the 3DEXPERIENCE Platform, organisations can manage and track contracts and requirements throughout the project lifecycle. This prevents any surprises, such as late addition of specific CO2 emission requirements, which would create a problem that would be costly for the shipbuilder. With the ‘On Time To Sea’ 3D Industry Solution Experience based on the 3DEXPERIENCE Platform, organisations also have to maintain traceability and have an efficient means to ensure that all contract and requirements items are accessible to appropriate team members. Also, if the customer requests any changes, such as the addition of a new cabin or bigger windows, the impact these will have on the entire project in terms of design and schedule can quickly and easily be seen. This allows both parties to immediately understand the impact of any change on the cost and delivery date of the ship, enabling them to make more informed decisions. In addition, ‘On Time To Sea’ will enable organisations to monitor a vessel’s compliance to international and national marine classification rules.

project mishandling. The installation of the nuclear engines was supposed to be done with Chinese insulation plates. However, the material was deficient, causing a delay. Russia is now suing China for $800 million for this error, which was due to an incorrect requirement management approach. Originally set to be completed in 2008, the refurbishment is now scheduled to be completed in October 2013, assuming there are no additional delays or problems. The cost has skyrocketed, costing billions more than originally expected. Strict process and resource planning throughout a project is required to avoid situations like this, given the sheer size and cost of a vessel or offshore platform. All stakeholders need to know where the project is against where it should be at any given point. Workflow must be managed with every actor knowing when to intervene and what action is expected. ‘On Time To Sea’ provides the tools for role-based project management according to a project’s schedule. Tasks can be tied to requirement items, ensuring traceability. It provides the tools to effectively plan and manage activities with an organisation’s supply chain network and ensure that the project is on schedule and within budget. Thanks to real-time dashboard and metrics, all stakeholders can easily access up-to-date information and status. Organisations can make informed decisions and take corrective action, if necessary, in a timely manner for smooth project execution.

Improved visualisation

Technology is an important trump card in a climate of economic uncertainty where investments are continually scrutinised and control of projects and costs are key to remaining competitive. Streamlining the flow of information for efficient project management ensures marine and offshore manufacturers’ ability to meet their number one priority: to deliver on-time and onbudget. By taking advantage of the marine-centric collaborative, intelligent environment to monitor all activities across the extended enterprise, which includes their suppliers, shipyards are empowered to improve time to market and product quality while controlling margins. Since all stakeholders have secure access to up-to-date project data in real time from anywhere, common challenges that typically resulted in cost overruns and significant delays can be minimised. As the industry adopts this technology, the potential for the successful completion and launch of today’s complex vessels and platforms is boundless. v

A substantial amount of documentation can be produced for a marine and offshore project. This can include specifications, project schedules, safety and quality documentation as well as detailed plans of the vessel or platform. With 3D visualisation tools, decision makers can make more informed decisions by looking at the ship products in 3D, versus looking at a spreadsheet. This also provides the ability to see potential problems and make adjustments before it is too late.

Intellectual property (IP) protection Intellectual property (IP) protection is of the utmost importance for projects that involve collaboration between several companies and suppliers. ‘On Time To Sea’ allows users to define access for each user based on role or discipline, ensuring that there is no unauthorised access to information. ‘On Time To Sea’ helps generate, efficiently manage and track all of an organisation’s electronic documents for maximum traceability. Organisations can protect their documents with advanced security mechanisms that identify and keep sensitive materials safe from unauthorised access.

On time production In the marine and offshore industry, producing on time is a compelling necessity. In fact, being late by one day can cost upwards of $5M. Let’s look, for example, at the refurbishment of India’s aircraft carrier INS Vikramadity, which has been purchased from Russia. It has been delayed by numerous cost overruns and

Opening new horizons

Alain Houard

Alain Houard is vice president, marine & offshore industry, at Dassault Systèmes. The ‘On Time To Sea’ Industry Solution Experience, based on Dassault Systèmes’ 3DEXPERIENCE platform is a marine-centric digital environment that supports the interactive 360 degree program management approach required for marine and offshore companies to engage in collaborative planning, monitor project status and performance, and ensure secured traceability. For further information visit: www.3ds.com/solutions/marine-offshore.

www.shippingandmarine.co.uk - 15


Profiles

There are thousands of ships sailing the oceans today, transporting every kind of cargo. The global fleet is manned by over a million seafarers of virtually every nationality and the companies involved in this sector are among the most technologically sophisticated of any in the world. The prominent and successful companies that are highlighted in the next pages of Shipping & Marine provide real world examples of how state-of-the-art technology, best practices and modern innovations are put into practice in the maritime sector.

l karmsund

l ultratug

l hong lam marine

l port of southampton

l remontowa SA

l bestobell lng

l port of split

l suez canal container terminal

l parkol marine engineering services

l Workships Contractors

l oman shipping company

l pd ports l vyborg shipyard


Profile: Karmsund

Quay to the

region

T

he port of Karmsund has always played a vital role for large parts of the industry in southwestern Norway. It offers customers access to a wide range of facilities, and so whether they want to establish a business, rent space, place a boat in storage or use one of Karmsund’s harbour sections, the organisation will work hard to meet their needs. Furthermore, the diverse maritime industry around Karmsund is a great advantage for the port and supports its complete service offering. The fishing industry and shipyards with large dry docks gives the region a unique maritime diversity. The Karmsund port area is the third largest in Norway, measured in cargo cover over the many waterfront segments. It is an efficient and modern business that holds service and quality as keys to its success, and can demonstrate solid economic foundations. The port also has a distinctly green profile to its operations, and focuses on the

environment and climate change as an integral part of daily routines. Operations at Karmsund are split into three main areas – a subsea base; cruise line and containers/traffic.

Subsea & offshore base One division of Karmsund Port is the Killingøy Subsea & Offshore Base, which meets the regulations on protection of ports and port facilities against terrorist acts and so forth, as well as being approved by the NCA. Located at Killingøy, Statoil operates a major facility for its PRS (Pipeline Repair System), and as recently as June 2013, it took the keys to a new 1070 square metre hall on the base, which is on long-term lease from Karmsund, and features modern technology, including a 25-ton crane. In addition to Statoil’s PRS facility, Killingøy is home to many of the region's prime subsea players, including: Technip Norway, Deep Ocean, Olufsen Ship Repair, Reach Subsea and

Mera. In addition, Karmsund Port Authority's administration is also located at Killingøy. Representing a significant development for Karmsund, Technip signed an agreement for long-term rental of an industrial hall in Killingøy just days before Statoil took on its new facility. According to the agreement, the hall will be completed in the first semester of 2014, and in addition, Technip in Norway has need for storage area outside the base. “Initially, Technip will use the hall for storage and maintenance of modular hyperbaric rescue equipment, a module handling system for subsea equipment, adding accessories for cables and smaller vessels for air diving when not in use,” said managing director of Technip in Norway, Odd Strømsnes. Karmsund port director Sigurd Eikje was very pleased to sign the long-term lease agreement with Technip, as the contract helps to emphasise the strength and importance of the subsea environment at Killingøy. The Karmsund Port

www.shippingandmarine.co.uk - 17


18 - www.shippingandmarine.co.uk


Profile: Karmsund

Going forward, Karmsund will maintain its focus on consolidating its position, as well as making further improvements in order to meet the demands of the future, by facilitating the development of modern technology infrastructure in the port district the region can accommodate ships of all sizes. It also established a park - Harbour Park - which will ensure that both cruise passengers and the region’s own citizens have a very enjoyable experience after a visit to the quay. As a result of all this hard work, the first cruise ship arrived in May 2013 – Fred Olsen’s ‘Balmoral’. With room for 1350 passengers and a crew of 510 Balmoral is the largest in the Olsen cruise fleet, and is due to make more calls into Haugesund during the summer of 2013.

Traffic port

Authority has been working for several years to establish the agreement and will start work immediately on the design of an industrial hall with office facilities for rent to Technip. “There is no other agreement Karmsund Port Authority has worked on for as long as this,” said Sigurd Eikje at the signing. “Therefore it feels especially good when you finally reach the goal.” The agreement was signed at the same time as City Council in Haugesund adopted new zoning for Killingøy / Rekavik. “This creation shows that regulatory change was appropriate and important for subsea environment in the region,” added Sigurd.

