June

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page 3SMIT partners yards in tug

design development

page 10URS commercial management

switches to Rotterdam

page 7Salvage workload includes

major wreck removals

page 12Successful completion

aggregates transport project

page 4SMIT Harbour Towage: Looking

forward to improvements in 2011

page 14‘Smit Amandla’ protects the

South African coastline

More

Following a life time extension programme, sheerlegs ‘Taklift 4’ is currently deployed in Brazil

to install various FPSO modules. The sheerlegs is now rated at 2,200 tonnes lift capacity.

Wider horizons for SMIT following Boskalis merger 2

Gladstone’s community name SMIT’s new tugs 4

Lamnalco and SMIT: creating a new global leader 5

Gearing up for expansion of the global LNG trade 6

A new context for the development of SMIT Salvage 6

SMIT’s series of Lloyd’s Open Forms in Morroccan waters 8

Fleet replacement orders in prospect for SMIT Transport 9

Offshore heavy transport charters occupy SMIT vessels 9

Upgraded ‘Smit Borneo’ completes PRP contract 10

‘Taklift 7’ commences Irish Sea windfarm project 11

SMIT Subsea provides diving support for Boskalis and Allseas 13

‘Asian Hercules II’ lifts FPSO components 15

Personal attitude, safety and the prevention of tragedy 16

SMIT Marine Canada in Kitimat receives Corporate Survey

Award 2009 16

www.smit.com

SMIT’s merger with Boskalis is a

seminal moment in our long and

proud history. This merger main-

tains the existing structure of

SMIT’s businesses and offers wider

horizons for our future develop-

ment. It is not about cost-cutting

and a quick profit! Rather, it is

all about very close commercial

cooperation in a wider variety

of fields. We will go forward and

develop new business together and

we will be all the stronger for that.

Within the first few months of merging, SMIT’s

Divisions are already working alongside

Boskalis in various parts of the world. Some of

the projects are at remote locations, including

a pipeline contract in the Magellan Strait. Our

organisations sit well together as we share a

truly world view.

The merger creates a new and more dynamic

organisation. The integration of SMIT Terminals

and Lamnalco, for example, will establish the

world’s largest terminals support services

group. This organisation now has a mission to

build on a reputation for flexibility, originality

and the application of high safety standards.

Yet, we are not complacent on the latter front.

Achieving and maintaining an outstanding

level of excellence in this area requires huge

commitment and a determination to achieve

consistency worldwide.

The new organisation has already brought

a new vibrancy to our operational think-

ing. Boskalis has a substantial international

network and we expect this to open doors

for SMIT. Obviously, success in the dredging

market requires extremely close links with port

authorities around the world. SMIT has a very

wide portfolio of marine services to offer that

market, from harbour towage and terminal

support to marine project expertise, heavy lift

and subsea works. Furthermore, this is a two-

way street. SMIT’s global network of clients and

partners bring significant value to the new,

combined organisation.

We also have distinct strengths in key areas

of expertise, which promise benefits through

exchange and cooperative working. One obvi-

ous example is Boskalis’ outstanding experi-

ence in the area of large-scale project manage-

ment. SMIT, in turn, offers a high level of sales

and marketing expertise in complementary

marine sectors. We can benefit from Boskalis’

understanding of complex project manage-

ment in many areas, such as salvage, transport

& heavy lift. I envisage SMIT engaging in more

major projects requiring a broad range of

marine services. Boskalis clearly saw an advan-

tage in adding capability across a broader

spectrum of disciplines, extending far beyond

the dredging sector. A one-stop combination

of dredging, offshore construction and marine

support capabilities will prove attractive in the

market for substantial, complex projects. An

obvious focus, in this context, is the progres-

sive expansion of LNG infrastructures across

the world. Another example is windfarm

construction, with future projects likely to be

undertaken on an unprecedented scale and,

in many cases, in deeper water. Project con-

tractors undertaking such developments will

require substantial resources to sustain high

performance working over protracted periods.

Effects at Divisional levelLooking at the merger in terms of SMIT’s

Divisions, the effects are positive in all cases,

although, obviously, the impact will be greater

in certain areas. In Salvage, there is an imme-

diate impact in terms of sheer presence,

given the size of the Boskalis fleet including

Lamnalco and its potential for use in salvage

and wreck removal.

Turning to Transport, there is now greater

scope for involvement in major projects. We

are especially interested in offering “pack-

ages” for marine construction, involving tugs,

barges and heavy lift capacity. Here, we have

in mind LNG developments such as Gorgon in

Australia and port construction projects such

as Maasvlakte 2 in Rotterdam. Naturally, our

offering also includes terminals support and

harbour towage when new facilities are com-

missioned.

In Harbour Towage, we have grown in recent

years through partnerships and relatively small

acquisitions. Following the merger, however,

it will now be possible to contemplate acquisi-

tions on a larger scale and to accelerate our

growth.

Many other SMIT activities stand to benefit.

For example, SMIT Transport & Heavy Lift’s big

barges and sheerlegs now have more scope

for integrated working, in areas such as wreck

clearance, channel deepening and offshore

windfarms. And we must not forget the off-

shore decommissioning market. This sector

has been much talked about for over two dec-

ades. Now, at last, it is beginning to grow and

the work content can only increase, given a

demanding regulatory environment.

There are also new opportunities for SMIT

Subsea. We will continue to invest in subsea

capability, with new saturation diving systems

and ROVs. One of our ambitions is to develop

more capability for deepwater working, to sup-

port major offshore projects.

On a number of occasions I have been asked

whether SMIT “feels different” following the

merger. The honest answer must be “yes”. As

you would expect, there were mixed feel-

ings amongst many who, rightly, take pride

in SMIT’s place in the rich tradition of salvage,

towage and “Dutch Glory”. Yet dredging is

also very much a part of our historic mari-

time story. Dredging is an area of engineering

where Dutch expertise has been foremost for

centuries. Indeed, each party to the merger

takes pride in tradition and a “can-do” business

culture. I have no fear of losing SMIT’s unique

identity. At the same time, things have moved

on and the reality is a much larger market

presence. I regard this as a merger driven by

market opportunity, rather than cost-cutting.

I am absolutely determined to make it work,

backed by the positive attitude and enthusi-

asm of our global workforce.

Today, SMIT’s employees are part of an inter-

national workforce of 14,000 people - a com-

munity based in all world regions. This fact

transforms the career opportunities for our

younger employees. SMIT alone is rather a “flat”

organisation and this can be challenging when

providing for career development. Today, how-

ever, our people have more stability - being

part of a larger and stronger group - and enjoy

enhanced career prospects. The greater stabil-

ity, of course, stems as well from the presence

of Boskalis’ major shareholder, who has shown

firm commitment to the business over a great

many years.

Strong performance maintainedWe entered the post-merger year with a strong

platform, despite world recession. Results

for last year remained at an historically high

level, despite the downturn and the inevitable

uncertainties regarding merger. We achieved

a net result only five per cent down on the

extraordinarily high figure achieved in 2008

(from EUR 107 million to EUR 102 million). I’m

very proud of our people and their ability to

achieve such a strong performance at a diffi-

cult time.

Looking ahead, in the harbour towage market

I feel we have passed the deepest point in the

downturn. This market now shows modest

improvement. Certainly, we are moving in the

right direction. SMIT Terminals continued to

prosper in 2009, with new contracts commenc-

ing. It is hoped that this trend will continue in

2010.

Salvage is an unpredictable business and activ-

ity levels are now quiet, in relative terms, but

results for last year were good - largely reflect-

ing settlements from past projects. Within the

shipping industry as a whole, there are impor-

tant issues surrounding manning and safety

which may well increase the demand for sal-

vage services as the market cycle unfolds.

The Transport & Heavy Lift Division opened

well in 2009 but recession then began to bite.

However, we have seen some recovery during

the first months of 2010.

Ben Vree

Chief Executive Officer

WIDER HORIZONS FOR SMIT FOLLOWING BOSKALIS MERGER

SMIT PARTNERS YARDS IN TUG DESIGN DEVELOPMENT

B Class newbuildings ‘Smit Buffalo’ and ‘Smit Beluga’ joined the SMIT fleet in the first half of this year.

RAmpage 5000 ‘Smit Angola’ during trials.

The ‘Smit Koongo’ under construction, the first of five tugs for Gladstone, Australia.

The second trio of newbuildings in a series

of six B Class vessels for SMIT Transport

joined the fleet in recent months. The first

three in the series - ‘Smit Bronco’, ‘Smit

Barracuda’ and ‘Smit Bison’ (DMPT 2500 ves-

sels with a 30 tonnes bollard pull) - made a

highly successful debut in the market. They

are now followed by ‘Smit Bulldog’, ‘Smit

Buffalo’ and ‘Smit Beluga’. The B Class ves-

sels, based on an IHC design, are built and

outfitted by Damen in The Netherlands.

The fourth B Class vessel to be delivered was

‘Smit Bulldog’, commissioned last September

and now working in Germany, where a new

windfarm is under construction. This was

followed by ‘Smit Buffalo’, delivered in early

January this year, and ‘Smit Beluga’, handed

over in April. It is intended to place these

vessels for long-term contracts, particularly

projects which may require a combination of

assets: a B Class “workhorse”, barges and, pos-

sibly, a sheerlegs.

