HorizonsNews and information for the marine industry

June 2010 Issue 29

2

In March, Lloyd's Register launchedShipping and the environment,a publication outlining theenvironmental challenges affectingshipping today and the ways in whichLloyd’s Register is responding to themthrough research, involvement in

emerginglegislationandstandards,and thedevelopmentof services.

To assist owner and operators inunderstanding their regulatory commitments,it features a pull-out roadmap which presentsthe key forthcoming environmental legislationfrom the IMO and highlights compliance andentry into force dates.

Meanwhile, a more in-depth section takes acloser look at six key areas – fuels and

June 2010 Horizons

News digest

An insightful look at the environmental issues facing the marine industry

The feasibility study will take place onboard the Maersk Line container ship,Maersk Kalmar. Collaborators in thebiodiesel project are Maersk Line, MaerskTankers, Maersk Supply Service, MaerskDrilling, Maersk Ship Management,Lloyd’s Register’s Strategic ResearchGroup, and a consortium of Dutchsubcontractors. The project is being partfunded by the Dutch government andco-ordinated by Maersk MaritimeTechnology.

Initially, the scope of the tests will beginusing a blend of between 5% and 7%

Maersk and Lloyd’s Register team up for marineengine bio-fuel tests

Surveyor trainingin China

The Marine Surveyor Training Institute(MSTI) in Shanghai completed its secondsurveyor training programme in April,with16 students coming from 8 officesin China and Greece.

The course is aimed at helping newsurveyors to apply consistent standardsin surveys and reporting throughstructured theory in the classroom andintensive field training under theguidance of MSTI mentors.

All 16 surveyors successfully graduated,with authorisation experience in newconstruction, existing ship and marinecomponents.

biodiesel, with the blend percentage beingsteadily increased.

“One of the aims of the tests is toestablish the degree to which issuesexperienced by the automotive industry inthe use of the bio diesel FAME (fatty acidmethyl esters) will be duplicated on boardship, in particular the impact on storagestability, handling and its subsequent use inthe engine. Where adverse effects arearising it is hoped to find solutions toovercome them.” says Kim Tanneberger,Specialist of Lloyd’s Register’s StrategicResearch Group (SRG).

Lloyd's Register is to play a major role in a two year programme to test thesuitability of bio-diesel for use in powering marine engines.

exhaust emissions, ballast watermanagement, ship recycling, energy, volatileorganic compounds and hull coatings – andthe issues and legislation surrounding them.

Shipping and the environment also presentsthe wide range of environmental services weoffer to help owners and operators operate ina more safe and sustainable fashion.

Front cover: Adrianos Zaphiropoulos, Senior Surveyorin Charge, Marine Operations, Piraeus

3

June 2010 Horizons

The third version of Lloyd's Registerguide to Ballast Water TreatmentTechnology is now available.

First launched in 2007, this latest version ofthe guide provides further independent andimpartial information on commerciallyavailable and developing technologies forballast water treatment.

Latest Ballast Water Treatment Technologyguide published

The International Shipping Partners’ ship Sea Voyager was accepted into Lloyd’s Registerclass following two weeks of sea trials in Jacksonville, Florida, prior to taking up a newrole providing accommodation for World Food Programme staff engaged in relief effortsin earthquake-stricken Haiti. Sea Voyager had been in lay-up since 2002, however Lloyd'sRegister North America, Inc. surveyors worked closely with the management company,and the US Coast Guard to verify the vessel was in compliance with all necessary rulesand regulations before its departure for Haiti.

LR classes accommodation ship forrelief workers

The deal for GEM’s fleet of 17 tankers,demonstrates GEM's intention to ensurecompliance well ahead of implementation.Its signing follows the announcement ofa similar deal with V.Ships.

Lloyd's Register was approached byV.Ships’ Shipmanagement Division tocomplete an ILO gap analysis, identifyingany areas for development, as well astraining and certification services for all

Lloyd's Register wins two major MLC contracts

V.Ship Shipmanagement entities, providinga unified and global approach to managingMLC, 2006 compliance.

Lloyd’s Register has now completedmore than 100 MLC, 2006 trialinspections worldwide and has more than45 trained ILO qualified inspectors ableto provide MLC, 2006 services – a numberthat will grow as further inspectorsare trained.

In the latest deal, Lloyd's Register Middle East Area negotiated a contract withDubai based tanker operator Gulf Energy Maritime (GEM) to provide MaritimeLabour Convention (2006) gap analysis and certification services to GEM, priorto the International Labour Organisation’s (ILO) new maritime labour convention,MLC, 2006 which is expected to come into force in early 2012.

LNG 16 in Oran

We recently exhibited at LNG 16 inOran, Algeria in April, at the height ofthe disruption caused by the volcanicash cloud. Over half the delegatesscheduled to attend were unable totravel, including several from Lloyd'sRegister. However, we maintained apresence through Salah Boudemala,our Training Manager from Dubai.

More than 70 delegates from aroundthe world did manage to make it to whatis the largest event in the world dedicatedto the liquefied natural gas industry, andteams from Sonatrach, Medias, membersof the Algerian senate and parliamentattended the Lloyd's Register stand.

Algeria’s Minister of Energy and Mines,Mr Chakib Khalil visits the Lloyd’s Register stand.

The global requirement for ballast watertreatment arises from the InternationalConvention for The Control of Ships' BallastWater and Sediments. This requires certainship types to use treatment systems whichmakes the treatment of ballast water one ofthe most significant environmental andoperational challenges facing the marineindustry today.

June 2010 Horizons

4

Statutory approval

From March, Lloyd’s Register wasauthorised by the NetherlandsShipping Inspectorate to perform allstatutory work on their behalf forinland waterway vessels. Lloyd’sRegister is the first classificationsociety which has gained thisauthorisation.

Lloyd's Register has trained 30 surveyorsin the Western European area on thestatutory legislation. Pilot projects havebeen set up during the last six months inpreparation. NSI has also asked Lloyd’sRegister to take over the statutory workon dozens of new building projects whichare in an early stage of construction. Formore information please contact the WEAInland Waterway product manager, BasJoormann at: bas.joormann@lr.org

MV Kastoswas delivered to EletsonCorporation of Greece and “christened”by Laura Poulovassilis at a namingceremony on March 16.

The tanker was built by Hyundai MipoDockyard (HMD), Ulsan, in South Korea, toLloyd’s Register class. Following the Eletsontradition of naming ships after Greek islands,it was named after Kastos, a small island inthe Ionian archipelago

Apostolos Poulovassilis, Regional MarineManager EMEA, travelled to Ulsan to attendthe ceremony with his daughter Sofia andhis wife Laura Poulovassilis, who had thehonour of becoming sponsor and godmotherof the vessel.

A total of eighteen papers on subjectsranging from what the Marine industryrequires from Classification societies, tothe future of nuclear energy in shippropulsion, formed the basis of what isnow becoming a regular event in theMarine industry calendar.

John Carlton, Global Head of MaritimeTechnology at Lloyd’s Register said:“2010 marks Lloyd’s Register’s 250thanniversary. In recognition of this landmark,the introduction to the 2010 TechnologyDays took a look back over the technicalchanges that have shaped shipbuilding in thelast 250 years, as well as our responses tothem. We also used the event to present justsome of the ways in which we are applyingresearch and technology today to help makeships safer and more sustainable, boththrough our own global networkand through co-operation with others.”

All the papers presented in the course ofLloyd's Register’s Technology Days can beaccessed on the Lloyd's Register websiteat: www.lr.org/technologyday

Lloyd’s Register showcaseslatest technology research

Lloyd’s RegisterTechnical papers2009

L

Lloyd’s Register - proud to befirst foreign class societyauthorised by the JapaneseGovernment

Lloyd's Register has been confirmed asthe first foreign classification society tobe formally authorised by the JapaneseGovernment to carry out surveys onships flying the Japanese flag.

Under Japanese legislation, Lloyd's Registerhas been designated as a RecognisedOrganisation by the Japanese Governmentand is granted delegated responsibility forstatutory surveys and permission to issuestatutory certificates.

Prior to the authorisation of Lloyd’s Register,only the domestic classification society andfellow IACS member, ClassNK, has held suchrecognition.

At a ceremonyheld at theJapaneseMinistryof Land,Infrastructure,Transport andTourism (MLIT)in Tokyo, MrYoshikiyo Ono, the Director-General ofthe Maritime Bureau of MLIT presentedthe official certificate of registration toChris Walters, Lloyd's Register’s MarineOperations Director.

Among the Eletson Corporation, HMD andLloyd’s Register representatives attending theceremony, were Costis Kertsikoff, CEO,Eletson Corporation, WG Choe, HMDPresident and CEO, and Luis Benito, CountryManager for Korea.

Kastos is latest addition to Eletson fleet

Lloyd's Register hosted the third in its series of Technology Days at the NationalMaritime Museum in Greenwich earlier this year.

June 2010 Horizons

5

Driving Lloyd's Register’scommitment to GreeceTom Boardley, Richard Sadler, and ApostolosPoulovassilis are the team responsible for keepingLloyd's Register’s historic bonds to Greek shippingalive, and for driving that relationship into aprosperous future.

6

Thinking local, with a global viewLloyd’s Register in Greece has been close to theHellenic maritime tradition since 1888 and HellenicLloyd’s recognises that history and the leading rolethat Greece continues to play in shipping today,writes Apostolos Poulovassilis, EMEA RegionalManager.

7

‘Victoria’ type double-skin bulk carrierGreek owners have always been world-leaders inthe dry bulk market, and one of the most successfulnew designs, pioneered by Greek owners in thelast decade, is the ‘Victoria’ type double skin bulkcarrier, writes Spiros Contopoulos, VictoriaSteamship Company’s Technical Director.

9

Victoria Steamship’s commitment toa clean, efficient future for shippingis demonstrated by its support forthe environmental R&D charity,Greenwave.

12

The sea is always alive for the legendaryGreek traders and operators of shipsWe have reproduced material from a 1978100 A1 written to coincide with Posidonia, 32years ago. Many of the concerns expressed byshipowners then remain the same today.

13

Reflections from a troubled pastIn the Spring of 1978, Lloyd's Register gatheredtogether a group of the leading Greek shipowners –to talk about the then crisis facing Greek shipping.Their views formed the basis of a lengthy article inLloyd's Register’s magazine of the day, 100 A1.

14

“… its in the owners hands, how we’regoing to handle this...”Harry N. Vafias is President and Chief Executive Officerof StealthGas Inc. and has been actively involved inthe tanker and gas shipping industry since 1999. Here,

Lloyd's Register asks him for his assessment of thestate of the shipping industry today.

16

”... for Greece, shipping meansinternational premiership andreputation...”Theodore E. Veniamis is the President of the Union ofGreek Ship-owners and founder, Chairman andManaging Director of the Golden Union Group, thePiraeus-based shipping company. Here, Lloyd'sRegister asks him for his assessment of the state ofthe shipping industry today.

17

The wisdom of maintaining a “war chest”Captain Panagiotis Tsakos is the founder of theTsakos Group of Companies which has operationsaround the world, and including the NYSE-listedTsakos Energy Navigation Ltd. Here, Lloyd'sRegister asks him for his assessment of the state ofthe shipping industry today.

18

Lloyd's Register in GreeceLloyd’s Register has been working to serve the needsof Greek clients for over 180 years – a relationshipthat began with the appointment of D. Graham asLloyd’s Register’s first surveyor to Piraeus in 1888.

20

Engaging with people and communityThe interests of the community and of theenvironment have been at the heart of our businesssince our foundation in 1760.

22

Promoting matters MarineAs part of its Corporate Social Responsibility initiative,Lloyd’s Register’s independent charity foundation,Lloyd’s Register Educational Trust (LRET), is very activein Greece, funding pre-university and universityeducation.

24

Strategic Research initiatives in GreeceThe Lloyd’s Register Strategic Research initiativesin Greece cover the complete spectrum ofmethodologies and technologies of interest tothe Greek marine customer base, writesSpyros Hirdaris, of Lloyd's Register’s StrategicResearch Group.

25

Contents

Lloyd's Register's highest authorityon classing mattersLloyd's Register's Classification Committee and itsExecutives offer a consistent, fair and uncompromisedapproach that ensures that when it comes to FleetQuality Management, correct decisions are reachedirrespective of any commercial implications.

27

Devolved Classification ExecutiveCommittee (DCE) in GreeceHellenic Lloyd’s’ Marine Operations is responsiblefor 26% of the worldwide Lloyd’s Register ClassedFleet and is in daily contact with our clients, alwaysready to cover clients’ needs and expectations.

36

Extended Dry Dockings provide flexibilityto qualifying operatorsRecent interest has been shown in Lloyd’sRegister’s pioneering work in piloting a 7.5 yearExtended Dry Docking survey.

37

Cleaner air andmore oil in the tank –Teekay is helping an industry underpressureReducing VOC emissions from crude oil tankershelps cut the environmental impact of shipoperations and saves on hard won resources,writes Teekay’s Vice President, TechnologyDevelopment, Dr Hans Richard Hansen.

40

“…the safe, reliable, efficient andenvironmentally sound operation ofour vessels…”Almi Tankers S.A. has become the first companyworldwide to sign up their fleet to FOBAS Engine,Lloyd’s Register’s recently launched performancemonitoring service.

42

What’s on the radarOur environmental roadmap outlines the keyexisting and forthcoming legislation from the IMOup to the end of 2016, identifying future compliancedates and emerging regulations.

44

Classification News highlights 46

“With the decline of the UK as home for shipowners and operators,we now think of Greece as our home market away from home.With such a large share of the Greek classification market and withso many Hellenic nationals working for us world-wide, our businessand our people are the perfect reflection of the fact that we feel athome in Greece.

In an ever more competitive world, the relationships that are supportedby Apostolos Poulovassilis and his team, and the levels of service theyprovide, reflect our commitment to the Hellenic maritime industry.We will continue to invest in the Greek maritime industry and we willsupport the efforts towards safer and greener shipping. We will assistand contribute our experience towards better regulation of Hellenic andglobal shipping. As the industry evolves we will continue to adapt ourservices as we have done over the past 250 years of history – withtechnology, safety and independence being at the heart of our activities.

Piraeus and greater Athens is a vibrant centre for ship owners andmanagers. The connection between ships, their managers and theircrews giving real vertical management and understanding. This is thestrength of Greek shipping which we consider to be as strong as ever.We have never stopped investing in our Greek staff and operationsas we need to continue to expand and improve our service delivery.Our aim is always to remain the leading name in providing marineservices to Greek owners and operators.”

