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November 2011

HorizonsA special supplement on Chinese enterprise and achievement


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Emeraldheads the greenChinas Bestway is building a series o very ecient ships indeed,Communications Manager or Asia

For urther inormation contact:

Nick Brown

Area General Manager and Marine

Manager Greater China

T +86 (0)21 5158 1001

E [email protected]

Horizons is the journal or Lloyds Register

Marine clients and employees, delivering

news and analysis on our global activities.

The Horizons team are:

Editor: Chris Browne

T +44 (0)20 7423 2305

E [email protected]

Marine Communications Manager:

Nick Brown

Design and production:

Pipeline Design

Horizons is produced by Marine

Communications. Care is taken to ensure

the inormation it contains is accurate

and up to date. However Lloyds Register

accepts no responsibility or inaccuracies in,

or changes to, such inormation.

Printed on Soporset Premium Oset rom the

Robert Horne Group. The virgin wood bre is

sourced rom Spain and Chile and produced

at a mill in Scotland that has been awardedthe ISO14001 certicate or environmental

management. The pulp is bleached using an

elemental chlorine-ree (ECF) process. Soporset is

an FSC product group rom well-managed orests

and other controlled sources.

Front Cover:Chinas two largest shipbuildinggroups, CSSC (see night-timeimage o Jiangnan ChangxingShipyard) and Beijing-based CSIC(see image right) are leading theChinese boom in design, new

construction and conversions

This is a specialsupplement to Horizons,produced or Marintec

Horizons

Green parklands with meanderingwaterways and wooden walkwaysmight seem an unlikely setting ora Shanghai ship designer. But this iswhere the oces o Chinas BestwayMarine Engineering Design Company(Bestway) are based.

Set on the edge o one o Shanghais

densest industrial areas, this medium-risedevelopment with its tranquil roo gardens isthe source o some o the worlds greenestand most radical ship designs. It could be

Germany or northern Caliornia. But, no,this is very much eastern China.

Aided by Lloyds Register, Bestway hasdesigned the Emerald, a medium-sized,35,000 dwt bulk carrier. Planning began in

2009 when teams rom Bestway and LloydsRegister met to study the commercial anddesign easibility o eco-riendly bulk carriers.

First we had to make sure the projectwas commercially viable. The shipping

industry showed initial interest in areas oenvironmental emissions and navigationalsaety. However that has now changed.We and the industry are now committed to

ull environmental standards rom energyeciency and improved energy management

Key Lloyds Register actsShipsbeingbuiltinChinaandclassedtoLRhavereachedanall-timehighof300

AverageageofChinese-ownedshipsclassedbyLRhasfallentoseven

(rom 18 three years ago!)

TotalgrosstonnageofshipsbeingbuiltinChinatoLRclassrose70%from

July, 2010 to July, 2011

LloydsRegisterChinasgraduatetrainingschemeprovides

a our-year structured training programme

Lloyds Register leadsLloyds Registers progress in China goes rom strength to strength. Nick Brown, LloydsRegisters Area General Manager and Marine Manager, Greater China, told a record

audience at the recent China Technical Committee meeting that more Chinese shipsthan ever are being built to LR class and more and more are going to Chinese owners.

Here we look at an exciting cross-section o Chinese-led projects ranging rom Bestwaysadvances in green newbuild technology, enterprising developments at Shanghai Cruise

Terminal and some challenging activities at Huarun Dadong Dockyard (HRDD).

Hull o Lloyds Register-classed bulk carrier at Tianjin Xingang shipyard in Tianjin


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and emission reduction to recycling,alternative power use and the saety andcomort o ships crews. All these actors

have to be considered beore any o ourprojects get the go-ahead, said ProessorLiu Nan, General Manager o Bestway.

We started by looking at the unctionalspecications with Lloyds Register. We

looked at the design undamentals involved,the hull orm, the engine and the electricalsystems. But we also gauged market need,carrying out a questionnaire o owners to

understand their needs and interest in greentechnology in the bulk carrier segment.Ater producing a market report, we talked

to the shipyards. We also realised there wasconsiderable interest in green technologyrom shipowners in Asia and Europe. This

research was essential as beore we movedinto the precise technical aspects, we had toknow that the market had our ull support.

The results o this co-operation betweenBestway and Lloyds Register speak orthemselves. I looked at in terms o the

International Maritime Organizations (IMO)Energy Eciency Design Index orEEDI as it is known the Emeraldis a veryecient ship indeed.

EEDI, o course, is the IMOs ormula toimprove marine engine eciency and the

best practices o merchant ship construction,limiting global warming through pollutiono the environment by marine engines. It

allows a specic gure or an individual shipdesign to be calculated via a airly complexormula which works out a ships carbondioxide output in relation to its cargo-

carrying capacity.

By studying every aspect o a ships design

and operation, the Bestway 35,000 dwtbulkcarrierimprovesbyanimpressive18%the existing EEDI perormance o standardbulk carriers. The hull lines optimisation

workcreatesenergysavingsof11%andstructure optimisation leads to steel weightreductions o 370 tons. The work carried out

on optimising the main engine leads to uel

oilsavingsof6.5%,whileanewpropellerdesigngivesanenergysavingof2%.

The Emeralds electrical systems optimisepump power and use shoreside electricalsources where possible. Solar power and

uel cells are used on board and LED lightsreplace fuorescent ones. Modern emissioncontrol systems limit and monitor the SO

X,

NOX

and CO2

emissions and the ship boastsadvanced oil, sewage and solid waste

disposal systems as well as highly ecientballast water treatment systems

Advanced navigation allows or betterroute planning (avoiding harsh weather)and also helps reduce uel consumption,

while state-o-the-art anti-ouling coatingsbring about urther uel savings and cutuel emissions by 1,100 tons.