Cruise port It was three years ago in 2010 when Karmsund Port Authority, together with destination management, took the strategic decision to launch a serious and sustained effort to attract cruise tourism. Much effort and resources have been invested into the cruise facilities with Karmsund Port Authority investing about eight million itself to create the best possible conditions for ship, crew and passengers. Special attention was paid to the jetty and mooring arrangement and bollards are now 150 tons. With a quay of 297 metres,

Moving onto the traffic port, this location benefits from new road connections from Rogaland to E39, and means it is very strategically located in relation to the business community in the region, as well as Stavanger and Bergen. In the harbour there are large areas of development available, plus the main quay was extended in summer 2012 to 270 metres, and as well as a modern RORO ramp, Karmsund provides a state-of-the-art quay, all designed to benefit end users. Going forward, Karmsund will maintain its focus on consolidating its position, as well as making further improvements in order to meet the demands of the future, by facilitating the development of modern technology infrastructure in the port district. It also has ambitions to be a part of the development of the area in terms of industry and tourism; as well as to be the natural choice for ships, with easy access and good service. It looks clear that with this firm strategy in place, Karmsund will remain a port of great importance to both its local area and to the whole of Norway. v

Karmsund www.karmsund-havn.no • Three parts to business • Recently opened new facilities • Third largest port area in Norway

www.shippingandmarine.co.uk - 19


Profile: Hong Lam Marine

Embracing

The pressure to reduce the industry’s carbon footprint means there will be a requirement for more fuel efficient vessels and alternative energy sources, solar energy, wind, electrical energy generated onshore or LNG are being explored

innovation I ncorporated in 1981, Hong Lam Marine is now one of the most established bunker craft operators in Singapore. It aims to be at the forefront of the bunkering industry with newer and better tankers equipped with more advanced technology than the competition, and it has a resolute commitment to provide an outstanding level of service to customers. Lim Han, executive director and head of harbour operations and crewing, explained that the company operates a fleet of 38 tankers with a total tonnage of 316,132 DWT. “We have two fleets – an ocean going fleet and a harbour fleet,” he said. “The ocean fleet consists of product tankers and chemical tankers trading mainly between the east of Suez up to the Far East, while the harbour fleet operates mainly in Singapore with vessels also operating in Fujairah, Jebel Ali, Malaysia and Australia.

“Our harbour vessels are separated into three groups: bunkering, lub oil and jet fuel. These vessels inherently have different designs to suit the different types of operations. So for example, the lub oil barges have six separate pumps and dedicated lines to specific tanks as we carry different grades of lub oils on board and they cannot be mixed. “The jet fuel barges and the bunker barges are pretty much similar with the exception that the jet fuel barges have tanks that are dedicated to jet fuel and nothing else.” He continued: “All our harbour barges are purpose designed with the capability to go alongside another vessel quickly and safely. This is done through the use of bow thrusters and also a twin-screw design.” There is also a new build programme underway at Hong Lam Marine, with eight vessels already having been delivered, and two

www.shippingandmarine.co.uk - 21


more due in 2013. “There is a very interesting basis to this investment,” said Han. “Our CE, Mr Lim, has a vision for us to be a ‘green’ company, and this will be done through the use

22 - www.shippingandmarine.co.uk

of technology and a system that allows us to reduce our carbon footprint. “So with our new build vessels, we have adopted the diesel electric model for operations

in the harbour, and these are the first diesel electric bunkering vessels in the world. We have only two main generators on board as compared to two main engines and two generators on board a conventional vessel. We have designed our vessel to be single screw, allowing a better hull form and thus giving less resistance and better water flow to the propeller. We have also fitted a high flap rudder for better manoeuvrability since we do not have a twin screw. “With this new design, we will only require one generator at any point of time, whether that is during movement or during a bunkering operation. We have also fitted a harbour generator, which is basically a smaller genset that is used when the vessel is in the loading terminal or idling at the anchorage. “All these technologies have been put together for the main purpose of saving fuel based on estimates we can save up to 25 per cent in fuel and that directly reduces our carbon footprint.” Hong Lam Marine is also the first company in


Profile: Hong Lam Marine

BURCO MARINE Burco Marine is a specialist in marine turbocharger technology. The company’s vast experience has been accumulated in the marine industry over the past two decades, and today its professional team is dedicated to delivering high standards of turbocharger solutions and services to customers. Burco Marine enjoys a worldwide network of strategic partners, giving it the opportunity to respond to customers’ calls wherever they are. The company prides itself on providing targeted customer solutions and raising the benchmark of the marine industry and offshore sectors.

Singapore to fit a mass flow meter (MFM) on board its vessels and to get it officially approved by the Maritime Port Authority of Singapore (MPA). “With the use of the MFM, we are able to reduce the amount of time a vessel spends bunkering as there is no need for the receiving vessel to sound every tank before and after the bunkering operation. This in turn can increase the turn around time for the vessel. With the MFM, the delivery of bunker is also very accurate thus reducing the number of complaints from the customers,” explained Han. Hong Lam Marine is also a signatory on the MPA’s Green Pledge, which proves its commitment to promote and support clean and green shipping in Singapore. Looking to the future, the environmentally

friendly technology Hong Lam Marine has already implemented should give it an advantage in the market. “The pressure to reduce the industry’s carbon footprint means there will be a requirement for more fuel efficient vessels and alternative energy sources, solar energy, wind, electrical energy generated onshore or LNG are being explored,” said Han. “There are many possibilities out there, but I would say that LNG would be the most relevant to us as ship bunkers. This will not come into play too soon as the infrastructure for LNG is still evolving, but it is something that we will be exploring in the years to come.” v

Hong Lam Marine www.honglam.com.sg • Main business is focused on safety and owning and operating vessels • Meeting customers’ needs is top priority • Dedicated safety team operates throughout the company

www.shippingandmarine.co.uk - 23


A diverse

service

A

s the operators of Poland’s one of the largest and oldest shipyard, Remontowa SA has developed a reputation as a company synonymous with quality and expertise. With 15 vessels currently under construction, four of them powered by LNG propulsion, the yard boasts a full order book until mid 2015. Wholly owned by Remontowa Group, the company’s slipways and docks allow for

124- www.shippingandmarine.co.uk - www.shippingandmarine.co.uk 24

the construction of a diverse range of vessels. Operating seven floating docks, the yard’s quays are well equipped with essential infrastructure, such as 24 cranes with the ability to lift up to 300 tonnes. “Remontowa Group is the largest group in the north of Poland and contains 26 companies; the core of these is Remontowa Ship Repair, which focuses on conversions, followed by Remontowa Shipbuilding, which takes care of newbuildings,” says Jan Paszkowski, director of commerce at Remontowa SA. “The latter began in 2005 when Remontowa SA acquired the nearby Northern Shipyard and renamed it Remontowa Shipbuilding. This yard was built in 1945 with most of the production located under a roof, which at the time was used to allow the building of vessels for the Polish, USSR, Bulgarian, Yugoslavian and East German navies after the Second World War. These days, covered production facilities are a great asset as they offer weather protection during production.” Currently Remontowa Shipbuilding only employs approximately 700 workers and around 1500 subcontractors, while Remontowa Group employs approximately 4500 workers at and subcontractors in its two shipyards located in Gdasnk, Poland. On the Baltic Sea, Remontowa SA is a leader among European ship repair


Profile: Remontowa SA

Fannefjord and Romsdalsfjord yards and a huge player in the world market, repairing or converting more than 200 vessels and offshore units for clients across the globe each year. Alongside several affiliated companies and subsidiaries that are also members of Remontowa Group, the company offers a wide range of ship repair and shipbuilding services for ferries, container carriers, floating docks, training and research ships, offshore units and steel structures. “To give an example of our diversity and the range of interesting projects we are involved in, Remontowa SA is currently building ten PSVs for a US customer, one LNG powered PSV for a Norwegian client, and three LNG ferries for Norwegian and Danish owners that are going to be revolutionary. We also have a number of Navy projects and a series of ice breaker container vessels for the arctic,” says Jan. To support this comprehensive range of services offered, the company’s yard is fully equipped with state-of-the-art facilities and essential infrastructure. Nevertheless, the company is keen to not unnecessarily over invest, instead

making financial decisions based on the orders it receives, as Jan elaborates further: “Our investments tend to depend on the orders we are getting so with a niche being developed for bigger vessels we have been building a reinforced large launching facility. We also have a very large storage and outfitting hall where all of the supplies come straight from the tracks under the roof;

AutoLoad Services (UK) AutoLoad Services (UK) Limited are proud to be associated with Remontowa shipbuilding who are specialists in building technologically advanced vessels for the offshore oil and gas market. Their latest PSV orders from Gulfmark Offshore incorporate our class approved loading instrument software – AUTOLOAD, the software of choice for most of the world’s leading offshore vessel operators. AUTOLOAD is currently installed on AHTS, MSV, FPSO, semi-sub, jack-up & wind turbine installation vessels.

www.shippingandmarine.co.uk - 25


Sable we are now planning to enlarge this platform to double its size.� Following its construction of the first Polish built LNG carrier in May 2008, Remontowa SA has developed a strong foothold in the production of LNG propulsion vessels, with a contract for the construction of two specialist vessels intended for supplying oil mining and oil drilling rigs signed on 5th July 2013. Valued at nearly 100 million euros, the contract will be for the first supply vessels powered by LNG-fuelled engines; the vessels will be fully constructed in Gdansk and will be equipped with cutting edge navigation systems, including gas-electric propulsion, firefighting system Fi-Fi 2, advanced dynamical positioning system DP2 and facilities for the containment of oil spills. Confident that the successful completion of this innovative project will result in further orders from customers within this sector, the company plans to expand its operations further into the Norwegian LNG market. Specialising in the offshore and ferry markets, the company is cautious about focusing on

