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Parts & Dredging Edition 13 September 2010 Dear reader, In our last edition of this

Parts & Dredging

Edition 13

September 2010

Dear reader,

In our last edition of this newsletter we informed you about the changes at the IHC Parts & Services organization that took place in the first half year of 2010. The process of organizational redesign has been fully completed in the mean time. Everybody has found his/her place in the organization and is ready to focus on achieving our common goal: being the reliable system partner and the full service provider.

Coming from this goal we have already achieved successes that we want to tell you about. By means of this newsletter we inform you about our latest achievements in process development, sales and life cycle support successes and new products for the dredging market.

Enjoy reading and be inspired.

Gesine Klimke, Market Communications IHC Parts & Services

Content

Improvement of processes, delivery performance and prices IHC Parts & Services introduces: The Standard Assortment Integral Cooperation – Improving competitiveness within the Dutch Maritime Sector New product developments Lancelot - digging instead of cutting Life cycle support successes Successful collaboration with Wartsila Services in Congo Condition Monitoring as central theme of Maritime Technology Day Sales successes Big order scored for 2 double walled high efficiency pumps for Huta Marine

of Maritime Technology Day Sales successes Big order scored for 2 double walled high efficiency pumps
of Maritime Technology Day Sales successes Big order scored for 2 double walled high efficiency pumps
of Maritime Technology Day Sales successes Big order scored for 2 double walled high efficiency pumps
of Maritime Technology Day Sales successes Big order scored for 2 double walled high efficiency pumps
Improvement of processes, delivery performance and prices IHC Parts & Services introduces: The Standard Assortment

Improvement of processes, delivery performance and prices

IHC Parts & Services introduces: The Standard Assortment

IHC Parts & Services launches a new concept: the Standard Assortment. The selection in this Standard Assortment distinguishes itself from the regular parts in terms of a dedicated Supply Chain Analysis and Optimization. Most repetitive parts have a complete engineering package, firm lead times and list prices. In realizing this we equip our customers with reliable attractive products and proposals so that IHC Parts & Services can support its customers even better. Herewith IHC Parts & Services can guarantee prompt and fast deliveries through lean logistics, while still enduring competitive market prices.

logistics, while still enduring competitive market prices. Without question every part is important to us, however,

Without question every part is important to us, however, the Standard Assortment receives special attention as we have optimised the Supply Chain over the past few months. We are currently extending the Standard Assortment with both IHC

products as well as trade parts.

An additional feature, as a result of realising the Standard Assortment, is the realisation of an IHC Web Portal. The web portal will present products with accurate delivery times and customer specific sales prices.

E-business development at IHC Merwede To support our customers in the dredging after sales market we invest in our online activities. More specific we are developing a so called web portal. This web portal provides the customer 24/7 online access to his dredging fleet including spare parts- and technical information. All information (for example prices) is customer specific which make ordering more easily then ever. The target group is mainly small and medium sized customers without a large purchase and technical department. With this web portal we intend to strengthen our relation with these customers and generate more business.

relation with these customers and generate more business. Integral Cooperation – Improving competitiveness within

Integral Cooperation – Improving competitiveness within the Dutch Maritime Sector

IHC Parts & Services is attendee of Integral Cooperation, a program to improve the competitive strength of the Dutch maritime sector. The program consists of various projects in which two Dutch shipyards, operating as OEM, interact with their future strategic suppliers, all with the aim to realize a better cooperation in the supply chain in order to obtain better products and services at a very competitive price. To achieve this, eleven projects have been defined.

price. To achieve this, eleven projects have been defined. One of these projects is P-9 in

One of these projects is P-9 in which IHC Parts & Services is actively participating together with its partners Damen Shipyards, Econosto, Cofely, Pon Power, Bakker Sliedrecht and some other companies.

together with its partners Damen Shipyards, Econosto, Cofely, Pon Power, Bakker Sliedrecht and some other companies.
P-9 is concerned with the subject Life Cycle Support (LCS) engineering. To check our current

P-9 is concerned with the subject Life Cycle Support (LCS) engineering. To check our current performance it is chosen firstly to follow our LCS activities closely at our customer GDC in China.