Other recent additions to the fleet include two

of a series of four 85 tonnes bollard pull ASD

tugs for URS, destined to replace a number of

the famous Union Fighter Class tugs. The first

of the newbuildings, ‘Union Warrior’, joined the

fleet late last year. ‘Union Warrior’ is now work-

ing through the Angolan SMIT joint venture

Octomar, supporting a Total FPSO in Angola.

The second tug of the series, ‘Union Fighter’,

was delivered recently and is being prepared

for participation in the Heerema contract in

Block 31, Angola. The remaining two - still to

come from the Spanish yard of Armon, Navia -

will be delivered in July and December of this

year.

New ordersNew orders in recent months include a series

of five 70 tonnes bollard pull tugs for harbour

towage assistance and terminal support at

Gladstone, a general cargo and major coal

export port on the Australian Gold Coast.

These 3070 RA-type tugs are required for

service within 10 months of the contract

award, in the early New Year.

The solution was found at Uzmar Yard in

Turkey. Five slots were taken for tugs to the

excellent standard design developed by

Uzmar. The yard has an on-going production

programme and two of the tugs were already

under construction when the orders were

contracted. At that point the yard was also

just beginning to cut steel for the other three

newbuildings. Good progress is being made

towards scheduled delivery by October of this

year.

These tugs are being built to a proven design

for a high-efficiency, 70 tonnes bollard pull

ASD type. They are ideal for both harbour

towage and terminal work. Whilst the current

main requirement at Gladstone is harbour

towage assistance, this is likely to expand

into terminal support services for LNG opera-

tions. Accordingly, the newbuildings will be

equipped with a full range of LNG-related

features.

The first of the five will be ready in June. When

the last vessel in the series is delivered, the

project team will have two months to work up

for commencement of operations at Gladstone

next January 1.

These new vessels are similar to the RAmpart

3000 tugs ‘Smit Port Said’ and ‘Smit Damietta’.

These 62 tonnes bollard pull tugs were deliv-

ered four years ago, from the same builder.

Both are now busy at the Damietta LNG termi-

nal, Egypt.

The new vessels for Gladstone, however, reflect

recent design developments by Uzmar. This

yard’s approach to tug construction is very

sophisticated and is based on an advanced

“production line”.

New RAmpage 5000 tugsWithin the next months we will see the deliv-

ery of the ‘Smit Angola’ and the ‘Smit Siyanda’,

both of a new Class of 90 tonnes bollard pull

RAmpage 5000 offshore support vessel (OSV)

design.

The development of this new vessel type

began in 2006, triggered largely by a South

African requirement for a versatile vessel for

SPM buoy support. The specification pro-

vided for a powerful new Class equipped for a

wide range of duties, from hose handling and

flushing to tanker mooring assistance and, of

course, SPM maintenance work.

SMIT‘s newbuilding specialists worked closely

with the Robert Allan design team to produce

the RAmpage 5000-based solution for these

multirole newbuildings. The outcome was an

initial order for the first of the new offshore

support vessels, a highly customised variant of

the standard RAmpage 5000 type.

www.smit.com3

tug magazine

URS tugs successfully assisted the heavy cargo vessel ‘Zhen Hua 22’ from the River Scheldt

through the lock of Terneuzen and three narrow corridors (i.e.Bridge of Sluiskil, Bridge of

Sas van Ghent and Bridge of Zelzate) to the Arcelor Mittal terminal at Ghent.

95 tbp tug ‘Smit Panther’ currently

operates in the port of Rotterdam.

Harbour tug ‘Smit Guadeloupe’ joined the fleet in Panama.

SMIT offers harbour towage services in the port of Taipei, Taiwan.

SMIT Harbour Towage tugs assisting a jack-up platform in the port of Rotterdam.

The winners of the tug naming competition received

a certificate by SMIT Marine Australia’s Commercial

Manager Andrea Wilkinson (right).

June will see the delivery of the first of a

series of five 70 tonnes bollard pull tugs

for SMIT’s new contract at the coal port of

Gladstone, on the east coast of Australia.

The five new ASD tugs are building at Uzmar

Yard in Turkey. They will join the fleet ready

for the commencement of the Gladstone con-

tract next January 1. The last of the five will be

handed over in November. These new tugs are

designed for both harbour towage and termi-

nal support work.

The naming of the new tugs had been the sub-

ject of much discussion. This led to the idea of

a naming competition involving the Gladstone

local community. SMIT Marine Australia made

an announcement in the Gladstone Weekly

News on January 30. Local people were offered

an opportunity to “go down in the marine his-

tory of Gladstone”, by suggesting names for

the new tugs.

This competition had wide appeal. It attracted

no less than 300 responses. The five names

selected are all aboriginal words, rich in mean-

ing and highly appropriate:

‘Smit Kongoo’ - “kongoo” is from the aboriginal

language Byellee and means “place of water”.

‘Smit Yallarm’ - “yallarm” is from the aboriginal

language Gooren Gooreng and means “place

of shells”’.

‘Smit Awoonga’ - “awoonga” is the name of a

large lake formed by the dam which provides

the entire water supply for the area. It is a pop-

ular spot for sailing and fishing.

‘Smit Tondoon’ - “tondoon” was the name of

the Gladstone Dam and is currently the name

of the local botanical gardens, specialising in

conserving plants indigenous to the Port Curtis

area.

‘Smit Kullaroo’ - “kullaroo” is an aboriginal word

meaning “way which leads to water”. It is also the

name of one of Gladstone’s historic buildings.

Well done to the winners! Your place in history

is assured.

GLADSTONE’S COMMUNITY NAME SMIT’S NEW TUGS

The design development took account of the

need for dive support capability. The new

vessel, consequently, has a moonpool and

other DSV features. In addition, much effort

went into the deck layout and, in particular,

the positioning of winches and cranes. The

key driver here is efficient working. In addi-

tion, there was an in-depth technical review of

power management.

Subsequently, a second vessel was ordered

from Keppel Nantong, the build yard near

Shanghai, China. The first vessel, the ‘Smit

Angola’, is scheduled to operate offshore

Angola. The second of the newbuildings, ‘Smit

Siyanda’, will join the SMIT Terminals fleet and

will be deployed for SPM support duties at

Durban. This vessel has a four-point mooring

system.

Looking back, the design process, in this

instance, had some unusual features. It

began with a very brief specification and a

simple general arrangement concept. SMIT

Engineering and Robert Allan pooled their

experience to develop the detailed design.

Within four years, the initial sketches led to the

delivery of the first of a highly versatile, multi-

purpose offshore support vessel.

Traffic levels in the world’s major ports

have yet to pick up, despite the begin-

nings of recovery in the global economy.

Loek Kullberg, Managing Director of SMIT’s

Harbour Towage Division, says: “Nothing

much has changed over the past six months.

Rotterdam, for example, saw business fall

by 11 per cent in 2008. There was some

minor improvement in the final quarter of

last year but, overall, traffic volume was still

eight per cent below the 2007 level.

“The reality is that we see some improvement

but recovery in traffic levels is modest and

there is a very long way to go before activity

returns to pre-downturn levels. Meanwhile,

the situation at Antwerp remains poor and the

major ports of the UK, France and Germany

are still in difficulty. There is an exception

beyond Europe and that is China. We now

see significant improvement in the country’s

Pacific trades, especially China-USA and China-

Europe. In this area, the container majors

report improving rates and the gap between

capacity and demand is beginning to narrow.

That said, demand and rates are still a long way

from the levels of 2007.

In terms of SMIT’s harbour towage activities,

we take a realistic view. We are looking for

2009 business levels in 2010 and we expect to

see some improvement in 2011, when activity

levels should begin to increase.

Loek Kullberg adds: “With 2009 behind us, we

can develop some perspective on what hap-

pened. The low point, in all probability, came in

mid-2009. At that stage, the situation stabilised

and gradually picked up. China is the positive

exception to the general trend. South America,

perhaps, is the negative, in the sense that this

market is about six months behind in the cycle.

Yet, activity levels in South American ports did

not drop as dramatically as in Europe.”

Tug redeploymentA series of tug redeployments has taken place

to accommodate changing market condi-

tions in many ports of the world. In Europe, for

example, SMIT’s Rotterdam-based fleet was

reduced from 16 to 13 vessels. Loek Kullberg

says: “The new arrangements are working well.

It is not just a question of numbers, it is also

a matter of capacity and fleet composition. In

Rotterdam we now have two of the 95 tonnes

bollard pull 3213 newbuildings, the ‘Smit

Panther’ and ‘Smit Cheetah’.

“In the medium term we expect business levels

to recover at Rotterdam-Europoort. Boskalis is

an active participant in the Maasvlakte 2 devel-

opment. Maasvlakte 2 includes new container

berths, for the largest vessels, and a new LNG

terminal.”

The position is more difficult at Antwerp,

following the establishment of Antwerp

Towage - involving Multraship and Fairplay

(the latter a former partner in URS with SMIT,

until its URS stake was sold to SMIT in 2007).

