Horizons

News and information for the marine industry A Lloyds Register magazine

May 2012 Issue 34

In this issue: The Middle East just keeps on growing Flair and enterprise in Qatar and UAE Pages 3037 The Olympic dream factory Scientists plot gold-medal glory Pages 4851

Greece plots a gilt-edged future

How its know-how and expertise lead both globally and locally Pages 829

Horizons May 2012

Contents

Issue 34

Horizons is the journal for Lloyds Register Marine clients and employees, delivering news and analysis on our global activities. The Horizons team are: Editor: Christopher Browne E chris.browne@lr.org T +44 (0)20 7423 2305 Marine Communications Manager: Nick Brown Staff Photographer: Mat Curtis Design and production: Columns Design Horizons is produced by Marine Communications. Care is taken to ensure the information it contains is accurate and up to date. However Lloyds Register accepts no responsibility for inaccuracies in, or changes to, such information. Lloyds Register is a trading name of the Lloyds Register Group of entities. Services are provided by members of the Lloyds Register Group. For further details please see our website: http://www.lr.org/entities Lloyds Register EMEA T +44 (0)20 7709 9166 F +44 (0)20 7423 2057 E emea@lr.org 71 Fenchurch Street, London EC3M 4BS, UK Lloyds Register Asia T +852 2287 9333 F +852 2526 2921 E asia@lr.org 22nd Floor, Dah Sing Financial Centre, 108 Gloucester Road, Wanchai, Hong Kong, SAR of PRC Lloyds Register Americas, Inc T +1 (1)281 675 3100 F +1 (1)281 675 3139 E americas@lr.org 1330 Enclave Parkway, Suite 200, Houston, Texas 77077, USA

Contents
Cover story 08 News focus
Latest events from around the world including the building of the UK Queens Diamond Jubilee rowbarge

02

What is the future of Greek shipping?

Horizons asks some leading shipowners about such key issues as fuel efficiency, environmental change and future ship design

The Horizons interview: a life in the day of Joanna Townsend

38

Southampton, Silicon Valley, then the world

Professor Ajit Shenoi, Director of the Southampton Marine and Maritime Institute (SMMI) talks to Horizons

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Changing faces and places

Promotions and relocations around the world

05

Lloyds Registers Fleet Services Manager and Head of Classification discusses her life, times and career with Christopher Browne

The great fuel debate

41

The Olympic dream factory

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History focus

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How shipowners can achieve the delicate balance between energy efficiency, sustainability and environmental footprint when choosing their fuels of the future

The extraordinary techniques scientists and engineers from the University of Southampton are using to help Team GBs elite performers win gold medals at the London Olympics

Two notable centenaries the sinking of the Titanic and the anniversary of the worlds first diesel-powered merchant ship

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Safety, garbage and noise 52 control head the IMO agenda

A Horizons special on the latest shipping industry legislation

The Middle Eastern growth factor

The United Arab Emirates and Qatar just keep on expanding. A group of leading owners and operators discuss such key issues as LNG as fuel, ship technology and forging a greener future

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The pride of Posidonia

A unique preview of Posidonia 2012, the Posidonia Cup and many of the years major events

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Retrofit review wins a green seal of approval

When Lloyds Register studied three alternative fuel options, it found reassuringly few problems

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Joint industry project probes rudder cavitation

A three company link-up investigates a disturbing trend on container ships and LNG carriers

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Horizons May 2012

News focus

Royal rowbarge heads Diamond Jubilee convoy

A 24 metre long wooden rowbarge is heading a flotilla of craft bearing the Queens trumpeters and invited guests on the River Thames for the UK Queens Diamond Jubilee celebrations on 3 June this year. The Gloriana, as the barge is known, has been built in London and supervised by Lloyds Registers Southampton-based UKI Marine Operations Team. Keith Vernon, Lloyds Registers Principal Specialist, said: While the vessel will not be classed it will be certified as an MCA Class V Passenger Vessel. To achieve this level of certification it has been our responsibility to ensure that the hull was built in accordance with the approved plans and that the machinery and electrical aspects comply with our special service craft rules. It has been a very interesting project because of its unique character. Our initial concerns centred around Lloyds Registers limited experience of wood boat-building construction. Fortunately we were able to recruit a wood specialist for the duration of the project. The Special Service Craft Rules (SSC) do no specifically deal with wood construction so the preceding rules (yacht and small craft rules from 1969) were adopted, he told an Horizons reporter. Apart from a team of 18 oarsmen, the craft can move silently through the water with the aid of twin propellers driven by electric motors. The power will be drawn from a bank of lithium iron phosphate batteries. While the motors are not very powerful, they could be upgraded later on for operation in the lower reaches of the River Thames, said Keith. The barge, which was launched on 19 April, is the first royal barge to be built for almost 100 years. Post-Jubilee it will be used for more royal occasions and for corporate events by the Mayor of London.

Greek owner adds super fuel-saver to its fleet

Greek ship operator Delphin Shipping has taken delivery of a 57,000 dwt supramax bulk carrier that burns 14% less fuel oil than similar bulkers of the same capacity. The vessel, Aquila, which was based on a SDARI design, has a de-rated main engine, a new propeller design specially optimised for the de-rated engine and a Mewis Duct, a propulsion improvement device for ships. The design appraisal, build and sea trials were supervised by Lloyds Register. Fuel consumption at ballast draught and a speed of 14 knots dropped from 29.4 tonnes to 26 tonnes and at design draught and 13.5 knots it fell from 29.8 tonnes to 26.3 tonnes. The engines output has been reduced by almost 1,000 kW to 8,500 kW. The vessel, which is the first in a series, was built by Chinese shipyard Jiangsu Hantong, for the New York-based Greek owner. Commenting on the delivery, Meng Cheng Jun, President of the Jiangsu Hantong Group, said: Based on the SDARI design, Hantong completed the design optimisation and the tank test independently, which also brings us the patent right of our own part. Hantong is taking note of the market environment requests and listening to the owners needs on vessels. Now therefore Hantong will keep on strengthening the optimisations of our vessels and is endeavouring to build the vessels to be more eco-friendly and more fuel efficient than previous ones. Nick Brown, Lloyds Registers Area General Manager and Marine Manager, Greater China, said: Owners and operators are looking for efficiencies and now shipyards and designers are responding to this demand. Emissions regulation and higher energy prices are the two leading factors changing our industry. New technologies and innovation will play a vital role in the immediate and long-term future of shipping. This new ship is evidence of the shift towards new eco designs.

Owners and operators are looking for efficiencies and now shipyards and designers are responding to this demand.

Zhuang Tian, Lloyds Register Surveyor in Charge, Nantong; Captain Yuriy Gotovkin, Aquilas Master; Tae-Bok Kwak, Lloyds Register Project Manager; Xiaofeng Yang, Lloyds Register Site Office Team Leader

Gloriana: an artists impression

SMMI marks the start of a golden era

The UKs Minister for Universities and Science, David Willetts MP, unveiled an official plaque at the launch of a unique project between Lloyds Register and the University of Southampton the Southampton Marine and Maritime Institute (SMMI) on 27 March this year. Lloyds Registers CEO, Richard Sadler, Marine Director, Tom Boardley, the University of Southamptons Vice Chancellor, Don Nutbeam, and SMMI Director, Professor Ajit Shenoi, were among an audience of 500 including Lloyds Register senior executives, leading clients and representatives of marine academic, technology and research institutions. Richard Sadler told the BBC that the collaboration was about having access to greater levels of technology understanding. He said the project grew from an idea initiated by myself and the (U-of-S) Vice-Chancellor and we realised what fantastic potential it would have if it brought Gloriana: shortly before her April launch 2 www.lr.org/horizons 3 in Lloyds Registers international expertise and our practical engineers, especially in the areas of marine and energy. After looking at universities in the UK and overseas, they concluded that the University of Southampton had the best facilities, capabilities and geographical location to be a long-term strategic ally in the project. Tom Boardley told the launch ceremony: The SMMI has an important future to further our understanding of the impact of our use of our oceans and we are proud to be associated with this important initiative and pledge our full support. Collaborative initiatives such as the SMMI and our Group Technology Centre are clearly the way forward for British industry. When you combine the strengths of business and academia for research purposes, you stimulate the kind of practical innovation that supports sustainable industry. Lloyds Registers marine team will link up with SMMI and the University of Southampton in a new Global Technology Centre (GTC) which is being built on the university campus. See profile of the SMMI Director, Professor Ajit Shenoi, and how ship science is driving Team GB at the Olympics on pages 47-51.

Horizons May 2012

Changing faces and places

Professor John Houlder a man of many parts

Chandris joins energy efficiency elite

As a prelude to the introduction of the Ship Energy Efficiency Management Plan (SEEMP), Piraeus-based ship manager Chandris (Hellas) has chosen Lloyds Register to provide a wide range of ship energy efficiency services. other key activities, will create an effective system and ensure Chandriss SEEMP is a practical and coherent framework to capture operational efficiencies. Covering a range of areas such as regulatory background and requirements, training of staff, implementation of specific energy efficiency measures and their applications to each ship, Lloyds Register is working in a tailored approach with its clients in the energy management sphere at levels that best suit their business needs and philosophy. Ioannis Iakovou, Lloyds Register Marine Management Systems EMEA Manager, commented: Lloyds Register is fully aligned with the cornerstones of the above co-operation. Working in partnership secures a solid deliverable that goes beyond legislation to reveal the advantages of aiming to perform well above the industrys average at all levels in the company, from its management across the whole fleet operation. Chandris (Hellas) specialises in the management and operation of tankers and bulk carriers. All vessels are managed from the Piraeus office. The fleet is owned by individual companies and most vessels are registered under the Greek flag.

Changing faces and places

John Houlder: a passion for design Lloyds Register General Committee member Professor John Maurice Houlder, who died in February this year, designed one of the first and most successful diving support vessels (DSVs) of the 1980s. The DSV which, aptly enough, was christened Uncle John is still operating in the Gulf of Mexico and won John the CBE. A trained shipbroker and a director of the famous Houlder shipping company, John had a passion for design. Another Houlder creation was the DSV Orelia which has operated in the North Sea for the past 25 years. After developing specialist equipment for the Normandy landings in the Second World War, John rejoined the family business and pioneered the building of the worlds first fleet of bulk carriers with the bridge in the aft and the UKs first LPG carrier fleet. He described Uncle John, which he conceived in 1977, as a floating constructors yard with a helipad. It won him two industry prizes, the Institute of Marine Engineers Gold Medal and the Presidents Award from the Society for Underwater Technology. He said he drew up the idea for Orelia on the back of a cigarette packet in a London pub. The professor joined Lloyds Registers General Committee in 1961 his father also served on the committee and was a member of the Board for six years. He attended his last General Committee meeting in November, 2010. A keen pilot and a member of the exclusive Air Squadron (AS), John liked to tell people he was a member of the two best clubs in the world Lloyds Register and the AS. He is survived by his fifth wife, Rody, two sons and a daughter and a number of grandchildren and great-grandchildren.

Chandriss aim is to enhance its in-house capacity to identify appropriate key performance indicators and application of suitable energy efficiency measures. The scope of the work will enable the company to adopt industry best practices in a solid energy management policy, while achieving reductions in fuel consumption and securing other fleetwide operational savings. This will provide a platform for effective adoption of the SEEMP soon to be required under MARPOL Annex VI and an Energy Efficiency Operational Indicator (EEOI). The close collaboration of Lloyds Register and Chandris, including gap analysis studies, training for shore- based staff and crew and

Sam James Sam is Lloyds Registers new Head of Fire and Safety, Marine. Sam currently manages the Statutory Support Group, Classification, and will assume his new role as the London marine division transfers to the Southampton Group Technology Centre.

Luis Benito Former Marine and Country Manager in Busan, Luis became Strategic Marketing Manager in April this year. He is now based in Singapore and is part of our Global Sales and Marketing team. Luis will focus on Lloyds Registers backbone segments containers, gas, tankers and bulk carriers. The role marks a move to a more globalised professional marketing function. Soo Young Lee Following Luiss appointment, Soo Young Lee was promoted to Chief Representative and Marine Manager for Korea. Soo Young was one of the first Korean nationals to join Lloyds Register when he started in 1980 and has demonstrated his skills in managing large and complex operations in Korea and China.

George Dilaverakis Lloyds Registers Area Technical Performance Manager in Piraeus, Greece, George recently retired after almost 33 years with Lloyds Register, shown here with his wife Marietta. His key role was to improve technical performance and port state control (PSC) standards and training and developing his technical colleagues. George was known for his ready wit and words of wisdom.

Dalibor Vlasic Senior Specialist, Lloyds Registers Strategic Research Group, Dalibor retired after 17 years with Lloyds Register on 2 May. David Philip Lloyds Registers Project Manager for the Royal Navy nuclear submarine HMS Astute, David retired in April this year after more than 30 years of service with Lloyds Register. He was based in our Naval Liaison Office in Bristol.

Oceanis, a Samsung Heavy Industries built tanker delivered to Chandris (Hellas) in 2011

Bryan Hildrew: a pioneering engineer

Bryan Hildrew, a pioneering engineer who worked on the building of HMS Dreadnought the UKs first nuclear submarine, was Managing Director of Lloyds Register from 1977 to 1985. Soon after winning a Lloyds Register scholarship, he served as a lieutenant in the Royal Navy during the second word war. After the war, he joined Lloyds Registers Research and Investigations teams and then headed up the Research department. His engineering skills were recognised when he was appointed Lloyds Registers Chief Engineer Surveyor in 1967 and Technical Director three years later. Bryan was a founder-member and later Chairman of the Council of Engineering Institutions and he was awarded the CBE in 1977. A keen orienteer, Bryan also ran marathons, including the London marathon, well into his seventies. He died peacefully on 11 January this year aged 91. He is survived by his wife Megan, two sons and a daughter.