26- www.shippingandmarine.co.uk


Profile: Remontowa SA

Landegode

Highland Defender

any core business area in a complex and ever changing industry and instead is keen to

modernisation of three Maersk vessels, Maersk Launcher, Maersk Lancer and Maersk Leader, which received improvements such as new

conversion of two fuel tanks into chain lockers. Furthermore, Leader and Launcher had an additional anchor 170 T pull-handling winch

remain flexible. Recent projects in ship repair and conversion area include the upgrade and

working deck coverage, stern installed A-frames to facilitate heavy anchor handling and the

installed to ensure ultra-deep water anchor handling. Another recent major project for Remontowa Shiprepair and Conversion involved the conversion of shuttle tanker Siri Knutsen into the world’s largest well-stimulation vessel (WSV), while also retaining its shutter tanker capabilities. Up to 19 various major items of equipment, mainly well stimulation system components, have been installed as well as new dedicated piping and electrical systems. On top of this, Remontowa SA installed a new accommodation module to house quarters for additional crew of 18 and the well stimulation system control room. All of the above activities require adherence to stringent health and safety standards. Remontowa Group’s yards have developed their own safety departments that meet the highest offshore requirements. The yards also run their own, well-equipped Fire Brigade that serves both yards and the City of Gdásk if required. Fully booked until mid 2015, and as vessels continue to require repairs or conversions, global energy demand continues to rise and the market for liquefied gas grows, the future looks positive for Remontowa. v

Remontowa SA www.remontowa.com.pl • Operators of Poland’s oldest and largest shipyard • Offers a range of ship repair and shipbuilding related services • Undisputed leader in gas-powered ferries in Northern Europe

www.shippingandmarine.co.uk - 27


Ferry Port Split plc is the leading port services provider in the Port of Split, largest Croatian passenger port, and the third largest in the Meditteranean. With the commitment to excellence, international standards and customer satisfaction of more than 50 years, FPS provides a wide range of services, with the core activity being

passenger terminal operations in domestic and international traffic, maintenance and marine construction works. Due to its competence, innovation, contribution to maritime security and environmental protection, FPS is recognized as a strategic partner by the world’s premier industry operators.

For further information: Ferry Port Split plc Gat Sv. Duje 1, 21000 Split, Croatia Tel: +385 21 340930 Email: info@tls.hr www.trajektnalukasplit.hr


Profile: Port of Split City Port Basin

Expanding

T

he bustling city port of Split is Croatia’s largest passenger port and one of the largest in the Mediterranean. With number of passengers on the increase it is vital for the city that its port is able to manage the flow of goods and passengers effectively. At present the statutory task to the Port Authority of Split is the construction, maintenance and management of the Port of Split area. The key mission of the Port Authority is to provide excellent customer service to the businesses and residents on the Croatian islands as well as to the port’s increasing tourist traffic. The Port’s location on the Adriatic coast has made it an important centre for local and international maritime travel, as managing director of the Split Port Authority, Milan Blazevski, explains: “One of our key strengths is a favourable position on the Adriatic coast, situated

horizons

in the heart of Europe. Split is located in the centre of the future EU's Adriatic-Ionian macroregion, and thus in a good position to benefit from the establishing of the EU’s Motorways of the Seas of southeast Europe. That will be a great opportunity for the Port of Split to improve both passenger and cargo services. Among our key strengths are possibilities of intermodal transport, so that both the freight and passenger parts of the port are connected to the railway and the road, which is close to the A1 motorway Split-Zagreb. Previous, ongoing and planned infrastructure investments should also prove to be our strengths.” Currently the Port of Split boasts six port basins. City Port basin is designed to cater for the passenger transport and freight lorries passing through the port. Vranjic-Solin Basin is designed for cargo ships. Kastela A, B and C basins are designed for the needs in industry while Kastela

D basin is to serve as a hub for the transfer of passengers from the Split airport. For a port as large and strategically placed as Split it is important that the Port Authority be able to recognise and adapt to the changing needs of region. With heightened interest in the region as a tourist destination there has been an increase in the number of passengers using the port. During 2012 4,253,135 passengers travelled through the port, an increase of four per cent on 2011, while in 2010 the number was 4,109,881. Split itself saw an increase in cruise ship passengers of 35 per cent between 2011 and 2012, with the number of calls of cruise ships increasing by seven per cent. Milan observes: “The main customers are the residents and businesses from the Croatian coast and islands, the rest of Croatia and neighbouring countries. Important customers of the port are Croatian and foreign tourists. The

www.shippingandmarine.co.uk - 29


Profile: Port of Split Vranjic-Solin Basin

dues paid by cruise ships and ships connecting the eastern and western coasts of the Adriatic Sea provide a significant part of our income.” To meet the growing needs of the port’s clients Port of Split is currently involved in a multi-million Euro investment project, focusing on the expansion and development of the port. Milan elaborates: “The Port of Split Infrastructure Rehabilitation Project is the largest project of the Port of Split Authority. It consists of the construction of two passenger berths for cruise ships and large ferries on the outer side of the breakwater. One berth will be 300 metres long while another berth will be 320 metres long. Thus the port of Split will expand outside the current frame of the City Port Basin and the port capacity will be increased, which will relieve traffic congestion on the existing berths and provide more space for ferries, especially those that connect Split with Croatian islands. The investment, including the VAT, would amount to more than 23 million euro and will be funded by the 18.8 million euro EBRD loan.” The expansion of internal berths 26 and 27 represents the beginning of the finalisation of the pier of the City Port basin. The investment of 4.7 million euros on upgrading berths 26 and 27 with two 140-metre long berths and two 30-metre wide unloading ramps has increased

30 - www.shippingandmarine.co.uk

the operating area of the berths to 2770 square metres, which has led to a significant increase in passenger traffic capacity for the port. Another current project is the construction of a fishing port and wholesale market in Komiza. Working in conjunction with its partners - the Ministry of Maritime Affairs, Transport and Infrastructure, the County of Split-Dalmatia and the City of Komiza, the Port Authority is currently working on a redraft of the project to ensure that it can be accountable towards public money while meeting the projects core principle of helping local fishermen to remain competitive while complying with European fisheries policy. Throughout 2013 The Port of Split Authority Project Implementation Unit will focus on the public procurement procedure for infrastructure rehabilitation projects. It is also preparing an action plan for the adoption of the PERS, the only port-specific environmental management standard that is fully recognised by the ESPO. It is hoped by the Port Authority that it will soon be able to obtain the EcoPorts port standard. The Port of Split is undoubtedly a dynamic economic hub, fuelled by its strategic location and increased tourist interest. However, even as the Port Authority works to ready the port for continued growth the port’s managing director retains an ambitious attitude regarding the port’s

future of the coming years, concluding that: “Five primary objectives set before the Port of Split Authority are: providing excellent port service for domestic traffic throughout the year, remaining the leading passenger port in connecting the eastern and western coasts of the Adriatic Sea, providing top quality service for cruise ships throughout the year in order to ensure that Split and the region remain an unavoidable destination in the Mediterranean, revitalising of geostrategic position of cargo parts of the port in order to substantially increase the competitiveness, and last but not least, that the Port of Split should become the backbone of the new development paradigm of Split and the region. I would like to point out that Split is a peninsula with two sea shores which will be used in the optimal way.” v

Port of Split www.portsplit.com • One of the largest passenger ports in the Mediterranean • Leading passenger port in connecting the eastern and western Adriatic coasts • Development contracts worth around 30 million euros


Profile: Parkol Marine Engineering Services

Built on

tradition P

arkol Marine Engineering continues in a long tradition of boat building and boat repair in Whitby, in the UK. From its wharf side position, the company provides a full range of modern services supported by the highest levels of craftsmanship and a dedication to customer service that is second to none. With around 30 skilled craftspeople working for the company and many more sub contracting businesses, Parkol Marine has built a very strong team that features individuals with a wealth of experience in the shipbuilding and repair markets. This means it can undertake a variety of projects, from basic repairs to complicated designs and new builds. A great example of how Parkol Marine works and which illustrates its willingness to embrace new technology is a newly delivered white fish trawler called Our Lass III WY261. This was designed in York by Ian Paton of S C McAllister and built by Parkol Marine for Locker Trawlers, and one of the key reasons the owners ordered a new boat was to reduce running costs. Parkol Marine was able to deliver on this request, and the skippers have already been impressed

www.shippingandmarine.co.uk - 31


by Our Lass III's fuel economy during trials. The level of fuel economy in itself appears to justify their decision and as oil prices are expected to go up, the savings can only increase. In fact, ship designer Ian Paton has worked with Parkol since 1997, designing all the boats built to date. In this area the company will start with clients’ ideas, develop the concept, detail the design, and then follow through during production to assure that the resulting vessel will meet all expectations. The process includes the use of highly technical 3D computer modelling, as it is the most efficient and accurate means of defining hull form, and offers the business access to powerful design, visualisation, and analysis tools. This allows Parkol to optimise the design in terms of form, structure, performance, stability and sea keeping. While designing and building commercial fishing trawlers such as Our Lass III is a major part of Parkol Marine’s business, the company is also experienced in the creation and repair of a range of other types of craft, including workboats, pleasure- and motor craft. One example of the diversity of the vessels that have been created at the yard is the HM Bark Endeavour, a replica boat which is two-fifths the size of Captain Cook’s historical ship, and was built at Parkol Marine for Scarborough-based Colin and Rachael Jenkinson as a pleasure craft. This contract also highlights Parkol’s flexibility and ability to adapt, as traditional boat building skills were revived in the construction of the ship, using techniques that were around in Captain Cook’s day. Over the years each of these newly built vessels has presented Parkol Marine with a fresh challenge. Its own highly skilled craftsmen and support staff have used their wealth of knowledge and experience to meet these challenges, helping to bring its clients' dreams to life. Alongside the creation of these new vessels, Parkol Marine also runs a busy repair and refurbishment service. Its dry dock can accommodate vessels up to 42 metres or two smaller vessels at once and slip up to 70 vessels a year. It was built by its own staff in 1997 and then underwent a complete refurbishment at Sunderland in December 2008. The dry dock is suitable for vessels up to five-metre draught and