There are two main challenges associated

with the port of Antwerp. Firstly, the decline

in traffic levels has been unusually sharp. The

contrast between Rotterdam and Antwerp is

explained, in part, by the former’s continued

high oil throughput. In Antwerp, however, traf-

fic has fallen by as much as 25 per cent and, in

addition, many container carriers have deleted

Antwerp (and a number of German ports)

SMIT HARBOUR TOWAGE: LOOKING FORWARD TO IMPROVEMENTS IN 2011

from their schedules, in favour of Rotterdam.

Loek Kullberg adds: “The second problem, at

least from our perspective, is the presence of

Antwerp Towage. Their arrival on the market

cost us 15-18 per cent of the business at the

port. We have already reduced the size of our

Antwerp tug fleet. We favour competition, in

the sense that it keeps us sharp. At the same

time, we believe in fair competition, based on

common standards and broadly similar labour

conditions.”

Elsewhere in Belgium, business remains strong

at Zeebrugge, largely due to the buoyancy

of the LNG trade, despite the downturn. The

newly-built 3213 ASD tug ‘Smit Tiger’, 95 tonnes

bollard pull, arrived at Zeebrugge in December

to take up duties at the LNG terminal. Loek

Kullberg says: "With three of the four new 3213s

now in North West Europe - two at Rotterdam

and one at Zeebrugge - we are keen to dem-

onstrate the quality and capabilities of these

powerful new vessels, with a view to winning

more LNG-related business at these ports. The

market for LNG-related marine services, in

North West Europe and elsewhere in the world,

remains a major priority for SMIT.”

In Eastern Europe, Towmar SMIT’s discussions

continue with PKL for the provision of har-

bour towage at the Latvian port of Riga. Loek

Kullberg says: “PKL tugs are active in many

ports in the region, including St. Petersburg

and ports in Finland. We see our association as

offering significant scope for future expansion.”

Business developmentIn the Far East region, the SMIT Kueen Yang

joint venture is progressing in Taiwan, with

five tugs operating at Taipei and options under

consideration for the commencement of har-

bour towage services at the general cargo/

container port of Taishung. This would provide

employment for three tugs. Taiwan is regarded

as an interesting market, offering a number of

possibilities to serve ports and power genera-

tion facilities.

Meanwhile, in China, the three tugs now oper-

ating at the port of Dafeng are now named

‘Fenggang 1’, 2 and 3. A fourth (former KST)

tug is working at Taizhou and is now known as

the ‘Taituo 3’.

A new joint venture, creating the world’s

largest terminals operator, will be estab-

lished following the recent Boskalis/SMIT

merger.

Loek Kullberg, Managing Director of SMIT

Terminals, says: “The new organisation will

have a combined fleet of some 200 vessels and

around 40 per cent of the global market for

terminal services involving FPOs and buoys, oil

terminals and LNG facilities. In terms of total

terminal business worldwide, the new entity

will have a market share of around 10 per cent.

“We are looking forward to the imminent

integration of SMIT Terminals and Lamnalco.

Currently, SMIT Terminals is responsible for

over 20 terminal operations and Lamnalco has

a similar portfolio. Following integration, SMIT-

Lamnalco will be providing marine services at

over 40 terminals worldwide.

“It is interesting to note that there is only a

modest geographic overlap in the two port-

folios. We both have significant operations in

West Africa and, to some extent, the Middle

East. SMIT’s portfolio tends to be stronger in

South America, Europe and Asia.”

The combined establishment will increase the

demand for newbuildings for terminal sup-

port. Loek Kullberg says: “If we look back over

the past five years, we tend to gain around

two new contracts annually. Each contract

requires two to four tugs. This suggests that

the demand for new tugs could rise to around

15-20 vessels annually. With this in mind, we

need to take action to address newbuilding

requirements. Here, as in many other areas, we

will benefit from economies of scale.”

Market strengthGlobal demand for terminal services remains

strong, despite continued difficulties in the

world economy. Loek Kullberg comments: “The

market’s underlying strength reflects essen-

tially steady demand for oil and gas. We see

no cutbacks in long-term contracts. No major

issues concerning recession influence the key

investment decisions in this sector.

“This made possible SMIT Terminals’ record

year in 2009. The current recession is no dif-

ferent from past economic downturns, in the

sense that some major projects may be placed

within extended timeframes but will still pro-

ceed. Demand for energy, especially LNG, will

help to ensure this pattern is repeated. New

contracts continue to come forward. Certainly,

we have not seen any downturn in the scale of

investment in terminals.”

New contractsRecent contract successes for SMIT include

an award for the operation of tugs at the

Australian coal port of Gladstone, on the east

coast. SMIT’s winning proposal was based

around the deployment of a fleet of five tugs

of 70 tonnes bollard pull, to handle the very

large bulk carriers calling at Gladstone.

Loek Kullberg says: “The five new tugs, to

a Robert Allan design, are now building in

Turkey. The first will join the fleet next month

(June) and the last in this series will be handed

over in November. We will be ready to com-

mence operations at Gladstone as from

January 1, 2011.”

In Asia, SMIT Terminals’ front-runner contract at

Tangguh, Indonesia, was recently extended to

the end of the year. Currently, two SMIT 2810

tugs and two KST tugs are working at the BP/

MIGAS gas export terminal, in association with

local partner Samudera.

LAMNALCO AND SMIT: CREATING A NEW GLOBAL LEADER

The two RAmpage 5000 newbuildings ‘Smit Angola’ and

‘Smit Siyanda’ at the shipyard’s jetty after their launch.

www.smit.com5

tug magazine

3213 ASD tug ‘Smit Tiger’ - 95 tbp - currently operates at Exmar’s LNG terminal at Zeebrugge.

SMIT Salvage successfully reduced the wreck of

grounded barge ‘Margaret’ by means of a in-situ

demolition using explosive charges.

Casualty salvage cases during the first quar-

ter of this year were at a relatively low level,

although SMIT Salvage teams were in action

dealing with two virtually simultaneous

groundings in a Moroccan port and a third

grounding near the entrance to the Gulf of

Aqaba. In addition, recent weeks have seen

a number of wreck removal projects com-

mence.

Abel Dutilh, Managing Director of SMIT’s

Salvage Division, says: “A noticeable feature of

recent months has been the workload arising

from earlier casualties - involving the recovery

of pollutants and wreck reduction or wreck

removal.

“We made a start during April on the removal

of the wreck of the mat-supported jack-up

rig ‘ENSCO 74’, a casualty of hurricane Ike in

September 2008. This project will continue

throughout the entire season in the US Gulf,

with the work scheduled for completion in

October. The sheerlegs’ Taklift 6’ has mobilised

from Rotterdam and will play the lead role in

this contract.”

The SMIT/Boskalis merger is expected to have

a beneficial impact on the future develop-

ment of SMIT Salvage. Abel Dutilh explains:

“Dredging techniques can be very useful for

some types of salvage operation. A wreck, for

example, may be buried rather than removed,

in some circumstances. We also expect to ben-

efit from Boskalis’ expertise in soil conditions

and geology. The merger opens the door to

new operational possibilities and this means

we can offer additional options to the client.”

Looking ahead, Abel Dutilh adds: “We also

expect that there will be more scope for invest-

ment of a type which would have been dif-

ficult to fund under the SMIT banner alone.

Furthermore, dredging and salvage have many

things in common, not least a high tech sector

coupled with a range of core activities which are

very much ‘feet on the ground.’ From the per-

spective of tradition and culture, there is much

common ground between these industries.”

Abel Dutilh concludes: “We can expect more

emphasis on large-scale projects, such as

channel deepening - which often require both

dredging and wreck removal expertise. Such

projects may not be great in number but,

when they do arise, they are substantial and

our SMIT/Boskalis combination will be in a

strong position to offer competitive solutions.”

contracted SMIT Salvage to reduce the wreck

in such a way that the ocean swell will eventu-

ally clear the remains.

The wreck site is at Jacobsbaai. Six barges were

removed following the selective cutting of

sea-fastenings. Two of the six were later towed

to Cape Town, to assist in the discharge of coal

from another casualty - the bulk carrier ‘Seli 1’.

The other four barges were sold. The drydock

sections were also removed and subsequently

sunk in deep water. Following the controlled

in-situ demolition, using explosive charges,

the wreck will now be further reduced by the

action of the sea.

Removal of ‘ENSCO 74’A major wreck removal project began during

March in US waters. It is the latest in a series of

contracts arising from the severe hurricanes of

recent years. In 2009 SMIT Salvage, for exam-

ple, removed the remains of the jack-up drill

rig ‘Pride Wyoming’, lost during hurricane Ike

in September 2008. This year’s major wreck

removal concerns another victim of Ike, the

jack-up ‘ENSCO 74’.

This project has unusual origins. It began in

March of last year, when SMIT Salvage was con-

tracted to assist the tanker ‘SKS Satilla’, which

had developed a list whilst off Galveston. An

ROV survey discovered substantial damage

to the vessel’s ballast tanks. Following a

ship-to-ship of the tanker’s cargo of crude

oil, the track of the ‘SKS Satilla’ was analysed.

This led to the discovery of the object which

had been struck - the ‘ENSCO 74’. As a result

SMIT Salvage was awarded a contract for

oil removal, an operation undertaken in 30

metres of water.