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History focus

The curious case of Lloyds Register, The Times and the Titanic
The stories, some true, some half-true and others pure fantasy, continue to abound about the sinking of the Titanic 100 years ago. Here, Christopher Browne reports on one of the more unusual tales

Sir Andrew Scotts letter to The Times

Original drawing of the apparently unsinkable Titanic

The message was brief and cryptic: Struck an iceberg and sank in latitude 41.16 N, longitude 50.14 W. It might have been just another daily entry in Lloyds Registers Casualty Returns. But it hid perhaps the most infamous event in shipping history the sinking of the Titanic. That was 100 years ago on 14 April 1912 to be precise. Since then a flurry of historians, scientists, investigators, conspiracy theorists and media pundits have pondered and puzzled over just why this great and unsinkable vessel should founder on a lone iceberg.

A spectacular array of events are being held this year in the seven European and North American cities involved in the mighty ships last voyage. However behind the ritual and razzamatazz are some curious post-disaster stories including one about the role of Lloyds Register. A few days after the incident, the national press wrote a series of reports suggesting the Titanic had been built considerably in excess of the requirements of Lloyds Register. Although we had not classed the vessel, and the information was patently wrong, you could argue it was a form of faint praise by association. Although our Secretary at the time, Sir Andrew Scott, didnt quite see it like that. I am directed to say that these statements are inaccurate. On the contrary, in important parts of her structure the vessel as built did not come up to the requirements of Lloyds Register for a vessel of her dimensions, he wrote in a letter to The Times of London (see top left-hand image opposite). I do not for a moment suggest that this circumstance had any bearing whatever upon the loss of the vessel and therefore, for obvious reasons, this letter has been delayed until after the close of the Inquiry (the Mersey Committee set up in the UK to investigate the

loss). But in justice to this society and to those who rely upon its classification, it is felt to be only right to dispel the erroneous impression which might be created regarding the standard of classification of Lloyds Register for such vessels if the statements referred to remain uncontradicted. A pithy riposte indeed. As Andrew Scott points out, we were not involved in classing the Titanic, however we did approve her anchors which still lie intact on the seabed of the North Atlantic Ocean. We also classed the passenger liner Carpathia which arrived to assist the sinking ship a few hours later, saving 705 men, women and children from the Titanics lifeboats. The tragedy with its disturbing death toll of 1,523 had an important sequel. In 1914, the impact of several inquiries in the UK and USA led to the setting up of the first International Convention for the Safety of Life at Sea (SOLAS), its aim to improve maritime safety and help prevent any future catastrophes. SOLASs principles robust lifesaving appliances and lifeboats, improved vessel design and equipment, better fire protection, effective satellite communications, rescue planes and helicopters and properly trained personnel have been the major safety code for the global marine industry ever since.

The first page of J T Miltons letter (see article below)

Diesel a 100-year-old history lesson

Lloyds Register celebrates another global first with the 100-year-old anniversary of Selandia the first merchant ship to be fitted with diesel engines. Lloyds Registers Chief Engineer Surveyor J T Milton was on board during the epoch-making trial of the ship and its twin Burmeister & Wain 1,250 hp engines. In February, 1912, he reported back to the Lloyds Register Committee: The engines worked admirably throughout the trial, the vessel being manoeuvred from and to her moorings with as much certainty and as quickly as an ordinary steam vessel. He then ended on a prophetic note: There is every reason to expect that the engines will give equal satisfaction in regular running, and if this anticipation is realised there is no doubt that many oil engined vessels will be built for trading in parts where oil fuel can be regularly obtained. Of course the industry has changed markedly since then with many sophisticated and experimental sources of power. But we still owe a huge debt to the engineers and designers who pioneered the first diesel-powered vessel.

Lloyds Registers Secretary: Sir Andrew Scott

The near-complete hull of the Selandia 7

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TBC Greece a nation of mariners

Greece a nation of mariners

Greece is one of the greats of global shipping. Here, in the following pages of this special Posidonia 2012 issue, we show how Greek ideas and technology in ship design, environmental change and fuels of the future, lead where others follow

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Horizons May 2012

Greece a nation of mariners

Greece plots a gilt-edged future

With its huge axis of interests and expertise, the mainland and island archipelago will play a pivotal role in helping to mould a fuel-efficient and environmentally active future. The President of the Union of Greek Shipowners, Theodore E. Veniamis, and Lloyds Registers Regional Marine Manager, Apostolos Poulovassilis discuss, the key issues

Apostolos Poulovassilis, Regional Marine Manager, EMEA

Apostolos (left) receives his Manager of the Year award from Professor Dimitris Lyridis of the National Technical University of Athens (NTUA) and Professor Andreas Merikas of Piraeus University Apostolos runs Lloyds Registers Marine Business for Europe, Middle East & Africa (EMEA) covering a vast region from western Africa to Pakistan in the East and Scandinavia and Russia in the north to Cape Town, South Africa and the Arabian Peninsula. Based in Piraeus, his biggest shipowner/ shipmanager market is Greece, but his teams manage a wide variety of clients and challenges. Life is always interesting, thats for sure, he says. We have an incredible variety of operating philosophies and cultures within the EMEA region. While we have experts in every required language we all have in common the language of shipping. Here in Greece we are particularly close and responsive to the market demands and changes. With 140 staff in our Piraeus building we provide a high level of support to clients in the area. And our support for Greek owners worldwide is additionally helped by the diaspora of our Greek nationals (see pullout on pages 2830). But across the region, with, for example, design support offices in London, Rotterdam, Hamburg, Madrid, Trieste and Piraeus we provide a depth of service that is hard to match. Asked about the big challenges facing the market he cites the need for greater efficiencies and help in meeting new regulatory requirements, while managing in the overall global economic downturn. We can help shipowners as well as designers, manufacturers and shipbuilders to meet the need to improve energy efficiency. An important area, where we have pioneered a new approach for shipping, is in the application of the ISO 50001 energy management system standard for the shipping industry. Although we are marine experts, Lloyds Registers leadership in providing quality assurance through our LRQA business enables us to provide and deliver a broader and integrated range of services in a holistic manner for the maritime community. Emissions regulation and higher energy prices are the two leading factors changing our industry. New technologies and innovation will play a vital role in the immediate and long-term future of shipping. At Lloyds Register we believe that we stand on the brink of a new era. We have talked about this as a new paradigm. Any evolution will be gradual but at Lloyds Register we can already see changes happening. New fuels, new engines and new designs are becoming available. So what do you think needs to be changed and the likely shape and pace of these changes? In the following pages, key industry players in Greece, Turkey, the UAE and Qatar give answers to four interesting questions about the future.

Manager of the Year Apostolos was recently named Manager of the Year at the annual Efkranti Awards organised by the magazine Naftika Chronika and the Hellenic Association of Maritime Economists (ENOE). The awards are presented to the eight individuals, companies and organisations in the Greek shipping community that made the most significant contribution to the industry during 2011. In his acceptance speech, Apostolos said: It is a great honour for me to be receiving this award and I feel quite humbled to be included in this distinguished group of awardees, amongst so many great figures of Greek shipping. I would like to thank all the key stakeholders of the Hellenic maritime community for their support and trust over the years, without which we wouldnt be able to achieve our vision and strategic objectives. I would especially like to thank my colleagues for their contribution to the fulfilment of Lloyds Registers mission and for helping transform the Piraeus office into an important hub of our global organisation, as well as their personal support over the years. I firmly believe that this award belongs to the whole team after all, the human assets of a company are the most important components of success.

Theodore E. Veniamis President of the Union of Greek Shipowners, says:

The period 20092011 was undoubtedly one of deep crisis and major upsurge for the entire planet. We just need to remember the spreading of the piracy threat, the Fukushima disaster, the turbulence in the eastern Mediterranean with events in Syria, Egypt and Libya, the phenomenal economic crunch and the subsequent diminution of strong economies in Europe and in the US. The crisis has massively affected sea transport too with a reduction in worldwide trade and financial scarcity, consequences of unknown length and unforeseen intensity. In this negative climate, Greek shipping continued its impressive course over recent years. It conserved and further strengthened the power of its fleet and its vessels continued their work disregarding the charter market volatility and management controversies. In 2011, Greek-managed shipping demonstrated a satisfactory performance. Suggestively we mention that the Greek-owned fleet represents 41% of the tonnage of the European and 14% of the worldwide fleet.

Greek vessels continue their work disregarding the charter market volatility and the management controversies.

Lloyds Register Quality Assurance (LRQA) is a leading global provider of management system certification, verification and training. Its unique business assurance approach helps clients reduce risk and improve operational performance. As well as providing certification for the ISO 50001 Energy Management System Standard for marine clients.

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Facing the future: questions and answers from Greece

On the following pages you will find some interesting answers to questions put to industry players in Greece and also in the UAE and Qatar. We also look at a new standard for energy management, an area where Lloyds Register is providing a vital framework for owners to help them better manage their fuel efficiency and overall energy needs

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Greece a nation of mariners

Redesigned vessels, retrofitting and vigorous energy management are the three key ways Greeces leading shipowners believe they can face the challenges and the rapid pace of change in the global shipping industry, a special Horizons survey reveals. They also see the need for economically-sound solutions to cope with steadily rising fuel prices and increasing freight and charter rates in their efforts to achieve a more dynamic and environmentally aware maritime sector. Here is a selection of their replies and solutions. Its a fascinating read!

Speed limits exist on roads for cars and, for those of us who remember, speeds were lowered in the USA and in Europe to cut down consumption in the 1970s and 1980s. Why not do the same at sea? One knot of speed would make a huge impact.
Alexander Panagopoulos, CEO of Attica Group

What are the key changes your company and the industry can make to meet the challenges of new regulations and high energy prices?

Alexander Panagopoulos, CEO of Attica Group: The industry could potentially self-regulate the operational speed of vessels to the needs of each particular case and market: this could be a way to tackle over-capacity as well. This is a global market and industry issue which is naturally quite far from any companys own decision or selection. The Attica CEO added: Speed limits exist on roads for cars and, for those of us who remember, speeds were lowered in the USA and in Europe to cut down consumption in the 1970s and 1980s. Why not do the same at sea? One knot of speed would make a huge impact. The industry must put together a package of financial and other incentives for shipowners to proceed in a new direction and abandon old-fashioned practices. Positive financial incentives should provide a material way of monetising the reduction of carbon and other emissions.

John Coustas, President and CEO of Danaos Corporation: There is no doubt that high energy prices are having a significant impact on not only the way that ships are now designed and built but also on the operational aspects that affect consumption. Our company is evaluating all fuel saving methods from ability to super slow steam, trim optimisation, weather optimal routing, silicon paint systems, propeller redesign, turbocharger cutout, engine retuning etc. We are convinced that the already significant investment in ships has to be optimised before we build new ships that despite being more economical will destroy the demand supply balance in the industry. The industry should concentrate on extracting savings from the existing fleet and classification society support in this respect is not only welcome, but required. As far as regulations are concerned the low sulphur fuels will pose additional safety concerns which have to be addressed. Nikos Makris

Nikos Makris, COO of Eletson Corporation: Mr Makris, whose company built the worlds first double-hulled, double-bottomed tankers in 1986, said todays newbuilds should be built with dual-fuel engines, optimised hull design to reduce fuel consumption, treat garbage produced onboard, instal performancemonitoring equipment and reduce volatile organic compound emissions (VOCs). What the industry should do is to make available gas bunkering facilities worldwide so that such high investment (vessels with dual-fuel engines and LNG support equipment and research) is worth adopting, he said. Referring to VOCs, Mr Makris said: Even though system and lines are compulsorily installed for years on vessels, I can hardly remember when they were last used. A vast amount of hydrocarbons are released into the atmosphere during loading operations. We want to see shipping terminals receiving these products, thus being able to treat and safely dispose of them. In the June 2010 issue of Horizons we referred to the environmental impact of VOCs hydrocarbon gases emitted during the loading and carrying of crude oil cargoes. We showed how Norwegian VOC emission reduction systems have helped cut shuttle tanker emissions on the Norwegian shelf from 160,000 tonnes in 2002 to 25,000 tonnes in 2009. Environmental surveys show that VOC emissions from the crude transport sector can be reduced by 12 million tonnes a year, reducing the industrys carbon footprint by about 5%.

Polys Hajioannou, Chairman of Safe Bulkers: The change will come through the charterers, not by being proactive, but by responding naturally to the availability of new eco designs over a period of time. Nikos Tsakos, CEO of Tsakos Energy: For the existing fleet, compliance with the new regulations as far as possible with the particular aim to save fuel and reduce emissions. This would be achieved by a number of improvements and capital expenditure as related to engines, underwater painting (fuel economy), hull appendices affecting propeller efficiency. Applying virtual training assistance, monitoring weather conditions, vessels trim, daily consumptions and applying Ship Energy Efficiency Management Plan (SEEMP). We really value Lloyds Registers exceptional technological support in this respect through a number of initiatives such as the Hellenic Technical Committee under the chairmanship of our own Vassilis Papageorgiou. A key development has been the establishment of the Environmental Sub-Committee which examines and makes proposals on all the technical and operational measures and options that are available now and in the future for shipowners. Continued

Polys Hajioannou

Alexander Panagopoulos

John Coustas

1,150

Greece has

Nikos Tsakos

ship managers and operators

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Will your ships be burning HFO in 2020? And, if not, what fuel will they be using?

An interim solution could be older gas carriers to be positioned at strategic locations for bunkering vessels.
Nikos Makris, COO of Eleston Corporation
Anthony Comninos, Chairman of the Target Group: HFO is by far the most efficient fuel. LNG or other gas has a very low caloric value so storing volumes are high and not suitable for vessels other than the LNG-adapted ones presently. Stavros Hatzigrigoris, Managing Director of Maran Tankers: The availability of bunkers will depend a lot on what decisions the oil majors will make concerning the availability of 0.5% sulphur HFO. Since we are not operating ships exclusively in ECA areas our options are more than what other operators have. For the LNG ships we are already burning gas in port and this solution has been accepted by the EU. My feeling is that the environmental effect of the alternatives to low sulphur fuels (i.e. the use of scrubbers) has not been studied in an adequate way. From an initial review it seems that scrubbers present a number of technical and environmental challenges that have to be studied in more detail. Polys Hajioannou: In our company we have been very cautious in tackling this issue and our aim is to be able to operate ships that have the infrastructure to adapt to the upcoming changes. Namely, we have suitable tank and piping arrangements to satisfy the range of autonomy required to sail within SECA areas after 2015 as well as machinery adequate to switch from HFO to MGO, providing there are no restrictions to our vessels in terms of ports of call which will offer our charterers the best possible service.