32 - www.shippingandmarine.co.uk


Profile: Parkol Marine Engineering Services

10.5m beam, with plans for expansion. The services on offer are wide ranging and include fabrication in steel, alloy, and stainless steel, refits including electrical and electronic services, power cleaning, shot blasting and

painting, all shipwright repairs, all types of deck machinery, trawl doors and door renewal, DTI surveys and insurance work. A prime example of its lead on making towing vessels more efficient is on a vessel called Devotion, who had her propeller and nozzle replaced with a new in house designed fuel-efficient system earlier this year. The nozzle was fabricated in Parkol Marine’s own workshop with the progress on the project updated regularly on the company’s comprehensive website: www.parkol.co.uk. Devotion has since demonstrated a consistent 20 per cent saving in fuel and a significant noise reduction. Over the past two decades, Parkol Marine

has worked hard to earn a reputation for build quality. Today its name represents the commitment and dedication of everyone connected with the shipyard and its outstanding attention to quality. By striving to deliver world class service every time, Parkol Marine can continue to create the sort of vessels one would expect to originate from a yard of this pedigree. v

Parkol Marine Engineering Services www.parkol.co.uk • Work to exacting standards • Reputation built on quality • Wide range of skills to draw upon

Kort Propulsion

Diamond Diesels (UK)

Kort Propulsion is pleased to have supplied Parkol with another Kort Tunnel Thruster. Kort carried out the calculations with its in-house technical team which includes a naval architect to ensure each vessel is equipped with the opium thruster and propeller package - in this case the KT170L was selected. Parkol has chosen to work with Kort for main years due to the fact it offers a complete technical solution in a field in which it is proud to excel. Its main focus is to offer the yard and end user a complete solution at a competitive price. Kort is nearly reaching its 80th year severing the marine industry and is famously know for its part in the design and supply of the Kort Nozzle. It is looking forward to supporting Parkol for many more years to come.

Diamond Diesels (UK) Ltd is located in Sherburn in Elmet, North Yorkshire, and is the UK importer distributor of Mitsubishi Industrial and inboard marine diesel engines. It covers Mitsubishi marine propulsion engines from 12-4000hp, Mitsubishi marine auxiliary engines from 106-2580kw and complete Mitsubishi marine auxiliary sets from 652-2358kva. The latest Mitsubishi engine packages into Parkol Marine were for the MFV Virtuous and most recently the MFV Our Lass III, all with Mitsubishi S6R2 main propulsion, S6B3 auxiliary and 6D16 generator set engines.

www.shippingandmarine.co.uk - 33


Profile: Oman Shipping Company

Local

expertise Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) Through its subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), MHB’s relationship with Oman Shipping Management Company (OSMC) signifies a fruitful venture. Built on mutual trust and MHB’s commitment to service excellence, MHB’s growing rapport with OSMC started with the successful repair and sail out of their 145,000 m³ Ibra LNG in 2007. While OSMC remains on the move in the buoyant LNG sector, MHB is constantly busy providing their fleet with advanced and safe technical solutions across the board. MHB is thankful and proud to have successfully completed drydocking and repair works for five of their seven LNG vessels, which are an assortment of MOSS and membrane types. Completed in early May 2013, MHB’s latest job for OSMC – drydocking and repair works for Nizwa LNG – is commended by the superintendent-in-charge, with reference to the areas of project management and cost control. Strategically located in South East Asia’s LNG hub and fully equipped with world-class expertise and facilities for LNG carrier repair and conversion, MHB strives to be OSMC’s partner of choice, with a commitment to keep their fleet running on course to meet their customers’ demands.

A

closed joint stock company, Oman Shipping Company (OSC) was incorporated in 2003 and is owned by the Government of the Sultanate of Oman through the Ministry of Finance and the Oman Oil Company SAOC. The business is involved in ship owning, ship chartering, and ship management activities through its subsidiary companies Oman Charter Company, Oman Ship Management Company and Oman Container Lines. Since the launch of the commercial operation of OSC in 2003, the company has increased its fleet to 43 vessels, including taking delivery of 17 vessels in 2012. In addition the company has one LNG carrier still under construction increasing its fleet to 44 vessels and around eight million deadweight tonnes by 2014, once remaining vessels have been delivered as per the current plans of the company.

Since it was last featured in Shipping and Marine, OSC has taken delivery of its third and fourth Very Large Ore Carrier (VLOC) vessels. The third, the ‘Vale Saham’, was delivered in January 2013. This vessel will be used in the transportation of iron ore from Brazil to Sohar, Oman. ‘Vale Saham’ was built by the Jiangsu Rongsheng Heavy Industries Company in Nantong, China, and adopts an environmentally friendly design to lower oil consumption and reduce the emission of CO2 while its operating efficiency exceeds that of most existing ore carriers. With its Energy Efficiency Design Index (EEDI) recorded at approximately 1.99 during sea trials, the Rongsheng-built VLOC is in line with low-carbon green product initiatives and meets the benchmark requirements on emission reduction set by the International Maritime Organization (IMO) that came into effect as of January 2013.

www.shippingandmarine.co.uk - 35


Profile: Oman Shipping Company

launch of the new ‘Gulf Express’ service. With a fixed weekly frequency and a rotation calling at Muscat, Sohar, Jebel Ali and back to Muscat, the new service has been designed to improve its customers regional coverage and allow liner customers the fastest transit and connection times possible when shipping to the Upper Gulf. Allowing for a broader coverage of the Upper Gulf market directly from the main East/West shipping lane, the Gulf Express feeder fills

Just three months after the delivery of the ‘Vale Saham’, the fourth VLOC - ‘Vale Shinas’ - was delivered to OSC on the 30th March 2013. This vessel is also being used to transport iron ore from Brazil to Soha, and adheres to the same green standards as the ‘Vale Saham.’ With this vessel OSC has completed delivery of all the four VLOCs, which were ordered with Jiangsu Rongsheng Heavy Industries. In the last article on OSC, the then CEO of Oman Ship noted that these vessels would be managed from Muscat, by OSC’s subsidiary Oman Ship Management Company (OSMC). OSMC is an ISO 9001 and 14001 certified company, with a very good health and safety record and a dedicated approach to high standards of quality and customer service. Another of the OSC subsidiaries, Oman Container Lines, also saw an exciting new development in 2013, when it announced the

36 - www.shippingandmarine.co.uk

a gap in the market currently only serviced by a few lines on own services. This new offering from Oman Container Lines allows shipping lines that do not currently have a dedicated regional network to participate in some of the highest growth markets in the world today. One of the issues that OSC highlighted in its last feature was the problem of recruitment in the maritime market, especially on very large vessels, and the approach the company was taking to handle this challenge. Its human resources approach is based on employing qualified and experienced people of different nationalities, although first priority is given to Omani nationals. Indeed, one of OSC’s key ambitions is the Omanisation of its seafaring staff as the organisation is keen to employ local people. According to OSC’s website, www.omanship.co.om, the company’s level of Omanisation, including qualified Omani

Seagoing Officers, remarkably increased to 82.93 per cent by the end of 2009 compared to 73.61 per cent in 2008, indicating that its new methods were seeing success. The company has established procedures and created interview panels for recruiting candidates who meet the job requirements and are able to perform under challenging conditions. In addition, OSC started sponsoring cadets in 2003 as a long-term solution to this challenge. Over 80 cadets have been sponsored for specialised maritime studies leading to a Certificate of Competence in either deck or engine. The first four batches of students were sent to South Tyneside College in the UK, a marine college that is known around the world for its quality of maritime training, but in between 2007 and 2010 the company changed direction and sent its students to the International Maritime College in Oman, which is the first maritime college in Oman, offering diploma and degree programmes in the marine industry. Over 30 cadets have already graduated, obtained the Certificate Of Competence and joined the company’s vessel as seagoing officers. They are now sailing onboard vessels and following a promising career path. It is clear from its dedication to furthering the careers of its Omani cadets that OSC is determined that its operations are going to bring benefits to not only its shareholders, but also to the wider community and indeed Oman as a whole. Going forward, the company is determined that it will continue to offer intelligent global transport solutions that directly benefit Oman’s national economy. Also at the top of the agenda is a focus on reliability, profitability and economic stability, alongside maintaining operations that are safe, ethical and environmentally responsible. OSC is also an active supporter of the ‘Save our Seafarers campaign’, which calls for unified action to raise awareness of the human and economic cost of piracy. The combination of these strategies looks set to ensure OSC’s reputation for excellence continues to be upheld and even improved over the coming years. v

Oman Shipping Company www.omanship.co.om • Last two VLOCs delivered in 2013 • One LNG carrier still under construction • New ‘Gulf Express’ service