Richard Sadler, CEO Lloyd’s Register

June 2010 Horizons

Tom Boardley, Richard Sadler, and Apostolos Poulovassilis are the team responsible for keeping Lloyd's Register’shistoric bonds to Greek shipping alive, and for driving that relationship into a prosperous future

“Lloyd’s Register’s Piraeus office at 87 Akti Miaouli is at the heart of ourmarine activities with Greek owners representing over a quarter of ourclassed fleet. Greece has been a vital client base for more than acentury with LR playing its part in the growth of Greek shipping.

We have 140 staff in our Piraeus office and in our other offices acrossGreece. On ships and in shipyards world-wide you will also find ourGreek nationality surveyors, engineers, naval architects and technologyleaders supporting our classification mission.

Effective engagement with the people running ships is essential. Aswell as our day to day interaction with owners and managers, theHellenic Advisory Committee is one of our leading shipownercommittees enabling communication, providing guidance and asounding board for our policy and service delivery. Recent meetingshave set the agenda for many of our global meetings and policydevelopment.

Shipping, as we all know, is a volatile business. This edition of Horizonsincludes a look back at a past period of crisis - in the 1970’s. Greekshipping has grown and thrived since then. But through all shipping’shighs and lows, Lloyd’s Register has remained constant in supportingsafety and environmental protection in Greek shipping. You can be surewe will be doing our utmost to support the industry today andtomorrow as we focus on the future.”

Tom Boardley, Marine Director, Lloyd's Register

Driving Lloyd's Register’scommitment to Greece

6

Photo: Mat Curtis

June 2010 Horizons

7

Thinking local, with a global view

Lloyd’s Register in Greece has been close to the Hellenic maritimetradition since 1888 and Hellenic Lloyd’s recognises that history and theleading role that Greece continues to play in shipping today, writesApostolos Poulovassilis, EMEA Regional Manager

We have more Greek people working for ustoday than ever before and we areconstantly looking to enhance our servicesand service delivery capability and capacityin Piraeus to meet the ever increasing andmore sophisticated needs of our clients,especially in the current challengingcircumstances.

Piraeus has been, is, and will clearlycontinue to be a key business centre for us.As we invest and expand in this market wealso need to demonstrate that although weare an integrated global business, we are intune with the issues and trends of the Greeklocal maritime community and are in aposition to develop and continuouslyimprove our services.

Towards a safer and more sustainablemarine industryShipping is under increasing pressure tocomply with evolving regulations andbecome cleaner and greener. Our clientsface continued pressure for transparency,environmental stewardship, corporateresponsibility, profitability and all of theabove under the common denominator ofsafe operations. In other words, thecommand for sustainable business is nowmore intense than ever before.Our clients are urgently looking forexpertise, experience and services in supportof managing compliance with newenvironmental regulations. We believe it iscrucial that these are provided with theassumption that our industry needs to besustainable – balancing economic, socialand environmental issues. We areincreasingly focusing on new servicesensuring safe and responsible supply chains.

We offer a broad portfolio of environmentalservices providing environmental guidanceand support to our stakeholders going farbeyond compliance with mandatory rulesand regulations.

Lloyd’s Register’s Guide to the Inventory ofHazardous Materials (Green Passport) waspublished in May and is another exampleof the leadership approach we are takingin preparing the industry for newregulations for recycling, as scrapping isnow known. It is the first such guideavailable to reflect the requirements of theDiplomatic Convention on ship recyclingheld in May in Hong Kong. Ceres LNGServices, OSG Shipmanagement (GR Ltd),Dorian Hellas, Delta Tankers and EletsonCorporation are all leading Greek clientswho have sought our help in their wish tomove ahead of regulatory requirments byproviding Green Passports for the ships.

Further to climate change and carbonmanagement there are of course a lot ofother environmental challenges to be met,one of the most critical being the BallastWater regulations, mandating theretrospective installation of treatmentsystems on vessels with a keel laying dateof 2010 onwards, when the respectiveInternational Convention becomeseffective.

Lloyd’s Register is assisting its clientsthrough its Ballast Water ManagementServices. Providing tailored solutions, wehelp shipowners to develop a safe,practical strategy to reduce the risksassociated with ballast waste management,meet environmental responsibilities andcomply with the relevant IMO guidelines.

Continued >

Apostolos Poulovassilis wasappointed Regional Manager forLloyd’s Register Europe, MiddleEast and Africa (EMEA) in 2009and is based until today at thePiraeus office.

Apostolos Poulovassilis first joinedLloyd’s Register in the UK in 1989,worked as a marine surveyor in anumber of key locations until 1996,and then took up a number ofmanagerial positions before beingappointed in his current role.Milestones of his career with Lloyd’sRegister has been his appointment asArea Manager for Greece, EasternMediterranean and Adriatic in 2003and as Managing Director of HellenicLloyd’s S.A. in 2007.

June 2010 Horizons

8

Further, Lloyd’s Register has recentlypublished the third edition of its Guide toBallast Water Treatment Technology whichprovides independent and impartialinformation on commercially available anddeveloping technologies for ballast watertreatment.

We aim to the continuous developmentof our services towards supporting ourclients with ensuring high levels ofperformance and safety within theiroperations. Lloyd's Register has recentlylaunched its new service FOBAS Enginewhich offers a significant increase inday-to-day knowledge of operationalengine performance. FOBAS Engineprovides a clear indication of performance,lubrication and wear conditions forslow-speed two-stroke marine dieselengines. This is achieved through detailedanalysis of engine performance variablescombined with advanced dilution analysisof used cylinder, fuel and systemlubricating oils.

Adopting the best practices is veryimportant to the benefit of the ship-owners, in order to ensure the structuralintegrity of their fleet, minimize themaintenance and repair costs, and protect

the environment. It’s through best practicethat business sustainability as well assustainability of the shipping industry ingeneral can be attained.

Managing the human elementLloyds’ Register is in a unique positionto have deep insight into the fact thatperformance and safety crucially dependon skilled human behaviour and is a worldleader in human factors integration.

In order to deliver and maintain evenhigher levels of performance and safety,it is important that human factors issuesare considered in relation to assetoperations and maintenance. Through ouracquisition of Human Engineering, Lloyd’sRegister is supporting organizations withinthe marine sector to ensure that humanfactors requirements are reflected in theway vessels are designed, constructed,operated, maintained and managedthrough their life-cycle. We are able toprovide input into a variety of areasincluding: specification and assessment ofmanning levels, identifying skillrequirements and training needs, incidentinvestigation, developing a positive safetyculture as well as integrating humanfactors into safety management systems.

Following the adoption of the MaritimeLabour Convention 2006 (MLC 2006)by the International Labour Organization(ILO), setting minimum standards inspecific areas relating to the health, safetyand welfare of seafarers, Lloyd’s Registerhas played a leading role in developingin the Hellenic Lloyd’s S.A. offices inPiraeus as a dedicated consultancy serviceproposing to owners and managers acomplete action plan.

We provide all the general informationneeded to get a shipping companystarted on the road to compliance ina complimentary CD. Once a shippingcompany has reviewed all of this informationincluding the details on the MLC 2006checklists then Hellenic Lloyd’s has theexpertise to provide a wide range of trainingcourses, advice, gap analysis tailored to theneeds of each individual company.

Hellenic Lloyd’s will be authorised by themajority of Flag Administrations to carry outthe ILO MLC, 2006 Inspections and issue therequired certification.

In Greece, our strategic aim is to cover thecomplete spectrum of subjects and areas ofinterest to the Greek maritime community.

MV Kastos on sea trials

June 2010 Horizons

9

Greek owners have always beenworld-leaders in the dry bulkmarket, and one of the mostsuccessful new designs, pioneeredby Greek owners in the last decade,is the ‘Victoria’ type double skinbulk carrier, writes SpirosContopoulos, Victoria SteamshipCompany’s Technical Director.

‘Victoria’ type double skinbulk carrier

length of 190m and maximum Panamacanal beam of 32.25m Today, more than80 of these ‘Victoria type’ are still tradingworld-wide.

The first of class, the Apollon, wasdelivered in 2002, with the last, the Avra,sailing from the shipyard in January 2004.

Continued >

In 1999, on behalf of Greek principals,the London-based Victoria Steamship Co.ordered the construction of the first of aseries of six of a new design of 54,000 dwt‘Supramax’ self discharging bulk carriersto be built at the New Century, shipyardin China.

Supramax is defined by its dwt of between40,000 – 60,000 dwt, with a maximum

Victoria-type MV Aris, open hatch double skin bulk carrier in heavy weather, in the Indian Ocean

June 2010 Horizons

With broad hatches, high cubic for a double-skinned ship and four high-capacity MacGregorHagglund cranes with 18.5m3 electro-hydraulicgrabs, the ‘Victoria’ design has proved itself inthe world-wide bulk trades, and the design hasproved a major improvement performance-wise on single-skinned designs.

In single hull ships the shell plate – allthat separates the cargo in the holds from thesea – the temperature differential between thesea and the cargo hold creates condensationinside the hold. As a result of this cargoadheres to the shell plating between the shellframes making it difficult to clear duringdischarging operations, without the use ofmechanical means like bulldozers or byemploying costly workforce. Both contributeto substantial time delay and damage tovessels steel structure and coating in the holds.

10

History of Victoria Steamship

The Victoria Steamship Co. Ltd., formedin 1946 by the late Mr. N. A.Apodiacos asa ship and insurance brokers and Londonagents, was named after his motherVictoria, but lay dormant until 1953.

When the late Mr. P. A. Palios becamea partner and Director, the Companycommenced operations with four war-builtLiberty and Empire class World WarTwo-vintage cargo ships and one pre-warvessel. By the 1970’s the Company hadexpanded to represent 10 clients andover 30 ships.

During the 1970’s the Company placed,on behalf of clients, orders for fournewbuildings in Japan. This was followed

Victoria Steamship in the21st Century

When Victoria first went to Chinato build their ships in late 1999,they were pioneers. Much has changedsince then. The New Century Shipyardin Jing Jiang City, on the Yangtze Riverin Jiangsu province, has grown as theChinese shipbuilding industry hasemerged as a world leader.

In 1999 the yard covered an area ofabout 150,000 m² but now the NewCentury Shipbuilding Corporation (NCS),comprising New Century ShipbuildingCo Ltd ( NCS ) and New TimesShipbuilding Co, has grown to about1,620,000 m2, including a marinedesign and research institute anda technology centre.

by an order, on behalf of clients, foranother 43,000 dwt vessel in Japan andorders for the purchase and modernisationof a number of Brazilian vessels.

In 1999, under client instructions, theCompany ordered the constructionof the first of a series of the eightVictoria double skinned Supramax, self-discharging bulk carriers of 53,806 dwtin China.

In 2006 the Company moved from theiroriginal London-based premises nearLiverpool Street Station, where they hadbeen since 1953, to larger offices atInternational House overlooking theTower of London and the River Thames.

Loading coal at anchorage in Indonesia.

June 2010 Horizons

11

In the double skin hulls the hold is separatedfrom the sea by the double skin, whichhas a width spacing of 1m and thereforeno condensation from sea temperaturedifferential develops in the hold. Double skinships are not popular with the shipyards asthey are not friendly in their construction,since during block erection one has to aligntwo skins instead of one, which is the caseon single hull ships. However the benefits inmaintenance of the holds and avoidance ofhold damage are immense.

The smooth holds, with no visible steelframes, allow for rapid loading anddischarging, avoiding additional labourcosts and delays in clearing any cargosolidly stuck between shell frames, whilstat the same time avoiding any mechanicaldamage to ships’ shell frames or structure

when using bulldozers for removing anycargo held between shell frames.The saving time in discharge averagesbetween 1.5 and 2 days. In additionthe cleaning and maintenance of theholds are far easier and quicker than theframed holds.

At the time of ordering the ships itseemed likely that double-skinned bulkcarriers would be mandated by IMO.However, by the end of 2003 it wasclear that this would not happen, althoughthe IMO did require that any new ordersfor such ships would require a widthof 1.8m between shell plating in alldouble-sided ships. This has substantiallyaffected the cubic capacity of subsequentdouble-skinned designs – but witha space between plates of 1.0m, the

Victoria types retained a high cubicmeasurement with the benefits ofsmooth holds.

Their large crane and grab capacity isalmost unrivalled at 40 tons S.W.L and18.5m3 respectively. This ensures thatloading times can be cut by between 30-50% when, as they commonly do, theships load and discharge using the ship’sown gear.

The vessels mostly trade in carryingcoal from Indonesia to India and iron orefrom India to China. Before the Piracyincidents in the India Ocean and RedSea the vessels would carry steel productsfrom the Black Sea to China or Chinato Europe.

Continued >

Victoria-type MV Afros

Victoria-type bulk carriers’ large crane and grab capacity is almost unrivalled at 40 tons S.W.L and 18.5 m3 respectively.

June 2010 Horizons

Harnessing the windGreenwave is a UK registeredcharity that exists to remind theshipping industry of itsenvironmental obligations and tofind practical, meaningful andaffordable ways to meet them.

It achieves its objectives by funding researchand development of emission reductiontechnologies to a fully developed andsea-trial stage, independently verified andtype approved by leading classificationsociety, Lloyds Register.

The charity’s R&D team is made up ofaerodynamics and hydrodynamics expertsand based both in New Zealand and theUK, and their work is focused ondeveloping systems that will deliversubstantial reductions on harmfulemissions.

Wind Engines are one of their projects,and the charity has been looking ata concept based on the Flettner Rotor,a spinning rotor that successfully sailedthe Atlantic back in 1926.

Wind tunnel tests carried out byGreenwave have established that thrustdeveloped by a Flettner rotor is 8 to 10times more than the thrust developedby sails of equal surface area, and itsteam have since carried out a series ofperformance, handling and stability testson a scaled wind engine aboard a25:1 scale model at Warsash MaritimeAcademy in Southampton.

Under the supervision of Lloyd’s Register,the model test results showed that windassisted ship propulsion can producesignificant fuel and emissions savings infavourable winds. The wind engines werealso tested successfully in manoeuvringand crash-stopping of the vessel whencounter rotated. The results shown by themodel ship, lead to a decision to builda full scale rotor.

A full scale prototype, 17m high and 2.3mdiameter, was fabricated and raised at thePort of Blyth in the North East of England,on a site close to the sea where strongwinds are often experienced. The entireprocedure with all the required testingequipment for the evaluation of the resultswas monitored by a Lloyd's Registersurveyor and the tests were witnessed byLloyd's Register’s Technical Investigation& Analysis department who verifiedthe results.