The new contract, for wreck removal, was

awarded in February of this year. The jack-up is

to be removed by the 1,200 tonnes lift capac-

ity sheerlegs ‘Taklift 6’. A Diving Support Vessel

(DSV) is also on-scene. The current work largely

involves pre-cutting, tackled by SMIT’s diving

team. The divers are operating from the DSV;

the sheerlegs arrived on scene in early May.

The ‘ENSCO 74’ is in a fully capsized condition.

The method statement provides for the main

structure to be cut into eight sections: pre-

cutting by divers to be followed by chain-cut-

ting from ‘Taklift 6’. These sections will then be

toppled and lifted onto barges, for scrapping

ashore. Work of this type is highly weather-

dependent, but it is hoped to complete the

wreck removal in one season.

Indonesian wreck removalSMIT’s recent wreck removals also include

the Indonesian vessel ‘Tanto Niaga’, 5,283 GT.

This vessel collided with another Indonesian

vessel, ‘Mitra Occan’, during May of last year.

As a result, ‘Tanto Niaga’ sank off Tanjung

Perak (Surabaya). Later in the year, in October,

the P&I Club awarded the wreck removal con-

tract to SMIT in Singapore.

The project was undertaken by an experi-

enced salvage project team, the 1,000 tonnes

lift capacity sheerlegs ‘Smit Cyclone’ and the

anchorhandler ‘Smit Belait’. This wreck was cut

into six sections by the sheerlegs. Each sec-

tion was then lifted onto a barge, for disposal

ashore. The last section was lifted in mid-Feb-

ruary and the wreck site was then cleared of

debris prior to demobilisation.

Other work during the first quarter of 2010

included a Lloyd’s Open Form in early January,

when the 6,100 DWT ‘Rayben Star’ lost power in

Moroccan waters. The vessel was towed to safety

at Casablanca. SMIT then obtained two more

Lloyd’s Open Forms in Morocco during January,

both at the port of Jorf Lasfar (see page 8).

Busy final quarterSMIT Salvage teams had a very busy final

quarter of last year. In Croatian waters, SMIT’s

local partners, Jadranski Pomorski Servis (JPS),

secured a Lloyd’s Open Form on the passenger

vessel ‘Marko Polo’, following a grounding on

October 24 during a voyage to Split. The vessel

grounded on the northern tip of the island of

Sit. It was found that a refloating would require

a combination of skid beams and lifting bags,

to assist the tugs in attendance. After several

weeks of preparatory work, three JPS tugs

pulled the ‘Marko Polo’ free. The casualty was

redelivered at Mali Losinj.

The final quarter of 2009 also saw a number

of rescue tows. In early November, SMIT

responded when the ‘Bard I’ windfarm trans-

former platform’s tow parted during a storm in

the Irish Sea. The ‘Bard I’s towing gear was re-

rigged. Two tugs towed the platform to safety,

at a sheltered location in the Bristol Channel.

The SMIT Salvage team then reconnected the

new towing gear, allowing the platform to con-

tinue her voyage.

Activities during November included a

response to the weather-damaged jack-up rig

‘Trident 17’. The port leg was damaged during

a storm on November 5. Subsequently, the

two other legs incurred damage. SMIT Salvage

was contracted to separate the platform from

the remaining legs. The main challenge, in this

case, was to avoid damaging the ‘Duyong C’

Platform, only 90 metres away. Two anchorhan-

dlers, ‘Lewek Petrel’ and ‘Pahlawan 2’, were

deployed for this operation. A successful

A NEW CONTEXT FOR THE DEVELOPMENT OF SMIT SALVAGE

SALVAGE WORKLOAD INCLUDES MAJOR WRECK REMOVALS

Global demand for cleaner-burning fuels

will grow by 17 per cent in 2010, compared

with an estimated 7.5 per cent increase from

2008 to 2009. World gas demand will rise 25

per cent to 4 trillion cubic metres per year,

by 2020. This implies a very substantial

increase in the world LNG fleet, together

with a vast expansion of export and import

infrastructures. SMIT Terminals, soon to be

teaming up with Lamnalco, regards LNG as

a focus for growth over the medium to long

term.

Loek Kullberg, SMIT Terminals’ Managing

Director, says: “Within the framework with

Lamnalco we expect greater opportunities in

working together to develop as the market

leader for LNG marine support. We have the

track record, the expertise and new genera-

tion, LNG-specific vessels. In short, we have the

ability to put together highly attractive, global

solutions.”

SMIT Terminals’ current LNG activities include

marine support for the innovative Adriatic LNG

facility off Venice, where ExxonMobil is lead

operator, in association with Qatar Petroleum

and Edison SpA. This offshore terminal has suf-

ficient capacity to store and regasify around

10 per cent of Italy’s total gas requirement.

The first vessel call was made last August.

Currently, two LNG calls weekly deliver gas,

carried by vessels of up to 150,000 tonnes.

SMIT Terminals has a 25-year contract to pro-

vide Adriatic LNG vessel assistance, security,

firefighting and emergency towage services.

Four 70 tonnes bollard pull ASD newbuildings

now service this important contract.

LNG is set to further expand in Italy. A second

offshore LNG terminal is planned off Venice,

together with a new shore facility in the Naples

area. Meanwhile, the tug fleet at Adriatic LNG

included a “front-runner” - the first of a new

class of powerful multipurpose tugs with

dedicated LNG capability. The 3213-type ‘Smit

Panther’, 95 tonnes bollard pull, was the first

in this series of four to enter service. ‘Smit

Panther’ was delivered last July from a Damen-

related Vietnamese yard. By the end of a last

year the remaining three - ‘Smit Jaguar’, ‘Smit

Cheetah’ and ‘Smit Tiger’ - had been commis-

sioned. Currently, ‘Smit Panther’ and ‘Smit

Cheetah’ are busy at Rotterdam, assisting very

large vessels. ‘Smit Jaguar’ was deployed to

Mumbai, working under contract to British

Gas, whereas ‘Smit Tiger’ is busy at Exmar’s LNG

terminal at Zeebrugge. It is intended that ves-

sels in this Class will assume a key role when

Rotterdam-Europoort’s Maasvlakte 2 develop-

ment opens. Vessels calling at Maasvlakte 2 will

include large, new generation LNG carriers.

Looking at future demands in the LNG market,

Loek Kullberg says: “With more sophisticated

safety analysis relating to LNG transport, stor-

age and use, the future is likely to see the

construction of new terminals within exist-

ing ports, as well as at remote facilities. This is

already shaping our design solutions for the

new 3213 class and, no doubt, will continue to

influence specifications for future LNG-capable

newbuildings. We need large and powerful

tugs with multi-role capabilities, together with

a full-range of LNG-specific design features and

excellent overall environmental performance.

These are the key drivers in the design process.

Our new generation tugs will be assisting large

tankers, big ore carriers, very large container

vessels and the new generation LNG carriers.

Certainly, we anticipate ordering more vessels

in the 95 tonnes bollard pull Class.”

GEARING UP FOR EXPANSION OF THE GLOBAL LNG TRADE

Salvage activities worldwide picked up

during the second quarter of this year.

Operations under way at the time of writing

included efforts to bring the 4,400 TEU con-

tainer vessel ‘Maersk Miami’ to a safe condi-

tion, ready for a tow to Jebel Ali following

an engineroom fire.

‘Maersk Miami’ was proceeding to Mumbai

when fire broke out at a position off the coast

of Goa. SMIT Salvage responded to the vessel’s

call for assistance with two firefighting tugs. In

addition, firefighting equipment was flown in

from Rotterdam and Singapore.

When the salvage team arrived on scene, the

fire had been extinguished. The salvage team

managed to restore emergency power. Work

then began on a programme of temporary

repairs, prior to a tow to Jebel Ali by the AHTS

vessel ‘Smit Langkawi’.

SMIT Salvage activities during the first quar-

ter also included a pollution prevention con-

tract in this region, involving the bulk carrier

‘Asian Forest’, lost during July of last year. This

vessel had loaded a cargo of manganese ore at

Mangalore, India. Shortly afterwards the cargo

shifted and the vessel sank close to the port.

SMIT Salvage in Singapore received the oil

removal contract last December. The wreck

was found to be lying at an angle on 70

degrees on its starboard side, in 32 metres

of water. The diving survey located all tanks

accessible for hot-tapping and the recovery of

oil. A joint salvage team was mobilised from

Rotterdam and Singapore and the oil recov-

ery was completed in just under three weeks.

Around 300 cubic metres of oil was removed.

More work in the early months of 2010 arose

from the casualties of last year. In South Africa,

for example, SMIT Salvage undertook the

wreck reduction (as opposed to removal) of

the barge carrier ‘Margaret’. This barge was

under tow from Shanghai to Rotterdam in June

of last year, laden with 12 inland barges and

two sections of a drydock. The tow parted in

heavy weather and the ‘Margaret’ drifted in,

grounding on the west coast at a point north

of Cape Town, called Jacobsbaai.

After several attempts to salvage the barge

and the newbuild barges by another contrac-

tor proved unsuccessful, the South African

Maritime Safety Administration, under the aus-

pices of the National Department of Transport,

The ‘ENSCO 74’ is cut and lifted in eight sections.

SMIT Salvage separated weather-damaged jack-up platform ‘Trident 17’ from its remaining legs.