Harry Vafias, President and CEO of StealthGas: Based on the current trend for lower sulphur content in fuel there is a strong possibility of our vessels burning MGO in 2020. LNG and LPG as a fuel for maritime transportation will be an option that may gain momentum but due to required infrastructure changes, these alternative fuels may not get a substantially increased share by 2020. Nikos Makris: For newbuilding projects between now and 2020, there will be great interest in using LNG and LPG as a fuel on the machinery. The introduction of gas has substantial emission benefits and is expected to be cheaper than MDO and MGO. While gas is the fuel of the future, the establishment of bunkering facilities and supplying terminals is an issue requiring attention and solutions. An interim solution could be elder gas carriers to be positioned at strategic locations for tankering vessels. Nikos Tsakos: Yes, RMG380 or RMG500, as the machinery arrangement in our vessels engines is in a position to burn RMG500. In the meantime, for our newbuilding plans the use of LNG may be considered, subject to availability and that the technical/safety issues are solved in time. Evangelos Marinakis, Principal of Capital Product Partners: We hope to be in a position to voluntarily switch all our vessels to burning low sulphur fuel oil (LSFO) prior to the mandated deadline. However, our ability to do so is fully dependant on refineries investing in and producing low sulphur fuels which meet the new MARPOL requirement at reasonable prices. In the event such fuels are not made available in sufficient quantities, our vessels will either have to burn MGO, significantly increasing the price of fuel per ton, or be retrofitted with new equipment to desulphurise the HSFO.

How can other stakeholders in the shipping industry class, shipbuilders, charterers, insurers and banks best help operators to manage the challenges of the future?

Nikos Makris: We are exhausted by the number of inspections carried out on vessels by class, major oil companies, terminals, charterers, P+I clubs, port state controls. Class, whose main role is on statutory and classification matters, should, after all, be nominated and authorised by all to carry out the inspections on the vessels. Further on, we need to see class in the front line, opening up in new, innovative and efficient ship design solutions. Concerning class, shipbuilders should accept the concept of tripartite agreements between owner-class-shipbuilder and abandon the current regime that class will be employed and contracted from the builder. Stavros Hatzigrigoris: First of all I feel that our industry has to face equally serious challenges such as the fleet overcapacity, the lack of qualified officers and crew, the burden of new and not well studied and prepared regulations etc. As far as energy efficiency is concerned our target is to improve the hydrodynamic performance and the efficiency of the ships. We will also try to apply weather voyage routing and slow speed as much as possible. For new ships the effort will be to meet the EEDI requirements well in advance of the IMO implementation dates. On the operations front, compliance with the SEEMP requirements and ISO 50001 certification will help a lot.

Nicholas Comninos-Xylas, Owner of Phoenix Energy Navigation: Classification societies should provide professional guidance by keeping statistical data on the efficiency of different methods; shipbuilders should promote designs and innovative systems that will conserve energy; banks/financiers should subsidise to a certain extent energy-friendly designs by offering better finance terms; charterers should widen their preference for energy-efficient ship designs. John Coustas: The same way that we have created a pollution awareness for the sea, we must create an energy culture as well. Implementing pollution control was easy by punitive measures, however for the energy part a reward-based system should encourage saving and meeting the targets. Continued

Evangelos Marinakis

Average age
of the Greek fleet

Anthony Comninos

is 13 years*
*vessels of 500 gt or more

Stavros Hatzgrigoris

Nicholas Comninos-Xylas

Katharine Palmer, Lloyds Registers Environmental Team Manager, says: At a time when the industry is facing low freight rates, oversupply of tonnage, lack of quality, skilled officers and crew and complex regulations, as quoted by Stavros Hatzigrigoris, Chairman of Maran Tankers, high fuel prices are adding a new dimension and the focus on energy management is where Greek shipowners are leading the way and recognising energy efficiency as a differentiator to enhance operating standards, drive continuous improvement and reduce costs.

Maran Tankers and Capital Product Partners are the first Greek companies to have ISO 50001 accreditation. In the same way the industry established an effective safety management system to reduce oil pollution and improve the quality of available tonnage to address the stakeholder concerns of a safe ship, the Greek industry is driving the operating standards in energy efficiency to enhance stakeholder confidence. John Coustas, President of Danaos, makes reference to an energy culture in the same way we have created pollution awareness.

We have seen the adoption of the easy quick wins concept as the norm in operating standards such as slow-steaming and trim optimisation, as cited by Nikos Tsakos, CEO of Tsakos Energy. Now the shift to greener designs and innovative technologies is evident to achieve the maximum savings, Nikos Makris, COO of Eletson Corporation, says the standard for todays newbuilds should be dual-fuel engines and optimised hull design. Integral to this is the need to provide safe high quality tonnage and the human element interfaces all balanced together to drive a sustainable business model.

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Horizons May 2012

Greece a nation of mariners

Do you believe that ships built before 2012 will still be competitive by 2021?
John Coustas: From our estimates a new generation containership designed for lower speed will be about 6% better than a 2011 built vessel which has been optimised with turbocharger cut-out, engine retuning, and a new propeller. In a typical 6,500 teu vessel travelling at 18 knots the difference is about 5 to 6 tons of fuel a day. Polys Hajioannou: Older vessels will face difficulties both in complying with new regulations and in competing with modern vessels. Furthermore, compliance with regulations might prove to be very costly, increasing dramatically the operation expenses of the older ships. Regarding the commercial aspect, older vessels will be significantly less efficient as the increased fuel oil consumption in combination with soaring fuel oil prices will burden the ship operators with a hefty daily extra cost. Anthony Comninos: Yes, after appropriate modifications to powering equipment and depending on market charter rates and national regulatory conditions. Stavros Hatzigrigoris: All ships can slow speed and reduce carbon emissions. Most of the ships that will be delivered well into 2013 will not meet the starting EEDI requirements. The hydrodynamic efficiency of existing ships can be improved, better coatings can be used and the power plants can be optimised to save 2%-5% fuel. If all the above are done there will not be such a great difference between the new eco designs and well designed, improved and maintained existing ships. On the other hand what will be the effect of a flood of new eco ships in the current already depressed market?

Stealthy by name but not by nature

Stealth Maritime is open and honest about its approach

Fuelling the future

sector, a low order book and few major players. In 2004 Stealth bought its first ships. Now, with 38 LPG carriers they have 14% of the market. We sleep well with these ships, he says. Their upside is more limited than the volatile crude oil trades but with their low break-even and steady income they are solid earners. Our Aframaxes daily break-even is over $20,000 so it can be terrifying if you are not covered, adds Mr Vafias. When it comes to the challenges of high fuel prices and environmental regulation, Stealth will be conservative. We dont want to be the guinea pigs! And at the moment 95% of owners are more worried about their banks than fuels, designs and engines if we were back in 2008, when there was money around, things would be different. Stealths focus is the adoption of slowsteaming and just-in-time port arrival arrangements in congested ports. They feel that there is a strong possibility Stealth vessels will still be burning MGO in 2020. LNG and LPG as a fuel for maritime transportation will be an option that may gain momentum, but due to required infrastructure changes, these alternative fuels may not get a substantially increased share by 2020. And, yes, Stealths current ships will still be competitive in 2020. Just a week ago Stealths affiliated company, Brave Maritime, ordered four options and four new generation LPG ships in Korea called the Diamond series with electronic engines, hull optimisation, ice class and ballast water treatment systems included! George Gratsos PhD (Aegean University) BSc (MIT) has been involved with helping shape and lead the Greek shipping industrys approach to maritime policy for many years. As President of the Hellenic Chamber of Shipping the official advisor to the Greek government on all shipping matters he represents an important voice. I have been going to IMO since 1966 (back then it was IMCO the International Maritime Consultative Organisation), states Mr Gratsos, who says he has concerns about the ability of international legislators to develop the right legal framework for the industry. A subject he is clearly energised by is the question of environmental regulation and efficiency. The cost of fuel is the most important parameter, he says in a meeting with Lloyds Register at his offices in central Athens. I believe the IMO was incorrect to legislate for a 0.5% global sulphur cap. SOx and NOx cool the atmosphere. According to Shipping Emissions: From Cooling to Warming of Climate and Reducing Impacts on Health in the study Environmental Science & Technology Viewpoint, the revised legislation has reduced the cooling effects of ship emissions from 350 years to 70 years. Therefore the legislation of a global sulphur cap or 0.5% when it is enacted will increase both global warming and transport costs with no obvious benefit. On the other hand, low sulphur fuel in ECAs addresses legitimate concerns. Mr Gratsos is concerned that the EEDI requirements established by IMO do not include speed as a measure as they do for rating cycles in the automotive industry. I am worried about how they think at IMO. If EEDI is not pegged to a speed, it is meaningless. You can make any ship have a lower EEDI, and therefore look efficient, if she goes slower but it will still remain the same inefficiently designed ship. For over 100 years shipowners have known that ships burn far less fuel when going slower. An EEDI should primarily aim to reduce the ships hull resistance, he says. Currently his company has no ships, having sold out in recent years, but they are now investigating the market for energy efficient ships. Whats important is that in a high energy environment an energy efficient ship can make a greater profit while better serving society any shipowner cares most about the profit, he says. Getting the basics right is vital but so is seeing the ship as a whole: We need to get the (ship) platform right focusing on hull form. Yards are applying themselves slowly to better designs. It is important to design ships for profit not for maximising cargo carrying capacity, much like a barge. Shipyards should calculate for the most profitable trade off between cargo carrying capacity and consumption in a high energy cost environment. We are buying a whole system. Integration of all elements in a ship is vital to make an energy-efficient, profitable ship. We mustnt think inside the box, he adds. When looking at future fuels he feels that we will be living with HFO for a long time but could consider smaller tanks for LNG in ECAs to run in dual-fuel engines. But for open ocean use LNG, as things stand, will not be suitable.

Harry Vafias has come a long way in a short time and theres plenty of road left to run yet. From a young age he showed an interest in shipping, getting his father to name the company bulk carriers after his favourite bands of the day: Guns n Roses, Aerosmith and Prodigy to name just a few. Today, Mr Vafiass companies Stealth Maritime and StealthGas are leaders in their respective fields. Stealth Maritime is one the largest tanker companies in Greece with 22 modern tankers all on long-period charters to blue chip names. While StealthGas, a NASDAQ-listed entity, is the largest owner worldwide in the Handysize pressurised LPG segment. Mr Vafias looked very carefully at the shipping markets before choosing the smaller LPG segment and identified three key factors there was very little competition in the

George Gratsos

George Gratsos wins a PhD in Shipping Markets George Gratsos was recently awarded a PhD in Shipping Markets by the University of the Aegean at the age of 68. George started his PhD thesis in 2006 aged 64. My decision was based on my desire to formalise and expand research and analysis on freight market dynamics which I had been doing over a long period of time. This, presented in a clear way, describing various systemic, transient and chance effects and the causal relationships involved, will I hope assist students of shipping markets understand things more clearly, he says.

Harry Vafias 18 www.lr.org/horizons 19

Horizons May 2012

Greece a nation of mariners

Greek day in Asia has the wow factor

More than 20 Greek clients attended a successful Greek day in Asia celebration and seminar at Lloyds Registers offices in Shanghai on 23 March. The main theme of the seminar, led by four Lloyds Register specialists and attended by Dr Evgenios-Dimitrios Kalpyris, Consul General of Greece in Shanghai, was the latest developments in the newbuilding industry. It was also a very good opportunity for our clients to meet our Greek colleagues who are distributed across China. Lloyds Registers long history and close co-operation with the Greek shipping industry is renowned and we look forward to see a continuation of this good co-operation, said Dr Kalpyris during his opening speech. The days overriding message was that classification societies and shipowners have a shared responsibility and that it is good to see responsible IACS members like Lloyds Register taking a proactive role in the Chinese newbuild industry. After the seminar, we celebrated the event in a restaurant overlooking Shanghais spectacular Bund River. Led by Regional Marine Manager (EMEA) Apo Poulovassilis, the Lloyds Register team enjoyed much valuable feedback on the newbuilding and shipping industries as the mellow strains of the Sirtaki music rose gently into the evening air. Lloyds Registers seminar line-up was: Technical Performance Group, Lloyds Register China: Ian Burley, Marine Principal Specialist; IMO Environmental & Safety Regulations Updates: Ben Lau, Lloyds Register Lead Statutory Specialist; Container Ship Latest Design Trends: YD Kim, Lloyds Register Principal Specialist and Manager of Hull Section; Harmonised Common Structural Rules Update: John McKain, Global Tanker Business Manager and Hasan Ocakli, Lloyds Register Technical Manager.

Why cruiseship owners need to put the passenger first

He has been in the passenger business for a long, long time as the pictures on the walls of his office suggest. His family company Epirotiki can trace its origins back to the 1850s and a conversation with the ever-energetic Andreas Potamianos is an education in the business of passenger shipping. From the roof of his office building on Akti Miaouli you are standing right over the Piraeus cruise terminal. But talking to him you will learn much more about passenger ship operations beyond the Greek islands and all over the globe. He can talk about niche markets and the different demands and desires of the cruising public. He expresses disappointment that port calls made by many ships now are so brief that there is little time to explore the country or get to know its people. Due to current fuel costs more companies are reducing port calls and keeping passengers on board longer. Is this still a cruise industry as we knew it? he asks. Our philosophy was always that we wanted to show our country to people not to restrict ports of call or time in order to encourage passengers to spend money on board. Of course, the Greek islands are not really suitable for large ships. They are perfect for smaller, specialist ships catering for more exclusive markets. And if you call at a small island, say Amorgos, you will be able to spend some time meeting people and getting a sense of the real Greece, he says. Mr Potamianos is disappointed that successive Greek governments have not invested in tourism: no hotels have been built in Greece for 30 years. Turkey, by contrast, he says has made a substantial investment in tourism. Of course its a question of cost, he says but suggests that with the right approach Greece should be a much stronger market for both small, specialist passenger trades and yachting.