The process of manufacturing andassembling the wind engine has provedan important learning curve for futuredevelopment, and the next stage will beto develop and construct two improvedtype wind engines, which are to beinstalled on a sea going ship, for sea trialtests in actual sea conditions.

The Wind Engines, once implemented,can reduce Greenhouse gas emissions andother exhaust harmful emission like NOxand SOx by an average of about 13%per ship per year which will make it thetechnology that delivers the most savingswithin this industry.

12

Victoria Steamship’s commitment to a clean,efficient future for shipping is demonstratedby its support for the environmental R&Dcharity, Greenwave.

Top: Demonstration model at Warsash, showingpositions of Flettner rotors,Right: Flettner rotor prototype at the Port of Blyth

The sea is always alive for the legendaryGreek traders and operators of ships

June 2010 Horizons

13

We have reproduced material froma 1978 100 A1 written to coincidewith Posidonia, 32 years ago.Many of the concerns expressedby shipowners then remain thesame today.

In this cyclical business, some thingsseem to remain unchanged although theworld looks a very different place today.We have also interviewed some of theluminaries of today’s shipping scene askingthem for the view from Greece more than30 years on.

When Lloyd’s Register’s house magazine100 A1 gave coverage to the shippingcrisis in 1978 times had been tough for anumber of years. The situation did improvesomewhat before asset prices entered amassive trough in the mid 1980s, beforerecovering substantially at the end of the80’s. If the nineties were a time of mixedfortunes – the dry bulk boom of 1996 wasshort-lived – the next decade proved tobe spectacular and relived some of theglorious times of the golden freightmarkets enjoyed by the likes of Niarchosand Onnassis seen in the 50’s, 60’s andearly 70’s – but on a massive scale.

2002-2008 provided ample returns forthose who had invested in ships – on ascale that the Greek market took in itsstride and capitalised on. Fortunes havebeen made at a time when the Greekmarket has been following a considerableshift in emphasis from acquiring second-hand tonnage to secure ships to a strategyof ordering new ships. The orderbook nowis heavily weighted towards Greek owners.Some Greek owners have always orderednew ships and pioneered new designs.But the scale of new tonnage orderedwas astounding as Chinese capacityexpansion fuelled the growth of theorderbook. We now have the biggest

orderbook in history although the collapsein freight rates, sentiment and confidencein the immediate future by Q3 in 2008ensured we all knew that time had run outfor the boom.

Since that 1978 100 A1 article, Greekshipping has obviously prospered andevolved. New names have appeared,some traditional names have been lessactive, investing in different industriesbut the Greek market has retained itsshare of the market. Although Piraeusitself is less the centre than it was,the Greek Family-owned shippingbusinesses continue as strong as ever,as the most recent investment in newbuilding opportunities hasdemonstrated. Managementcompanies have relocated to,or new shipping companieshave chosen to be based in,the seaside suburbs of Glyfadaand Vouliagmenis or morecentral locations such asSyngrou, Maroussi as well asthe Northern suburb ofKiffissia. Much of the Greekshipping diaspora has alsoreturned from New York andLondon. As communicationsimproved and insurance,broking and banking servicesevolved in Greece so therelative benefits of beinglocated in the United Statesor United Kingdom declined.

Today Greek owners are activein new sectors beyond thetraditional dry bulk and tankertrades. Container shipping,LNG, LPG, bunkeringoperations have all attractedinvestors. Tapping the capitalmarkets – mainly in NewYork – is a significant trend of

recent years but the market capitalisationof public shipping companies remainsmarginal in comparison to the moretraditional sources of finance. A blend ofmore corporate governance coupled withthe family entrepreneurial spirit of Greekowners is increasingly becoming morecommon within the Hellenic MaritimeCommunity.

What happens now is uncertain. SomeGreek owners have been active in recentmonths, leading the most recent mini-newbuilding spree, others are looking for lowerprices yet – many have plenty of cash andare ready, as ever, to pounce when theopportunity is right.

June 2010 Horizons

In the Spring of 1978, Lloyd'sRegister gathered together a groupof the leading Greek shipowners –to talk about the then crisis facingGreek shipping. Their views formedthe basis of a lengthy article inLloyd's Register’s magazine of theday, 100A1.

The meeting was held on the fifth floor ofan unpretentious building overlooking thePort of Piraeus, in one of the most exclusiveclubs in the shipping world, the MarineClub of Greece, and according to the Apriledition of 100A1, the conversation was“sombre” from the outset.

It was also a conversation that mustsound many familiar echoes amongstthe ranks of Greek shipowners today, andtheir comments then, make interestingreading now.

In 1978, the Greek shipping industry hadjust emerged from 40 years of continuousgrowth into a much grimmer reality.

“The rise of the Greek merchant fleetsince the war”, noted 100A1 in its April1978 article, “is one of the most amazingcommercial stories of modern times. In1945 there were only 18 Greek ships leftafloat, and most of those were long pasttheir best. Today, it is the fourth largestfleet in the world in terms of grosstonnage, with 4,800 ships and employing123,000 seafarers.”

But after 1974, the price of oil had causeda trade recession, there were too manyships, and that, plus a then global trend forsome sovereign states to subsidise theirshipping, was holding freight rates down.Running costs were rising and the previous

‘family’ relationship between Greek ownersand their seafarers was breaking down, withcrew becoming ever more vocal in theirdemands for better wages and conditions.

Achilles Halcoussis, President of HalcoussisShipping, and then Vice Chairman of theLloyd's Register Greek Committee told100A1 that, “1973 was a profitable yearfor shipping and because the opportunitywas there we extended our order book.

That is what is making it difficult now,the obligations for newbuildings. To meetthese we must now suffer.”

Nick Soutos, President of Soutas (Hellas)Maritime Corporation on the other handfound his fortunes had not turned quiteas sour as his fellow owners – a turn ofevents he put down to his wariness of thebanks. He told 100A1 that his companywas now operating in a very different

Reflections from a troubled past

14

Lloyd's Register talks to Greek shipowners, past and present

June 2010 Horizons

15

world than the one he’d grown up in.He said: “This is a new game. Before thisthe market was sometimes good,sometimes bad. Now it is a completecatastrophe. In preceding crises, whichlasted shorter times, our obligations weresmaller and when there was trouble, thebanks could stand it. They would say to us;‘Mr Shipowner, we know this is not yourfault. It is the result of world conditions.We stand with you’. But today even thegood banks with good clients cannotafford to set it that way any more.”

And he had some pithy words for thebanks, who had been so free with theirloans. He said: “If a lovely blonde comesinto the room and starts to make love tome, what do I think? I wonder what isgoing on. I had the same feeling when thebanks started coming to me with suitcasesfull of money to give me as much as Iwanted. When I asked do I have to pay itback, they said, ‘don’t worry about that’.Then I began to worry … thus I was notinvolved in newbuildings or the purchaseof second hand vessels at sky-high prices.”

George Vardinoyannis, of the VarnimaCorporation looked elsewhere for thesome of the root causes of the then crisis.He told 100A1, “We owe a lot of oursuccess to our crews, but I believe wehave abandoned them. Not economically,but personally. Nowadays there is not somuch concern to understand the crews.Some companies have no health caresystem; no social officer. I believe a lot hasbeen lost. We are also trying to increaseautomation, but we are failing to see thatwe must automatically increase the qualityof the crew.

And Mr Vardinoyannis also had someadvice for future generations of owners.He said: “I think in the future theshipowner should not be pressured bythe shipbuilder into taking excess tonnage.If the shipbuilder has too much capacityhe should diversify into some otherindustrial work or into repair. Andshipowners must diversify too.

“The people who will survive are thosewho have … not put all their eggs intoone basket.”

June 2010 Horizons

Harry N. Vafias is President andChief Executive Officer of StealthGasInc. and has been actively involvedin the tanker and gas shippingindustry since 1999. His Greece-based company currently owns40 LPG carriers, and ranks numberone worldwide in owned vesselsin the 3,000 to 8,000 cbm LPGcarrier segment.

Here, Lloyd's Register asks him forhis assessment of the state of theshipping industry today.

Lloyd's Register: Having experiencedthe previous difficult period of shipping –the crisis of 1978-1985 – which are inyour opinion the similarities anddifferences with the current situation?

Harry Vafias: I was only a kid back thenbut hearing the stories from my familyI can tell you that the rates for tankers/bulkers were much lower plus it wasa very prolonged crisis… till now it seemsthat this crisis is milder. But only timewill tell

LR: For the past 2 years, Shipping - after5 years of great output - is in a situationwhere freights have fallen considerably.Can it be characterised as a crisis?

HV: Depends in which segment ofshipping you operate in, in dry I wouldn’tcall it a crisis, for tankers it’s a soft crisisand for containers it’s a really severe crisis!Moreover the problem lies if an owner hasa significant orderbook and no finance,particularly for private non-listed owners,with the banks being absent this maybe a very difficult problem to overcome.Moreover, its too early to say. In early 2011we will be able to say if the crisis is behindus or not.

LR: Many analysts say that the number ofnew ships which will ‘hit the water’ from2010 and 2012 will intensify the problemof excessive tonnage. What is your opinionon this?

HV: Till now that’s true but for how longcan China and other developing nationsabsorb so many ships… I am really worriedespecially on the dry side… in addition I amsurprised that so many owners despite thealready gigantic orderbook are still orderingbulkers for 2012 or even 2013. Sooneror later the crash will come and it willbe messy

LR: One could say that this unprecedentedeconomic crisis combined with the excessof new tonnage will create a stiflingenvironment and further problems toshipping companies?

HV: That’s true and we have seen that,albeit only for a few months betweenNovember 08 and February 09. Theeconomy is slowly stabilizing and optimism isgradually creeping back... its in the owners’hands how we are going to handle this, wemust be conservative; and for people thatwant to invest, its better to buy re-sales orsecond hand ships instead of ordering moreNewbuildings! As you know our fate is inthe hands of the banks, if the banks arehealthy and willing to do business then allis fine. If not, then the problems start.

LR: How do you explain the developmentof freights in the dry and in the wetsectors? What are the factors influencingthese two markets today?

HV: As discussed before on the dry sidethe situation is very worrying. Don’t forgetthere are tens of single hull VLCC tankersbeing converted or already converted intodry! On the wet side I am more optimisticdue to the smaller orderbook, single hullphasing out, increased regulations.

LR: We observe that despite the extensiveorderbook at shipyards, many shippingcompanies have recently been placing neworders. Where do you think their ‘courage'comes from? Can this be considered asevidence that we are coming out of the crisis?

HV: They must be very brave especiallyif these new orders are in the dry or thecontainer side. Its too early to celebratethe end of the crisis.

LR: Are you optimistic for the future?What is in your opinion the timeline forexiting the crisis?

HV: Greek shipping has been affected, butnot too much. Only a handful of companieshave closed down and there are still 821shipping companies operating! Chinesecompanies have a competitive advantageover us; financially stronger, cheaper labour,backed by the state and lots of locallyrequired cargoes. Greek shipping will alwaysbe in the forefront, it’s more flexible andadaptable, but my fear is that sooner or laterChinese companies will be come bigger intotal dwt and number of ships.

LR: A period of crisis is often a period ofopportunities too. What are, in your opinion,the opportunities that have come alongduring the past two years for Greek Shipping?

HV: Over the last 2 years we have seengreat opportunities in shipping, in realestate, in the stock and bond markets in theart market. The point is who is brave enoughto invest further when he has already lots ofinvestments that are under the water. If youlook at end 2008 till end 2009, who boughtships you will see that it was the smaller lessaffected companies, not the normal buyersyou would expect to be the top 50 largestcompanies. Nowadays this has changed andwe see the top owners hunting for bargainsagain despite the fact that vessel prices areon average up at least 10%!

“… its in the ownershands, how we’re goingto handle this...”

16

” ... for Greece, shipping meansinternational premiership andreputation...”

June 2010 Horizons

17

Theodore E. Veniamis is thePresident of the Union ofGreek Ship-owners and founder,Chairman and Managing Directorof the Golden Union Group, thePiraeus-based shipping companywhich operates a fleet of dry bulkcarriers totalling more than2 million dwt.

“The shipping sector, like other sectors ofproduction and services, due to the drasticreduction of demand and trade, faceda crisis of unpredictable duration andintensity. In particular, shipping had toface massive cancellations of newbuildingorders, and rescheduling of deliveriesas well as a steep reduction of shipvalues, resulting in a deep change of thepsychological climate of the market, whichalso had to face over the same periodthe resurgence of the medieval scourgeof piracy.

Despite these unfavourable circumstanceswhich were added to an unprecedentedrecession, the Greek-owned fleet hasmanaged to maintain its leading positionin the world league that it has held forthree decades. The contribution fromGreek shipping to the national economyremains of the utmost importance.

Looking toward the immediate future,I believe that Greek shipping’s responseto the current crisis should be governedby fundamental and sustainable objectives.We need to find an equilibrium betweendemand and supply in the world shippingmarket. This is not always easy, as therules of free competition sometimes distortprecisely this balance. However, even underthose adverse circumstances a responsibleentrepreneur can anticipate or cope withthe challenges emanating from technologyor from other sectors (banks, shipyards),which are currently heavily affected bythe world financial crisis. Expansion atan irrational pace has once more provedto be unwise.

Whilst it is true that the present shippingcrisis is mainly “imported” the massiveordering of newbuildings and thevast amount of new deliveries overprevious years played their own negativerole and will delay the recovery of thefreight market.

It is also of the utmost importance tosafeguard free and fair competition,which is the oxygen of shipping and trade.The shipping market should be protectedfrom regional policies which may serviceexpediencies irrelevant to the supplyof shipping services on a world basis.The market should be safeguarded fromshort-sighted protectionist measures whichare the easy solution in times of crisis,yet lead to closed markets and obstructtheir recovery.

Shipping should redefine its roleconcerning protection of the environment,although admittedly it has the smallershare of responsibility in the escalationof climate change. It has already takenthe first step with the building of safe,environmentally friendlier vessels.

It is willing to do more, provided that allmodes of transport and other land basedactivities will also bear the burden of theirrespective responsibilities.

The increasing scarcity of ship officers andtheir qualitative improvement should begiven the utmost attention without unduedelay. This is the biggest challenge fortraditional maritime developed countries.They have to win the bet in order tomaintain their maritime strength in aconstantly changing and imponderableenvironment.

For Greece, shipping means internationalpremiership and reputation. This supportwill reinforce the sector’s well knowndynamism, adaptability and resilience,qualities inexorably combined with itssuccessful model of private entrepreneurs.”

Shipping shouldredefine its role

concerningprotection of the

environment.

For Greece,shipping meansinternationalpremiership andreputation.