Profile: Ultratug

A skilled

partner W

ith nearly five decades of experience to draw upon, today Ultratug provides reliable and efficient harbour towage and assistance, as well as support services to the offshore oil industry. Jan Vermeij, CEO at the family business, recently spoke to Shipping & Marine, and he began by sharing some details about its operations: “Today Ultratug is present in seven countries in South America (Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Uruguay) throughout subsidiaries and/or affiliated companies, which in many cases involve local partners with vast experience in the maritime sector of their respective markets,” he began. “We provide services in three main areas – harbour towage services rendered in six countries in South America, offshore support services provided to the oil industry in Argentina and Brazil, and special operations and salvage. Our customers vary depending on the industry; so for example, for harbour towage services we work with liner companies, tramp owners and operators in the dry bulk and tanker segments, LNG and oil terminals and specialised dry bulk terminals. In terms of the

www.shippingandmarine.co.uk - 37


We have a highly professional team, both on harbour towage and offshore, the members of which have extensive industry and technical knowhow and a strong emphasis on customer service

38 - www.shippingandmarine.co.uk

offshore industry we currently provide services to the main oil companies operating in the region, such as Petrobras, Apache, ENAP, Total and Anadarko among others.” Ultratug’s experience is key to its success; the business has a vast amount of knowledge in the offshore and marine sectors, and Jan highlighted the benefits of this: “Ultratug is committed to

providing first class services on the basis of modern equipment, high SQE (safety, quality and environment) standards, professionalism and long-term relationships,” he explained. “We have a highly professional team, both on harbour towage and offshore, the members of which have extensive industry and technical knowhow and a strong emphasis on customer service. Due to our long history we have a wide industry network at local, regional and international levels, and extensive port coverage. Also important to note is that we are blessed with a strong entrepreneurial culture and reputation that is underpinned by the Ultramar Group of companies.” Alongside these attributes, Ultratug strengthens its position in the market through the employment of state-of-the-art technology. Said Jan: “Ultratug has been investing consistently over the recent years in order to modernise the fleet, incorporating technology such as ASD propulsion, increased engine power and deck equipment to meet the growing requirements of specialised terminals and shipowners employing bigger and bigger vessels. Over the last five years for example, Ultratug has invested in the construction of 20 new build ASD tugs of bollard pull ranging from 45 to 70 tons. They have been built in ASENAV Shipyard in Chile and the SIMA shipyard in Perú, where a long working relationship has been established that allows us to incorporate all the special features and characteristics that are obtained from our operational experience.” As a consequence of this approach Ultratug has a diverse fleet that allows it to offer a range of services. In the offshore field the company provides clients with offshore support services


Profile: Ultratug

in Argentina and Brazil, operating four AHTS vessels in the Argentine market and 18 OSVs in the Brazilian offshore market. “In the fast growing Brazilian offshore market, five years ago together with our partner Wilson Sons, we established a joint venture company called Wilson Sons Ultratug Offshore (WSUT),” Jan commented. “Today that business owns and operates a fleet of 15 modern PSVs and three AHTS. Most of these have modern and fuel-efficient diesel electric engines with ASD propulsion systems and dynamic positioning (DP – 1 and DP - 2). These vessels are the work horses of the offshore support vessels, and therefore our high operational procedures and SQE standards are critical in order to provide an efficient and reliable service that meets the increasing requirements of the oil industry.” Alongside these activities, Ultratug owns and operates a fleet of 56 harbour tugs. These vessels are largely modern, with an average age of 12 years and an average bollard pull of 50 tons. Due to the profile of the fleet Ultratug is able

to meet the growing requirements of shipowners in South American ports, where increasingly large vessels are being deployed. It is also able to work for clients in the more demanding or niche areas of specialised LNG, oil and mineral terminals. “In recent years, the energy needs in some South American countries has been met through imported LNG,” Jan explained. “To this end, new LNG import terminals and/or import facilities with FSRUs (Floating Storage Regasification Units) have been developed. The berthing and unberthing assistance to LNG vessels is quite demanding in terms of harbour tugs specifications and Ultratug has been very active in this new business segment levering its modern fleet, professional and well-trained crews and high SQE standards.” In addition to these areas, Ultratug has also performed a large number of successful towage and salvage operations in the very harsh conditions of the South Pacific, South Atlantic and channels in the South Patagonia. Here again Ultratug has the experience, the equipment and trained crews and personnel to provide fast, reliable and effective assistances to vessels in a situation of distress. Through its combination of history and experience, coupled with the latest technology, Ultratug has achieved considerable success in the South American sector. However the company is always looking for

new challenges and as Jan explained, further expansion is planned for the business for the coming years. Most recently, Ultratug - with joint venture partners, Schandy of Uruguay and Grupo ETE of Portugal – has entered the fluvial transport segment in Uruguay. A fleet of two push tugs of 45 tons BP and four barges of 5000 dwt will be deployed during the fourth quarter of 2013 in order to transport about two million tons of Eucalyptus. The logs will be used a raw material for the production of wood pulp in the new, modern facility of Montes del Plata (MdP) located in Punta Pereira in Uruguay and this contract represents a new chapter for Ultratug. In conclusion, Jan summarised Ultratug’s long-term strategy: “Our main challenges and strategic goals can be summarised in two parts. On the one hand, we must constantly improve our services and operational standards in order to strengthen the position in the current markets in which we operate, and on the other hand identify and seize opportunities to expand into other countries in the Americas. These will be our main drivers moving forwards,” he said. v

Ultratug www.ultratug.com • Focus on high quality, safety and environmental standards • Vast amount of experience in-house • Moving into fluvial transport sector

www.shippingandmarine.co.uk - 39


Profile: Port of Southampton

Setting the

standards We have long been the leading cruise port in the UK and it was announced in July 2013 that we are now the leading port in Europe for turnaround cruises

O

wned by Associated British Ports (ABP), the UK’s largest port company, the port of Southampton plays a vital role in the regional economy and the UK’s maritime environment as a whole. At approximately 725 acres, the port offers a sheltered location, the best rail and road distribution links to the Midlands and is the only port in the country to build multi-storey car parks, with its fourth opened recently and a fifth being built for September. Proud to offer high quality service and productivity, it is the most efficient container terminal in the UK and was recently announced as the leading port in Europe for turnaround cruises. Despite its major successes, the port is keen to retain its reputation for setting the standards, with ABP and joint venture partner DP World Southampton launching a £150 million investment project to ensure the port can meet future demand.

“The port of Southampton is most famous for the three Cs, cruises, cars and containers. We have long been the leading cruise port in the UK and it was announced in July 2013 that we are now the leading port in Europe for turnaround cruises. We are also number one for cars and estimate 750,000 vehicle movements this year, which is up around 50 per cent from what it was two years ago,” enthuses Doug Morrison, director at the port of Southampton. “We have enjoyed amazing growth and the main reason for this is that we are the first and last deep sea port of call in Northern Europe, with the growth coming from emerging markets in the Far East. We are also the second largest container terminal in the UK, but we aim to be number one for efficiency, the same as we are for cruise and cars.” Already able to take on the largest container ships in the world, ABP’s strategic investment plan centres around the merger of berths 201/202 on the Western Dock’s container

terminal to create a new berth, the SCT 5. This development will allow the container terminal the ability to service four of the next generation ultra large container carriers (ULCCs) at the same time. Predicted to account for over 50 per cent of the world’s container fleet capacity by 2015, the ULCCs need the high levels of productivity and short turnaround times that Southampton port already offers. “Ships are getting bigger, whether it is car ships, cruise ships or container ships, vessels are growing. This is why we are building for the future, not just for today,” says Doug. Furthermore, the new berth is a key part of ABP’s ambitions to increase handling capacity up to 2.7 million TEU a year. With work due for completion in December 2013, the berth will be fully operational by January 2014. The £150 million project comprises of a range of elements, such as deepening works, gantry cranes and dredging. Despite challenges related to deepening the berth pocket to a minimum of 16 metres, works at the port are currently

www.shippingandmarine.co.uk - 41


Cooper SH Cooper SH Ltd are the UK’s largest independent supplier of port handling equipment encompassing supply and support of heavy capacity lift trucks, masted container handlers and reachstackers originating from Konecranes in Sweden and a full complement of hydraulic material handlers supplied by Mantsinen of Finland. Cooper SH are the supplier of heavy lift trucks to ABP Southampton and reachstackers and maintenance provider to ABP’s rail freight terminal located in Hams Hall, Birmingham.