(l-r) Zacharias Kochilas, Site Manager, Chios Navigation Hellas; Nikos Tsatsaros, Lloyds Register Surveyor, Nanjing (with his back to camera) and Nick Brown, Lloyds Register Area General Manager and Marine Manager, Greater China 20

(l-r) Apo Poulovassilis, Lloyds Register Regional Marine Manager (EMEA); Spyros Contopoulos, Technical Manager, Victoria Steamship Co; Christos Konstantarakis, Marine Consultant and Nick Skaribas, Lloyds Register Surveyor in Charge, Nanjing www.lr.org/horizons

Andreas Potamianos

21

Horizons May 2012 A new energy management standard is being used by leading shipowners and operators. To help address the twinned imperatives of environmental regulatory compliance and the need to reduce fuel consumption, Lloyds Register has shown owners how to adopt this new standard for shipping. Using the expertise of its world leading business assurance arm, LRQA, Lloyds Register has developed a marinised application of the international energy management standard ISO 50001. By adopting and using this standard a company is in a strong position to better manage and reduce its energy needs. Greek tanker owners have been leading the way in taking up the new standard that provides an umbrella structure for managing the SEEMP requirements, which all ships need by 1 January 2013 and EEOI. LRQAs Marine Business Support Centre Manager, Stavros Meidanis, has led Lloyds Registers work in providing this service to the industry. He outlines the benefits of embracing an energy management system: You can reduce costs, a prerequisite for increasing energy prices, for the higher the energy/fuel consumption, the greater the risk that energy/fuel price increases could seriously affect profitability. Reducing carbon emissions, of course, and demonstrating those reductions is another important benefit, he says. For many tanker owners the standard will be a practical and direct means of meeting stakeholder requirements such as OCIMFs Energy Efficiency Guide and the anticipated introduction of TMSA III (tanker management and self assessment) requirements. Mr Meidanis adds: These are practical commercial market requirements addressing what will become barriers to entry but, I believe, using the ISO 50001 energy management standard can drive performance and reduce costs. Breadth and depth of expertise in marine survey and auditing together with the domain experience and reach of LRQA is crucial to the effectiveness of Lloyds Registers delivery of this ISO 50001 to the shipping industry. Maran Tankers win Lloyds Registers first ISO 50001 standard Maran Tankers Management (MTM), the oil tanker company of the Angelicoussis Shipping Group, brings a sharp focus to energy management. On 23 December 2011 Lloyds Register certified the energy management system of MTM in accordance with ISO 50001: 2011. Certification to ISO 50001 was a milestone for our company, MTM Managing Director Stavros Hatzigrigoris said: Having in place an effective and efficient energy management system for the operation of our fleet brings real added benefits to the company and it allows us to be proactive in complying with upcoming regulations, customer requirements and societys expectations. During an award ceremony in Athens in February this year, Ms Maria Angelicoussis said the ISO 50001 certification of Maran Tankers the first energy management certification awarded by Lloyds Register to the merchant fleet marks the start of a new era for the company. The improvement of the energy efficiency of shipping operations is clearly going to be a key success factor assisting in minimising our environmental footprint, ensuring compliance with new regulations and gaining a competitive advantage in an increasingly complex and challenging business environment, she said. MTM believes that although shipping is the most energy efficient form of transport, improving energy efficiency is integral to the shipping industrys efforts to reduce greenhouse gas emissions (GHGs) and supports MARPOL compliance. Moreover, with sky-rocketing bunker prices and low freight rates, reducing fuel consumption is vital and, increasingly, customers are looking to their partners to demonstrate effective energy management as doing so can provide a competitive advantage.

Greece a nation of mariners MTM has been always proactive in energy management related matters. From implementing an ISO 14001 certified environmental management system, a specific environmental programme has been put in place since 2007 targeting the minimisation of CO2 emissions. Specific targets were set and action plans established, implemented and maintained, including the energy optimisation of operational practices as well as the incorporation in the design and construction of the newbuild vessels of energy saving equipment/devices. The first pre-swirl stator was installed by DSME on MTMs VLCC Maran Capricorn.

LRQA expertise helps shipowners meet SEEMP deadline

A new energy management system, ISO 50001, will help owners meet the 1 January 2013 deadline for the IMOs energy efficiency management plan

Greek owners ordered 30 LNG carriers in 2011 more than 50% of the global total
In 2008, a specific policy on energy efficiency was adopted and, following an energy audit carried out onboard a fleet vessel, an Energy Efficiency Best Practice Manual was developed and disseminated to all the fleet vessels with the aim of providing standard procedures and practice on best energy management under the various operational modes of the vessel as well as raising awareness on energy efficiency/ conservation. This manual was the forerunner of the SEEMP which was developed in 2011 taking into account the IMO SEEMP guidelines as well as the INTERTANKO Guide for Tanker Energy Efficiency Management Plan and the OCIMF Guide for Energy Efficiency and Fuel Management.

Profile of Maran Tankers Management Inc Maran Tankers Management Inc (MTM), with its strong oil tanker fleet, is one of the largest crude oil tanker management companies in the world. MTM was founded as a ship management company in 1992 and operates, from its head office in Greece, a modern fleet of 36 oil tankers with a 7.6 million total dwt. An extensive newbuilding programme, which started in 1994, is still in progress and, for the time being, extends to 2014. The company is placing significant emphasis on the human element and has its own maritime training centre (equipped with bridge, engine and cargo simulators) providing advanced maritime training and continuous education programmes for its seagoing and shore staff.

Astro Carina, a member of the Maran Tankers Management fleet 22 www.lr.org/horizons

(above) Maria Angelicoussis receives the IMO 50001 certificate from Lloyds Registers CEO, Richard Sadler; (left) Sokratis Dimakopoulos, Maran Tankers Managements HSQE Manager

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Horizons May 2012

Greece a nation of mariners

Why Turgay Ciner struck as the market plunged

Although the Ciner Group owner studied the shipping industry in the 20052006 boom, he decided to go into business two-and-a-half years later. Lloyds Registers Communications Specialist Annita Patargia speaks to Ciner CEO Vassilis Papakalodoukas

24 www.lr.org/horizons

built shipsthat We on specifications

in our opinion met the market requirements better than existing vessels.

Ciner CEO Vassilis Papakalodoukas 25

Horizons May 2012

Greece a nation of mariners

It all started with Turgay Ciners love of the sea. During the shipping boom of 20052006, the Turkish entrepreneur studied the market and decided to bide his time as he believed the upsurge in trading would be shortlived. He was right. Three years later in 2009 when prices were falling, he decided to make a move and set up his company Ciner Shipping Industry and Trading. That is when I joined the company. We started by ordering four Handysize bulk carriers from South Korea as, at the time, this sector had the lowest order book and the oldest fleet, says Ciners Greek CEO Vassilis Papakalodoukas. Prices of second-hand ships were higher than newbuilds and due to availability of slots the delivery of the vessels would be only a year or so later. So we proceeded to build ships on specifications that in our opinion met the market requirements better than existing vessels, he explains. The Ciner newbuilds had higher deadweights and cubic capacities, sees shallower drafts, greater gear capacities and better fuel consumption than their equivalents in the 2009 fleet, with the added advantage of improved technical and commercial characteristics. Our better specification vessels would attract a higher premium from charterers which we hoped would help us to navigate the storm. So far we have been proved

correct. Even though the market is presently disastrous, we still feel comfortable with our investment in Handysizes. We have chartered out our ships to Pacific Basin, a Hong Kong listed company, and one of the worlds largest Handysize operators, says Mr Papakalodoukas. Shortly afterwards, Ciner ordered four Kamsarmaxes also from South Korea. We then diversified our fleet, ordering two Suezmax tankers with good specs and prices and four more Handysizes at similar price levels to the 2009 orders, followed by four firm and two optional orders for Crown 63 Supramax bulk carriersand we feel almost ready, diversified and well-positioned in the dry bulk sector, says Ciners CEO. I ask Mr Papakalodoukas where he sees Turkeys role in world shipping in these uncertain times. Turkish shipping is still a relatively small market. However the advantage of the sector is that most of the time there are big industrial groups behind shipping companies, as in our case, that offer major financial support. I believe that these groups will help shipping companies come out of this volatile and uncertain market. When the market recovers, Turkish shipping will come out stronger with a bigger share and a younger fleet in the shipping industry, he says. I then ask him how owners can better manage market unpredictability and the key lessons owners can take from the recent crisis.

Mr Papakaladoukass replies: Dont be highly leveraged One of the most important lessons to be learned is not to be over-leveraged. Its very important to have enough equity to enter a market and not believe that high leverage investment will lead you to success. At Ciner, we are presently financing at 6535, in some projects even lower, and with this leverage we believe we will be profitable even in the medium term. Having a low leverage at current shipping asset values, even at todays freight levels, gives a quite satisfactory return on equity and when better times come, big profits may follow as well. Select the right ship at the right price Nowadays shipyards are marketing all these new eco-designs. This makes a lot of sense as bunker prices are very high and we believe they will remain high. During the previous crisis periods, shipyards had no interest in developing new designs as bunker prices were very low back then. Now that has changed, so entering the market with a new design, with an eco-friendly ship, can definitely create a big advantage. There will be three types of ship in the future: the eco designs, the modern ships and the old ships. All these ships will be evaluated differently by the charterers. Thats a good reason why we feel strong enough compared to the competition, and prepared for the future.

Diversification Another factor that, in my opinion, needs to become an industry common practice is diversification within different ship types. Once you build a fleet you need to diversify within a specific sector and at the same time move to other sectors as well. Of course, this may not be the case for small players in the market. Risk management is very important nowadays. We have to share the risks in different sectors and different ship sizes. Our strategy to diversify within bulkers has been more or less completed. Our next step is to enter other markets such as tankers and/or gas carriers where we will diversify as well, where possible. Sharing the risk is a must in our times. This way, we believe we can better control the unpredictability and volatility of the market and secure a steadier income. I then ask Mr Papakalodoukas: Ciner Ship Management recently took delivery of three Kamsarmaxes out of a series of four booked at Hyundai Mipo Dockyard in South Korea. A year later, you signed up for four 35.000 dwt bulkers at SPP Shipbuilding in Korea and a year later four geared Ultramaxes, 63,500 dwt, at Sinopacific Shipbuilding Group, all for delivery within 2013. Given that overcapacity remains the sectors single biggest worry you obviously believe the timing is right for new orders what do you know that we dont? He replies: In an over-supplied market it is critical to choose the right ship type, at a relatively right price, and at the right leverage levels, which we believe was our case at the time. The bulkers were still strong, despite overcapacity in 2011, taking into consideration our entry price levels. The freight levels of 2011 definitely supported the investment. After 2008 everybody was talking about a disaster. But we didnt see a real disaster in bulkers until the beginning of 2012. However, we have to judge 2012 at the end of the year and not now.

Low freight levels and lack of finance are healthy parameters for the shipping industry towards a better balance between supply and demand. Low freight levels will lead to higher scrapping volumes and lack of financing will lead to less newbuilding orders even at lower newbuild price levels. Our goal is to break even for the next couple of years, and after that we are positive about the market. Our average break-even levels and our strong financial background provide us with such optimism. New global markets are developing which means that transportation needs will increase. After all, shipping is a capital-intensive industry and a long-term investment which requires strong equity to support it through the bad times. It is clear that Ciner Ship Management has a significant growth plan in place. Does this include expansion towards LNG carriers? We are ready to enter the LNG market. We have the financial background and we believe in LNG, but then LNG shipping is always connected to LNG infrastructure. The fundamentals are looking great but the investment is very big and at this time we have to be reasonable and cautious. We dont want to follow the trends. We are here to make money and not to impress! Lets imagine the case of a delay at scheduled infrastructure LNG projects as has happened in the near past. Then we would face the risk of having our ships anchored and not financed. The high freight levels we have seen in LNG carriers are connected to prompt tonnage and to the minority of tonnage on order. So the only way for us to enter this

market is to secure employment for some three to five years so that we feel comfortable for the first years of our investment. We are looking at other gas markets as well, like Medium Gas Carrier (MGC) LPGs as well, a market we think it may be easier to enter. For the moment, though, our strategy is to diversify within more disposable shipping assets like bulk carriers and tankers. Finally, I asked Mr Papakalodoukas: Do you see LNG as a suitable fuel for deep- sea bulkers and tankers? He replied: Its very early to say how this new trend is going to materialise. Apart from the lack of infrastructure, the investment is huge and with the current situation in the market my opinion is that LNG as a fuel is a long-term plan. Of course we like to be innovative but at the moment I dont believe that the market can support this plan. For us such a move would be premature, however, we are following the relevant developments closely.

A member of the Ciner bulk carrier fleet 26 www.lr.org/horizons 27

Horizons May 2012

Greeks around the globe

Adrianos Zaphiropoulos

Dimitrios Chalas

Leo Karistios

Nikos Skaribas

1 Adrianos Zaphiropoulos Operations Manager for Qingdao and Tianjin, China Qingdao and Tianjin are important trading ports and major commercial cities in China. As Operations Manager I am responsible for the areas marine business activities. The ports of Qingdao, Rizao, Tianjin and Yiantai are significant hubs in China in terms of foreign trade throughput. The ships in service calling at the ports in the region have a very international character in terms of ownership and flagging and many are operated by Greek companies.

world, clients expect to be able to reach us at any time and expect a prompt and professional reply within a short period of time. Leo Karistios Senior Surveyor and Project Manager, Jiang Qing, China With Asias newbuilding capacity relying heavily on projects of Greek interest, empowering Lloyds Registers new construction organogram with Greek people in key positions contributes greatly to the successful building of ships and allows us to win further business and build long-lasting relationships with Greek shipowners.
3

5 Kostas Papadakis Marine Client Manager (Hellenic Shipping Community) with the UK and Ireland Business Team, London I joined Lloyds Register in 2006 after working as a seagoing engineer, private surveyor and consultant and then a senior lecturer at the UKs Warsash Maritime Academy.

to achieving our goal to steer innovation between EU countries, as well as China and Korea. The use of LNG as a fuel, nuclear propulsion, goal-based ship safety and structural integrity are some examples of where our open innovation model is working well. I am proud to acknowledge that in a world of widely distributed knowledge, Greek shipping is leading the way and I am glad I can contribute to my country while abroad.
8 Patty Apostolopoulos Senior Surveyor (Ship Structures), Busan Design Support Office My main responsibilities are to carry out the appraisal of plans and documents in accordance with Lloyds Register rules and regulations and common structural rules for bulk carriers or double-hulled oil tankers; to provide guidance and support to internal and external clients for ship structural plan appraisal; and to undertake pre-site project management, including monitoring project progress and spend against budget and contract requirements.