June 2010 Horizons

Captain Panagiotis Tsakos wasborn on the island of Chios.He founded Tsakos Shippingand Trading in 1970. Today, theTsakos Group of Companies hasoperations around the world, andincludes the NYSE-listed TsakosEnergy Navigation Ltd.

LR: Having experienced the shippingcrisis of 1978-1985, what are thesimilarities and differences to today?

PT: There are no similarities with thecrisis of 1978-1985. The current crisishas been brought upon the shippingindustry solely by the failure of the bankingsystem to monitor its own regulatoryprocedures and regrettably the crisiswill not be over until the banking system

can put their house in order, throughlegislative and international commonprocedures.

LR: How would you account for the fallin freights over the past two years, afterfive great years?

PT: The fall of freight/hire andconsequently the values of vessels is solelydue to the supply and demand factors inour industry. One should remember thatshipping is one of the unique industriesapplying unrestricted free marketcompetitive rules, based on supply anddemand, serving the global transportat

LR: Analysts say the number of new shipsdue to ‘hit the water’ over the next twoyears will exacerbate the problem ofexcessive tonnage. Do you agree?

PT: There is no magic in making prognosison how the market would move either inthe wet or dry industry and whether valuesof ships will fall or go up. This is a simplegame of supply and demand. What its reallydifficult to foresee is the factors affectingsupply and demand. Despite the currentfinancial crisis, which thankfully does notaffect all the countries - China, India, Brazilare still registering extremely high annualgrowth rates, still allowing the shippingindustry to take advantage of the freemarket conditions and maintain, especiallyin the case of the dry bulk sector,reasonable rates. However, the containersector is suffering from lack of cargoes,but they are currently seeing a small, butgradual, increase in rates. The Tanker sectoris seeing great up and downs affected byfactors not common to the other shippingsectors, such as weather conditions.

The wisdom of maintaininga “war chest”

18

Tsakos’ Sapporo Princess during sea trials.

June 2010 Horizons

19

LR: DO you have any predictions on howthe ‘dry’ and ‘wet’ cargo sectors willdevelop?

PT: In the ‘dry ‘ cargo’ sector, due to theeconomic crisis and the over supply oftonnage, freight rates in the dry cargomarkets have become very sensitive andcan be described as being extremelyvolatile and hard to predict. Economicand seasonal factors, paper trading andcertainly sentiment are playing a veryimportant role on how the rates arebehaving day by day. In general dry cargofreight rates have been healthy for all sizes,Capes, Panamaxes, Supramaxes, thedemand has been quite strong in 2009and in 2010 thus far, port congestion haskept many vessels occupied thus helpingfreight rates considerably, so it is aquestion of how many newbuilding vesselswill be delivered. Thus far deliveries area lot less than scheduled due tocancellations and slippage. If this paceis kept we believe that demand will beenough to absorb all the newbuildingsthat will enter the water.

As for tankers, the development of freightcan be influenced - and therefore marketcan fluctuate up or down - by manyfactors, however in the short term - apartfrom the most fundamental reason ofsupply and demand at any specific time -reasons such Increased ton-miles; politicalactions i.e. Venezuela/China loan for oil;OPEC announced oil production quotacuts; FFA Markets; weather such ashurricanes, canals/straits delays, such ascongestion in the Bosporus, and oil prices,these do influence the freight market.Also, owners’ resistance to accept lowerrates than their breakeven due to increasedfinancial operating expenses.

LR: Shipping companies are placing morenewbuild orders – where is their couragecoming from?

PT: Despite negative rumours aboutprospects of 30-40% cancellation ofnewbuildings there have not been as manycancellations as originally feared. Therehave been renegotiations of price anddelivery time and we are now seeingdelivery of vessels coming forward to copewith increased demand especially in thedry bulk sector. Major first class yards arenow taking orders for 2012 and laterwhich indicates an increased demand fornewbuilding slots, given the currentcompetitive pricing.

I would like to believe that we are alreadyout of the crisis and it is simply a matter oftime for the shipping industry to fullyrecover. This however, also depends on theinternational financial environment and theability of the developed countries to achievepositive annual growth rates. The currentnewbuilding prices are attractive to cash-richowners who can afford either to self-financethe building of vessels or obtain financingfrom major banks at reasonable equity/loanratios and interest rating. This would allowthem to place orders with first class yardsfor prompt delivery at reasonable prices onthe expectation that the shipping industryis on a recovery course over the next3-5 years. The “courage” mentioned inyour question is the key for the future.The investments will bring growth and thesoonest exit from the crisis.

LR: What would be your timeline forGreek shipping to emerge from the crisis?

PT: Greek Shipping represents about18% of the world fleet. It is thereforeunavoidable that any crisis will affect theGreek Shipping right from the start. Greekshipping is traditionally very conservativeand for those who have been through atleast two shipping crisis, have long sincelearnt that the shipping industry operatesin cycles and you must always be preparedto face a crisis from your own resources.Indeed, the last financial crisis hasvery much reaffirmed the wisdom ofmaintaining a "war chest". Those prudentship owners who have done so, are now ina position to not only ride the crisis buttake advantage of opportunities toinadvertently generated by the crisis.

The opportunities created by each shippingcrisis are relatively the same and mainlycomprise the acquisition of good qualityvessels at a discounted price and the abilityof cash-rich owners to place orders fornewbuildings at very low prices. Orderingnew vessels at low prices reproduces thecycle of oversupply against demand thusforcing readjustment of levelsin freights aswell as in value of vessels. It is a cycle thatshipping has been operating in for the last100 years and it is likely to be the sameover the next 100 years. I still believe that,and I have said this may times, there wouldbe a time, hopefully in the near future,that shipping would be a joint ventureindustry between all the major playersfrom the ship designers to ship builders,to ship owners, to ship operators, ship'screw, charterers, cargo owners and cargoreceivers that would produce a stableenvironment allowing each party tooperate under controlled and reasonablebusiness ethics and guidelines for thebenefit of all.

“Despite negativerumours aboutprospects of 30-40%cancellation ofnewbuildings therehave not been asmany cancellations asoriginally feared.”

Captain Panagiotis Tsakos

20

Lloyd’s Register has been workingto serve the needs of Greek clientsfor over 180 years – a relationshipthat began with the appointmentof D. Graham as Lloyd’s Register’sfirst surveyor to Piraeus in 1888.From there he also covered surveywork at Syra, or Port Syros.

Before his arrival, all surveys undertaken inGreece were completed by surveyorsbased at Constantinople, today’s Istanbul,and it was not until W. W. Barnescommenced duties in Piraeus on June 201907, that Greece had its first exclusivesurveyor, Lloyd’s Register’s expertise hashelped clients operating the thrivingpassenger ship and ferry services betweenthe Greek islands for many years.Semiramis, the first passenger ship tocruise the Greek islands, was completed toLloyd’s Register class in 1954 for EpirotikiSteamship Navigation Co.

The 1950s saw rapid expansion to makethe Greek-owned fleet one of the largestin the world by 1960; a position it stillholds today. A new Lloyd’s Register officewas opened in Piraeus in 1967, whereemployee numbers doubled in eight years.Ships belonging to Greek interests havefeatured particularly strongly in the Lloyd’sRegister classed fleet. In 1988, a surveyrevealed that Greece controlled moreshipping than any other country, amassive total of over 47 million grosstonnes representing 12 per cent of theworld’s fleet. In the same year 32% ofthe Greek-owned fleet was classed byLloyd’s Register, more than any otherclassification society.

In 1960s, as Greek shipbuilding becamebetter established, Lloyd’s Register formeda Greek Committee; its work continues asthe Hellenic Advisory Committee,established in 1996.

Ship repair and conversion have becomeGreek specialities, with some spectacularconversions of tankers, cargo ships andpassenger ships into ferries and carcarriers. In March, 2004 Lloyd’s Registersigned an agreement with the HellenicRepublic for delegation of statutoryservices including certification forpassenger ships, and the InternationalShip and Port Facility Security Code.This was the first time that the Greekmaritime authorities had entrustedstatutory certification of the country’sdomestic ferry fleet to an internationalRecognised Organization.

From a small base, industrial work has alsogrown to include the inspection ofpressure vessels, boilers for desalinationplants, pipework, fabrication and erectionof oil storage tanks, and glass-reinforcedplastic (GRP) hulls for lifeboats and yachts.In 1994, Greek surveyors worked closelywith specialists from the UK to assess thereconditioning of Petrola Hellas Refinerynear Piraeus.

In 2007, Lloyd’s Register’s Greekoperations came under the name HellenicLloyd’s S.A. to reflect increasing activityand the importance of the Greek shippingcommunity’s contribution to theorganisation. Globally, the Lloyd’s RegisterGroup employs more Greek people todaythan ever before. The Piraeus officeprovides classification, design support,marine training, asset management andquality assurance services, both to Greeceand for much of the EasternMediterranean, Adriatic and statesbordering the Black Sea. Its coverage alsoincludes Albania, Fyrom (Macedonia),Montenegro, Armenia, Azerbaijan,Georgia, Kyrgyzstan, Tajikstan,Turkmenistan, Uzbekistan and Moldova.

In 2008 the Piraeus office became the“base” of Europe Middle East and Africa(EMEA) region of Lloyd’s Register.Apostolos Poulovassilis was appointedEMEA Regional Marine Manager and tookoverall responsibility for Lloyd’s Register’sMarine operational performance in theregion. Apostolos Poulovassilis is based inPiraeus and many of the Piraeus staff havenow undertaken EMEA roles as hissupport team.

Lloyd's Register in Greece

Greek-owned ships were being classedby Lloyd’s Register as early as the 1830s.One example is the 292 tons gross brigAslan built on the island of Rhodes in1826, which appeared in the RegisterBook for 1835. The first steamer underthe Greek flag was the Perseverance, a233 tons gross, 85 hp (7 knots) paddlesteamer built in 1825 and purchased bythe Greek state in 1826. It is not knownif she was classed, though the vesseldoes appear in the Register Book andwas later renamed Karteria.

June 2010 Horizons

21

The Second World War severelydisrupted activities in Greece. Localoffice records were maintained bysurveyor Dimitrios Parissis and clerkJohn Balaskas. A loan from theshipowners Yannoulatos Brotherscovered salaries and kept someLloyd’s Register services going. Afterthe war, the organisation woninspection contracts from thegovernment of Greece and duringthe 1950s it was invited to act asthe load line authority for thecountry.

Lloyd’s Register’s expertise has helped clients operating the thriving passenger ship and ferry services between the Greek islands since the end of theSecond World War. Semiramis, the first passenger ship to cruise the Greek islands, was completed to Lloyd’s Register class in 1954 for Epirotiki SteamshipNavigation Co.

June 2010 Horizons

22

The interests of the communityand of the environment have beenat the heart of our business sinceour foundation in 1760. We areideally placed through our missionand purpose as well as ourposition as a leading classificationsociety to do something thatmatters, ultimately protectinglife and livelihoods at sea, andprotecting the environment,working to enhance safety byapproving assets and systemsso that people and communitiesaround the world can get onwith everyday life.

Lloyd's Register is an independentorganisation operating for the benefitof the global community and thereforecommitted to ensuring that economic,environmental and social issues and therequirements of the communities wherewe serve are integrated in our businessstrategy.

In Greece, we have a top priority agendafor Corporate Social Responsibility actionsand initiatives, with the main emphasis onHealth & Safety, Education, Environmentand Culture.

Theodosis Stamatellos, Lloyd's Register’sGreek Country Manager says: “Peopleare our most valuable assets, as it istheir collective effort that leads theorganisation’s technical excellence andinnovation. Our people’s wellbeing is offoremost importance to us, therefore a lotof focus is placed on health and safetyissues. Our objective is not only to managejob-related risks but also inspire employeesto implement a risk-based safety approachto every aspect of their life inside andoutside the office.”

Education is another priority we have set.Employees are placed on a continuouslearning curve, which consists of jobspecific training courses and otherawareness initiatives on issues of generalconcern. Our mission would be incompleteif it were to foster education onlyinternally. Through Lloyd’s RegisterEducational Trust (LRET), an independentcharity foundation, Lloyd’s Register isworking with Greek institutions andfoundations like the National TechnicalUniversity of Athens (NTUA) and theUnion of Greek Shipowners (UGS) toprovide undergraduate and postgraduatescholarships for studies in maritimerelated sectors.

We should also refer to our long standingrelations with HELMEPA. LRET is financiallysupporting HELMEPA for the expansionof HELMEPA Junior and HELMEPA Cadets.Through a 3 year financing program thatstarted in April 2008 the aim is thatHELMEPA approaches children up to13 years old and young people between13 and 30 years old in Greece.

Further, under the auspices of HELMEPA,in the form of an educational partner,Lloyd’s Register’s experts deliver trainingand knowledge sharing to seafarers ona number of subjects that are of interestto the industry relating to safety, security,environment etc.

Our global and local business plans involveEnvironmental initiatives including:

• assessing and reducing our own carbonfootprint

• achieving employee engagement inreducing personal carbon emissions

• raising awareness on sustainability andenvironmental protection.

Specific local initiatives relating to paperand batteries recycling complement ourefforts for a healthy environment for usand future generations.

The organisation’s contribution to thesociety extends to Culture as well. Coupledwith the maritime historical tradition ofGreece described elsewhere, Lloyd’sRegister sponsors the Yacht Racing Cupat Posidonia since 2004, the biggest andmost prominent exhibition in shipping thattakes place every two years, as well as anongoing annual support of the HellenicOffshore Racing programme all overGreece through an exclusive sponsorshipof a participating boat.

As part of our Corporate SocialResponsibility initiatives going forwards,we will look to support events that bringforward the cultural characteristics ofGreece, especially those that incorporate theelements of a “noble contest” (ευγενήςάµιλλα) and cooperation amongst theparticipating groups of society.

In the occasion of the 250th anniversaryof Lloyd’s Register the employees aroundthe Organisation have been encouragedto look to the future throughout 2010and to give something back to theirlocal communities with a specialcommemorative campaign. The LR250initiative gives everyone in the organisationthe opportunity to work on a project thatwill benefit their local community, andwill run throughout 2010.

Engaging with peopleand community

Robert Parsons, Lloyd's Register’s General Manager,Shared Support Services GEMA in Piraeus.

“People are ourmost valuable assets,as it is their collective

effort that leadsthe organisation’s

technical excellenceand innovation.”

June 2010 Horizons

23

Piraeus Office supported the LR 250Campaign participating with its “HellenicSustainability Matters” project. The projectenrolled in two phases, the reforestationof Drafi area in Pikermi that has beenadversely affected by the recent firewave the past summer in Attica andthe organisation of an activities day onthe subject “Environmental Protectionand Safety at Home” for the kids ofChatzikiriakeio Foundation and the kidsof Piraeus staff.