Sheerlegs ‘Smit Cyclone’ lifting a section of the

‘Tanto Niaga’, assisted by ‘Smit Belait’.

www.smit.com7

tug magazine

During the final days of December SMIT

rendered salvage assistance to the 6,100

DWT ‘Rayben Star’ in Moroccan waters. This

operation was to be the first in a remark-

able series of three Lloyd’s Open Forms in

Morocco within the space of a few weeks.

The second case began when the bulk car-

rier ‘Furness Melbourne’ went aground at Jorf

Lasfar port on January 5. The vessel had been

loading fertiliser, but her moorings parted

during a storm, when high swells ran into

the port. The ‘Furness Melbourne’ drifted out,

struck the breakwater with her bow several

times and finally grounded parallel to the

breakwater, her stern to the shore.

A salvage inspection revealed that no less than

10 compartments were tidal, from forepeak

to stern section. Fortunately, the bulk carrier’s

engineroom remained dry. Damaged spaces

were patched and pressurised. Following a

part discharge of the phosphate cargo and the

transfer of all fuel oils on board, the casualty

was refloated by two tugs of 120 tonnes bol-

lard pull. This casualty was freed on January 30.

Nippon Salvage were co-salvors in this opera-

tion, which involved Japanese owners and

underwriters. It was important to press on with

this salvage operation as quickly as possible.

The weather remained poor and it was obvious

that the casualty’s condition could deteriorate

rapidly in the 3-4 metre swell. Subsequently,

‘Furness Melbourne’ was towed to Spain and

redelivered at

Cartagena, where

her cargo of fer-

tiliser was tran-

shipped to a sister

vessel.

On January 8, with the ‘Furness

Melbourne’ operation under

way, a second bulk carrier went

aground between the breakwa-

ters at Jorf Lasfar, following an

engine breakdown. ‘Mercury K’,

carrying a cargo of coal, drifted

and grounded in the shallows

south of the main breakwater.

The salvage team already on

scene responded with a tug and

Salvage Master. Within six hours

of the grounding this vessel

was refloated. After refloating

it appeared that the second

casualty’s two midships double

bottom tanks were tidal. Lloyd’s

Open Form was agreed, tempo-

rary repairs made and salvage

services terminated following a

successful tow to Cadiz - where

she was discharged and redeliv-

ered. (‘Mercury K’ had grounded

two hours before High Water.)

She was refloated at the next

High Water. Once again, this was

a joint SMIT/Nippon operation.

More investment in SMIT Transport-related

assets may result from the SMIT/Boskalis

merger. Abel Dutilh, Managing Director

of SMIT’s Transport & Heavy Lift Division,

says: “In the aftermath of the merger a new

investment strategy is beginning to emerge.

We are seeing greater flexibility with poten-

tially more room to invest in project related

assets.”

“One immediate example is our order for four

new barges, to be built in Romania. This order

features in SMIT’s asset replacement plans,

yet, in the current climate, it might not have

proceeded under the investment principles

previously applied. In this instance we have no

firm employment for the new barges, which

are due for delivery this year. Yet we anticipate

that they will find a ready market in the fast-

growing wind energy sector.”

There are prospects for further fleet replace-

ment orders for SMIT Transport. Abel Dutilh

says: “We need to invest in newbuildings to

replace some of the smaller units in the trans-

port fleet. This is not an urgent requirement,

but we will need to move ahead and take

decisions as some of our accommodation and

construction barges are approaching the end

of their operational careers.”

Windfarms are an important market as projects

tend to have a substantial work content and

there is the potential to employ “packages” of

B Class vessels, barges and sheerlegs. Port con-

struction work represents another interesting

sector. Abel Dutilh says: “One example close

to home, of course, is Rotterdam-Europoort’s

Maasvlakte 2 project. Boskalis and its joint

venture partner are involved in constructing

the new facilities and this is providing work for

a B Class vessel and two rock-dump barges for

over 12 months.”

Meanwhile, SMIT Transport has two of the

three latest B Class vessels under contract and

the third is operating in the Irish Sea/North

Sea region. Also in the transport sector, AHT

vessels have been contracted by Heerema for

‘Block 31’ installation activities, on behalf of

BP offshore Angola. These vessels will work in

Angolian waters until the end of this year.

Turning to heavy lift, ‘Taklift 4’ has left

Rotterdam for Brazil for a new FPSO-related

heavy lift programme following completion

of its major upgrading. The sheerlegs, now

rated at 2,200 tonnes lift capacity, will return

to North West Europe in July, upon completion

of module lifts for the ‘P56’ and ‘P57’ FPSOs in

Brazil. ‘Taklift 4’ is booked for a wide range of

lifts in Europe during the third quarter of this

year and beyond.

Abel Dutilh says: “With ‘Taklift 4’ in Brazil,

‘Taklift 7’ deployed for windfarm construction

work and ‘Taklift 6’ engaged in a wreck removal

project in the US Gulf, all SMIT sheerlegs are

now busy.”

‘Giant 4’, one of SMIT Transport & Heavy

Lift’s fleet of 24,000 DWT semi-submersible

heavy barges, was busy last year transport-

ing concrete foundations for windfarm

developments. During February of this year

‘Giant 4’ began another energy-related

charter, this time with Saipem UK - for the

transportation of topsides from Hartlepool

to location in the North Sea’s Buzzard Field.

This charter extends into June. The next

commitment for ‘Giant 4’ this Summer is

the transport of a 1,500 tonnes jacket from

Cadiz to the Castor Field, off Tarragona.

Sister vessel ‘Giant 2’ is also playing a role in

meeting offshore industry heavy transport

requirements. This barge was chartered to PT

INDOLIZIZ Marine for the transportation of two

jackets from Pasir Gundang to an offshore loca-

tion in Indonesian waters last year. The time

charter commenced in June and concluded

in October. This barge is now due for special

survey/ dry docking shortly.

The other Giant Class barge, ‘Giant 3’, recently

completed a river barge transportation assign-

ment, loading in New Orleans for Argentina.

‘Smitbarge 2’, meanwhile, recently demobi-

lised from the Bechtel contract in Angola, for

the large-scale transportation of aggregates.

Following restoration to its original condition,

‘Smitbarge 2’ is fixed for a 40-day assignment

with AMT, for end-client Saipem (UK). This

concerns a module transportation voyage from

Lowestoft, UK, to location in the Valhall Field,

in the Norwegian North Sea.

The new Smitbarges - 6, 7, 8 and 9 - remain

popular in the market. ‘Smitbarge 6’ is on hire

to Mammoet for a transport assignment in

Antwerp. In addition, Smitbarges 7, 8 and 9

are engaged in transport activities for Bard

Engineering’s windfarm development in the

German Bight. ‘Smit Bronco’ and ‘Smit Bulldog’

are also on charter to Bard.

‘Smit Anambas’ has also been busy in the

windfarm market, having taken a major role

in transport services for the ‘Rodsand 2’ devel-

opment, offshore Denmark. This barge has

transported turbine foundations for the Danish

contractors Aarsleff & Bilfinger Berger.

The barge’s next project, over the June-July

period, involves mobilisation to Texas to load

a 2,000 tonnes topsides and other items for

a voyage to Rotterdam, on behalf of Saipem

Mediterranean Services.

At present, ‘Smit Buffalo’ is partnering ‘Taklift 7’

for a work programme associated with the

Walney windfarm project in the Irish Sea.

SMIT has four new barges building at Galatz,

Romania, for delivery later this year. These

vessels, 75 m x 23.5 m x 4.5 m, are to replace

existing units in the E3500 series.

SMIT’S SERIES OF LLOYD’S OPEN FORMS IN MOROCCAN WATERS

FLEET REPLACEMENT ORDERS IN PROSPECT FOR SMIT TRANSPORT

OFFSHORE HEAVY TRANSPORT CHARTERS OCCUPY SMIT VESSELS

separation was achieved in mid-November;

the rig was towed to sheltered waters at Pulau

Tioman.

Work in the final weeks of 2009 included the

recovery of a small, twin-engined commercial

aircraft. All nine passengers survived but, sadly,

the pilot was lost when this aircraft went down

into the sea on October 22, at a position close

to Bonaire. On November 26 the Dutch Safety

Board contracted SMIT Salvage to locate and

recover the wreck.

This operation required specialists from

Rotterdam and Houston, with SMIT’s

‘Indusbank’ mobilised as the surface plat-

form. The wreck was located on December 3,

in 193 metres of water. An ROV was used to

position lifting slings. The aircraft was recov-

ered using the crane of the ROV survey vessel

‘Skandi Carla’, mobilised from Trinidad. The

body of the pilot was recovered and the air-

craft transported to Curacao for Air Accident

Investigation.

SMIT’s salvage team lifting a leg of ‘Trident 17’

on board an anchorhandler.

Passenger vessel ‘Marko Polo’ ran aground on the northern tip of the

island Sit, Croatia. SMIT Salvage successfully refloated the vessel.

The ‘Furness Melbourne’ aground just outside the port of Jorf Lasfar. The discharge of ‘Merkury K’ after it was succesfully refloated by SMIT Salvage.

SMIT’s semi-submersible barge ‘Giant 4’ loaded with

a topside, weighing 7000 tonnes, for transport to the

Buzzard Field in the North Sea.

