Parts & Dredging

Edition 13 September 2010

Newsletter
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
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.

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.

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.

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.
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.

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.

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.

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.

Life cycle support successes

Successful collaboration with Wärtsilä Services in Congo

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.
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.

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
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 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.

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.

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