For the purposes of the first part of theproject the area of Drafi in Pikermi hasbeen chosen. According to advice receivedby the Community, 350.000 m2 have beendestroyed in Drafi, degrading the physicalenvironment and the standard of living ofthe surrounding populations.

Within this context, reforestation wouldhelp local communities raise their standardof living and also assist the flora recoverfrom the natural damages. We chose tofocus on reforestation, as the issue withthe fires and the adverse consequencesarising thereof (environmental –economical - societal) heavily affects us.Greece has faced an increasing numberof fires during the last decade, withthe most severe one being the onein Peloponnese a couple of years ago.That’s actually when the initial idea wasborn. Following the fires in Peloponnesein 2007, representatives from LR Piraeusvisited a number of the affected villagesdistributing gifts to children that livedaround the devastated areas.

We believe that our current project is anall encompassing endeavour that bringstogether environment and children as thenext generation, in order to cooperateand give something back to the localcommunity, as in the case of 2007.

The second part of the project aimed toreinforce the message of environmentalprotection not only among LR employeesbut to children in general, exposing thelater to such forward thinking initiativesand raise awareness for future generationson issues that will affect life on planet inthe years to come. In this cadre, Piraeusoffice has organised an all day event forthe children of the ChatzikiriakeioFoundation and the kids of Piraeus staffwhich involved interactive games and teamactivities on life on planet, environmentalprotection and safety at home.

The dedicated LR Piraeus team workedtowards ensuring strong levels ofengagement and participation as muchfrom the side of LR staff as of the localcommunity, encouraging people to supportthe above endeavour, as this was aninitiative that would contribute the most inupgrading the environment they live in.

The Piraeus project was directly alignedwith the ‘Life Matters’ ethos, as it is builtupon the principles of sustainability,societal justice and protection of theenvironment. As a global non-profitableorganisation, we have the obligation ofmaking the society sensitive toenvironmental problems especially for thenext generations to help them have abetter environment to live in, in the future.

In more practical terms, Lloyd’s Registerethos states ‘Life Matters’ and to thechildren’s eyes ‘oxygen produced by treesis seen as one of the basic sources of life’.Children at an early age will get thechance of learning not only in wordsbut in practice to respect and protectthe forests and their physical environmentin general.

As Lloyd’s Register is a prominentorganisation we hope we can lead byexample to sensitize other parties tocontribute to the community in similar ways.

Robert Parsons, who headed the Piraeuscampaign, commented: “Overall, wefeel members of the LR Community.We strongly believe in our values andprinciples as a group and we wouldtherefore like to convey the firm messageof ‘LIFE MATTERS’ to the communityaround us. We find this is an excellentopportunity to come together andwith joined efforts to give back somethingreally valuable to the children andthe environment”.

For further information contact:Robert Parsons, General Manager, SharedSupport Services GEMA, PiraeusT: +30 210 4580842E: robert.parsons@lr.org

Theodosis Stamatellos, Lloyd's Register’s Greek Country Manager and Giota Gavrili, Piraeus office.

June 2010 Horizons

24

As part of its Corporate SocialResponsibility initiative, Lloyd’sRegister’s independent charityfoundation, The Lloyd’s RegisterEducational Trust (The LRET), whichwas set up in 2004, is very active inGreece, funding pre-universityeducation, university education and amajor marine research programme.

Working with the National TechnicalUniversity of Athens (NTUA), The LRETprovides undergraduate and postgraduatescholarships in naval architecture and/ ormarine engineering over the next six yearsto assist exceptional students to further theirmaritime studies before taking up a careerin shipping. The total support is going to bemore than €170,000.

The LRET has also very recently agreedto fund a research programme into shippingemissions at NTUA over the next five years –this programme is worth over €1,500,000.

The LRET has also worked with the Union ofGreek Shipowners (UGS) since 2004 to grant

an annual postgraduate scholarship atMasters’ level for studies in maritime relatedsectors worth €12,600. The scholarship isawarded to Greek nationals for studies ininternationally recognised universitiesanywhere in the world.

The LRET is also financially supportingHELMEPA (Hellenic Marine EnvironmentProtection Association) for the expansionof HELMEPA Junior designed to promotemarine environmental awareness in childrenup to 13 years old in Greece through athree year financing program that startedin April 2008.

HELMEPA Junior, with support from TheLRET, has been extended to the support ofHELMEPA Cadets, a scheme aimed at youngpeople between 13 and 30 years old. Thetotal economic support is going to be morethan €155,000.

Michael Franklin, The LRET Director, said:"The Lloyd's Register Educational Trust isextending its support throughout the worldin a number of important areas. We want toencourage the study and development of

science, engineering and technology tohelp solve the many challenges the worldfaces, such as climate change and the hugeincrease in energy demand. Our workin Greece is part of this effort for widepublic benefit”.

For further information contact:Michael Franklin, Director LRETE michael.franklin@lr.orgT +44 (0)20 7423 2713

The LRET promotesmatters Marine

“The Lloyd's RegisterEducational Trust is extendingits support throughout the worldin a number of important areas.”

Piraeus-based Lloyd's Register surveyors at work

The stamp of the National Technical University ofAthens – NTUA - the oldest and most prestigiouseducational institution of Greece in the field oftechnology, since its foundation in 1836.

June 2010 Horizons

25

The Lloyd’s Register StrategicResearch initiatives in Greececover the complete spectrum ofmethodologies and technologiesof interest to the Greek marinecustomer base, writes SpyrosHirdaris, of Lloyd's Register’sStrategic Research Group.

Lloyd’s Register’s strategic research agendais aimed at helping the shippingcommunity to respond to the regulatory-driven environmental challenges facing theindustry, and working through oursubsidiary, Hellenic Lloyd’s S.A., we are ableto better respond to the local needs ofGreek ship owners and operators.

There are the market demands for eco-friendly and fuel efficient ship designs thatwill not compromise the community’scommitment towards its people and assetsafety. There are the new technologies tobe assessed, and ways designed to applythem in reducing operating andmanufacturing costs without compromisingthe efficient working of a ship and itsengineering components as a system.

That is why, in Greece, our strategicresearch efforts are being focused on thefuture of risk assessment methodologies,green shipping initiatives, intelligent shipoperations and emerging technologies.

Ongoing InitiativesCurrent Lloyd’s Register strategic researchinitiatives in Greece are largely facilitatedwithin the context of the EU FP7WATERBORNE agenda. The HellenicStrategic Research Group (SRG) is involvedwith the EU projects MINOAS andGOAL DS.

Project MINOAS involves collaboration withthe Greek companies HORAMA andGLAFCOS. MINOAS, aims to facilitate thehull inspection process through thedeployment of a robots that can moreeasily access all parts of a ship. The primaryobjectives are to reduce downtime for theship operators, achieve more consistentand accurate results, while reducing risks.Lloyd’s Register’s initial involvement is toreview and test existing technologies anddevelop a baseline to benchmark furthertechnological developments. The researchprogramme assesses the need for robotsand then develops equipment that mostappropriately satisfies these requirements.Design parameters for the robots – theirmobility, sensors, and data recording/management – as well as alreadyintegrated robot systems, are currentlybeing studied.

Project GOAL DS (Goal Based Standards forDamage Stability) involves collaborationwith the NTUA Ship Design Laboratory. Theproject has been driven by the recent rapidchanges in technological developments aswell as the demands by the InternationalMaritime Organization (IMO) for everimproved goal-based driven standards.Present damage stability regulationsaccount only for collision damages, despitethe fact that accident statistics, particularlyof passenger ships, indicate the importanceof grounding accidents. The projectaddresses some of the new challengesrelated to Design for Safety and Risk andinvolves research probabilistic damagedstability formulations for large passengervessels. Upon completion, the GOAL DSconsortium will submit key results to IMOfor consideration in the future SOLAS Rulemaking process.

Continued >

Strategic Researchinitiatives in Greece

June 2010 Horizons

26

Forthcoming Initiatives –Green Ship Design

Medium term ResearchIn the short term, environmental impactconsiderations are expected to increasinglyinfluence the design of ships, theiroperation and their eventual disposal.

Lloyd’s Register has undertaken in-housepreliminary studies classifying the rangeof design improvements that could beutilised towards increasing the energyefficiency and reducing the environmentalimpact of ocean going vessels. It has beenconcluded that optimisation of the aft andforward parts of ship hull forms may leadto 3-5% energy efficiency improvement.It is expected that further efficiencygains of up to 13% can be achievedby improved propeller design, engineselection and the incorporation of energysaving appendages. Design efficiencycan be enhanced further by optimisationsolutions that may offer new lightweightstructures.

Many of these technologies are availablenow. However, it has yet to be establishedthat they can be applied in real situationsand that there is no impact on shipsafety. Lloyd's Register is working withour clients, state of art shipyards anddesign houses to build a knowledge basethat will help us to develop appropriaterules and regulations.

Long term ResearchAlternative sources of energy, such asbiofuels, solar and wind, are currentlybeing researched, but more recently, theapplication of nuclear technology is nowalso on the agenda.

Nuclear energy presents the opportunity ofimplementing a technology which is bothtechnologically conservative and alarminglyradical. Naval nuclear propulsion is a wellestablished technology which is ‘cleaner’ inmany ways over existing power plants.There is a long naval experience of its usein driving aircraft carriers and submarines,and there are nuclear propulsion systemsalready available of more than amplepower capacity to comfortably drive eventhe largest bulk carrier, container ship ortanker.

Also, Small Modular Reactor (SMR)technology is now available, with a thermalpower output of over 68 megawatt thatcan be treated as a plug-in “nuclear”battery. The use for SMR for shippropulsion is an exciting prospect and theaim of this research is to understand theimplication of SMR for ship design,construction, operation, maintenance andeventually disposal.

Lloyd’s Register Strategic Research Groupand Greek ship owners in association witha shipyard and a design house are tolaunch Joint Industry Projects that will lookinto the implementation of low carbonstate of the art and niche emergingtechnologies on green ship designs. Theywill also investigate the practicalapplication of SMR and will developcommercially viable concept designs forpassenger ships as well as bulk carriers andtankers.

This strategic research approach is aprocess of open innovation. The partners inthis ground braking project represent thevertical chain from basic research intoimplementing technologies, developingship designs and rules, enforcing safety atsea and operating sustainable vessels.

For further information contact:Spyros Hirdaris, Senior Specialist, StrategicResearch Group, LondonE spyros.hirdaris@lr.orgT +44 (0)20 7423 1430

“Lloyd’s Register has wide-ranging expertises intechnologies and is here tolead the technical front ofmaritime Classification inproviding guidance,knowledge and experienceto our clients and the widermaritime industrystakeholders.”Tim Kent, Technical Director,Lloyd’s Register.

These initiatives are example ofour current efforts to encourageglobal collaboration forinnovation. It also demonstratesthe commitment of Lloyd’sRegister towards building up inintellectual infrastructure andleading marine classification attechnology level.’’Fai Cheng, Head of LRSRG.

Lloyd's Register's highestauthority on classing matters

Lloyd's Register's ClassificationCommittee and its Executivesoffer a consistent, fair anduncompromised approach thatensures that when it comes toFleet Quality Management, correctdecisions are reached irrespectiveof any commercial implications.

In April 2009, Lloyd's Register introducedthe Fleet Quality Management Process,aimed at streamlining the way weclass ships.

It is a fact of the Marine industry that someships are not satisfactorily maintainedbetween surveys, and in the worst casethat can lead to a ship failing a Port StateControl inspection and ending up with anexpensive and embarrassing detention.

To meet this challenge, Lloyd's Register setout to draw up a defined process to identifyships liable to fall below required standardsbetween classification surveys, and thenwork with the client to improve theironboard maintenance regimes, and back upthat work with further re-verification surveyswhere necessary.

Since its launch, Lloyd’s Register’sClassification Committee has beenprocessing reports on ships from LloydsRegister surveyors, as well as third partiesexpressing concerns – such as Port StateControl bodies, ISM issuer audit reports andclient fleet reviews.

The Classification Committee chaired by theMarine Director Tom Boardley, comprises 12voting members representing a cross sectionof the shipping industry from P&I clubs, to

ship owners and flag experts. Secretary tothe Classification Committee is John Meins,Lloyd's Register’s Fleet Services BusinessImprovements Manager.

The Committee, and it’s nine DevolvedClassification Executives (DCE) across theglobe, is linked to the Marine Businessand the Classification Executive via theFleet Services Department, managed byIain Wilson, Fleet Services Manager.It is Lloyd's Register's highest authorityon classing matters and is responsible forassignment, withdrawal or suspension ofclass. It meets once a month to reviewLloyd's Register’s fleet statistics and thedecisions of the Classification Executive,and to consider any appeals and makeprecedent decisions.

Continued >

June 2010 Horizons

27

Class people:Back, l to r - Jim Barclay; Arun Jha; Alok Gupta; John Meins; Henriette Weijs Nikos Benetis; Brian PurtleFront, l to r - James Henton; Alan Owen; Joanna Townsend; Sam James; Iain Wilson; Udi Bar-Lev

Photo: Mat Curtis

Classification GroupJoanna Townsend is Chair of theClassification Executive and the Manager ofClassification Group, which provides supportto Lloyds Register offices around the worldas well as direct to our clients to ensure thatLloyds Register has a consistentinterpretation of the regulations and rules.

The Group’s multinational staff hasworldwide experience of new construction,existing ships, materials, equipment surveysand Safety Management Audits and it hasoverall responsibility for the globalclassification processes, including entry intoclass, class suspension, class withdrawal andclassification status in the interim period.

The London Classification Executive, chairedby the Classification Manager, meet mostdays to consider all those vessels that enteror leave class, together with any

postponement requests which cannot beapproved by one of the DCEs, debt casesand those ships that have been madesubject to the Fleet Quality ManagementProcess.

There are nine DCEs worldwide who havebeen authorised to consider surveyspostponement requests on behalf of theClassification Committee. Their work issupported and monitored by the LondonClassification Executive.

Classification Group is also the official LloydsRegister contact with the UK MarineAccident Investigation Board. Lloyds Registerassists the MAIB in investigations in respectof classification requirements andoccasionally attends recommendationmeetings providing classification advice.For further information, please email:classificationgroup@lr.org

Nikos Benetis is the Entry into ClassManager, with overall responsibility formanaging and coordinating the entry intomarine classification for all new buildingsand existing ships.