B Class newbuilding ‘Smit Buffalo’ with a monopile for the Walney windfarm in the Irish Sea.

www.smit.com9

tug magazine

Following last year’s extensive upgrade, the

offshore construction and accommodation

barge ‘Smit Borneo’ has completed SMIT

Singapore’s major, two-season contract for

Leighton India in the Mumbai High Field.

‘Smit Borneo’, now equipped with a new

Liebherr BOSS Litronic crane, rated at 500

tonnes, is demobilising on completion of the

Pipeline Repair Project (PRP) Phase II pro-

gramme of works. The activities in the Field

included the installation of risers, spool pieces

and flexibles. The barge was supported by the

anchorhandler ‘Smit-Lloyd 27’.

Other activities in a busy first quarter included

‘Smit Nicobar's assignment for van Oord via

Lamnalco at Fujairah, involving assistance with

the installation of two SPM buoys. The work

was undertaken during February and March.

‘Smit Nicobar’ then began a new contract at

the beginning of April. The role is to act as a

floating operations centre for activities in an

offshore field in the Middle East region. This

is a 15-month charter and the client is Statoil.

Beyond Field control duties, the vessel will also

undertake personnel movements within the

Field.

‘Smit Lumba’ is also in the Middle East, con-

tinuing a one-year contract for Saipem. The

vessel is providing anchorhandling support for

a pipe-lay project offshore Saudi Arabia.

SMIT in Singapore has played an active role

in the series of salvage operations in recent

months. They include the ‘Maersk Miami’, a

container vessel which reported fire in the

engineroom whilst off Goa. SMIT’s Singapore

operation contributed firefighting person-

nel and equipment. The fire had been extin-

guished when the response team arrived.

Following necessary repairs, the vessel was

towed to Jebel Ali by ‘Smit Langkawi’.

First quarter operations also included an oil

removal from the wreck of the bulk carrier

‘Asian Forest’, lost in mid-2009 off Mangalore.

The project team removed around 300 cubic

metres of oil.

Windfarm construction projects continue to

feature in the work programmes of SMIT’s

sheerlegs fleet. They include the Walney

windfarm development in the Irish Sea.

SMIT’s Transport & Heavy Lift Division com-

menced its contract with the contractors,

GeoSea, in early April.

This windfarm is to be constructed offshore

Barrow, some 20 miles from the coast. SMIT’s

scope of work involves a series of 51 large

monopiles. The main task is to upend the

monopiles and hand over the structures to a

jack-up installation platform.

The monopiles are being transported to

Barrow by a coastal vessel, having been

loaded in Poland. The 1,200 tonnes lift capac-

ity sheerlegs ‘Taklift 7’ has been mobilised for

the project, together with the anchorhandling

support tug ‘Smit Buffalo’.

A shore crane will discharge the monopiles

as they arrive, when they will be plugged and

then towed out to the windfarm installation

site. ‘Taklift 7’ will then connect up and bring

each pile into the vertical position, ready for

installation by the jack-up ‘Goliath’. Each pile

has a length of 58 metres and a weight of

around 600 tonnes during upending.

This project involves around five months of

work and demobilisation is scheduled for

September.

Bridge-building in NorwayOn completion of the Irish Sea windfarm

assignment, ‘Taklift 7’ will proceed to north-

ern Norway, to play a leading role in the con-

struction of the Brandangersund Bridge, near

Monkstadt.

This contract for the third quarter involves the

lift of a single 220 metres long bridge element,

weighing in at around 2,000 tonnes. This tech-

nically challenging project

will involve a dual lift and

transport to site by ‘Taklift 7’

and ‘Taklift 4’ (the latter

now rated at 2,200 tonnes

lift capacity following a

recent upgrading). The

two sheerlegs, in combina-

tion, will transport the road

bridge element in the hooks for the 10-mile

voyage to the installation site. The operation

is programmed for completion over a two-day

period.

More lifts in BrazilPrior to the Norwegian bridge project, ‘Taklift 4’

will be continuing a long series of module lifts

for FPSO construction projects in Brazil. On this

occasion, the large sheerlegs is booked for a

60-day period involving lifts for two FPSOs, the

semi-submersible ‘P56’ and the monohull ‘P57’.

‘Taklift 4’ will perform the load-out lifts for

five modules at Brasfel’s Niteroi yard, near Rio.

The sheerlegs will then proceed to a second

Brasfel’s yard, Angra dos Reis, also near Rio,

where it will lift off and position the five mod-

ules - together with lifts for a further three

modules, helideck, flare tower and two hose

rails - onto ‘P57’. It will then begin a second

series of module lifts for the ‘P56’, also at Angra

dos Reis. The work programme will also include

the installation of ‘P56’s flare boom.

Upon arrival, ‘Taklift 4’ will commence with the

‘P56’ lifts, involving modules, crane pedestals,

pipe racks and the helideck. It will then lift all

modules for ‘P57’ and then the flare boom for

‘P56’.

Previous assignments for SMIT at these yards

include heavy lift programmes for the ‘P52’ and

‘P53’ semi-submersible type FPSOs. ‘Taklift 4’,

on its return to North West Europe in July, has a

booking for the installation of a substation, for

the Belwind windfarm, prior to proceeding to

Norway for the bridge contract.

Meanwhile ‘Taklift 6’ is currently mobilising to

the US Gulf, to participate in the wreck removal

of the jack-up rig ‘ENSCO 74’, lost during hurri-

cane Ike in September 2008.

UPGRADED ‘SMIT BORNEO’ COMPLETES PRP CONTRACT

URS COMMERCIAL MANAGEMEMT SWITCHES TO ROTTERDAM

‘TAKLIFT 7’ COMMENCES IRISH SEA WINDFARM PROJECT

Commercial management of the ocean

towage activities of the Antwerp-based

URS fleet has transferred to Rotterdam.

The 10 vessels involved will be marketed

under the banner ‘SMIT Transport Belgium’.

The decision was taken in order to apply

the concentration of commercial expertise

at Rotterdam to a young fleet which con-

tinues to grow in capacity and capability.

Operational management of the 10 ves-

sels concerned, however, will continue at

Antwerp.

The vessels involved are the ‘Union Manta’,

‘President Hubert’, ‘Alphonse Letzer’, ‘Union

Diamond’ and ‘Union Sapphire’. The latter two

tugs were amongst a series of eight 65 tonnes

bollard pull tugs built by the Spanish yard of

Armon, Navia, over the 2003-2005 period.

The main thrust of the market profiling of

these vessels will focus on their anchorhan-

dling capabilities. The intention is to achieve

much wider geographical deployment.

Rotterdam will also handle the commercial

management of the DSV/salvage vessel ‘Union

Beaver’, recently engaged in windfarm cable-

laying in UK waters.

In addition, the commercial management

arrangements at Rotterdam will include

the four URS "Fighter Class” tug new-

buildings: ‘Union Warrior’, ‘Union

Boxer’, ‘Union Wrestler’ and, of

course, the new ‘Union Fighter’.

These are 85 tonnes bollard

pull vessels, building at Gijon,

Spain. ‘Union Warrior’, the

first of the four, was deliv-

ered in this January 2010 and is now operat-

ing with SMIT Terminals in Angola. The ‘Union

Boxer’ and ‘Union Wrestler’ are due to be

handed over by the end of the year. The new

‘Union Fighter’ was delivered in April.

The main commercial objective for SMIT

Transport Belgium is to market packages of

vessels and associated assets for offshore and

renewable energy projects requiring tugs and

barges for integrated support.

Recently, Heerema chartered ‘Union Fighter’,

‘Union Manta’, ‘President Hubert’ and the

‘Alphonse Letzer’ for marine support required

for the BP ‘Block 31’ contract in Angolan waters.

This support contract commenced in May.

AHTS vessel ‘Smit Nicobar’ is deployed in the Middle East region for client Statoil.

‘Taklift 4’ lifting one of the modules for FPSO ‘P56’ in Brazil.‘Taklift 7’ upending the first monopile for the Walney windfarm in the Irish Sea.

www.smit.com11

tug magazine

SMIT’s two-year contract supporting the

construction of a new LNG terminal in

Angola has been successfully completed.

The project, undertaken on behalf of

Bechtel Oil & Gas, involved the transport

and handling of around 800,000 tonnes of

aggregates for the new facility at Soyo, now

the centre of LNG operations in the country.

‘Smitbarge 2’ and other barges completed

over 100 aggregates transport voyages over

the past two years, each with a one-day

transit time.

The original scope of work for this major

project, awarded to SMIT Marine Projects,

focused on the transport of aggregates from

the load port, Dande, to Soyo - a distance

of around 250 miles. The contract was then

extended to cover lightering operations for

bulk carriers arriving from Nova Scotia with

cargoes of high grade granite aggregates.

By the contract’s conclusion, the SMIT Marine

Projects’ team had lightered some 400,000

tonnes and transported another 400,000

tonnes by barge operations involving

‘Smitbarge 2’, the ‘E3503’ and a third, chartered

barge. This operation was supported by the 65

tonnes bollard pull ASD tug ‘Smit Rhône’ and

the smaller tug ‘N’dongeni’, together with a

further two ASD tugs. During this contract vari-

ous other vessels in the SMIT fleet participated,

including the ‘Pentow Salvor’ and the ASD tug

‘Union Sapphire’.