42 - www.shippingandmarine.co.uk

still on time and on budget, with dredging of the Channel adjacent to the Mayflower terminal recently completed. ABP is now looking to begin dredging the approach channel in Autumn 2013, following approval from the Marine Management Organisation (MMO) to improve marine access to the port. “Dredging at the Mayflower terminal, which was undertaken to widen a particular bridge point in the port by 30 metres, was completed a few months ago. We are now beginning work off the Isle of Wight to the Nab Channel following the approval from the MMO, but because our in-house dredger is too small to operate in the main channel we are out to tender and will award the contract in August 2013,” says Doug. Although the port benefits from a unique double tide that ensures wide access for shipping, requirements for deeper drafted vessels to call at its facilities has caused access limitations. The work will involve the main navigational channel being deepened from its current minimum depth of 12.6 metres; the channel will also be widened to 100 metres in


Profile: Port of Southampton

safety and navigation improvements and aid in the security of 12,000 existing port-related jobs by ensuring the port remains viable and competitive. “The dredging is for when the economy has recovered and ships are coming back fully laden,” says Doug. “At the moment I don’t see the dredge causing any issues in the foreseeable future, what with the volume of ships not yet where I would like it to be.” Dedicated to continuous investment, the port of Southampton will remain focused on cruising, cars and containers, as Doug concludes: “In relation to the container business, we are the best located and most efficient and we need to make sure we are on par with our competitors as far as marine access is concerned. We are number one in Europe for cruises, and number one in the UK for cars and efficiency and will

certain areas to reduce congestion as vessels pass each other as they approach or exit the port. The dredging works will also result in

continue to invest further to stay number one. We aim to invest in the longer term too and are currently evaluating the building of a fifth cruise terminal as we anticipate in excess of 1.6 million passengers by the end of 2013. On top of this, we are always looking to expand our acreage in the port and that will continue to happen.” v

Port of Southampton www.abports.co.uk • £150 million redevelopment of container terminal • Berths 201/202 being merged to create SCT 5 • SCT5 will be able to service four ULCCs simultaneously

MIDAS CONSTRUCTION Associated British Ports (ABP) has awarded Midas Construction, based in Romsey (Southern office), the contract to build an electrical substation in the Port of Southampton. The substation will provide power to reconstruction works creating a facility to service the next generation of super sized container ships. The project is the latest of several carried out by Midas for ABP in the past three years.

www.shippingandmarine.co.uk - 43


Exciting

developments

O

pportunity knocks everywhere,� enthuses Duncan Gaskin, sales director of Bestobell LNG. “We have seen a significant increase in demand for our valves during 2013 , and the following years look like they will be busier still. The LNG market is booming, so we will be looking to double our intake for the business in 2014 and then step up again the year after. It really is a great time for us as a company and we intend to maximise our opportunities wherever we can.� Bestobell is a specialist manufacturer of cryogenic valves for the marine industry, based in Sheffield, England. They distribute high quality products across the globe through a network of agents in key countries, thus making it one of the most recognised names in the marine cryogenic valve industry. With a range of products that are proving well placed to service the marine industry, the company has fitted over 25,000 individual

44 - www.shippingandmarine.co.uk


Profile: Bestobell LNG

products to over 140 ships such as LNG carriers, floating storage and regasification units (FSRUs) as well as vessels that utilise LNG as a fuel source. Bestobell is currently working on numerous projects, across different sectors of the marine LNG industry and that is set to increase as it heads into 2014. The company is anticipating increased demand in locations such as China, Japan, the US and Korea, as Duncan explains: “With the number of ships already ordered this year in Korea, China and Japan, it is probably going to be the second highest on record. We are also seeing increased demand from the Japanese yards because of the need for Japanese power companies’ to import LNG from America. Once President Obama approves the projects it is anticipated that upwards of 50 ships will be required to export shale gas, many of which will be constructed in Japan, but also in Korea, so the demand for LNG carriers is going to go through the roof in the next 12-24 months. Already slots for 2016 and 2017 are filling up quickly so there is going to be a real battle for owners to secure the slots they want.”

Having received several notable projects throughout 2012, the world expert and innovator in cryogenic design and manufacture has been enhancing its presence in China with a $2.5 million contract to supply Bestobell cryogenic valves to Hudong Shipyard in Shanghai, the only shipyard to build LNG vessels so far in China. This was for the four MOL owned vessels that are to be chartered by ExxonMobil.

To increase potential for future business in this growing market the company has strengthened its relationship with their local agent in the country, as Duncan highlights: “Over the next six months, with China Shipping set to build six ships for China Shipping and Jiangnan Shipyard, and Cosco Dalian Shipyard making their break into small scale LNG newbuilds, we are putting a lot of effort into securing business opportunities. We are also looking to sign an agreement with a Chinese tank manufacturer who will be involved in the supply of LNG fuel systems for Yangtze river vessels.” The contract offers a huge opportunity for ongoing work within China for Bestobell LNG, as the Chinese Government focuses on attempting to convert as many ships as possible on the river to LNG. Boasting dedicated valve manufacturing facilities occupying 30,000 square feet, Bestobell LNG has developed a strong reputation for product innovation, reliability and engineering excellence, with some cryogenic valves still in use despite being installed more than 40 years ago. The company offers a complete range of fire-safe cryogenic valves for conventional membrane/moss sphere designed LNG cargo carriers. These include miniature needle globe valves for sampling and purging lines, a unique patented float level isolation valve (FLIV), which isolates the secondary float level gauge on top of each tank; the cryogenic hydraulic driven throttling valves and a comprehensive range of on/off globe, lift check and swing check valves used in the LNG distribution pipework. Following a number of projects that proved Bestobell LNG’s level of expertise, product quality and commitment to excellent customer service, the company was chosen as a preferred supplier to Wärtsilä Gas Power Systems (GPS), Finland-headquartered global leader in gas power solutions for the energy and marine markets. “We have now signed a partnership with Wärtsilä to be their preferred supplier of cryogenic valves that will be used in their LNGPac fuel systems; we will supply all of the low pressure valves for Wärtsilä’s ongoing LNG fuel system projects. That business is already starting to increase significantly and we are expecting that trend to increase over the next 12 months,” says Duncan. Another big development for the company is the requirement for cryogenic valves on the Man

The demand for LNG carriers is going to go through the roof in the next 12-24 months. Already slots for 2016 and 2017 are filling up quickly so there is going to be a real battle for owners to secure the slots they want

www.shippingandmarine.co.uk - 45


Profile: Bestobell LNG

B&W two-stroke gas-injection engine, following a recent order for two LNG carriers powered by two 5G70ME-GI engines from Teekay LNG and TOTE announcing it had ordered two 3100 TEU newbuild container ships, each powered by an 8L70MEGI engine in December 2012. Bestobell is currently developing the design of high pressure valves needed for the fuel systems on these engines. On top of this, this innovative firm will be participating in the project to construct the world’s first LNG bunker tanker, as Duncan elaborates: “A new market has opened up with a project awarded in China by Jahre Marine for the world’s first LNG bunker barge and we are working with the company who is supplying the tanks and cargo handling systems for the vessels. We anticipate this market to grow massively over the next three to five years as the demand for LNG as a fuel takes off.” The future looks bright for Bestobell LNG, as it prepares for the increased demand for its services, which will lead to further recruitment and a potential new facility, as Duncan concludes: “We are in such a good position: right industry, right time, right products. To keep up with demand we are looking into a new facility for LNG marine valve production and will also be investing in manpower and equipment. We are looking to expand locally in Sheffield, but if we are to maximise our opportunities in China we will need a local manufacturing presence there too.” v

Bestobell LNG www.bestobell-lng.com • 50 years experience in cryogenic valve design and manufacture • Involved in the world’s first LNG bunker tanker • Anticipating a massive boom period

46 - www.shippingandmarine.co.uk


Profile: Suez Canal Container Terminal

A hub of

activity L

ocated in Port Said, Egypt, at the mouth of the Suez Canal leading out into the Mediterranean Sea, the Suez Canal Container Terminal (SCCT) is a major transshipment hub for the Eastern region of the Mediterranean and a gateway port for local cargoes in Egypt. Established in 1999, the terminal became operational in 2004 as a private joint venture with operator APM Terminals holding a majority share of 55 per cent, Cosco Pacific with 20 per cent, Suez Canal Authority with 10.3 per cent, National Bank of Egypt five per cent and the Egyptian Private Sector with 9.7 per cent. Commitment to infrastructure and terminal development is a core element of APM Terminal’s long-term strategy, with a wide range of new terminal development and existing terminal expansion projects underway at some

of the 69 ports and terminal facilities it has interests in. SCCT, the largest container terminal in Egypt, is currently benefitting from an ongoing multi-million dollar investment programme for its expansion and development known as Phase II. Boasting five Noell and 13 ZPMC quay cranes, 58 rubber tired gantry cranes (RTGs), five in-bound lanes, one outbound lane, 2400 metres of quay and a year round draft capability of 15 metres, SCCT’s state-of-the-art facilities and infrastructure enabled it to handle more than three million TEUs in 2011. This number is set to increase to 5.4 million TEUs following the successful completion of Phase II, which will also result in a the number of quay cranes at the facility doubled to a total of 24, the number of RTGs increased to 67 and a total of seven lanes in operation at the terminal. The major investment has also increased productivity with cutting edge technology and expanded the terminal’s service offering to the refrigerated trade with 1500 more refrigerated plugs. As SCCT has now almost finished its Phase II expansion, the quay length has already been

www.shippingandmarine.co.uk - 47


doubled to reach 2400 metres, the number of RTGs has been increased to 58 and the quay cranes are now 18 (five Noell and 13 ZPMC). Competitively able to serve the largest containerships in the world, the terminal’s quay cranes are capable of lifting 65 tonnes, with a reach of 22 container rows and heights of up to 40 metres above the rail. Meanwhile, SCCT’s RTGs are able to move around the terminal to stack containers for storage, loading and unloading truck chassis as containers are brought in and out of the terminal. To further improve services, Phase II has offered customers quicker entry into the terminal with