Lloyds Registers offices are well positioned not far from the business community and able to respond to our clients demands with qualified and experienced surveyors. Greek owners have well-established working relationships with Chinese shipbuilders in the region and the local governments of Qingdao and Tianjin have made great investments in the renovation, upgrading and expansion of the shipbuilding industry. The region has formed a complete industrial chain including shipbuilding, ship repairing, offshore engineering, materials and marine equipment manufacturers and supporting industries. With on-site surveys, Lloyds Registers Qingdao and Tianjin teams can ensure that the products are in compliance with Lloyds Register Rules and international and national codes and standards. Our collaboration with the Hellenic Shipping community in Qingdao and Tianjin, whether over ships in service or newbuild projects, is very important, focusing on safety and environmental performance, improving owners assets, productivity and capital effectiveness.
2 Dimitrios Chalas Lead Co-ordinator, China Marine Business Development Team Shortly after my arrival in China, I realised that with the huge number of provinces and the different dialects and business habits, doing business in China can be very demanding. As time passed however, I realised that the Greek and Chinese cultures are very close. Both civilisations have a very long history and have won many honours and plaudits. At the same time, until recently we have both had turbulent periods in our histories.

Our clients value us better when our teams combine a good cultural mix with a variety of technical backgrounds, offering them constructive influence towards the common goal of building a good ship to both Lloyds Registers and our clients expectations. Using our global network and holistic understanding of a ships construction and, in the service period, bringing better communication and understanding of our clients needs help us to offer enhanced services that meet or even exceed our clients expectations. The construction of a ship requires the coordinated efforts of many people, and working in major shipyards with top makers and highly experienced owners offers a Lloyds Register surveyor unique and invaluable technical competence and professional experience that continues for life.
4 Nikos Skaribas Senior Surveyor in Charge, Nanjing, China Nanjing at the moment covers 11 active shipyards that build bulk carriers, ro-ro vessels, general cargo vessels and tankers, mainly for European owners but lately for Asian and local owners. A major part of our job is the survey of marine equipment and components for main engines, auxiliary engines, anchors, anchor chains, castings, forgings and steel mill makers. There are a few existing ships, mainly bulk carriers and small tankers, visiting Nanjing through the Yangtze River.

I really enjoy my work as my role virtually has no limitations and I am getting involved with everything the London Greek community want. I find it fascinating to be working in an industry that is so global and at the same time personal. I also really covet the relationship between Greece and London and being involved with all the Greek owners exciting newbuild projects in China and Korea as well as helping to forge a more environmental and fuel-efficient future.
6 Nikolaos Benetis Manager, Entry into Class, London I have been in London since 2004 and was Client Manager for Hellenic clients until 2008 which gave me the opportunity to meet many members of the Hellenic shipping community which is very energetic and vocal in matters both commercial and technical. I was also honoured to be asked to serve on the governing committee of the Hellenic Engineers Society of Great Britain. I have been their Secretary for the past four years. Our meetings always have the feel of a little Greece in London and the community is very active socially as well.

Being a member of the Busan Design Support Offices structures group is a great opportunity for me to gain and expand my knowledge of CSR BC/DHOT rules, understand the newbuilding process, contribute to our global team and develop my own career. Greek clients have been, and still are, very important customers of the Korean shipyards, with newbuild projects for various ship types and sizes. Communicating with Greek clients in my own language is a bonus, especially when a solution needs to be found in a quick and effective manner.
9 Nikolas Vaporis Senior Business Development Specialist, Okpo, Busan I find my role here in Korea, at the forefront of the shipbuilding industry, very interesting. The Korean shipyards have been developing highly efficient production techniques and the ships are built to the latest IMO requirements, with high environmental specifications that are beyond the requirements of compliance.

I am very glad and proud to have been a part of this Greek community in London. We are London Greeks and, through its varying roles, the community is very forward-thinking and constructive to the global maritime community. In my current role at Lloyds Register, I still have very frequent meetings and communications with all of our clients, supporting them directly or through our business teams on current operational issues and future projects.
7 Spyros Hirdaris Lead Specialist, Lloyds Registers Marine Strategic Research Group, London The Greek shipping community is pragmatic, yet open-minded, in its approach. My portfolio of research initiatives in Greece involves a variety of projects related to energy efficiency, safety and human factors research themes. Our interaction with the Greek shipping community, universities and consultancy providers has been central

Kostas Papadakis

Nikolaos Benetis

Spyros Hirdaris

Patty Apostolopoulos

Nikolas Vaporis

The focus of my role is on international owners and I have been able to talk to all of them and co-ordinate Lloyds Registers technical support where necessary. In this part of the

As a Senior Surveyor in Charge and Office Manager in Nanjing, I provide technical direction to 36 surveyors, assisted by four administrative personnel, making sure vessels are delivered according to the Rules and Regulations.

The Greek owners continue to challenge the yards and being part of this challenge is always fascinating. We share the excitement of our clients and we remain committed to delivering excellent risk services.

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Greeks around the globe

Horizons May 2012

Middle Eastern growth factor

Greeks around the globe

Whos who at Lloyds Register
Fremantle, Australia Georgios Papageorgopoulos Jiang Yin, China Pavlos Kioussis Nanjing, China Nikos Skaribas Nikolaos Tsatsaros Qingdao & Tianjin, China Adrianos Zaphiropoulos Shanghai, China George Methenitis Georgios Papagiannakis Dimitrios Chalas Zhousan, China Natali Doulgeraki Christoforos Konstantinidis Busan, Korea Patty Apostolopoulous Leo Karistios Okpo, Korea Nikolas Vaporis Tongyeong, Korea Ioannis Karatzias Stavros Timiadis Ulsan, Korea Petros Sagredos Rotterdam, Netherlands Apostolos Giannoulis Lazaros Mitsikoglou Nikolaos Panagakis Konstantinos Vouroutzis John Papadantonakis Singapore, Singapore Fotios Kampouris Dubai, UAE Kyriakos Kourentzis Aberdeen, UK Eleni Siasiou Liverpool, UK Eleni Katsari Damoulis Xydous London, UK Dimitrios Argyros Nikolaos Benetis Konstantinos Deilakis Spyros Hirdaris Thanos Koliopulos Vasiliki Kotsovolou Leonidas Koukos Maria Lagoumidou Vasiliki Vakasi Andreas Liodis Stavros Niotis Konstantinos Papadakis Christina Douka

The Middle Eastern growth factor

The United Arab Emirates and Qatar just keep on expanding. Lloyds Registers Marine Communications Manager Nick Brown meets a group of leading owners and operators and discusses such key issues as LNG as fuel, ship technology and forging a greener future

Nighttime cityscape of Doha, the capital of Qatar 29 30 www.lr.org/horizons 31

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Middle Eastern growth factor

NDSQ building a future in Qatar

Apart from its growing reputation as a country of beauty and environmental protection areas, Qatar is developing a series of leading shipyard and ship repair facilities
When you arrive at Ras Laffan in north-eastern Qatar, the intense blue of the sea is a surprise after the desert transit from Doha. As you drive along the road, a sea eagle watches you from a fence post and we are told the area is a specially protected zone for the native sea turtles. To the north, across the protected bay, lies the long causeway and jetty with its LNG loading berths. The number of flares is an indication of the number of ships taking on board the liquid gas. While lying on the southern causeway is a new construction yard, NDSQ Nakilat Damen Shipyards Qatar. Its neighbour, N-KOM Nakilat Keppel Offshore & Marine, is principally a repair yard with a specialisation: LNG carriers. Here we focus on NDSQ. A forthcoming issue of Horizons will tell the N-KOM story. Continued Aerial view of NDSQs shipyard in Qatar 32 www.lr.org/horizons 33

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Middle Eastern growth factor

How UACC handles the risk factor

Jan-Wim Dekker Scale model of a Mewis Duct

So who are NDSQ? Well, the N stands for Nakilat the worlds leading transporter of liquefied natural gas (LNG) and the D is for Netherlands-based Damen, a global leader in shipbuilding. The S means shipyards and the Q, unsurprisingly, Qatar. Together, they operate a brand new world-class and state-of-the-art facility capable of building steel or aluminum ships of up to 170 metres long. Vessels manufactured by NDSQ feature Damens proven shipbuilding designs and its industry-leading standards for quality in all aspects of the manufacturing process. All ship construction and outfitting is completed in covered halls. This facilitates an optimal working environment and ensures world-class quality, productivity and fast delivery times. The yard has access to extensive steel and pipework facilities, blasting and painting shops. NDSQ is working with the worlds most renowned marine equipment suppliers and co-makers for the supply and installation of key systems onboard the vessels. The yard will specialise in tugs, pilot boats and offshore supply vessels for the commercial market and in small frigates, corvettes, patrol boats, enforcers and interceptors for naval clients. A third market is megayacht newbuilding, refit, repair and maintenance. A special temperature and humidity controlled hall is currently being built for this purpose. Jan-Wim Dekker, NDSQs Managing Director, says: We welded our first steel in March,

2011, and we have momentum and strong support from our stakeholders to grow. Tug specialists Under construction at the yard when Horizons visits is a large load out barge for the yards own use. Nearing completion it will enable the larger construction projects to be moved from the quayside into the water. In another hall a series of 19 vessels for the Port of Mesaieed in south Qatar are being fabricated. The vessels will be operated by Qatar Shipping Company. The tugs will operate in the warm local waters: sea temperatures can reach 37C in summer and do not fall below 25C, so engine cooling needs to be managed. The underwater hull is completely ribbed with multiple engine cooling water pipes to maximise the potential for transfer of heat away from the hull. A cleaner future Proximity to the worlds largest export facility for LNG raises an interesting question: will NDSQ be building LNG-fuelled craft soon? Jan-Wim smiles: Well our research guys are excited about the prospect and I do expect that at some time we will be building LNG-fuelled vessels here. You just need to look at the facts: gas is part of the future; there is gas here; and Qatar is looking to play a new role in a greener future. This last point raises the question of the environment. Jan-Wim again: Safety is our priority and standards are high here as high as the best anywhere. But what is special here are the extremely high standards of

environmental protection. You have seen the signs about the sea turtles. And we mention the blue of the sea. Yes, we are not allowed to discharge any water into the sea unless it has been thoroughly cleaned and checked by Qatar Petroleum. And their standards are very high. When we visited it was a cool, clear sunny day. In the summer things are different and the reason why all construction is under cover. But whatever the season, shipbuilding is clearly hotting up in Qatar.

United Arab Chemical Carriers Ltd (UACC) is a Dubai-based shipowner with a modern fleet of 13 product tankers within the medium range (MR) (46,00050,000 dwt) and Panamax Long Range 1 (LR1) category. In addition, the company has four chemical MR tankers on order. UACCs CEO, Jens Grnning, wants a balanced approach to risk. Managing risk is one of the most important tasks we face, he said. We need to deal with various risk factors on a daily basis. We have always minimised risk as much as we feel is possible, and we try hard to manage the fine balance between what is theoretically possible and what is feasible when running international shipping operations. Mr Grnning continued: In many ways the chemical sector is more industrialised, and therefore more steady than other more volatile shipping segments such as the products market. From a risk point-of-view, we believe our presence in both the chemical and products markets balance each other out, at least to a certain extent. In addition, we operate in pools because we like the scale it creates and the partnership between owners. UACC vessels frequently sail through piracy-affected areas in the Indian Ocean. Regarding this matter, Mr Grnning commented: To deal with the risk of attacks by pirates we use armed guards, and we follow the guidance established under Best Management Practice 4 (BMP4). Our ships have been attacked twice, but each time they

NDSQ is working with the worlds most renowned marine equipment supplies and co-makers for the supply and installation of key systems onboard the vessels.

have been deterred because we were prepared, well trained, and use armed guards to defend the crew, ship and cargo. Reducing emissions is a growing priority for many owners, including UACC, and in the area of environmental risk and how to find efficiency gains, Mr Grnning has clear views. UACC has tested new silicon hull paint available in the market, and the four ships on order will all have Mewis ducts installed. Mr Grnning said: I am a believer in the Mewis duct, but we have only done model tests so far and I am looking forward to seeing the results of the sea trials. The important thing to remember is that if we can grab 1, 2, 3, 4% savings here and there, they all add up. If we get to 5% fuel savings, it will easily represent a saving of $1,000 a day at sea. Mr Grnning pointed out that UACC do slow steam on ballast passages and that its vessels occasionally go down to ultra-slow speed, and especially on ships which are equipped with slide fuel valves and blowers. Referring to alternative fuels, Mr Grnning believes that LNG is credible, but that it is not a viable solution for the tanker sector any time soon, especially with the current highly diversified trading pattern which includes both remote and under-developed ports. However, Mr Grnning said that he believes LNG is an interesting option for ships plying a regular trade, such as ferries, container ships and the like. Mr Grnning believes UACCs future prospects are bright. We have faced many challenges already. We were launched during the sub-prime crisis, and that affected things.

The growth in the petrochemical and refinery sectors is very strong and intact, and with refining and production capacity declining in the west, the tonne/mile ratio is going to be favourably affected by sourcing cargoes from farther afield, such as the Arabian Gulf and India, he said.

Danish-born Jens Grnning joined UACC in October 2008 and is its President and CEO. He was previously COO of Eitzen Chemical ASA, one of the worlds largest chemical transportation companies. He has more than 20 years experience in the shipping industry, with extensive experience of shipping and finance. He graduated with a higher commercial examination from Copenhagen Business School and took an extensive management course at IMD Business School, Lausanne, Switzerland.