For new buildings the global process isdriven and managed from the Entry intoClass department in order to collect all therequired technical information during theconstruction of the vessel in order toprepare the classification endorsementupon completion, which is presented toboth the Classification Executive and theClassification Committee for formalclassification of the vessel.

In order to successfully deliver theendorsement close cooperation is managedbetween the Entry into Class departmentand the Lloyds Register site team, designappraisal and client facing offices.

28

June 2010 Horizons

29

The department also applies for theunique IMO identification number ofall vessels. Thus we christen and observefrom afar as the vessel is built andsuccessfully delivered to her owners, beforehanding her over to the Classificationdepartment which remains in charge forthe ship’s lifetime.

For existing ships we manage both theTransfer of Class and Acceptance intoClass processes. Transfer of Class processis in accordance with the IACS ProceduralRequirement 1A, and the departmentoversees the whole process from originalcontract/agreement with owners/managers, to successful completionof surveys required. Once the contractis received, specific instructions areprepared and sent to on site surveyors,communications are initiated with thelocal Flag administration. Compliancerequirements are overseen through ourcontinuous support.

As per the New Building process, oncethe vessels have completed the TOC orAIC survey requirements, the endorsementfor formal Classification through theappropriate Lloyd's Register Committeesis prepared and presented.

The Entry into Class department is alsoresponsible for ensuring Lloyd's Registercompliance with IACS procedures, IMOrequirements and EU Directives, withregards to entering vessels (new orexisting) into marine classification.

For further information, please email:FirstEntry@lr.org ortoc@lr.org

Alok Gupta is Senior Principal Surveyor forthe Dry Cargo Group.

The Dry Cargo Group Section providestechnical classification support globally forBulk Carriers, General Cargo, Reefer Vessels,Containers, and Tugs etc, comprising some60% of the in-service Lloyd's Register fleet.

Arun Jha is Senior Principal Surveyor for theTanker & Gas Carrier and the Passenger Ship& Special Service Craft Groups. The Tankerand Gas Carrier Group Section providetechnical classification support globally forOil Tankers, Product Tankers, ChemicalTankers, LNG & LPG Gas Carriers andTankers.

The Passenger Ship & Special Service CraftGroup Section provides technicalclassification support globally for PassengerShips, Ro-ro ships, Ferries, Vehicle Carriers,and all vessels classed by the Rules andRegulations for the Classification of SpecialService Craft, such as yachts, patrol vessels,pilot boats and workboats.

The Dry Cargo, Tanker & Gas Carrier andthe Passenger Ship & Special Service Craftprovide the following support collectively.

• Central co-ordination, technicalsupport for classification andinterpretation of regulations globallyfor surveyors, ship operators and flagadministrations on specific vessels,by working together with Accountmanagers, LR Client facing offices,field surveyors, owners and managersto ensure their classification relatedtechnical queries are attended quicklyand all requirements for maintenanceof class are timely dealt with.

• Monitor and vet survey reports issuedon completion of surveys to verify thequality and consistency of applicationof the regulations.

• Authorise and issue Confirmationof Classification certificates for sale& purchase, insurance and charteringpurposes.

• Review issues arising from casualtiesand incidents including the issue ofsurvey guidance where appropriate.

• Recommend to the Classification Executiveactions for unusual circumstances notcovered by the LR regulations andrecommend/monitoring UnscheduledSurveys for the FQMP Review and agreeESP survey programmes and followingreview of survey reports issue ESPexecutive summaries for ESP vessels

• As part of London Devolved ClassExecutive agree to postponement ofsurveys for local vessels, and carry outCondition Assessment Scheme (CAS)approval for oil tankers

• Coordinate the TOC-out process inaccordance with the IACS ProceduralRequirement 1A

For further information, please email:dcg-class@lr.org ortgg-class@lr.org orpsg-class@lr.orgdepending on the applicable ship type orspecified query

James Henton is the Manager of SurveyProcedures Section, which ensures that LloydRegister’s classification guidance can be easilyunderstood by internal and external clientsalike. Any new or revised requirements fromIACS, IMO and Flag Authorities are assessedand requirements that affect Classificationare incorporated into the Lloyds RegisterRegulations and/or internal guidance tosurveyors where applicable as well as theclassification survey checklists.

Continued >

Close cooperationis managed betweenthe Entry into Classdepartment and theLloyds Register siteteam, design appraisaland client facing offices.

June 2010 Horizons

The section provides support and clarity tothe rest of Classification Group and thelocal DCEs, particularly in matters relatedto Classification Regulations and surveyorguidance. The section additionallycoordinates the approvals of MachineryPlanned Maintenance Schemes.James Henton also represents LloydsRegister on the IACS Survey Panel, wherewe work with other IACS members toagree upon new or amended periodical

survey requirements. This providesthe opportunity to ensure Lloyd's Register'sinterpretations and concerns canbe properly addressed, and to work closelywith the other Societies to ensure theuniform application of survey requirementsas well as to develop andbuild good working relationships with theother IACS members.

For further information, please email:sps-class@lr.org

Sam James is manager of the StatutorySupport Group, which provides technicalleadership for the statutory work within theClassification Department – this covers awide range of regulations, including SOLAS,MARPOL and the Load Line Convention.The Group also assists in the developmentof training courses and workshops relevantto statutory surveys and reporting, andprovide statutory technical support topersonnel in Classification Services andLloyds Register Marine Business.

Survey ProceduresSection providessupport and clarityto the rest ofClassification Groupand the local DCEs.

31

Internally they work with the Lloyds RegisterDesign Support offices and London-basedExternal Affairs department to identify whatactions are required to implement emerginglegislation, and new and amended statutoryrequirements. They also assist in settingcommon standards and procedures relatingto statutory matters and are represented onthe Classification Executive.

Externally the Statutory Support Group is inregular communication with IACS throughthe IACS Statutory Panel, through whichcommon interpretations on statutorymatters are agreed. They also liaise closelywith Flag Administrations, and assistOwners and Managers with their statutoryenquiries. Classification news articles thatrelate to statutory matters are authored bythe Statutory Support Group.

An important new area of work is shiprecycling and the Green Passport. As thislegislation develops it is necessary for Lloyd'sRegister to introduce procedures and aproduct which will be of value to ship-owners. A member of the StatutorySupport Group dedicates most of his time tothis activity, which will gain in importance asthe Convention moves towards ratificationand mandatory compliance is required.

For further information, please email:dcg-class@lr.org ortgg-class@lr.org orpsg-class@lr.orgdepending on the applicable ship type

Jim Barclay is Manager of the TargetShip Section. Port State Control (PSC)is a check on visiting foreign ships tosee that they comply with internationalconventions on safety, pollution preventionand seafarers living and workingconditions. It is a means of enforcingcompliance where the Owner and FlagState have failed in their responsibility toimplement or ensure compliance. The PortState can require defects to be put right,and detain the ship for this purpose ifnecessary – a major defence againstvisiting substandard shipping.

The Target Ship Section (TSS) withinthe Classification Group records allknown global PSC detentions to theLloyd’s Register fleet on a centraldatabase maintained in Class Direct Live.Information from this is readily availableto all surveyors. In line with our policyof openness and transparency we alsoshow all PSC information on our website www.lr.org. This is readily accessibleto any interested party.

From the database of detainingdeficiencies, analysis can show thefollowing:

• main detaining deficiencies foundby PSC

• main ship types being detained• ship ages being detained• flags being detained• countries detaining vessels

PSC data is used by the marine industry tobenchmark the performance of Flag andClassification Societies. Poor performancecan lead to punitive measures. The data isthe main source for identifying items whichcontinually produce deficiencies that arehazardous to operations or vital in safety andpollution management. PSC figures are amajor Key Performance Indicator (KPI) for themarine industry and as such Lloyd’s Registeris proactively seeking to further improve itsPSC record by working with Owners,Operators and Flag State Administrations.

In a bid to help Owners and Operatorsreduce their potential for PSC detentionsLloyd’s Register has produced a series ofPocket Checklists. This has been done incollaboration with an Industry partner –the U.K. P&I Club. The first PocketChecklist was published in 2005 and thislooked at the top detaining deficiencyareas. A library of Checklists hassubsequently been produced and includesMarine Pollution Prevention; Life SavingAppliances and Fire Safety. It is intendedthat we will produce further editions onother main areas being identified by PSC.As part of our commitment to our missionstatement..”...of enhancing the safety oflife and property at sea.”….these areprovided free of charge with the only costsincurred being that of courier charges.Copies can be ordered from our web sitewww.lr.org. To date we have provided over250,000 copies to the marine industry.

Continued >

Externally, theStatutory SupportGroup is in regularcommunication withIACS through theIACS Statutory Panel.

June 2010 Horizons

32

It is equally important that our surveyor'sgive practical advice to clients to helpminimise risks. To assist in this surveyorsreceive training on PSC issues and weregularly provide workshops/seminars toOwners and Operators either throughTSS or via our Area Technical PerformanceManagers who are located in strategicareas in the regions.

PSC information is also one of the maintriggers for instigating the Fleet QualityManagement Process.

For further information, please email:tss-class@lr.org

Marine Management SystemsHenriette Weijs is the global MarineManagement Systems Manager and amember of the Classification Executive.The Marine Management Systems (MMS)section of Fleet Services Department isthe global centre for Lloyd’s Register’scertification activities for the InternationalSafety Management (ISM) Code and theInternational Ship and Port Facility Security(ISPS) Code.

The section focuses on ensuring globalconsistency of our service delivery. Ouractivities are coordinated through sevenMarine Management System Offices worldwide, in Dubai, Hong Kong, Houston,Piraeus, Rotterdam, Singapore andSouthampton. This structure enables us toprovide a quick response to our clients anda good understanding of the local issuesour client face. These offices are alsoinvolved in coordinating certification toother management system certificationfor the Marine industry, including ISO9001,ISO14001 and OHSAS18001.

Implementation of the requirements of theISM Code helps companies to ensure safetyand quality, and manage business risks whileoffering opportunity for continuousimprovement.

The ISPS Code forms a frameworkthrough which ships and port facilitiescan co-operate to detect and deter actswhich pose a threat to maritime security.Implementation of the requirements of theISPS code helps companies to assess thesecurity of their ships and to put in placeadequate security measures.

Our certification provides our clientswith evidence of compliance with therequirements of the Codes on behalf ofthe Flag administrations. In addition we usethe experience and training of our globalnetwork of auditors together with thesupport provided by our experts, to workwith our clients in the development ofmature and effective management systems.

For further information, please email:mms@lr.org

Technical Performance GroupBrian Purtle is the Technical PerformanceGroup Manager and a member of theClassification Executive. The prime functionof the Technical Performance Group is tomonitor and identify performance issueswhich could effect the quality of servicedelivery for New Construction surveys,Periodical Ship surveys and Materials andComponent surveys.

Our activitiesare coordinated

through seven MarineManagement SystemOffices world wide, in

Dubai, Hong Kong,Houston, Piraeus,

Rotterdam, Singaporeand Southampton.

June 2010 Horizons

33

The London-based Technical PerformanceGroup liaises closely with the wellestablished network of Area TechnicalPerformance Managers who are basedthroughout the Americas, Asia, Europe,Middle East and Africa.

The results of this performance monitoringare fed back to the business via technicalreports, recommendations and discussionswhich can ultimately bring aboutchanges, or amendments, to the Rulesand Regulations and the survey proceduresand to apply a consistent approachduring surveys.

A further function of the TechnicalPerformance Group comes via the MarineData Systems section, also based in theLondon office. This section maintains acomprehensive database of informationrelated to Hull and Machinery damages,defects, fires, explosions and groundings.

The data has been gathered continuouslyfrom our surveyor survey reports fromsome 30,000 ships over a period ofalmost 50 years. During a typical yearover 18,000 survey reports are processed.The information in the database isrecorded, interrogated and analysed bytechnical specialists and used to producea variety of reports for use by internal andexternal clients and more than 130investigations are carried out each year.

Reports covering a variety of technicalissues are regularly requested by internaland external clients to assist in the earlyidentification, or prevention of potentialdefects or failures in ship structure,machinery and equipment.

For further information, please email:tpg@lr.org ordatabase@lr.org

Survey systemsAlan Owen is the manager of the SurveySystems department, with the principalobjective of managing survey-related datafor all Lloyd’s Register classed vesselsthroughout their in-service lifecycle. Suchdata is essential to marine safety andneeds to be available on a continuous basisto our marine surveyors, ship operatorsand regulators.

Survey Systems is responsible forperforming the following main functions:-

• Maintaining the survey control andreporting systems used to managesurvey data, including the supply ofsurvey status information to ourClassDirect LIVE web application forthe benefit of our clients.

The systems also benefit our surveyorseach time a Survey PreparationPackage is requested prior to theconduct of surveys, using the SurveyorSupport System (SSS). All client requestsfor the postponement of surveys – asagreed by Classification Devolved ClassExecutives (DCE’s) – are recorded inthe database.

• Administration of ClassDirect LIVE –giving access to up-to-the-minuteinformation from our databases tothousands of users worldwide from shipoperators and surveyors to shipbuildersand flag administrations.

For further information please contactcdlive@lr.org

Production and distribution of the‘Quarterly Listings’. As the name suggests,this document detailing the survey statusof every Lloyd's Register-classed vesselis produced every three months at thebeginning of March, June, Septemberand December and mailed to each client,

resulting in over 30,000 listings perannum, distributed to around 2,500 clientsworld-wide.

For further information please contactTony BarnhamT: +44 (0)20 7423 2235E: tony.barnham@lr.org

Exhibition of Records, typically, toprospective buyers of Lloyd's Register-classed ships (or agents authorised to acton their behalf) who have gained thewritten consent of the current owner, toaccess survey reports and ThicknessMeasurement records in order to make anassessment of the vessel’s condition.

For further information please contactJoe ElliottT: +44 (0)20 7423 2270E: eor@lr.org

Co-ordinating sales and order-processing ofLR Rules products (with the exception ofRuleFinder which is distributed by ExternalAffairs). Purchase of rules products is nowperformed via our on-line Web Store (HYPERLINK "http://www.webstore.lr.org"www.webstore.lr.org). Details of allproducts are available through the on-linecatalogue and the ordering process is thesame as for any on-line retailer.

The extra advantage of the Web Store forour clients is that they can manage theirown accounts, subscribe to Rules Notices(which will be E-Mailed automatically uponpublication) and browse the cataloguewhich is continually updated.

For further information please contactHelen Brailey, Rules DistributionCo-ordinatorT: +44 (0)20 7423 1745E: rules@lr.org

Continued >

Such data is essentialto marine safety andneeds to be availableon a continuous basis.