48 - www.shippingandmarine.co.uk

two more in-bound lanes and increased security such as X-ray security scanning. Furthermore, SCCT is also due to receive two new quay cranes in the fourth quarter of 2013, with the largest specs ever in the industry. The completion of Phase II will cement SCCT’s status as the largest hub in the Mediterranean by 2015, enabling the terminal to offer an enhanced service to the world’s largest vessels through the leverage of location, accessibility and reliability. The state-of-theart facility, currently able to serve the largest containerships in the world, will also be able to keep up with demands for bigger vessels within

the shipping and marine industry. With major shipping lines such as Maersk, CMA-CGM, CKYH and G6 as returning customers at the terminal SCCT aims to be recognised as the most efficient, reliable and cost effective hub in the Mediterranean. Currently, 15 per cent of cargo comes in and out of Egypt from the port, which is due to the terminal’s unique location and its strong focus on continuous improvement via total productive maintenance and process excellence. In October 2012, SCCT hosted two successful navigational trials to test port access and turning basins for 15,500 TEU vessels, with the Eleonora Maersk used for the first trial; the vessel arrived fro the Suez Canal’s North Bound Convoy, with a draft of 14.9 metres, berthed alongside then safely re-joined the convoy to continue her voyage West. The second trial involved the 397 metres Edith Maersk, which completed a 180 degree manoeuvre in the turning basin with a draft of 14.8 metres with the aid of three tug boats. The latter trial was the first time any Egyptian port had received a vessel of this size, becoming a significant moment in Egyptian maritime history. Following


Profile: Suez Canal Container Terminal

FDT FDT (Fabricacion y Desarrollo de Trailers), a Spanish manufacturer for equipment brand Fabrisem in seaports, industry and logistics centres, is currently working in the terminals of over 20 countries. There is no doubt SCCT from APM group terminals is one of its best customers. Its relationship began right after the terminal was opened in 2004. Fabrisem was awarded with the supply of 18 cornerless trailers as well as several roll trailers for specific uses. Later Fabrisem supplied 29 cornerless trailers more for 65 tons to work in twin lift way. Fabrisem is proud to have SCCT as a customer. As a result of this relationship an important agreement has been reached this year by virtue of which, the delivery of spare parts is being more flexible and precise.

container vessels in the world. In addition, the first commercial/regular call by a 15,500 TEU vessel was on May 24 by the Ebba Maersk. Looking to the future, SSCT will continue with the completion of Phase II, which will result in a hugely positive impact in global trade and the Egyptian economy by injecting new jobs into the country, doubling the number of jobs, training and development of skills of local Port Said personnel. As the shipping industry continues to evolve with bigger boats and more sophisticated demands, the investments at SCCT have ensured it will still serve as a key link between the Far East and European trade. v the two successful trials, SCCT is now open for vessels with a LOA of 397 metres and beam of 56.4 metres. Focused on health and safety, SCCT’s navigational trials ensured it was fully prepared for emergencies such as the urgent docking of the Emma Maersk in February 2013; the vessel suffered mechanical issues as she prepared to enter the southbound convoy through the Suez Canal. At 15,500 TEU, she is one of the largest

Suez Canal Container Terminal www.scct.com.eg • The biggest container terminal in Egypt • Able to serve the largest containerships in the world • Multi-million dollar investment in progress

www.shippingandmarine.co.uk - 49


Leading the

D

utch ship and project management firm Workships Contractors is a leading asset manager for the offshore oil and gas and renewables sectors, with almost 25 years of experience in managing drilling and service platforms, crewing, vessels, procurement, vessel audits and concept development. Using its expertise and innovation in operating a wide range of rigs in strategic locations across the globe, such as semi submersible drilling rigs in the North Sea and Brazil, dynamic positioned accommodation vessels in Mexico as well as anchor handling and platform supply vessels world-wide, the company takes pride in providing its clients and stakeholders with a high quality service. Viewing each vessel as individual, Workships Contractors offers tailored management services as required by the owner and traditionally gets

50 - www.shippingandmarine.co.uk

way

involved in unique projects that benefit from the company’s versatility. Through forming close working relationships and co-operating closely with owners and clients, Workships Contractors ensures the development of bridging documents; requirements and management system responsibilities are shared easily. Seeing an opportunity to expand its service offering, Workships Contractors began operating as an asset manager for the offshore wind industry with its wholly managed subsidiary Offshore Wind Services BV (OWS) in 2006. Established as a joint venture between Workships and Netherlands based Royal Doeksen, OWS provides quality crew transfer vessels, accommodation barges, jack-ups and data solutions to the offshore wind sector. In 2012 in line with Workship’s strategic objective of becoming a leading provider of quality crew transfer, OWS acquired Offshore

Wind Power Marine Services (OWPMS), one of the best known operators in the offshore wind crew transfer industry. A pioneer in the safe transfer of crew to offshore wind farms located in the UK, OWPMS is one of the longest serving companies in the industry and has outstanding experience of operating more than 300,000 safe transfers. To further enhance its presence in the offshore wind market, Wind Contractors has announced a co-operation between Frisia Offshore and Offshore Wind Services for the Dutch and German offshore wind markets and their plans to invest in new CTVs as part of a new joint venture in 2013. By increasing the number of vessels, the joint venture anticipates becoming the quality provider of safe and reliable personal transfers in Europe. In the company’s last article with Shipping & Marine magazine, operations manager Philip Woodcock explained the mutual


Profile: Workships Contractors

benefits further: “For Workships Contractors it will be an important first step into Germany, strengthening its name as a workboats operator across Northern Europe and forming an important part in its future objectives; for Frisia Offshore, it means a strong partner outside of Germany.” Equipped with state-of-the-art technology and designed to transport personnel and equipment comfortably and safely to offshore wind turbines, the company’s fleet is specifically targeted for wind farm projects throughout Europe, with new larger vessels coming on stream also built to conform to other European member state rules. The newest addition to the OWS’s fleet, Offshore Wenduine (OW3), was converted into a multi-purpose catamaran work boat by shipyard Den Breejen under the supervision of Workships Contractors. The conversion was completed at the end of April 2013 and the vessel completed her first deployment for Ampelmann Assisting in the testing of Ampelmann L-type access system and SSC in the same month. Offshore Wenduine was constructed to become an ideal vessel for diving support projects but can be adapted for survey and cable works. Specifications include a forward moonpool hatch with staircase into the waster, aft stairs, survey desk with two seats, a 19 inch rack for survey equipment and tracks to allow easy fitting of project specific equipment, such as a desk; two anchors with the possibility of increasing to four-point mooring, large storage space and lockers, KPM DNV-classed suspension seats, all with a table tray and power sockets, USB charger and day & night lights. Over the coming years, Workships Contractors is focusing on its objective of becoming the service provider of choice for all of the industries it operates in. Within offshore wind, the company plans to further increase its fleet with larger CTVs, accommodation solutions for construction and O&M, both in DPII and moored configurations, the former of which is being designed in cooperation with DAMEN shipyards. Once this step is complete, the company will expand its service offering with complete O&M solutions. v

Workships Contractors www.workships.nl • Currently operating ten crew transfer vessels with the aim to expand • Acquired OWPMS in March 2012 • Developing a strong partnership with Frisia Offshore

www.shippingandmarine.co.uk - 51


Growth strategy

B

ased in Middlesbrough, PD Ports operates Teesport, the UK’s best connected feeder port and the premier North East container port. It also offers customer solutions at a number of other key locations including Hartlepool, Felixstowe and the Humber Estuary. At the heart of the operations is a multi-award winning ports and logistics business, which as Jerry Hopkinson, managing director – bulks, ports and logistics explained, is both sizeable and dynamic, and includes handling 34 million tonnes of cargo a year, acting as the statutory harbour authority on the River Tees, and providing employment for 1250 people. Jerry highlighted the three historical core areas of the PD Ports business as the commodity markets of steel, oil and chemicals, and explained that the company’s future growth strategy involves building new opportunities in other markets that can be added on to those existing foundations, including renewable energy and containers.

52 - www.shippingandmarine.co.uk

He began with the steel industry, which has been revitalised by the re-opening of the blast furnace at Redcar by SSI and the consequent resumption of steel making on the River Tees. “From a standing start about 12 months ago, production has now surpassed 2.5 million tonnes of finished steel slab being exported through Teesport, which is a remarkable achievement,” said Jerry. “I believe this has been the first time ever that a non-operational blast furnace has been brought back to life and in such a vital way. For the Tees Valley the impact of this has been absolutely profound,” he continued. “I know it’s easy to make these kinds of statements in business but we genuinely are very proud and enthused to be associated with it and we can now foresee the regeneration in the steel industry in the North East.” Jerry moved onto the second area of focus for the company, which is continued growth of its container business. “In a nutshell we have grown this part of our business at a time when

other ports have seen substantial deterioration in volumes, particularly of containerised lift on/lift off cargoes. The way that we have created this success is by developing the portcentric platform, through Teesport.” PD Ports is now the leading edge portcentric logistics provider in the UK, with a dedicated logistics function called PD Portcentric Logistics, which aims to save time and money, reduce environmental impact and change the way customers think about logistics. PD Ports’ reasoning behind the portcentric concept is logical – why import goods destined for the north of the UK via ports located in the south of the country? “To that end a number of major retailers and logistics services providers, such as Asda Walmart, Tesco, Taylors of Harrogate and Clipper Logistics, have established large scale facilities either in Teesport itself or in very close proximity to Teesport, from which the concept can be put into practice. So the containers that come into these distribution centres are literally coming in through Teesport,