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Middle Eastern growth factor

ADNATCO and NGSCO from Abu Dhabi to the world

The views of a major oil and gas transportation company
Abu Dhabi National Tanker Co (ADNATCO) was established in 1975 for the transportation of petroleum products. It is a wholly-owned subsidiary of Abu Dhabi National Oil Company (ADNOC). ADNATCO owns and operates a fleet of oil tankers, a molten sulphur carrier and two ro-ro vessels and is involved in the marine transportation of petroleum products and the bulk carrying of sulphur. National Gas Shipping Company (NGSCO) was formed in December, 1993 to transport liquefied natural gas (LNG) on behalf of Abu Dhabi Gas Liquefaction Company (ADGAS). NGSCO operates a fleet of eight LNG carriers, each with a capacity for 137,000 m3 of LNG. NGSCO took delivery of its first vessel Al Khaznah in July 1994, followed by a further seven vessels, the last of which was delivered in June 1997. The first four ships were built in Japan and the other four in Finland. Both the Japanese and Finnish built vessels are Moss Rosenberg designs and, when built, were the largest LNG carriers in the world. The companys LNG fleet was initially managed by third parties but since the end of 2007 all vessels are fully managed by NGSCO. Lloyds Register recently met Mr Ali Obaid Al-Yabhouni, CEO of ADNATCO and NGSCO, in his offices in Abu Dhabi, to discuss the challenges facing the shipping industry. What do you think are the most important changes your company and the industry can make to meet the challenges of new regulations, high-energy prices and the need for more efficient ships? In the short term, our aim is full compliance with the MARPOL Convention, particularly Chapter 4 of Annex VI. We aim to have a Ship Energy Efficiency Management Plan (SEEMP) implemented in all the vessels in our fleet by the beginning of next year. In the longer term, there is a clear need to invest in new energy efficient ships. Current designs can lead to a sharp decrease in energy consumption and, as fuel prices rise, this makes increasing commercial sense. Of course, charter rates are currently at a very low level, but shipowners need the vision and courage to invest in new vessels that are both energy efficient and have lower emissions. Inversely, new building costs have also come down, so there is an incentive for forward looking companies such as ADNATCO to invest in new tonnage, and the ADNOC Group of Companies has plans to continue ordering new vessels. We feel that the time is right to continue expanding our fleet with a long-term eye to the future market in which energy efficient vessels are valued by charterers. Will most deep sea ships still be burning HFO in 2020? And, if not, what fuel will they be using for instance, will low sulphur MDO be available in sufficient quantities? Fuel choice is clearly a major challenge facing the global shipping industry in terms of cost, efficiency and emissions. Whereas the burning of LNG as fuel is a practical and clean solution for LNG tankers, such as our own LNG tanker fleet, it is unlikely to be an option for other vessels. Burning LNG for propulsion power onboard ships other than LNG carriers will require massive investments in bunkering facilities, bunkering barges, storage tanks onboard and ashore etc. The reality is that there is at present no readily available substitute for HFO. Low sulphur MDO represents an interesting alternative but, for the time being, is not available in sufficient quantities due to insufficient refining capacity. However, as a shipping company owned by a national oil company with significant refining capacity, I would point out that the refining industry has historically shown itself ready to invest in supplying changing demand patterns. Reconfiguring refineries and installing new units takes time, but if the global shipping industry decides to go down the MDO route, the refining industry will respond accordingly. However, this is not something that can be done unilaterally by any single company. There has to be consensus in the industry and a decision that this is the best way forward. How can other stakeholders in the shipping industry class, shipbuilders, charterers, insurers and banks best help operators to manage the challenges of the future? Shipbuilders and class have a greater role to play in this regard, because of the vast resources and experience they have in designing the new ships with more efficient and environment friendly engines. The shipowners are ready to spend extra provided the technology is available. The class in collaboration with shipbuilders could focus on increased research related to energy efficient ship designs, including using low sulphur and alternative fuels, installing fuel efficient and emission compliant engines, integrated power plants, and the use of exhaust-after-treatment devices. In an ideal world, charterers would reward energy efficient ships with increased rates, while insurers would reduce their premium rates for new energy efficient ships. We need market-based mechanisms to ensure that this happens. Ali Obaid Al-Yabhouni, CEO of ADNATCO and NGSCO in his Abu Dhabi offices 36 www.lr.org/horizons 37

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Horizons interview

The Horizons interview

The friendly face of classification

Decisions, decisions, decisions might be an apt way to sum up Joanna Townsends working day at Lloyds Register. Though her location, location, location also plays an unexpectedly significant role too discovers Christopher Browne
If you visit the office of Joanna Townsend, Lloyds Registers Fleet Services Manager and Head of Classification, youll usually find the door open even if shes on the phone. Its a reassuring sign that shes always available and happy to listen. But then Joannas a people person a quality she says was moulded early in her Lloyds Register career. When I was training to be a surveyor, I learnt from other surveyors that the job is about relationships and how you manage them, whether its just after the signing of a newbuild contract, dealing with the personnel in the shipyard or working with the crew on a vessel, she says. I found that by getting to know the people I was dealing with I could understand their roles and where exactly they were coming from. This helped me to manage each of the relationships I had. It certainly helps when you are mediating between an owner and crew over a design issue, for example, she says. The same applies to safety. Whether it was explaining to a vessels crew how to use a lifejacket effectively or making sure the hand-rails in a shipyard were secure as it affected everyone in the yards safety. Building a working relationship is not about the surveyor imposing his or her views on others. I found it was very important to explain to the people I was dealing with why I was taking a particular course of action or making a decision about something, she says. Ideal training then for her current role as the head of two departments. Decision-making is an important part of my day with queries that challenge me to use my experience and judgement to make decisions on behalf of Lloyds Register and ensure the Classification department is providing support to the surveyor community and meeting our clients expectations, she says. Dedicated team I work with a very experienced and dedicated team of colleagues who are fun to work with, people with whom I can discuss technical matters and managers on whom I can rely. I enjoy motivating and developing my team and working with them to ensure the Classification department provides a top quality service, she says. Joanna is also Chairman and Manager of Lloyds Registers Classification Executive which makes decisions on behalf of the Marine Director and Classification Committee. My role is to lead the Executive and ensure that the decisions are based on sound technical judgement, made with all available information and considering all the alternatives as well as the implications for the vessel, the crew, the operator and the flag administration. She may no longer be working in the field but Joanna still has a genuine affection for the vessels she has been involved with. I remember all the ships I have either helped to build or surveyed and I feel a real connection with them (she is even godmother to one of her charges, see next page), she says. Her affair began during her first Lloyds Register posting in Southampton. I was invited to go on the QE2 an absolutely wonderful experience for a young trainee. First of all I went into the boiler room and surveyed inside the boiler and then two engine-room tanks. I was also lucky enough to be invited to have a meal in the dining room, she says. Maritime whos who It was a formative experience and some of the vessels Joanna has visited, helped to build or survey since then read like a maritime whos who. The QM2, Crystal Serenity, several Princesses in the Princess Cruises fleet and, at the end of her training in 1992, the delivery of Eleo Maersk, the worlds first doubled-hulled tanker at Denmarks Odense shipyard. Another memorable moment was when she did some naval architecture work on the Thames Bubbler, an anti-pollution vessel which pumps oxygen into the River Thames to improve its water quality. Continued

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Great fuel debate

The Horizons interview

Joanna Townsends biography Education Strathclyde University, Glasgow (Naval Architecture and Offshore Engineering degree) Home life Married to Robin (Pete) Townsend, Lloyds Registers Regulatory Affairs Lead Specialist, with a young son and daughter Current role Lloyds Registers Head of Classification, Fleet Services Manager and Chairman of the Classification Committee Proud godmother: Joanna launches Aifanourios at Shanghai shipyard The joy of being a ship surveyor and being trained through the whole gamut of plan approval is you have the chance to follow a ship throughout its life, dealing with all its ups and downs and handling any issues as and when they occur. Joanna has managed to juggle work, marriage and bringing up two children in some diverse locations. China is her favourite. She and surveyor husband Robin moved to Xingang, a port near Beijing in the north of the Peoples Republic, in 1996. We used to go to Beijing once a month to stock up on Western-style food like cheese which we really missed. Two years later Joanna and Robin went to Shanghai. The city was extraordinary and constantly changing. Wed go away for six weeks and come back and find at least one or two new buildings had sprouted up, she reflects. The Townsends left in 2002 with their two children born in Shanghai. I loved the whole of my China experience and I love the way the Chinese are so eager to develop themselves, says Joanna. But back to our people theme for a moment. When I joined Lloyds Register in 1990, I was told I was joining a family, and I feel that is the essence of the organisation. There are people Ive not seen for 15 years and others that Ive never met but I can pick up a phone, have a technical discussion and know that we both have the same viewpoint that what we are doing matters to ensure the safety of the vessel, the environment and the people on board the ships, she says. digging and like to cultivate seasonal vegetables. I am growing onions, garlic and potatoes ready for the summer at the moment. Sometimes in the past Ive grown most of the annual vegetables we need. On the Southampton move: The move is very exciting. We will be buying a house in Winchester. Its a relaxed and friendly city. Its pedestrianised and safe for young children with plenty of activities including archaeological sites and an ancient castle. It is an important and dramatic move for Lloyds Register and will include a new IDS (Internal Data System) for process management. On being a godmother: Joanna is one of the few ship surveyors if not the only one to be asked to be godmother of a vessel. She christened the Bahamas-flagged bulk carrier Aifanourios at Shanghai Shipyard in 2002 when she was six months pregnant. It was a wonderful experience being asked to be the godmother of a ship is the epitome of surveyorship. I take a real pride in keeping an eye on her and I have been following the various stages of her career ever since, she says. Joanna is also the proud godmother of two beautiful girls a niece and the daughter of a friend.

The great fuel debate

How does a shipowner achieve the delicate balance between energy efficiency, sustainability and environmental footprint when choosing the fuel of the future? Ed Fort argues the pros and cons
Sustainable power generation is arguably the greatest challenge facing the shipping industry today. Ever-increasing fuel costs and rising environmental demands during a period of global economic uncertainty threaten the very existence of all but the most efficient options within the industry. While conventional residual and distillate fuel oils can be expected to continue as the dominant fuels for the worlds merchant fleet for the foreseeable future, the rising cost of bunkering and, more recently combustion, makes the consideration of alternative fuels for marine power generation crucial. Lloyds Register is actively engaged with industry in evaluating a range of potential or alternative marine fuels so that industry may rise to and succeed in achieving a sustainable future, not least in marine power generation.

Some of Joannas interests and enthusiasms On chickens: I have five at the moment each of which has a special name. We (the family) tend to have a fairly high turnover of hens because of the growing urban fox population. The foxes sneak in during the night and snatch them away, so we have to replace them from time to time. We always have more than enough eggs, so I bring them in to work and share them out among my colleagues. On cycling: I take my daughter to school and then cycle four miles which includes crossing the River Thames from our home in Lewisham to Fenchurch Street. I never travel with my husband as he likes to cycle at a faster pace and treats the journey as a bit of a challenge. I prefer a more leisurely pace and Ill sometimes linger at a zebra crossing or slow down to chat to pedestrians. On gardening: Lewisham in south-east London is relatively green and we have a good-sized garden. I have a passion for

Ed Fort, Lloyds Registers Head of Marine Engineering Systems. Ed leads the Engineering Systems team and is a member of Lloyds Registers Technical Policy Group 41

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Great fuel debate

Natural gas There has been widespread recent interest in the use of natural gas as a marine fuel, particularly when stored cryogenically as liquefied natural gas (LNG). In terms of emissions, the relative advantages associated with the clean combustion of natural gas compared to conventional marine fuel oils are by now well known, including the total elimination of SOx emissions, the almost total reduction of particulate matter and between 8090% less NOx emissions. Reductions of around 20% in CO2 emissions are also realised on board. However, although such reductions may well represent a saving for the marine industry, it may not be evident when considering the impact of LNG production, storage, delivery and combustion as a whole. While the use of natural gas is well established as a fuel for highly reliable multi-megawatt shore power generating stations, its use as a marine fuel is not without challenges. The relatively low volumetric energy density when liquefied at a temperature of 162 C compared to conventional marine fuel oils means that the storage volume required for the cryogenic tanks, typically Type C tanks, will be somewhere between 2.5 to three times greater than the volume required for storage of marine diesel oil and even greater for compressed natural gas (CNG). The introduction of prismatic cryogenic storage tanks should see that storage volume fall to approximately twice the volume required for marine diesel oil. A further challenge for the industry is the lack of worldwide availability of LNG at the dockside. If LNG is to offer an alternative to conventional marine fuel oils, for ships trading internationally, worldwide availability of LNG of appropriate and consistent quality will be required.

Although the future of LNG as an alternative fuel for ships trading internationally remains to be seen, there is no doubt its suitability for ships operating frequently in Emission Control Areas (ECAs) such as short sea shipping, inshore and inland shipping with frequent bunkering opportunities at one, or a limited number, of established bunkering facilities. Lloyds Register is currently engaged in a number of LNG-related projects including the ropax ferry Viking Grace and the inland waterway chemical tanker Argonon. While clearly not a sustainable fuel in the truest sense of the word, with global oil reserves in decline, the prospect of natural gas meeting ever-increasing power demands ashore and at sea while bridging the gap between conventional fuel oils and the renewable or carbon-neutral fuels required for a truly sustainable future is clearly an option. To facilitate the safe use of natural gas onboard ships Lloyds Register has already published corresponding Rules and Regulations and is currently working alongside the marine industry in the development of the International Code for Gas-Fuelled Ships (IGF Code) and in several related national and international initiatives aimed at ensuring the safety of gas-fuelled ships. Biofuels Unlike their first generation counterparts, second and third generation biodiesels offer the potential for a realistic and sustainable alternative, or at least a supplement, to conventional marine fuel oils. Although of lower volumetric energy density than conventional marine diesel oils, biodiesel compares favourably with LNG and is significantly greater than CNG. However, unlike LNG or CNG, storage tanks for biodiesel are likely to be comparable in size and in structure to conventional marine fuel oil storage tanks. While first generation biofuels are produced using feedstocks, water or land resources traditionally associated with food production, second and particularly third generation biofuels do not compete with either. Second generation biofuels make use of non-edible plants, crop waste or biomass. While third generation biofuels offer the prospect of large-scale production of carbon neutral fuels using land and water totally unsuitable for crop plant or food production.