June 2010 Horizons

Ship Inspection & Assessment ServicesUdi Bar-Lev is the Ship Inspection andAssessment (SIA) global manager, in chargeof four regional SIA centres based inSingapore, Piraeus, Southampton andHouston. The SIA products are all consideredas ‘consultancy’ for Lloyd's Register’s marineclients and complement Class services,however almost 30% of SIA services aredelivered to non-LR classed ships. Thefollowings are the main SIA products:

• Condition Assessment Programme(CAP):

Starting in the early 90’s, oil majors requiredany oil tanker above 20,000 dwt, aged15 years or more, to go through conditionassessment survey. The requirement wasextended to all tankers (Chemical, Gas)and recently to capesize Bulk Carriers.To the client, acceptable CAP rating witha supportive report means better position toget his ship trading with preferred charterers.

In preparation for a successful CAPprocess and to assist clients during surveyswe inspect a ship and assess its conditionto a defined standard which is aboveclass minimum requirements. The levelof compliance to this standard is knownas the “CAP rating”. There are four levels:“1 - Good”,“2 - Satisfactory”,“3 – “Unsatisfactory” and“4 – Poor”.

In preparation for asuccessful CAP processand to assist clients duringsurveys we inspect a shipand assess its condition toa defined standard whichis above class minimumrequirements.

June 2010 Horizons

35

Class minimum requirements are at level 3,which means unsatisfactory for CAPalthough acceptable to class. The ratingachieved is stated on a certificate issued tothe client. Separate CAP ratings are givento the condition of the Hull, Machineryand Cargo systems of the ship.

We also provide assistance and supportwhen they need to comply with end-user’srequirements.

• Hull Renovation Scheme (HRS):Starting in 1989, we were marketinga service to allow owners to renovate theirhull structure to a defined standard.

The scope of the service:• Examination of Records• Survey of the hull structure with

thickness measurements• Surveyor reports• Analysis of the TM’s• A report with recommendations

When recommendations have been dealtwith, a second visit is paid to the ship forsurveyors to report/confirm results. A finalreport is then issued to owners who havemaintained or upgraded the structure oftheir ship to a closely defined level abovethe classification levels for renewal.Advantages and benefits are objectiveevidence of ship’s hull quality; enhancedre-sale value (asset maintenance); extendedship-life (revenue) and possible avoidanceof port restrictions on aged ships (revenue)

• Hull Integrity:Hull Integrity is a software based service.It is a tool for ship operators aimed toassist them in maintaining structuralintegrity across their fleets.

The scope of the service:• Ship software pack• Web based program• Ship’s specific Hull structural guide• Training courses (web based, CD and

frontal)

The service is based on the recording oftank inspections by suitably trained seniorship's officers or superintendents, aidedby hardcopy inspection guides writtenspecifically for each ship. The inspectionresults are recorded using a ship-basedsoftware package and transmittedelectronically to a secure web site. Thisapproach enables worldwide access byauthorised users to the inspection databasevia the internet. Functions available includethe ability to review inspection reportstransmitted from ships, to generate repairlists and to perform defect analysis acrossthe fleet.

Key benefits:• Effective inspection and recording

• Improving preparation for repairs,surveys and down-time

• Can help to identify defects anddeterioration early on, allowing timelypreventative action and safer shipoperation

• Compliance with charterers andfinanciers by enabling demonstrationthat ships are maintained to highstandards

Sales & Purchase (S&P):Sale and Purchase support aims to helpaddress the risks associated with second-hand purchase/charter and providestandard reports for clients. It is comprisedof two main activities:

• Examination of RecordsIndependent examination of shipclassification records on behalf of potentialship-owners or other interested parties.Service includes confidential report on thevessel, indicating present classificationstatus, any conditions of class and detailingany noteworthy damages or defects.

• Condition SurveysPre-purchase condition survey – rapidexamination afloat of all areas readilyaccessible to ascertain the vessel’s generalcondition at the time of survey.Specialised condition survey – moreextensive survey suitable, for example, forassessing the viability of extending avessel’s useful life or carrying outconversions.

On-hire/Off-hire condition surveys –highlight defects and deficiencies tostructure/coatings and equipment on-board, which is usually in dry-dock at thecommencement of a charter and at theend of a charter

When a CFO receives a request for S&Pfrom a client, the CFO is responsible toco-ordinate surveyors with the SDO andprovide the instructions to the surveyor/sas per client’s request.

Sale and Purchasesupport aims to helpaddress the risksassociated with second-hand purchase/charterand provide standardreports for clients.

June 2010 Horizons

Hellenic Lloyd’s’ Marine Operationsis responsible for 26% of theworldwide Lloyd’s Registerclassed fleet and is in daily contactwith our clients, always readyto cover clients’ needs andexpectations. The Greek shippingcommunity is a very demandingarena; therefore it is our primaryaim to provide our services inthe most efficient way, throughtechnical excellence, continuoussupport and quick response.

To this effect the decentralisation ofLloyd's Register’s decision making centresis crucial in order to be closer to ourclients, to maximize responsiveness andto provide individual and personalizedresponses to clients’ requests and querieswith enhanced efficiency and localtechnical excellence.

In line with the above philosophy, thePiraeus Devolved Classification ExecutiveCommittee (DCE) directly handlesrequests from Greece, Cyprus, Bosnia &Herzegovina, Croatia, Israel, Italy, Malta,Monaco, Slovenia, Turkey. It acts under theauthority of the London ClassificationCommittee for considering and agreeingpostponements of classification andstatutory surveys, co-ordinating issues withFlag Administrations, making contacts withother Lloyd's Register offices whennecessary, making sure the processesfollowed are client-focused, and thatLloyd’s Register procedural requirementsare met.

Mr. Spyros Anastassovitis, Chairman ofPiraeus DCE says: “Piraeus DevolvedClassification Executive has as a firstpriority to offer sound technical adviceand meet Clients expectations in the

highest effective way. This is of crucialimportance for the Service delivery tothe Greek Shipping Community, and thesuccessful outcome is driven by efficientlyco-ordinated technical guidance andhigh level support functions.”

Devolved Classification ExecutiveCommittee (DCE) in Greece

36

Mr. Spyros Anastassovitis, Marine Technical Manager, DCE, Piraeus

“Piraeus DevolvedClassification Executive hasas a first priority to offersound Technical Advice andmeet Clients expectations inthe highest effective way.”

Under the scheme certain dry dockingsare replaced by in-water surveys (IWS)carried out by approved diving companies.The benefits to operators are increasedflexibility in choosing a dry docking windowand, with proper maintenance programmesin place, the potential for the hull to stay inwater for up to 7.5 years. Some operatorsmay be able to realise benefits and,potentially, cost savings but thoseconsidering the scheme need to carefullyconsider the implications – on operatingcosts and maintenance planning – ofpushing the docking cycle out to 7.5 years.

Safety is always the paramount concern.To date, the combination of our procedures,the involvement of a first-class operator

Recent interest has been shown inLloyd’s Register’s pioneering workin piloting a 7.5 year Extended DryDocking survey.

Lloyd’s Register has been carrying out afirst of its kind pilot scheme for ExtendedDry Dockings (EDD) with a majorcontainership operator for five years now.The procedures agreed with the operator andwith the Danish Maritime Authority, as wellas other flags, have been carefully thoughtthrough and are in no way a reduction ofthe controls provided by the special surveyregime. The scheme is predicated on anumber of factors to secure class and flagstate approval.

Extended Dry Dockings provideflexibility to qualifying operators

June 2010 Horizons

and experienced flag states, is providingappropriate oversight with respectto safety.

The operators of ships involved must takea demonstrable and sophisticated approachto the maintenance and management ofship operations. Requirements for surveywhile in-water include arrangements fortesting and maintenance of seawatervalves and that measurement of rudderand tail shaft clearances are undertaken –as would be required during a dry-docking.Coatings must be of a high qualitysuitable for extended docking cycles andin line with manufacturer's guidelines.

Continued >

37

38

June 2010 Horizons

“Lloyd’s Register will workclosely with the Ownerswho wish to apply thescheme. Operators shouldfully investigate therequirements and therealities of extendeddocking cycles – thescheme is not a simplecost-cutting exercise but apotential element of asophisticated approach tooperational maintenance.”Iain Wilson, Lloyd's Register FleetServices Manager

Ships should normally have been operatedby the Company from new and operated bya company with a proven track record aswell as having a good record of inspection(combined history of Flag and PSC).Impressed Current Cathodic protection isrequired together with regular monitoringand all Survey Planning Documentation is tobe submitted to Class and Flag well inadvance of survey.

Extended docking survey cycles will not beappropriate or possible for all types of shipnor all operators. The pilot scheme is currentlyrestricted to larger container ships but smallercontainer and general cargo ships may qualify.Bulk carriers and tankers are excluded fromconsideration due to the Enhanced Surveyrequirements under which a docking survey isrequired at each Special Survey.

The future use of EDD currently lookspromising on the evidence of performanceto date. It requires a pro-active approachby management to move beyond thecurrent mainstream prescriptiverequirements and it is in the operator'sbest interests to avoid unscheduled, andprobably costly, dockings by prioritisingwell documented maintenance andinspections in support of safety.

EDDs may be appropriate for prudentowners, offering them a greater degree offlexibility for their Dry Docking Schedulesallowing them to carry out continuoussurveys and use in-water surveys (IWS)to monitor underwater areas.

Contact: classificationgroup@lr.org

39

June 2010 Horizons

There are a number of issues relating to7.5 year EDD that must be consideredprior to acceptance into the scheme,summarised below:

Qualifying Ship TypesIn accordance with IMO resolution A744(18), the scheme cannot be applied toEnhanced Survey Programme vessels – mostbulk carriers and tankers and, by SOLAS,cannot be applied to passenger vessels.Due to the trading pattern, current ownerplanned maintenance and original designit is currently only being consideredapplicable to internationally tradingContainer ships however other ship types(including short sea trade container shipand LNG) could possibly be considered ona case by case basis, but will need toaddress the issues below.

Flag Administration acceptanceAs the option of the method of theinspection of the outside of the ship’sbottom is a statutory requirement, the flagadministration will need to agree to theinclusion of a specified vessel and Owner onthe scheme. In the past the UK, Danish andSingapore flags have agreed to consider thescheme for individual vessels. Liberia andMarshall Islands are currently initiating thescheme, and it is understood that Germanyand Antigua & Bermuda flag administrationshave agreed schemes

AgeFor ships less than 10 years of age (exceptEnhanced Survey Programme ships), theyare required to be inspected in dry dock atintervals not exceeding 7.5 years. Ships over15 years of age will need to be inspectedin dry dock unless specially consideredand agreed otherwise. The ideal age forcommencement of EDD is for ships between0-5 years of age.

Other RequirementsThese include: Quality of coatings; corrosionprotection (anodes); the need for the shipto have been classified from constructionwith an IACS society and have appropriateassigned class notations; submission ofdetailed in-water (IWS) survey plans: cablesranged as per special survey requirementsat 10 years, thereafter 5 years; ships shouldavoid operations in ice.

40

June 2010 Horizons

Reducing VOC emissions fromcrude oil tankers helps cut theenvironmental impact of shipoperations and saves on hardwon resources, writes Teekay’sVice President, TechnologyDevelopment, Dr Hans RichardHansen.

Volatile Organic Compounds (VOCs) arethe hydrocarbon gases emitted during thecrude oil transportation process. Theyrepresent a proportion of the cargo lost asfumes. The main constituent gases of

VOCs are methane, propane and butane –the latter two are both heavier than airand the main concern to date has beentheir potential negative impact on humanhealth in loading zones.

Since 2002 Norway has regulated VOCemissions from tanker operations onits continental shelf – mainly related toNorth Sea shuttle tanker activity. Anothersignificant component of VOCs is methane(the same gas that, cooled and liquefied,is known as LNG) – this lighter gas risesimmediately to the upper atmospherewhere it poses no immediate risk to health.

VOCs are greenhouse gases andcontribute to shipping and the oilindustry’s carbon emissions: the methaneimmediately on release, while the propaneand butane components, when brokendown by environmental exposure,eventually form CO2 in the atmosphere.If VOC emissions could be either mitigatedor prevented, shipping’s contributions toglobal warming could be reduced andadditionally, as VOC represent lost cargo,delivered crude oil stems would beincreased providing more oil and financialbenefit to cargo owners and reducedwastage of resource.

Cleaner air and more oil in the tank –Teekay is helping an industryunder pressure

Schematic of VECS system

41

Hans Richard described Teekay’s extensiveexperience in operating ships incompliance with the Norwegian VOCEmission Regulation. Along with otherNorwegian sector tanker operators, Teekayhas employed VOC emission reductionsystems to reduce the venting of thegaseous compounds that make up theVOCs from oil cargoes. Mr. Hansendescribed a range of technical solutionsthat have been employed in the NorthSea including absorption, condensationand KVOC technologies. The totalinvestment by operators to date has beenin the region of US$ 250M. The annualoperating expenses for these systems arearound US$ 20M. These systems are all

installed on a retro-fit basis on board shipto reduce VOC emissions during loading.

Reductions in VOC emissions have beenconsiderable – Norwegian shelf shuttletanker emissions have fallen from 160,000tons in 2002 to 25,000 in 2009. But thisis a relatively small fleet and reduces emissionsof total crude oil shipments by a tinypercentage. The world-wide seaborneimports of crude oil are around 20 millionbarrels daily. Crude oil is mostly a long haulcargo; the tonne/mile proportion of worldseaborne trade is high. VOC emissionsfrom the crude trade can be reducedby some 1-2 million tonnes annually,reducing the carbon footprint of the

crude transport industry by about 5%.An additional benefit would be a reducedcontribution from the crude trade toground-level ozone.

Two major changes need to beimplemented to capture such savings.Firstly, tanker design would need to bemodified to enable carriage of oil underpressure, at the modest level of 1.2 to1.7 bar. Teekay have already raised thetank pressure on one of their tankers,Navion Hispania, to 1.2 bar, a pressurelevel that most tankers can accommodatewith minor modifications.

Continued >

June 2010 Horizons

VOC emissions fromthe crude trade canbe reduced by some1-2 million tonnesannually. reducing thecarbon footprint ofthe crude transportindustry by about 5%.

Dr Hans Richard Hansen

The increased pressure in the NavionHispania’s tanks provided 15-20%reduction in VOC emissions during loading.Also re-absorption of VOC during thevoyage using a GBA Swirl Absorbereliminated emissions during transit andeliminated the need to vent if tankpressure needs to be reduced beforedischarge.