‘Smitbarge 2’ returned to Rotterdam during

April, for refurbishment and the removal of the

concrete decking and sidewalls required for

aggregates transport. On completion of resto-

ration to original condition, ‘Smitbarge 2’ will

proceed to the UK, to participate in a project

with AMT, for end-client Saipem.

SMIT’s performance under the Angola contract

won words of appreciation from Bechtel. It was

a contract with many challenges, not least the

8 knots current in the river at Soyo during the

rainy season!

New Bordeaux BridgeFrench contractors GTM SO TPGC signed a

contract with SMIT Marine Projects during

February for the provision of consultancy

services associated with the tow-out and

installation of caissons for the new Bacalan-

Bastide Bridge at the port of Bordeaux.

There are four distinct phases for the tow and

installation: tow-out of the caissons from the

drydock, the 5-kilometer tow to the bridge site,

mooring on site and, finally, positioning and

installation of the caissons for the lift bridge.

This bridge will provide a new road connec-

tion between the Bacalan and Bastide districts

of Bordeaux. The mid-section of the bridge

will lift, to allow the passage of vessels on the

Garonne River (including cruise ships and “Tall

Ships”).

SMIT Marine Projects is producing all required

documentation, including the Method

Statement and supporting calculations,

together with the design of tow brackets. The

first three caissons are due for tow-out shortly.

The tow-out of the second three are scheduled

for the final quarter of 2010. The largest of the

caissons is 43 m x 18 m x 16 m. Two ASD tugs

of 70-90 tonnes bollard pull will be required,

together with a third tug in the support role.

Venice Flood BarrierIn addition, SMIT Marine Projects has been

awarded a second consultancy assignment

associated with the construction of the Venice

Flood Barrier. The barrier consists of concrete

caissons and hinged steel gates.

During last year SMIT was contracted to pro-

vide detailed engineering for the contracting

group GLF, concerning two of the barrier’s

three inlets. The new assignment for contract-

ing group CLODIA, also for detailed engineer-

ing, concerns the third and most southerly

inlet, at Chioggia (currently the base of SMIT

Terminals’ tugs serving the Adriatic LNG facility,

located just offshore). Installation of the eight

caissons for the Chioggia inlet is programmed

for 2013.

Special considerations in the latest study, to

be completed in June, include the additional

scope of work involved in deballasting and

tow-out from a construction drydock facility

and, in addition, the negotiation of an area of

relatively shallow water in drydock, during the

tow-out to site and at the installation site.

SMIT Subsea has completed a challenging

diving support assignment for a Boskalis/

Allseas project joint venture contract in

the Magellan Strait, Argentina. The project

required the installation of a new, 24 inch

gas trunkline across the Strait.

The diving subcontract concerned the connec-

tion between the shore landing and the pipe-

line (subsea). Boskalis dredged the total pipe-

line route and Allseas laid the pipeline. Boskalis

pulled 6.5 kilometres of pipe into the sea. SMIT

Subsea’s dive team installed the Z-spool, which

is the connection between the pipeline pulled

by Boskalis and the pipeline laid by the Allseas-

owned vessel ‘Solitaire’.

The subsea team mobilised on board the

‘Ponta Maris’ and departed Rotterdam early

last October. The work was performed in the

January-February period, a season dominated

by strong winds and significant changes in

temperature - from 2-3 degrees Celsius to up

to 20 degrees Celsius.

SMIT Subsea’s recent offshore workload in

Europe also included diving support for Total’s

‘K5-F’ project, involving maintenance and

installation works for a subsea wellhead in the

Dutch sector of the North Sea.

Inshore works included a project that com-

menced in March for the remediation of 133

piles in the port of Rotterdam. The project

period is 20 weeks. SMIT Subsea has an exclu-

sive partnership with STOPAQ Europe in utilis-

ing a new corrosion protection system that is

especially effective in the problematical splash

zone.

The divers are working at Maasvlakte from the

DSV ‘Condor’. Following cleaning and inspec-

tion of each pile’s surface, the divers apply the

STOPAQ subsea wrapping band. Above the

waterline, a STOPAQ CZH wrapping band is

used, beneath the waterline STOPAQ subsea

compound. A strong outerwrap is applied

as finishing. This project is a subcontract for

Ballast Nedam and marks the first large-scale

underwater use of the product. This system

offers protection for a minimum period of 30

years.

Work also continues on an extensive pro-

gramme of cathodic protection maintenance

in the Port of Rotterdam. This requires the

replacement of thousands of anodes and the

work will continue through 2010.

WEST AFRICA AND ASIA PACIFICSMIT Subsea project teams continued to

service long-term maintenance projects

during the first quarter of this year. The work

programmes concerned fixed and float-

ing facilities off Equatorial Guinea, for Hess

and ExxonMobil. These activities contin-

ued throughout the first quarter, as did the

Single Buoy Moorings’ diving support con-

tract, serviced from the DP2 vessel ‘Dynamic

Installer’, in Nigerian waters. Work was under-

taken for Shell, Chevron and NPC, Nigeria.

During June SMIT Subsea will provide diving

support for an FPSO hook-up in the Jubilee

Field, offshore Ghana, on behalf of Aker Marine

Solutions.

Meanwhile, SMIT Subsea continues to enhance

its diving assets. The SMIT SAT2 nine-man

saturation diving system was demobilised on

completion of the CTC Marine contract, off-

shore China, and was subsequently upgraded

in Singapore. This system is now classed with

Lloyd’s Register.

In addition, SMIT Subsea awaits the imminent

delivery of the SMIT SAT4 12-man saturation

diving system, now building in Cape Town.

MIDDLE EASTSMIT Subsea in the Middle East is enjoying a

busy first half and the workload for the second

half looks strong. SMIT Subsea recently com-

pleted its first project joint venture contract

with Boskalis, in Abu Dhabi. This involved the

subsea preparation and removal of an aban-

doned wellhead, encountered during dredging

work. The Boskalis project team was engaged

in dredging the seabed from -5 m to -15 m and

encountered the 32” diameter wellhead at -5

m depth.

The backhoe dredger ‘Colbert’ was used to

excavate the area around the wellhead to -16.5

metres and the structure was then removed

by SMIT Subsea divers using a diamond wire-

cutting system. This was a fast-track project,

completed over a period of just five days on-

scene. The wellhead was cut, removed and the

remains capped using wet welding techniques.

The work was completed during the third

week in March.

The Boskalis theme in the workload continued

during April, in a short intervention on behalf

of terminals operator Lamnalco. This one-week

assignment involved underwater inspection at

the SPM, at the BP Sharjah export terminal.

Meanwhile, SMIT Subsea mobilised a substan-

tial dive team for two months’ round-the-clock

working at the new Fujairah export terminal,

UAE. The contract, for Van Oord, concerns the

installation of three Bluewater SPMs.

SMIT Subsea continues to provide diving sup-

port services on a regular basis for Maersk

Oil Qatar, relating to the upgrading of the Al

Shaheen Field, the work involves air diving

and rigging. The long term project with Qatar

Petroleum for the supply of Divers, Marine

Crew, Workshop & Maintenance services is

going well and recently, received a request

to consider increasing the project team by 35

FTE’s, reflecting an expansion of the scope of

work with this Variation Order expected later

this year.

Other activities included management for the

conversion of a 26 m x 11 m dumb barge into a

DP1 self-propelled crane barge. The refurbish-

ment and conversion, carried out at a Dubai

yard, has been completed and the crane barge

has been returned to Qatar with final registra-

tion procedures being carried out in combina-

tion with the client.

SMIT Subsea recently received a Seaeye

Surveyor Plus ROV system from SSE and have

just successfully mobilised the system and ROV

personnel onto its first project for carrying out

cable inspection and debris removal activities

offshore Qatar for RasGas.

SUCCESSFUL COMPLETION OF AGGREGATES TRANSPORT PROJECT IN ANGOLA SMIT SUBSEA PROVIDES DIVING SUPPORT

FOR BOSKALIS AND ALLSEAS

The aggregates loading jetty in Dande, Angola.

SMIT Marine Projects provides detailed engineering for the installation of eight cassions at the most southern inlet at Chioggia.

ASD tug ‘Smit Rhône’ supported the aggregates transport

operation, together with tug ‘N’Dongeni’ and two chartered tugs.

The connecting Z-spool prior to installation

by SMIT Subsea in Argentina.

SMIT Subsea mobilised a substantial dive spread on board the ‘Jan Steen’, for activities at the new Fujairah export terminal, UAE.

The dive spread included two surface Gas Dive Systems (033 and 034) and a wet bell system (LS-370).

A SMIT Subsea team applies the STOPAQ wrapping band.

www.smit.com13

tug magazine

ColophonFor any information about specific activities,

equipment and services, please apply to:

SMIT

Waalhaven O.Z. 85

P.O. Box 59052

3008 PB Rotterdam

Tel + 31 10 454 99 11

Fax + 31 10 454 97 77

E-mail company@smit.com

Editor

SMIT Corporate Communications

Texts

TRS Public Relations

SMIT Corporate Communications

Design & production

Studio Clarenburg, Schiedam

Photography

SMIT Corporate Communications

Roderik van Nispen

and various SMIT colleagues

Printing

Schefferdrukkerij, Dordrecht

Copyright

Texts can only be reproduced after

permission from the editor.