LCS engineering by means of sub projects

IHC Parts & Services develops LCS services with the help of sub projects; Maintenance management, ICT infrastructure development, logistic performance improvement and the design of very reliable exploitation cost estimation models. Apart

from these ways of developing LCS modules for the customer, we develop a structure how to learn from our field experience to improve our services and products.

So far the project P-9 LCS engineering has served as a platform to synchronize activities, to exchange and share knowledge, to set targets and to recognize the interdependency of all actions. Results so far are a basic concept of an ICT infrastructure model, it is started to build a Web Portal for bilateral product and service information, a definition is made of a configuration management project, our delivery performance is structurally improved and in concept we defined a structure to learn from the field for product and service innovation. These are all step stones towards proven and successful LCS services in operation. We still have a long way to go, but so far we made quite some considerable progress.

New product developments

Lancelot, digging instead of cutting

IHC Parts & Services introduces the new Lancelot cutter head for digging. This cutter head differs from the conventional ones that are generally used for dredging. These differences are visible in the different shape of the head but also appear in the performance of the cutter.

Conventional cutter heads are optimized for cutting, whereas the new Lancelot has the characteristics of a digging wheel and a crown cutter; it is therefore rather digging than cutting.

a crown cutter; it is therefore rather digging than cutting. Different shape – higher production The

Different shape – higher production The Lancelot is more cylindrical than the conventional cutter and has more arms; 8, 9 and sometimes even 10 straight arms with no sweep angle. The angle of the teeth is bigger which causes a more scooping process.

of the teeth is bigger which causes a more scooping process. The Lancelot is a brand-new

The Lancelot is a brand-new development of IHC Parts & Services and has been used and tested by one of our customers for more than a year now. In comparison with a conventional cutter in the same conditions the Lancelot’s digging capabilities when dredging loosely com- pacted soil results in a better performance.

Caused by its distinctive shape there is a larger contact area with the soil and the extra arms lead to a constant process of mixture creation. This constant mixture creation in combination with the extended contact surface allows the operator to increase production.

Three more Lancelot cutter heads are currently in production.

contact surface allows the operator to increase production. Three more Lancelot cutter heads are currently in
Rubber products IHC Parts & Services has recently included rubber products in its assortment. In

Rubber products

IHC Parts & Services has recently included rubber products in its assortment. In the next newsletter we will introduce this new product line to you.

newsletter we will introduce this new product line to you. Life cycle support successes Successful collaboration
newsletter we will introduce this new product line to you. Life cycle support successes Successful collaboration

Life cycle support successes

Successful collaboration with Wärtsilä Services in Congo

Successful collaboration with Wärtsilä Services in Congo The collaboration with Wärtsilä Services Benelux that IHC

The collaboration with Wärtsilä Services Benelux that IHC Parts & Services incurred earlier this year for the maintenance and repair of Smit Bolnes engines is bearing first fruit. Recently IHC Parts & Services was contracted for the repair of the trailing suction hopper dredger Tshuapa from the Republic of Congo which will be exercised by service technicians of Wärtsilä.

Background of this contract is that the Congo River is silting up dramatically because the three dredging vessels of the local harbour authorities are lying idle for two years already. Therefore heavily laden ships cannot enter the river from sea. By means of development help, funds were made available to repair these ships. Two of the dredging vessels were built by IHC, the Kasai en the Tshuapa. A critical inspection and a plan to approach the problems resulted in the assignment to IHC to repair three Smit Bolnes engines on one of the trailing suction hopper dredgers, the Tshuapa.

Together with Wärtsilä IHC Parts & Services can make sure that the vessel will be operative again for the next ten years.

Joost Dingemans, account manager at IHC Parts & Services for West Africa, hopes to extend this assignment to long-term life cycle support contracts for these two IHC built hopper dredgers.