Four Amundsen class shuttle tankersdue to be delivered to Teekay in 2010 and2011 are designed to load and carry crudeoil under a pressure of 1.7 bar. In additionto the capability to load at increasedpressure, other systems being installedon the Amundsen class ships are:

• A GBA Swirl Absorber, or CVOC forre-absorption of VOC gas into thecrude oil, integrated with automaticcontrol of cargo tank pressure.

• KVOC which is an increased diameterdrop line system developed by KnutsenOAS. The system reduces the under-pressure (siphon effect) that occurs ina conventional drop line, therebyreducing the flashing of gas from thecrude oil during loading.

Increased cargo tank pressure togetherwith KVOC is expected to reduce VOCemission during loading with 60-70%,and by employing the GBA Swirl Absorber,the laden voyage can be accomplishedwithout venting of VOC to air.

42

June 2010 Horizons

Key VOC Facts

Breakdown of the VOC ‘column’The Propane and Butane, at low altitudes, break down in sun light into Ozone,which in high concentrations can impair human health and damage vegetation andmaterials. The Methane component rises immediately to the upper atmospherewhere it acts as a greenhouse gas.

VOC Management PlanIn the revised MARPOL Annex VI, coming into force on 1 July 2010, there is arequirement for an Approved VOC Management Plan; Lloyd's Register has providedrelevant supporting information in Classification News No. 41/2009 dated December11, 2009. Lloyd's Register has also produced a template and checklist to assistmanagers in producing their plans.

The additional investment for designchanges and the installation of therequired systems as employed on theAmundsen newbuildings is less than$3 million. But retrofitting a SwirlAbsorber and operating at 1.2 bar can beachieved at a cost of less than $1 million.If implemented on the crude fleet, thiswould be equivalent to reducing its carbonfootprint by 2 to 3 %. Additional benefitswould include an improved workingenvironment on board and in the localityof tankers terminals by reducing VOCrelated health risks.

Ships need help from the shoreThe next big step to further reduce VOCemissions would involve effective use ofthe Vapour Return system. Most tankershave Vapour Return systems but fewterminals are prepared to use this capabilityto fully close the vapour emission loop.

If the tanker and terminal industrycooperated in the transfer of tankatmosphere between ship and shoreduring loading and discharge this wouldprobably be equivalent to an additional5% reduction of the carbon footprint ofcrude oil transportation by sea.

The MARPOL Convention introducesrequirements to VOC emissions forthe first time this year. These regulationsare limited to requiring owners to developand operate according to a VOC plan.In the future this can be made moreeffective by operating at somewhat higherpressure, with the aid of installationssuch as the GBA Swirl Absorber, onall crude tankers.

The MARPOLConvention introducesrequirements to VOCemissions for thefirst time this year.

43

June 2010 Horizons

Almi Tankers S.A. has become thefirst company worldwide to signup their fleet to FOBAS EngineLloyd’s Register’s recently launchedperformance monitoring service.FOBAS Engine delivers extendedfuel and lubricant telemetryregarding engine performance toships’ crews and operators, givingships in its programme a detailedindication of what is happeningwithin large marine diesel two-stroke engines.

The service also provides practicalguidance when any deteriorating engineconditions are encountered enablingaction to be taken before damage iscaused. The benefits of FOBAS Engineinclude reduced maintenance costs,diminished potential engine downtimeand reductions in cylinder oil feed rate.As the shipping industry continues to seekimproved engine performance, this newservice helps enhance operators’ abilityto operate efficiently – reducing bothcosts and emissions.

Panayiotis Drossos, CEO of Almi TankersS.A. says: “In times of high environmentalpressure and cost demands imposedon shipping, we are confident that wehave made a step forward to practicallydemonstrate our ongoing commitmentto the safe, reliable, efficient andenvironmentally sound operationof our vessels”.

The FOBAS Engine service is deliveredusing eight points of performance analysisvia a thorough assessment of the keycondition variables that affect the efficientoperation of engines. It offers a significantincrease in day-to-day knowledge ofoperational engine performance, andprovides a clear indication of combustion,performance, lubrication and wearconditions for slow-speed two-strokemarine diesel engines. This is achievedthrough detailed analysis of engineperformance variables combined withadvanced dilution analysis of usedcylinder, fuel and system lubricatingoils.The crew are thus able to makeany necessary adjustments to achieveoptimised engine operation.

“…the safe, reliable, efficient andenvironmentally sound operation ofour vessels…”

“Our scope as ClassificationSociety is to serve the client’sneeds but providing at thesame time innovative andsustainable solutions.”Efthymios Louridas, Lloyd's Register’sClient Manager for Almi Tankers S.A

Commenting on the deal, EfthymiosLouridas, Lloyd's Register’s Client Managerfor Almi Tankers S.A. says: “Our scope asClassification Society is to serve the client’sneeds but providing at the same timeinnovative and sustainable solutions.We are proud to acknowledge that AlmiTankers S.A. has engaged with Lloyd'sRegister in a holistic and solid solutionthat will definitely prove its technical andfinancial merits on one of the youngestfleets of the Greek shipping industry”.

For further information contact:Tim Wilson, FOBAS Product Manager,LondonT: +44 (0)20 7423 1870E: timothy.wilson@lr.org

June 2010 Horizons

44

What’s on the radar

Since the 1970s, the answers to the environmentalquestions facing the maritime world have beenspearheaded by the International MaritimeOrganization (IMO), the body which regulatesshipping through international consensus.

Our environmental roadmap outlines the key existing andforthcoming legislation from the IMO up to the end of 2016,identifying future compliance dates and emerging regulations.

June 2010 Horizons

45

INFORMATIONChanges to the International SafetyManagement (ISM) Code, introduced by IMOResolution MSC.273(85), will come into effecton July 1, 2010. While some of the changes areeditorial, others introduce new requirements ormake explicit some of the previously implicitrequirements of the ISM Code.

What has been amended?Guidance on implementation of the changesis attached to this Classification News, alongwith a copy of Resolution MSC.273(85).

The following is a summary of the changes:

Clause 1.1.10 – the definition of a major non-conformity now makes clear that this can beeither a lack of effective and systematicimplementation of a requirement of this Codeor an identifiable deviation that poses a seriousthreat to the safety of personnel or the shipor a serious risk to the environment thatrequires immediate corrective action.

Clause 1.2.2. – the objectives now explicitlyrequire assessment of all identified risks tothe Company’s ships, personnel and theenvironment; the requirement to establishappropriate safeguards remains.

Clause 5.1.5. – the Master’s responsibility toreview the Safety Management System (SMS)and report its deficiencies to the shore basedmanagement now needs to be periodic.

Clause 7 – the requirement to establishprocedures for key shipboard operations hasnow been rephrased to concern the safetyof the ship and protection of the environmentand now also includes the safety of personnel.

Clause 9.2 – the requirement forimplementation of corrective action nowspecifically includes measures intended toprevent recurrence.

Clause 12.1 – internal safety audits are nowrequired to be carried out on board andashore at intervals not exceeding twelvemonths; in exceptional circumstances thiscan be exceeded by three months.

June 2010 Horizons

No. 17/2010STATUTORY ALERT – Entry into forceof the Revised MARPOL Annex VI –a reminder

APPLICABILITY – All shipowners, operatorsand charterers

INFORMATIONClassification News 31/2008 gave details ofrevisions to MARPOL Annex VI which will enterinto force on July 1, 2010. This ClassificationNews is a reminder that certain aspects of therevised MARPOL Annex VI will have immediateeffect. In particular:

• the maximum permitted sulphur content offuels used in the two emission ControlAreas for sulphur (the Baltic and North Seaarea) will reduce from 1.50% to 1.00%

• all ships will be required to maintain a list ofequipment containing ozone-depletingsubstances (ODS) and an ODS record book

• tankers carrying crude oil are required tohave on board an approved VOCManagement Plan (see Classification News41/2009 and 03/2010).

In addition to the above, the Revised Annex VIincludes amendments to the InternationalAir Pollution Prevention Certificate and itssupplement; as a result, all certificates andsupplements will be required to be reissued.This will be carried out as follows.

For ships which currently hold an InternationalAir Pollution Prevention Certificate or aCertificate of Compliance, the certificate andits supplement will be reissued at the nextrenewal survey after July 1, 2010, or on anyother occasion (such as change of flag orname) which would necessitate the reissue ofthe certificate and its supplement, whichevercomes first. Where applicable it will beconfirmed that an approved VOCManagement Plan is on board. Ships flyingthe flags of countries which are not signatoriesto the Convention should be issued with aCertificate of Compliance with Annex VI.

No. 13/2010STATUTORY ALERT –Means for fullyrecharging breathing apparatus aircylinders – new SOLAS regulationII-2/10.2.6

APPLICABILITY – Shipbuilders, ownersand managers

INFORMATIONUnder new SOLAS regulation II-2/10.2.6(adopted by Resolution MSC.269(85)), passengerships carrying more than 36 passengers,constructed (having their keel laid) on or afterJuly 1, 2010, must be fitted with a suitablylocated means for fully recharging breathingapparatus air cylinders, free from contamination.

The means for recharging must be either:

• breathing air compressors supplied fromthe main and emergency switchboard,or independently driven, with a minimumcapacity of 60 litres per minute (l/min) perrequired breathing apparatus, not to exceed420 l/min, or

• self-contained high-pressure storagesystems of suitable pressure to recharge thebreathing apparatus used on board, with acapacity of at least 1,200 litres per requiredbreathing apparatus, not to exceed 50,000litres of free air.

The means for recharging must be installedby a competent person in accordance with themanufacturer’s instructions. Compressors shouldbe installed in accordance with BS EN 529:Respiratory protective devices –Recommendations for selection, use, care andmaintenance – Guidance document or anequivalent national standard.

No. 12/2010STATUTORY ALERT – Changes to theInternational Safety Management (ISM)Code – effective July 1, 2010

APPLICABILITY – All Companies as definedin the ISM code

Classification News DigestThe following Classification News bulletins were released by Lloyd's Register over the past four months:

46

Clause 12.2 – the Company evaluation of thesafety management system is now requiredto address the effectiveness of the system.

Clause 13 – new paragraphs have beenintroduced to bring International SafetyManagement Certificates into line with theprovisions in SOLAS relating to the extensionof statutory certificates.

Clause 14.4.3 – now clearly states it is aninternal audit which must be held within threemonths of the interim audit.

Clauses 8.1 and 10.3 – editorial changes only.

No. 07/2010STATUTORY ALERT – Guidelines for shipsoperating in Polar waters

APPLICABILITY – Shipbuilders, owners,operators and managers

INFORMATIONThe IMO has developed voluntary Guidelines forships operating in Polar Waters, adopted at the26th session of the Assembly. The IMOResolution A.1024(26) updates MSC/Circ.1056and MEPC/Circ. 399 – Guidelines for shipsoperating in Arctic ice-covered waters.

The Guidelines are intended to be applicable tonew ships with a keel laying date on or afterJanuary 1, 2011, operating in Polar regions (theArctic and the Antarctic). They containprovisions that recognise the additionalchallenges in Polar waters other than ice-coverage and emphasise the need to considerthe nature of the operations that are anticipatedand provisions for environmental protection.The Guidelines also identify requirements for allships operating in Polar ice-covered waters tocarry at least one Ice Navigator who, in additionto being qualified under the STCW Convention,is specially trained and qualified to navigate aship in ice-covered waters. These requirementsare currently being developed by the IMO STWsub committee.

No. 06/2010STATUTORY ALERT – Ratification of theAFS Convention by Singapore

APPLICABILITY – All shipowners and operators

INFORMATIONThe International Convention on the Controlof Harmful Anti-fouling Systems on Ships(the AFS Convention) enters into force forSingapore on March 31, 2010.

With effect from this date, all ships (excludingfixed or floating platforms, floating storageunits (FSUs) and floating production storageand offshore loading units (FPSOs)) enteringSingapore waters, including all harbour craftand pleasure craft, are prohibited fromapplying or using harmful anti-foulingsystems. Vessels entering Singapore watersthat are not flagged with Singapore. FromMarch 31, 2010, these vessels must complyas follows:

• Vessels of 400 gt and above that areflagged with an AFS Convention state arerequired to carry on board an InternationalAnti-fouling System Certificate.

• Vessels of less than 400 gt but 24 metresor more in length that are flagged with anAFS Convention state are required to carrya Declaration on Anti-fouling System.

• Vessels of less than 400 gt and below24 metres in length that are flagged withan AFS Convention state may be subject toPSC inspections carried out in accordancewith the IMO Guidelines for Inspection ofAnti-Fouling Systems on Ships.

• Vessels not flagged with an AFSConvention State may be subject toPSC inspections carried out in accordancewith the IMO Guidelines for Inspection ofAnti-Fouling Systems on Ships.

June 2010 Horizons

47

Lloyd’s Register EMEAT + 44 (0)20 7709 9166F + 44 (0)20 7423 2057E emea@lr.org

71 Fenchurch StreetLondon EC3M 4BSUK

Lloyd’s Register AsiaT +852 2287 9333F +852 2526 2921E asia@lr.org

Suite 3501China Merchants TowerShun Tak Centre168–200 Connaught Road CentralHong KongSAR of PRC

Lloyd’s Register Americas, Inc.T +1 (1)281 675 3100F +1 (1)281 675 3139E americas@lr.org

1401 Enclave ParkwaySuite 200HoustonTexas 77077USA

www.lr.org

June 2010

Services are provided by members of the Lloyd’s Register Group.Lloyd’s Register, Lloyd’s Register EMEA and Lloyd’s Register Asia are exempt charities under the UK Charities Act 1993.

“To enhance the safety of lifeand property at sea, on landand in the air, we work withbusinesses and organisationsaround the world. We help ourclients face today’s challengesand plan for tomorrow andbeyond.”

Horizons is the journal forLloyd's Register Marine clientsand staff, delivering news andanalysis on our global activities.

The Horizons team are:

Marine CommunicationsManager:Nick BrownE nick.brown@lr.orgT 00 44 (0)20 7423 1706M 44 (0)77 6987 8501F 44 (0)20 7423 2213

Managing Editor:David BlackE david.black@lr.orgT 00 44 (0)20 7423 2305

Designer:Dawn SmithPipeline DesignE dawn@pipelinedesign.itT 00 44 (0)20 8316 4981

Staff Photographer:Mat CurtisE mat.curtis@lr.orgT 00 44 (0)20 7423 2020

Horizons is produced by MarineCommunications and designed by PipelineDesign. Care is taken to ensure that theinformation in Horizons is accurate and upto date. However, Lloyd’s Register acceptsno responsibility for inaccuracies in orchanges to such information.