The rising cost of bunkering and, more recently, combustion makes the consideration of alternative fuels for marine power generation crucial.
One of the most promising developments is the use of algae to produce oils with molecular structures similar to the petroleum and refined hydrocarbon products in use today, offering the potential for manufacturing a range of fuels including gasoline, diesel fuels and jet fuels with the same specifications. Such algae is theoretically capable of producing over 2,000 gallons of oil per acre per year compared to first generation feedstocks such as soybeans which yield approximately 50 gallons per acre per year and in doing so consume atmospheric carbon dioxide. In addition to sea trials of algae-derived biodiesel, Lloyds Register is also evaluating the use of other alternative fuels currently manufactured from hydrocarbon feedstocks but potentially capable of carbon neutral production using biofeedstocks including methanol and dimethylether (DME). Hydrogen In the longer term hydrogen would appear to be the ultimate clean fuel or more accurately energy carrier. If used to supply fuel cell generators the prospect of true zero emission power generation (no SOx, NOx, CO2 or PM [particulate matter]) and extremely high electrical efficiency (6070%) could be realised. However before it may be considered as a practical alternative to conventional marine fuel oils a number of challenges have yet to be overcome. The volumetric energy density of hydrogen, even when compressed or liquefied, is extremely low. Compressed to 250 bar the energy density is less than a tenth of that of conventional marine diesel oils and when liquefied, at a temperature of approximately 250C, still only a quarter suggesting the need for prohibitively large storage tanks. A further challenge is that the energy necessary for compression may

represent as much as 520% of energy content of the hydrogen, depending on the storage pressure, and as much as 30 40% for liquefaction. Such inefficiencies currently make the use of hydrogen as an alternative to conventional marine fuel oils unlikely in the short term for all but niche applications such as vessels with very low power demands, and/or very short trading routes or operating in very environmentally sensitive areas such as harbours or inland waterways. For hydrogen to replace conventional marine fuel oils as a truly zero emission fuel, it will need to be produced using established or sustainable production processes that are currently the focus of worldwide research and development (R&D) including electrolysis, photo-electrolysis, high temperature decomposition, photo-biological production and thermo-chemical splitting. In addition to green production hydrogen storage technology will need to improve. R&D worldwide is currently focused on the development of hydrogen storage technologies such as organic hydrides and carbon nanostructures which, if realised, will almost certainly revolutionise our industry and all other transportation sectors too. Lloyds Register is monitoring the development of enabling technologies necessary for the use of hydrogen as an alternative to conventional marine fuel oils, particularly hydrogen storage and hydrogen generation technologies. The challenges facing the marine industry in striving for sustainable marine power are significant. For its part, Lloyds Register aims to support the industry by facilitating, without promoting, the use of alternative fuels through the provision of timely and appropriate Rules, Regulations, guidance and advice.

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Lloyds Register is currently engaged in a number of LNG-related projects including the ropax ferry Viking Grace and the inland waterway chemical tanker Argonon.

Natural algae growing in an inland lake

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Retrofit review

Retrofit review wins green seal of approval

A Lloyds Register study of three fuel options finds reassuringly few future problems, reports Lloyds Registers Design Support Senior Surveyor, Jesper Aagesen
D/S Norden-owned Nord Butterfly, the tanker converted to LNG as fuel with two LNG storage tanks in front of the accommodation area What shipowners and operators need to do to comply with the new emissions regulations is one of the themes of a retrofit technology study by Lloyds Register and a group of Green Ship of the Future (GSF) partners. The project, named the ECA Retrofit Technology Study, compares technologies that meet the IMOs emission levels for ships sailing in Emission Control Areas (ECAs). Jointly funded by the Danish Maritime Fund and the participating partner companies Lloyds Register, Alfa Laval Aalborg, D/S Norden, Danish Shipowners Association, Elland Engineering, Maersk Maritime Technology, Maersk Tankers, MAN Diesel & Turbo and Schmidt Maritime. The study looks at three fuel options: low sulphur fuel oil/ marine gas oil (referred to as MGO and the reference case), heavy fuel oil (HFO) and liquefied natural gas (LNG). The reference ship used for the project was a newly-built, medium-range (MR) tanker from D/S Norden. The projects aim was to carry out a desktop study based on a real ship and on real operational data and to set up practical solutions as well as uncovering the financial aspects of installation, operation and maintenance of the options. Lloyds Register has reviewed the proposed solutions for scrubber technology and LNG as a fuel. The reference case for operation on MGO has not been a subject of further investigation. The Lloyds Register reviews are conceptual design reviews, i.e. overall regulatory and safety assessments to identify the challenges and outstanding matters which need further consideration. The scrubber solution With the scrubber solution, the aim was to extend the vessels funnel casing and install a hybrid wet scrubber system that can operate on both freshwater and sea water, serving both the main and auxiliary engines. During the conversion the funnel would need to be rebuilt and about 300 tonnes of steel work carried out. The vessels freefall lifeboat would also have to be relocated. This solution has to some extent been based on experiences gained by Alfa Laval-Aalborg, the equipment supplier onboard the ro-ro vessel Ficaria Seaways, in which Lloyds Register has been heavily involved. Lloyds Registers conclusion is that the scrubber retrofit solution would be both feasible and technically sound. A set of Lloyds Register Rules and Regulations is being drafted for exhaust gas abatement. LNG as fuel solution Any owner wishing to convert an existing vessel to a dual-fuel concept, operating on both diesel oil and LNG, will need to convert the main engine to a dual-fuel one and the vessel will need separate LNG storage tanks and a fuel gas supply system. In this project, two 350 m3 tanks were located transversely on the ships upper deck forward of the accommodation house. Deck houses for LNG equipment were also placed on the upper deck. One of the challenges in the retrofit project was the location of tanks, deck houses and foundations due to the huge amount of piping on the upper deck. As Lloyds Registers conceptual design review did not identify any major or unsolvable problems at this stage, it concluded that the project is feasible The conclusion on the scrubber solution was that the main factor was the price spread between marine gas oil/distillates (MGO) and heavy fuel oil (HFO) while the investment costs had less significance. For the LNG as fuel retrofit solution the spread between the fuel prices (LNG versus HFO and MGO) are of course also important and the final LNG price plays a role as well. In this case, the investment cost was found to be slightly higher than that of the scrubber solution and therefore its impact on the pay-back time is higher, but not the main factor. It is important to note that these factors may change when looking into other ship and engine types and sizes. For more information about the study, please visit www.greenship. org where the report and associated presentations will be available. Lloyds Register bunkering study Availability of LNG is an important issue when considering LNG as fuel for a deep-sea vessel. Independent of the GSF ECA Retrofit Project, Lloyds Register has recently carried out a study on the LNG bunkering infrastructure for deep-sea ships. The study provided an overview of the main global trade routes, vessels fuel consumption and bunkering hubs. It includes two stakeholder surveys one on shipowners, the other on ports. The information gathered in the study has been turned into an interactive model that Lloyds Register can use to assist clients considering LNG as fuel for deep-sea ships. It will also provide an estimate of the newbuilding demand for LNG-fuelled deep-sea vessels up to 2025. The full findings of the bunkering study will be published in a future issue of Horizons and you can read a summary at www.lr.org/lngasfuel

from a regulatory point of view. New Rules and Regulations from Lloyds Register for gas-fuelled ships will come into force on 1 July, 2012. Lloyds Register classed ships that comply with these rules will be eligible for assignment of the class notation GF. The financial factor The study included a financial analysis of the solutions covering the investment costs (CAPEX) and the operational costs (OPEX). Information on investment costs was gleaned from equipment suppliers and shipyards. On the operational side, estimates of OPEX were done for each of the solutions under different scenarios based on fuel oil/LNG costs as well as the percentage of time vessels spend trading in ECAs.

Jesper Aagesen, Senior Surveyor and Ship Design Specialist in Lloyds Register EMEA Design Support Office in Copenhagen. A member of Lloyds Registers Nordic Marine Business team, Jesper is involved in the project management of LNG as fuel at Lloyds Register, and a number of green projects

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Horizons May 2012

SMMI launch

Rudder damage JIP launched

Cavitation problems on the rudders of container ships and LNG carriers has led to a joint industry project between Lloyds Register, Zodiac Maritime Agencies and Hyundai Heavy Industries, writes Roger Cornish
Roger Cornish joined Lloyds Register as a Trainee Surveyor in July, 2010. He is currently in the second year of our four-year Marine Graduate Training Scheme after graduating from Newcastle University with a MEng degree in Naval Architecture

Southampton, Silicon Valley, then the world

SMMI Director Professor Ajit Shenois vision is as infectious as it is innovative
The Southampton Marine and Maritime Institute (SMMI) aims to be a world leader and the silicon valley of the marine and environment industries. That is the boldly-held view of its Director, the University of Southamptons Professor Ajit Shenoi. SMMI a collaboration between Lloyds Register and the University of Southampton covers a segment of the economy that is bigger than aerospace and agriculture combined and includes sectors like tourism, finance and insurance as well as ship and boat building and manufacturing, accounting for an estimated 78% of the UKs GDP and approximately 900,000 jobs, said Ajit. The scope of research and education covered by SMMI, which was launched on 27 March this year (see News focus, page 3), includes ship science and maritime engineering, maritime law, ocean sciences, marine logistics and finance, maritime archaeology and even literature and history based on the oceans. Almost 90% of the worlds goods are carried by sea and if, for instance, the worlds ports closed for a week, Id suggest much of the globe would come to a halt. The marine sector is critical to the well-being of the planet, whether it is in terms of food, energy, trade or climate change (oceans are a big sink for heat). Understanding the ocean environment and managing it properly is crucial. SMMI will allow collaborative and cross-disciplinary research and education that addresses societally significant challenges, he said. The University and Lloyds Register have discussed the idea of a UK maritime centre of excellence for at least 10 years. Four years ago, a University strategic research group was formed which included its ship science and environment departments and the National Oceanographic Centre. And so the seeds of SMMI were sown. SMMI now has a core of more than 150 academics and a growing nucleus of PhD students. Thats stage one. Stage two will occur in 2014 when the London marine division of Lloyds Register moves into a brand new building on the Universitys Boldrewood Campus. Lloyds Register will be part of both SMMI and the Universitys engineering faculty. Apart from research and education, SMMI will forge links with other universities, associations, governments and industry. We have some of the worlds leading academic researchers in a variety of disciplines. We want businesses to come to us, forming partnerships by interacting with our students, while we in turn will help individual businesses develop and turn research ideas into commercial products, said Ajit.

Significant damage to the rudders of container ships and LNG carriers after very short periods of service has led to a joint industry project (JIP) on the effects of cavitation and cavitation erosion by Lloyds Register, London-based shipowner Zodiac Maritime Agencies and Korean shipbuilder Hyundai Heavy Industries. The damage, which was often found at the first docking survey or in-water survey (IWS) after construction, has been attributed to cavitation a hydrodynamic phenomenon where vapour cavities form around propellers and rudders due to adverse flow and pressure conditions. After discovering several vessels with rudder damage during surveys, Lloyds Register notified the relevant flag administrations, which in some cases meant the vessel could not sail until satisfactory repairs had been made to the detriment of the operator. This led to the idea of a JIP to investigate the design features and operational characteristics that caused the problem. The major advantage of the JIP is that it pools the resources of a major classification society (Lloyds Register), a major ship operator/ owner (Zodiac Maritime Agencies) and a significant shipbuilder (Hyundai Heavy Industries) to develop a solution for both the existing fleet and for future vessel designs. The aim is to investigate design optimisation, operational changes, materials and coating developments, computational fluid dynamics (CFD) and other methods to predict and mitigate the risk of erosive cavitation.

During the JIP, our investigators have access to vessels from the Zodiac Maritime fleet to provide a platform for live research, while we can also draw on our experience of ships across the world to add to the main data bank. For HHI, the project provides the opportunity to work closely with a potential customer and ensure their product is the superior option in any future shipbuilding contracts. It will also enable HHI to assist owners with rudder problems and allow them to find a solution, thus strengthening the existing relationship between the shipyard and the owner. The timing of the JIP coincides with Lloyds Registers backing of a PhD into materials resistance to erosion at the University of Southampton and The Lloyds Register Educational Trusts funding of the International Institute for Cavitation Research in conjunction with Londons City University, Delft University of Technology in The Netherlands and the UKs Loughborough University. Its aim is to provide a viable solution for owners and operators of LNG and container ships, and so minimise the effects of cavitation erosion and corrosion as part of their standard operations. The JIP was signed on behalf of Lloyds Register by Marine Client Manager Rafael Riva who said: This represents a great opportunity for Lloyds Register to be involved in overcoming a well-known industry problem with such technically competent partners and world leaders as Zodiac Maritime Agencies and Hyundai Heavy Industries.

The JIPs findings will be published in a report to be distributed to stakeholders and key industry players.

aim is to The

minimise the effects of cavitation erosion and corrosion as part of standard operations.

Professor Ajit Shenoi biography Born Vypeen Island, India Education Degree in naval architecture from the Indian Institute of Technology, Kharagpur: doctorate from the University of Strathclyde, Glasgow Career From 1974 to 1978 worked at Mazagon Docks, Bombay and Arya National Shipping Lines, Tehran. Returned to academia as a lecturer, senior lecturer, reader and finally professor at the University of Southampton

Other qualifications Chartered Engineer and Fellow of the Institution of Mechanical Engineers and the Royal Institution of Naval Architects Marital status Married to Kalpana with one son Author Written 10 books

Zodiac Maritime Agencies Technical Director, George Cowan, (left) and Marine Client Manager, Rafael Riva, at the contract signing

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Olympic dream factory

The Olympic dream factory

A group of scientists and engineers from the University of Southampton are using ship science techniques to help Team GBs elite performers win gold at the London Games

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 coaches the Rowing originally preferred

Horizons May 2012

Regulatory round-up

traditional approach of saying pull harder until they saw the merits of sports technology.
Amy Williams: skeleton gold medallist

A group of engineers check out their tasks for the day in a small suite of offices one slightly cluttered with two tables and an assortment of tools, the other more business-like with a row of desks, chairs and laptops. A familiar enough scene. Except that the offices are linked to a state-of-the-art wind tunnel. Not such a typical workplace then and nor are the workers. This first-floor annexe is the testing centre for five extraordinary engineers. As members of the Performance Sport Engineering Laboratory (PSEL) at the University of Southampton, the group specialises in improving athletic prowess and helping Team GB win Olympic medals and records. Mention some of the UKs outstanding sportsmen and women at the past two Olympics and they may well have been associated with Southampton including Beijing Olympics cycling gold medallist Sir Chris Hoy and 2010 Vancouver Winter Olympics bobsleigh (skeleton) champion Amy Williams. To put it in lay athletes terms, Team PSEL, led by Professor Stephen Turnock, adapt the techniques used to refine ships performance to record-breaking individuals.