Profile: PD Ports

where formerly they were coming in through the southern ports and being trucked or railed up to the north,” said Jerry. The development of the portcentric concept is an on-going process for PD Ports, and it is working very hard on both expanding it and refining it. “This is in terms of the scope, extent and relative depth of the services we are providing, and we see that as quite critical to our continued growth in that sector,” Jerry added. The third area of expansion is in the energy sector, and covers two different (but equally green) fuel sources: wind and biomass. “We see real opportunities for our ports business to become more deeply engaged in the energy sector, especially considering the government’s plans to decarbonise the UK energy production,” Jerry explained. “Our port at Hartlepool has very successfully acted as the logistics hub for the Tees Bay wind farm and what this has demonstrated is that Teesside and Hartlepool in particular, can be a major centre for the consolidation and load out of wind turbines. We can provide large-scale areas of storage - which is essential given that each one of these turbines when erected is about the same size as the Gherkin in London - which is aligned to freely and openly workable quaysides with lock free access to the sea. We have done this project through Hartlepool virtually without making any significant changes to the infrastructure, and ultimately I think turbine manufacturing facilities could be created on the site as well.” Added Jerry: “Staying with energy, the other big opportunity that we are currently contemplating is the provision of large scale facilities for the importation of biomass. As power generators switch from burning coal to either co-firing with biomass or converting coal fired boilers to burn biomass, the UK will need to import millions of tons of sustainable feedstock from abroad, most notably North and South America. This is going to require big ships and big

volumes, and PD Ports could be a vital partner in this industry.” The opportunities highlighted by Jerry not only have immense possibilities for PD Ports, but also for the Tees Valley and the North East of the UK as a whole. “We certainly see ourselves as first and foremost a successful business, but as a result we can also be a real driver of regeneration in the North East,” said Jerry. “Therefore we are very keen to bring young people into the business and grow our own expertise. We have introduced staff training and education programmes that allow employees to gain valuable experience and skills as well as furthering personal development within the business.”

As a catalyst for this, PD Ports has been centrally involved in the establishment of High Tide, a charitable foundation, created and driven by businesses on the River Tees, to raise aspirations and improve education and employment opportunities for young people on Teesside. Jerry concluded: “What we want to do is continue to grow a successful and profitable business, and through doing that, generate opportunities for people. We have got a moral sensibility at the heart of what we are doing, and that actually sits very easily alongside our business sensibilities.” v

PD Ports PD Portcentric Logistics www.pdports.co.uk www.pdportcentriclogistics.co.uk • Created successful portcentric concept • Sees great potential in the energy industry, both onshore and offshore • Dedicated to the regeneration of northeast

TERBERG DTS (UK) Terberg DTS (UK) Ltd is well known as a market-leading supplier of shunting tractors, terminal tractors, aviation equipment and specialist vehicles, and over the years has developed into one of the largest suppliers of specialist vehicles to many market sectors including the distribution and sea ports industries. The company has a longstanding relationship with PD Ports going back to the 80s when Teesside were one of the first organisations to purchase Terberg RoRo tractors in the UK. Currently Terberg has both RT and YT tractors in operation with PD Ports as well as Seacom trailers for container handling.

www.shippingandmarine.co.uk - 53


Skandi Commander

New

endeavours Diesel-powered sea-going icebreaker

124- -www.shippingandmarine.co.uk www.shippingandmarine.co.uk 54

O

ne of the largest shipbuilding companies in Northwest Russia, Vyborg Shipyard JSC (VSY) has spent the last 65 years since its inception constructing more than 200 vessels from a range of industries with deadweight up to 9000 tonnes and total displacement of over 1,550,000 tonnes. Employing more than 1500 staff, VSY today is the only shipyard in Russia to specialise in offshore shipbuilding and the only shipyard in North and Northwest Russia to meet the stringent regulatory expectations of Rosneft, the leader of Russia’s petroleum industry, and other potential customers in the oil and gas market. “VSY now specialises in

civil shipbuilding only,” states Alexander Solovyev, managing director of Vyborg Shipyard. “Our main activities are the construction of small and medium tonnage and offshore drilling rigs; future prospects include the construction of deep sea semi-submersible floating drilling rigs (SSFDR) and production platforms for oil and gas offshore exploration, the construction of stationary production platforms, new generation deep sea jack-ups, ice breakers, ice class vessels, and the construction of offshore modules, such as LNG plants, underwater stations and windfarms.” Boasting a production complex and water enabling area unique to other shipyards in Russia, the shipyard has an indoor construction area


Profile: Vyborg Shipyard Edda Flora

Vitus Bering

Skandi Texel

of 64,000 square metres, outdoor construction area of 18,500 square metres, quay length of 250 – 300 metres and water depth of 9.5 metres. For the transportation of large equipment and separate sections, the shipyard uses multiwheel trailers capable of carrying 100 – 300 tonnes; meanwhile, a specific train with non self-propelled trolleys and a maximum carrying capacity of 4500 tonnes transports ship hulls. Keen to retain and expand its foothold in the oil and gas market, particularly in upcoming Arctic operations, VSY has performed modernisation works on its hull production facilities, which has resulted in the installation of automatic Rosler line for all-round shotblasting and shop priming

of rolled plates; the rearrangement and upgrade of cold cutting floors and the commissioning of advanced shotblasting and painting cells for its hull blocks in 2010. Furthermore, a semisubmersible barge/ floating dock is nearing completion at the shipyard, which will put the barge into operation and allow VSY to enhance construction technology that will reduce costs and improve work performance times. The floating dock will also remove infrastructural limitations on the maximum width of vessels under construction at the shipyard, enabling VSY to build vessels with up to 30 metre width, almost doubling its current maximum width of 18 metres, and length of 150 metres.

“The semi-submersible barge is intended for the launch of hulls, skidding of hull structures with a maximum weight of 5000 tonnes, and carrying out transport operations or the transfer of cargoes outside the water area of our shipyard. On top of this, it will help execute hull assembly works and launch icebreakers that are being built by VSY,” says Alexander. Approved by yard key specialists, VSY’s full-scale modernisation programme received financing from VTB Bank in July 2013, as part of its strategic collaboration with the Russian United Shipbuilding Corporation, which VSY joined in 2012. The shipyard has received a RUB 6.2 billion letter of credit documentary limit, within which the bank has

www.shippingandmarine.co.uk - 55


Profile: Vyborg Shipyard

Trials on the Polar Star SSFDR

opened a number of credit lines for a sum of RUB

construction of SSFDRs and one of the few

4.2 billion to finance its activities. As the most experienced yard in the

shipyards able to provide the industry with a variety of large vessels, VSY has worked on a

number of challenging projects, as Alexander highlights: “In 2007, VSY won the tender for the design, construction and delivery of two SSFDRs, the Polyarnaya Zvezda and Sevenoye Siyanie to be delivered to Gazflot LLC and operated in the Arctic seas.” Based on the concept design MOSS CS-50 MK-II, the two SSFDR’s units are designed to operate in arctic conditions, in ice thickness of up to 70 centimetres at temperatures as low as -30 degrees Celsius in a water depth of up to 500 metres and drilling depth of 7500 metres. The design life of the rigs is 20 years, with potential for further extension. Boasting an excellent reputation in the construction of multi-purpose platform supply vessels, civil vessels, semi-submersible floating drilling platforms for Arctic operations, VSY signed a memorandum on Co-operation with Sovcomflot, Russia’s largest shipping firm that specialises in the transportation of oil, oil products and LNG. The memorandum, signed in June 2013, will strengthen the two parties co-operation in the domestic civil shipbuilding field and is part of an additional agreement between United Shipbuilding Corporation and Sovcomflot for the construction of ice class platform supply and support vessels at USC shipyards. Dedicated to successfully completing challenging projects on time, VSY is currently constructing three diesel-powered sea-going 16 MW icebreakers for delivery in May, August and October 2015. “Two of these vessels will be built by VSY on a turn-key basis, while one vessel will be built in co-operation with Arctech Helsinki Shipyard. The new icebreakers incorporate improved technical characteristics in relation to our experience of our winter operation of two ice breakers, project 21900 in the Finnish Gulf,” says Alexander. With a busy order book and continued enhancements of its yard, the future looks positive for VSY, which has a strategic plan for its ongoing success, as Alexander concludes: “Over the next few years we aim to obtain a solid number of contracts, modify our facilities and successfully complete our current projects. I can say that the whole VSY team is working hard on these goals every day.” v

Vyborg Shipyard www.vyborgshipyard.ru • Offshore shipbuilding specialist • One of the largest yards in Northwest Russia • Can provide the industry with a range of large vessels

56 - www.shippingandmarine.co.uk


Shipping &MARINE

The magazine for maritime management

www.shippingandmarine.co.uk Editor: Libbie Hammond libbie@schofieldpublishing.co.uk Sales manager: Rob Wagner rwagner@schofieldpublishing.co.uk

Schofield Publishing Schofield Publishing Limited Unit 10, Cringleford Business Centre, Intwood Road, Cringleford, Norwich, NR4 6AU, UK Tel: +44 (0) 1603 274130 Fax: +44 (0) 1603 274131


Shipping and Marine Issue 100 Early Edition