Africa, hopes to extend this assignment to long-term life cycle support contracts for these two IHC
Condition Monitoring as central theme of Maritime Technology Day On 24 June 2010, European experts

Condition Monitoring as central theme of Maritime Technology Day

On 24 June 2010, European experts from the dredging sector and other related industries met in Rotterdam during the first Maritime Technology Day, organised by the Dredging Networking Group. The seminar’s central theme was Condition Monitoring. Prominent speakers took the stage who gave their perspective on the central theme of Condition Monitoring and were able to stimulate lively discussions amongst the participants.

to stimulate lively discussions amongst the participants. Under the guidance of Prof. Dr. Cees van Rhee,

Under the guidance of Prof. Dr. Cees van Rhee, professor of dredging engineering at TU Delft, approx. 80 European experts from various dredging companies, dredging and non-dredgingrelated suppliers, classification bureaus and scientists examined the diverse aspects of Condition Monitoring. The Scheepvaart en Transport College (College of Shipping and Transport) in Rotterdam provided not only a fitting setting for the interesting presentations, discussion groups and diverse informal talks, but for dinner as well. The presentations and an account of the entire Maritime Technology Day are available from www.dredgenetgroup.com.

The first Maritime Technology Day was a success, due in part to the excellent contributions from the various speakers, but especially because of the diversity of the participants. It was not attended exclusively by representatives from dredging related companies, other industries, where Condition Monitoring as related to maintaining installations is already an established practice, took part as well.

Condition Monitoring More and more consideration is being given to reducing the total cost of ownership in the dredging sector. This can be concluded in the wake of the first Maritime Technology Day. The challenge lies mostly in generating more income for dredging companies as a whole. This is possible through larger investments in a company’s technical operations. The increase in operational availability that this creates generates a large amount of extra income. It is also clear that cooperation between suppliers and dredging companies can reinforce the trend; diverse technical solutions can assist in making dredging operations and

solutions can assist in making dredging operations and the associated use of dredging equipment more predictable,

the associated use of dredging equipment more predictable, which in turn helps to prevent unexpected disruptions or to realise the timely application of replacement materials. It is especially the integration of the knowledge of design and construction, as well as a bundling of technical user experiences, which seems to offer unique possibilities for optimisation. The expectation is also that the maintenance processes can be optimised and even certified, which would make fur- ther economisation possible.

Sales successes The year 2010 looks very successful for IHC Parts & Services. The order

Sales successes

The year 2010 looks very successful for IHC Parts & Services. The order intake of IHC Parts & Services exceeds its forecasted targets. Considering the overall diminishing maritime market the successes of IHC Parts & Services are

remarkable.

Big order scored for 2 double walled high efficiency pumps for Huta Marine

After almost two years of negotiation with Huta Marine about an order for several pumps and engineering & supervision jobs finally ended up positive for IHC Parts & Services.

In July 2010 IHC Parts & Services concluded an agreement with Huta Marine to deliver two inboard double walled high efficiency pumps of the type 220-40-80 including heavy duty bearing

blocks and one single walled ladder pump of the type 162-50-80 for the cutter suction dredger ‘Huta 10’.

The specialty about this order is that IHC Parts & Services will not only provide the equipment but also the engineering and supervision of the renovation and commissioning. By means of mounting these pumps, the ‘Huta 10’ will meet the newest technical standards and requirements again.

The cutter suction dredger is currently active in Saudi Arabia. The delivery of the pumps and the auxiliary equipment will approximately be in December 2011.

auxiliary equipment will approximately be in December 2011. Biggest CS pump ever ordered by Jan de
auxiliary equipment will approximately be in December 2011. Biggest CS pump ever ordered by Jan de

Biggest CS pump ever ordered by Jan de Nul

In July IHC Parts & Services received the assignment from Jan de Nul NV to deliver a large double walled cutter special pump. This pump is intended for the JDN new building hopper dredger HP 8040 and it will be the largest cutter special pump ever built. The delivery also includes a set of spare parts and is planned for December 2011.

Together with this contract IHC P&S already discussed and agreed the delivery of an identical scope for a second hopper dredger. The expiry date for a go-or-no-go will be 01 December 2010.

We will keep you informed periodically about the developments.

will keep you informed periodically about the developments. IHC Parts & Services Smitweg 6, 2961 AL
will keep you informed periodically about the developments. IHC Parts & Services Smitweg 6, 2961 AL

IHC Parts & Services

Smitweg 6, 2961 AL Kinderdijk P.O. Box 50, 2960 AB Kinderdijk The Netherlands

T +31 78 691 04 30 F +31 78 691 04 39 info.ps@merwede.com www.ihcmerwede.com / www.ihcps.com