Although their methods are far more scientific and labour-intensive than that. As anyone who has cycled in a wind tunnel or swum at the end of a tow-rope will testify. Southamptons sporting tradition began just over 40 years ago when engineers from its Wolfson Unit for Marine Technology & Industrial Aerodynamics used testing technology and superyacht design on vessels in the Americas Cup and the Volvo Ocean Race. More recently the PSELs two wind tunnels have been used to develop Formula One and IndyCar racing cars. The first experiments on cyclists and bicycle technology were made when PSEL was approached by UKSport, British sports main funding agency, in 2004. The team worked closely with former Olympic gold medallist Chris Boardman, the technical adviser to Team GBs cyclists. Their unique methods including computational fluid dynamics (CFD) or simulated wind tunnels reducing drag for cyclists helped Team GB win a record haul of gold medals at the 2008 Beijing Olympics. Since then performers in such sports as skeleton (see top right), wheelchair racing and rowing have been tested and fine-tuned by Team PSEL. At first rowing coaches preferred the more traditional approach Model of a yacht is tested in a wind tunnel

of saying pull harder but they now see the merits of sports technology, said Joe Banks, PhD Researcher in Performance Sport Engineering. However when a group of leading swimmers tried to adopt a novel type of performanceenhancer hi-tech swimsuits they were banned. Team GB had other ideas and approached PSEL. Improving a swimmers performance has a lot of crossover with ship science as we use the same towing technique as we do with a model ship. We have developed a special tow-rope which is attached to the swimmer in a special towing tank and carries them 10% faster than their usual speed. We then film the performer underwater and see how their swimming stroke or turns can be

adjusted or refined. We also gauge how water and air flows affect their performance, said Angus Webb, PhD Researcher in Fluid Structure Engineering. The performers develop the tweaks and changes we make to their techniques here and then take them back to their training centres. We find they respond very quickly particularly when they find that our methods dont affect their training schedules in any way, said Joe Banks. And Team PSELs efforts have not gone unrewarded. They were recently presented with their own gold medal by the Queen at Buckingham Palace as one of 11 winners of the Queens Anniversary Prize for Higher and Further Education.

A pair of university students put a racing car model through its paces

Olympic gold-winning cyclist Sir Chris Hoy in one of the University of Southamptons wind tunnels

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Some of the UKs outstanding sportsmen and women at the past two Olympics have been associated with Southampton.
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Regulatory round-up TBC

Safety, garbage and noise control head the IMOs agenda

Evolving safety legislation

Excessive noise on ships can cause permanent hearing loss

The IMO has had a busy 2012 a trend that looks likely to continue for the rest of the year. Here is a special Horizons round-up of new and evolving legislation by Andrew Sillitoe and Barney Walsh, Lloyds Registers Regulatory Risk Assessment Specialists
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Performance standards for recovery systems Previously agreed amendments to SOLAS (new regulation III/171) required ships to have on board a means of recovering people from the water, even if they are unconscious and unable to help themselves. Entry into force has been delayed to allow a performance standard to be developed. The terminology referred to recovery systems, but this prompted concern that it would encourage misuse of ships lifting equipment not designed or certified for lifting people.

As discussions continued at the IMOs Ship Design and Equipment (DE) Sub-Committee, it was not clear whether a new dedicated equipment requirement would be introduced for all ships, including potentially retrofitting existing ships. However, the latest session of DE in February, rejected the proposal to have purpose-built equipment for the recovery of persons from the water. The terminology now speaks of recovery capability rather than recovery systems, to reflect an agreement that procedures and plans on board a ship will be sufficient to comply with the new SOLAS regulation.

Consequently, guidelines were developed instead of specific performance standards. These specify the onboard procedural actions that ensure the recovery requirements for dealing with a man overboard situation can be met. DE has therefore asked the Maritime Safety Committee (MSC) to approve and adopt the new regulation SOLAS III/171. If this happens as expected, it will apply to all ships from 1 July 2014.

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Regulatory round-up

Andrew Sillitoe

Barney Walsh

Recently adopted legislation environmental Evolving legislation

Tonnage measurement Gross tonnage of a vessel is used by various bodies to calculate the fees associated with that ship. This creates pressure on designers and owners to minimise the overall enclosed space for a ship, which can be done by reducing crew numbers and crew accommodation, including removing training berths. The measure can also encourage a lack of reserve buoyancy and the storing of safety equipment in open spaces which are not included in the gross tonnage calculation. Such practices can raise concerns over safety and manning. The IMO Sub-Committee on Stability and Load Lines and on Fishing Vessels Safety (SLF), which met in January this year, has been seeking to address these concerns. It has previously identified 27 issues with the current 1969 Tonnage Measurement (TM) Convention and an associated interpretation circular. The latest session, SLF 54, continued this work. It considered using a new reduced form of tonnage measurement, which excludes the accommodation. The issues previously identified include remeasurement after alterations, definitions of awnings, whether an enclosed space needs a deck above, and the tonnage treatment of complex shapes. Discussions will continue and the impact of the final decisions could be significant. It is expected that any agreed changes will apply to all ship types, and they could potentially cover existing ships and therefore require their remeasurement. Protection against noise on board ships Excessive noise on board ships can cause permanent hearing loss to crew either from a single very loud event or from a lower level long-term exposure. Resolution A.468 (XII), Code on noise levels on board ships, provides guidance but it is non-mandatory and is considered out of date due to advances in noise reduction and prediction. The DE Sub-Committee has therefore been tasked with creating a new mandatory code and corresponding SOLAS amendments. There was extensive discussion on this matter at the latest DE 56, with the issue of testing onboard noise levels being particularly contentious. It was agreed that certain operational issues contained in the code would be recommendatory, and that ear protection should be worn where noise limit levels will unavoidably be breached. Several issues remained unresolved, however, and discussion will continue at MSC 90 before approval of the new code. Lower allowable noise levels may require additional noise insulation and consideration during design and build of the positioning of noisy machinery and of quiet areas. Manufacturers of shipboard equipment should be aware that builders and owners would need to have information about the sound produced by their equipment and recommended methods to reduce the noise emitted at the time of installation. At present it is expected that the requirements will apply only to new vessels of 1,600 gt and over, with smaller vessels only encouraged to meet the requirements where practicable. It should also be noted that the IMO is separately considering the impact on the marine environment of noise generated by ships externally, but this is at a very early stage and will continue for some time. Code for gas carriers Due to significant advances in the technology, operating practices and size of gas carrier ships over recent years, the Bulk Liquids and Gases (BLG) Sub-Committee has been carrying out a comprehensive review of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code). BLG 16 earlier this year made substantial progress on the draft text of the code, including agreeing various definitions. Over 80 editorial changes were made to provide clarity in the text and to ensure consistency with other international standards, such as those developed by the International Electrotechnical Commission (IEC). Due to the degree of progress made, BLG 16 sent its draft text for review by other relevant sub-committees. After these reviews and subsequent agreement by a committee, the revised code could enter into force on 1 January 2015. It would apply to future new gas carriers of any size, but some elements such as operational and training requirements could be applied to existing ships as well. Guidelines for garbage Last year the 62nd session of the Marine Environment Protection Committee (MEPC) adopted resolution MEPC.201(62), to bring in a revised MARPOL Annex V. This details the definition of ships garbage along with regulatory requirements and restrictions of how garbage can be discharged. A major point of contention at that time was how solid bulk cargo residues are to be dealt with, including cleaning agents or chemical additives contained in cargo hold, deck and external surface wash water. MEPC met for its 63rd session in February, 2012 and developed guidelines to help flag states in implementing this newly revised Annex V. The guidelines clarify that cleaning agents and additives contained in hold wash water, and deck and external wash water, are operational wastes and therefore defined as garbage, but they can be discharged into the sea if not considered harmful to the marine environment. The guidelines also clarify the definition of what exactly constitutes harmful to the marine environment. The burden of proof that discharges are not harmful will be placed on the owner or operator. Depending on the cargo being carried, the cargo residue restriction will have a significant impact on the operation of some bulk carriers and general cargo ships. The latest guidelines, 2012 Guidelines for the implementation of MARPOL Annex V, have been adopted by MEPC as a resolution. Black carbon The concept of black carbon has recently entered the environmental protection lexicon. It refers to small particles that have light-absorbing characteristics local to where they are emitted. Early signs show the Arctic region is particularly susceptible to these effects, and as the nearest industrialised land mass to the Arctic, the European Union is paying close attention to the causes and effects of black carbon in relation to its potential impact on climate change. The impact that international shipping has on the production of such elements is not yet known, but certainly requires consideration. BLG 15 is briefly discussed this issue, focusing on how to define black carbon and agreeing the best way to proceed with investigation and discussion. It is not yet clear what will result from the consideration by the IMO in terms of impact on shipping, but it will be further deliberated at future sessions and through an inter-sessional correspondence group. It is very likely that black carbon emission will become an important issue in future and provoke regulatory changes. Further information: To find out more about these or any other upcoming regulatory changes, please contact your local Lloyds Register office, or use the links below. For reports of each IMO meeting: http://www.lr.org/sectors/marine/ Compliance/LRIMO.aspx For RuleOutlookLive, our interactive online service for keeping you updated on the regulatory environment: http://www.lr.org/sectors/marine/ Compliance/RuleOutlookLive.aspx For information on legislation which has been adopted or is under discussion: http://www.lr.org/sectors/marine/ documents/203196ruleoutlook-live.aspx or visit www.lr.org/classnews

It is very likely that black carbon emission will become an important issue in future and provoke regulatory change.

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Horizons May 2012

2012 events

The pride of Posidonia

Lloyds Register is the very proud sponsor of the Posidonia Cup yacht race. One of the highlights of Posidonia week, the Cup will be held on 1 June, just before the start of the main exhibition and conference from 48 June. In this, the sixth Posidonia Cup, more than 50 yachts will compete in four categories performance, standard, IRC and classic yachts. The Cup which is one of the biggest sailing events in the Aegean is organised by the Hellenic Offshore Racing Club (HORC). HORC President John Maradougakis (pictured right) said: Lloyds Register has not only been associated with a high profile event which launches Posidonia every two years and bonds together members of the worldwide shipping community but also, in a wider context, makes it possible for us as a non-profit organisation to carry out throughout the year our educational, training and social programmes. Mr Maradougakis says HORC has around 700 students attending its courses every year and is now associated with ISTION Yachting the Recognised Training Centre of the Royal Yachting Association (RYA). As a result of Lloyds Registers support, we have been able to establish 10 regional centres which have developed into selfstanding clubs offering sailing and training programmes to young people in sometimes remote places where such facilities did not exist before. We consider this to be a very worthwhile endeavour, he said. The Piraeus-based HORC also organises a Cup for Hope race to help fund and build a cancer hospital for children and an annual Smile for Children race which helps support homeless children. HORC organises a number of other events and functions to promote the welfare of young people. www.lr.org/posidonia

Get into gear for Gastech

One of the highlights of the Londonbased Gastech exhibition and conference will be a Lloyds Registerhosted LNG as a shipping fuel stream. The event will be one of a group of Centre of Technical Excellence (CoTE) streams at the four-day event from 811 October this year. As a leader in LNG carrier classification, Lloyds Register will address all the key issues and initiatives of LNG as a fuel as well as a programme it has developed to help answer the big picture question, Is LNG the fuel of the future?. Nick Brown, Lloyds Registers Marine Communications Manager, said: With new emissions regulations and the challenges of rising costs for conventional fuel, the shipping industry is examining

alternative fuels and LNG has emerged as a potential fuel of the future. The CoTEs offer a unique opportunity for operators to address the technical, operational and commercial issues to enable the widespread adoption of LNG as a marine fuel. www.lr.org/gastech

Coming events for 2012 A round-up of some of this years key shipping events
2122 May 2930 May 29 May-1 June 31 May 1 June 48 June 1722 June 1921 June 47 September 1214 September 1718 September 1720 September 1922 September 811 October 2124 October 2127 October 2426 October 2729 November 47 December 57 December API Tanker Conference GreenTech 2012 Conference Quebec City World Maritime Technology Conference Blue Shipping Summit 2012 Conference Posidonia Cup Regatta Posidonia 2012 Exhibition ISOPE 2012: 22nd International Ocean and Polar Engineering Conference Marine Money Week Conference SMM Exhibition Gas Fuelled Ships Conference CFOA 2012 Conference ICETECH Conference Monaco Yacht Show Gastech 2012 Exhibition Interferry 37th Annual Conference CLIA Leadership Forum Conference SNAME Exhibition and Conference Seatrade Middle East Maritime Exhibition and Conference ExpoNaval 2012 Exhibition International WorkBoat Show Fort Lauderdale, Florida, USA Quebec, Canada St Petersburg, Russia Athens, Greece Athens, Greece Athens, Greece Rhodes, Greece New York City, USA Hamburg, Germany Bergen, Norway Victoria, British Columbia, Canada Banff, Alberta, Canada Monaco London, UK Dubai Fort Lauderdale, Florida Providence, Rhode Island, USA Dubai Valparaiso, Chile New Orleans, Louisiana, USA

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Shipping and the environment.

Shipping and the environment: the two words together have different meanings for different stakeholders. We need to take the broadest view of what is driving behaviour in our industry as regulation and economic forces shape our responses. In our new issue of Shipping and the environment we look at the activities of key stakeholders in creating a cleaner, more efficient future for shipping. Pick up your copy at Posidonia 2012 or download it at www.lr.org/sate