Standby salvage tug ‘Smit Amandla’ plays

a leading role in protecting the sensitive

South African coastline from the conse-

quences of marine accidents and pollu-

tion. This tug has a dedicated emergency

response role under a contract with the

National Department of Transport. When

not actively engaged in operations offshore,

‘Smit Amandla’ is held at 20-minute call-out

readiness.

This powerful response tug had a busy first

quarter. During the first few weeks of the year

it stood by the disabled LPG tanker ‘Gemmata’

whilst engine repairs were progressed. Another

engine breakdown incident, in mid-January,

also required standby services. The vessel

involved was the ro-ro ‘Right Dream’, which

was adrift in Richards Bay. Subsequently, the

anchorhandler ‘Smit Madura’ was deployed to

tow this casualty from Durban to Maputo.

On returning to Cape Town during February,

‘Smit Amandla’ held off the rig ‘SECDO 700’

in Table Bay, on behalf of client Transocean

Sedco, so allowing the tow tug to enter the

port to take on bunkers. This rig was on a posi-

tioning voyage from West Africa to Singapore.

Major wreck reduction projectFebruary saw the start of a major wreck reduc-

tion project, following the grounding of the

barge ‘Margaret’ at Jacobsbaai, on the Cape’s

west coast, in late June of last year.

The ‘Margaret’ was an impressive sight on the

shore, being eight storeys high! Barge and

cargo, taken together, had a height of 38 m, a

length of 100 m and a width of 37m. Working

in conjunction with the South African

Maritime Safety Authority (SAMSA), SMIT’s

team assembled at Jacobsbaai in late January

and made ready to implement a comprehen-

sive wreck reduction plan.

The greatest care was taken to involve repre-

sentatives of the local community when plan-

ning the demolition by means of explosives.

Meanwhile, comprehensive pre-cutting of sea

fastenings allowed the team to recover six of

the 12 inland barges. The two drydock walls

were recovered and later scuttled at a deep-

water location.

‘Smit Amandla’ and ‘Pentow Salvor’ provided

support during key phases of the operation.

The cargo toppling demolition, by use of

shaped charges, went ahead on March 4.

‘Pentow Salvor’s busy schedule‘Pentow Salvor’ is now working on the vibrant

spot market around the South Africa coast,

following the completion of its role, in mid-

January, as support vessel for a Chevron ship-

to-ship transfer in Saldanha Bay. The 4,000

bhp tug has been busy on a wide variety of

assignments, including acting as standby

vessel during ship-to-ship transfer operations

involving the tankers ‘Cape Tampa’ and ‘LS

Jacoba’.

The big tug returned to Cape Town in early

February and was booked by client CRC to

assist in a project to transship around 170,000

tonnes of iron ore from the damaged bulk car-

rier ‘Alina II’, at Saldanha Bay. Whilst in that area,

‘Pentow Salvor’ provided assistance during

the ‘Margaret’ wreck reduction before return-

ing to Cape Town and a contract for provision

of supply and support for the Transmarine rig

‘Sevan Driller’.

‘Pentow Salvor’ has an impressive track record

of work for the De Beers organisation over the

years. During February, on behalf of this client,

Joint venture Asian Lift was contracted by SBM

to lift and load the gantry, manifold and turret,

with weights up to 2,830 tonnes, for a BP FPSO

onto heavy transport vessels, which took the

modules to Korea Samsung Shipyard for instal-

lation. The 3,200 tonnes capacity sheerlegs

‘Asian Hercules II’ was assigned to this project.

ON GUARD! ‘SMIT AMANDLA’ PROTECTS THE SOUTH AFRICAN COASTLINE

‘ASIAN HERCULES II’ LIFTS FPSO COMPONENTS

the tug carried out an anchorwire change-out

in the mouth of the Orange River, together

with static towing and emergency standby

support during refuelling at sea operations.

The tug then returned to Cape Town to offer

more support for ‘Sevan Driller’, before head-

ing back to Jacobsbaai for the final phase of

the ‘Margaret’ operation.

March was also busy. ‘Pentow Salvor’ carried

out fuel drops for the rigs ‘SECDO 709’, off

Cape Town, and ‘Pride South Seas’, in Saldanha

Bay. There was more work for De Beers at the

end of the month, involving anchor moves,

fuel drops, wire change-outs and the removal

of seabed hazards.

Support contract extendedSMIT Amandla Marine’s offshore support con-

tract with PetroSA has been extended for 12

months. This contract, supporting operations

off South Africa’s east coast, is serviced by the

4,500 hp tug/supply vessel ’Smit-Lloyd 33’ and

‘Smit Lombok’.

It is hoped that additional support activities

for PetroSA will result in an expansion of the

SMIT Amandla Marine fleet. Proposals have

been submitted for the provision of a plat-

form supply vessel for the FA platform. Vessels

proposed include the ‘Smit Langkawi ‘and the

DP2 ‘Smit Komodo’. A decision is expected in

the third quarter.

‘Smit Amandla’ provides emergency response services along the South

African coastline on behalf of the National Department of Transport.

‘Pentow Salvor’ at work along the South Africa coast.

One of the ship-to-ship tranfer operations that

took place at Saldanha Bay, South Africa.

www.smit.com15

tug magazine

Sponsor lady Sophieke Klaver-de Jong

performing the Naming ceremony.

It is beyond human capacity to eradi-

cate all risks in the work environment,

although that is certainly no excuse for

not trying, given that failure may result in

tragedy. SHE-Q General Manager Sageed

Kunhiraman says: “We have achieved a

steady decline in the number of lost-time

and recordable incidents in recent years

but, unfortunately, we still continue to

suffer incidents. Working in a marine envi-

ronment may present inherent risks but we

now need to respond with even more preci-

sion and institutionalised focus on safety,

especially ‘safety culture’.

“Constant vigilance and a culture promoting

safe working are essentials. Risk mitigation is

not absolute. No matter what action we take

- and how thorough we are - there are always

residual risks that could result in an accident.

Our top priority, in the final analysis, must

centre on personal responsibility, safety aware-

ness and a desire to watch over others.”

Sageed Kunhiraman says: “Generally, all people

who were involved in an accident in the recent

years are mostly very experienced. They have

the knowledge and expertise to foresee the

danger. In almost all cases a colleague wit-

nesses an accident and can intervene. They

may face the awful burden of living with such

knowledge.

If all people involved in accidents have enough

experience to recognise the hazard, why do

they place themselves in harm’s way? And why

do their colleagues not stop them? Certainly,

part of the reason is related to attitude. It is

natural to focus on the job in hand and to ‘get

it done’. It is good to be an achiever and per-

form well, but there must be no compromise

on matters of personal safety. The sad reality

is that, at some point in the chain of events

leading up to an accident, safety slipped

from its no. 1 position in the list of

priorities.

If attitude is the key to under-

standing such accidents, our

only possible response is

to reinforce personal

perceptions of safety

priorities. Everyone

must understand that

SAFETY IS PARAMOUNT.

Thinking that way keeps

people safe. Thinking that way

saves lives!

Hence our next focus will be on enhancing our

safety culture. Let me quote a close colleague:

“SHE-Q is not an activity, it is a lifestyle.”

Our colleagues at SMIT Marine Canada in

Kitimat received the 2009 Corporate Survey

Award. Each year, this award is presented

each year to the vessel that exhibits the best

maintenance and the most improvement

in terms of condition and appearance. This

year, the award was presented to an entire

operation rather than a specific vessel!

Kitimat is in Northern Canada. Following SMIT’s

acquisition of Rivtow - and with it Kitimat -

in 2000, it became apparent that mainte-

nance was not entirely up to SMIT standards.

However, in a few years’ time, the small team

of colleagues on this operation pulled out all

the stops and managed to bring the vessels

and facilities up to the required standard. The

Corporate Survey Award is awarded to the

vessels as well as the onshore organisation.

PERSONAL ATTITUDE, SAFETY AND THE PREVENTION OF TRAGEDY

SMIT MARINE CANADA IN KITIMAT RECEIVES CORPORATE SURVEY AWARD

The SMIT Marine Canada Kitimat team was presented SMIT’s

Corporate Survey Award 2009 for outstanding performance.

On Friday May 21, the AHT newbuilding

‘Union Fighter’ was officially named during

a festive ceremony right in front of the SMIT

head office in Rotterdam. Around 50 guests

attended the event.

Mrs Sophieke Klaver-de Jong, spouse of CEO

Jan Pieter Klaver of Heerema Marine Contractors

acted as sponsor lady for the ‘Union Fighter’.

Following the Naming ceremony, guests were

presented the opportunity to visit the new vessel.

The 85 tbp newbuilding is the second of a

series of four AHT vessels. The last two vessels

of the series are due for delivery by the end of

this year.

The ‘Union Fighter’ is chartered by Heerema,

along with the ‘Union Manta’, ‘President Hubert’

and ‘Alphonse Letzer’, for marine support

services in Angola.

NEWBUILDING ‘UNION FIGHTER’ JOINS THE FLEET