Ater extensive model-testing, the newdesign has exceeded targets in a numberofkeyareas,andthe19.5%reductionin

uel consumption is set against a target o15%.Sixofthenewdesignsarecurrentlybeing constructed at the Guangdong

Jiangmen Nanyang Shipyard in southernChina and more orders are in thepipeline.

The low EEDI indicates to the industryhow energy-ecient this ship design is,said Proessor Liu Nan. We have orged a

very close working relationship with LloydsRegister on this project and our joint teamsare now working on honing the design to

bring in urther improvements.

The design is now in its third generationand its low EEDI value means it will be

compliant with IMO regulations until 2024.

Bestways General

Manager, Proessor

Liu Nan

There is considerableinterest in green technologyrom shipowners in Asiaand Europe

bulk carrier revolutioneports Richard Cook, Lloyds Registers Corporate

rom the ront in ChinaLloyds Registers China

team with shipyard

representatives,shipowners and marine

industry stakeholders at

the Technical Committee

meeting in Shangri-La,

south-west China

Under construction: scaolding shrouds the hull o

one o Bestways green bulk carriers


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As Chinas and one o the worldslargest cities, Shanghai with itspopulation o 23 million and growing could soon become a leading globalcruise terminal.

Several major companies are eyeing its

cruise terminals huge potential and bothCosta Cruises and Royal Caribbean CruisesInternational (RCCI) have been using it as a

home port.

Madame Dorothy Xu, Director o EnterpriseDevelopment at Shanghai Cruise Terminal,

told Horizons: No doubt Shanghai isa cruise hub, absolutely because othe location, size and wealth o the

population.

In act many Chinese companies wantto enter the cruise market, but it is not

easy to nd the right cruise ship ormula,which is likely to involve shopping acilities,attractive excursions and an onboard

casino, all o which need developmenttime.

With the Shanghai Cruise Terminal nowan established cruise hub and with otherChinese ports already ollowing its lead,it is only logical that Chinese shipyards are

keen to diversiy their business into cruise

vessel building, not just or the Chinesemarket to start with but also or the US

and European markets as builders anddesigners gain experience in this specialistshipping segment.

China has already built LNG ships so why

not take up the next challenge o cruisevessel building or the international aswell as the rising domestic market. As the

worlds leading classication society or

cruise ships, Lloyds Register is in discussionwith several Chinese and oreign industrypartners to support the development o this

unique market in China.

While Lloyds Register can oer support and

expert advice or the design and construction

Horizons

Multiple berth: (l-r) Royal Caribbean Cruises International (RCCI) owned Rhapsody of the Seas; Xin Jian Zhen, erry owned by China-Japan International Ferry Company;

Dawn Princess, owned by Princess Cruise and classed by Lloyds Register; and the Fred Olsen Cruise Lines-owned Balmoralline up at Shanghai Cruise Terminal

Why its cool tocruise in Chinao cruise ships, the right cruise ship ormulastill needs development time. Because o thecomplexities involved, the Chinese domestic

market will need to evolve its own businessmodels and approach, while across Asia

many see cruising as a key target area oruture tourism.

Its a work in progress which all bodes well

or a successul Seatrade All Asia CruiseConvention which returns to Shanghai inSeptember 2012.

Lloyds Register capped another great year in China and the rest o Asia when we were

named Best Classication Society in the 2011 Lloyds List Asia Awards.

The judges said the award was made to the society that had made the greatest contribution

to creating a sae and environmentally riendly shipping industry as demonstrated through

a commitment to quality and innovation through the development liecycle rom design to

building and maintenance o the regions shipping feet.

Picture shows: Iain Wilson, Regional Marine Manager Asia (sixth rom right), with the other

award winners at the Hong Kong ceremony


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perations team:

Dr Maogen Xue, Shanghai Design Support Oce, General Manager; Henk Van Staalduinen, Marine Operations

Manager, Greater China; Jerry Souster, Greater China Quality Ocer and Technical Perormance Manager

Horizons

Lloyds RegistersGreater Chinateams

Gao Weijie, Chairman, China Operations and Nick Brown, Marine

Manager and Area General Manager, Greater China

David Power, Area Manager, Hong Kong and Taiwan; Alan Williams, Area Manager, Central China; Teruhisa Yamato, Area Manager, Shanghai;

Gary Horrocks, Area Manager, North China; Alan Sharp, Area Manager, South China; James Gething, Area Manager, East China

Tzu-I Huang, Marine Manager, Taiwan; Adrian

Zaphiropoulos, Qingdao and Tianjin Operations Manager

Peter Campbell, Greater China FOI Technical Manager; Fangsen Zhou, Vice President and

Deputy BDT Manager; Capt Chen Shizhou, Vice President, Hong Kong and South China

Thomas Klenum, Greater China

Marine Business Development Team

(BDT), General Manager

Carl Tian, China Ship Owner Business Manager; Bao Jun, Marketing Manager, Central China; Zhang Wen, Marketing

Manager, North China; Tian Bin, Marketing Manager, South China; Qingchen Sun, Marketing Manager, East China

Operations team

Business Development team


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Lloyds Register EMEAT +44 (0)20 7709 9166F +44 (0)20 7423 2057E [email protected]

71 Fenchurch StreetLondon EC3M 4BS

UK

Lloyds Register AsiaT +852 2287 9333F +852 2526 2921E [email protected]

Suite 3501China Merchants Tower

Shun Tak Centre168200 Connaught Road CentralHong Kong, SAR o PRC

Lloyds Register Americas, Inc.T +1 (1)281 675 3100

F +1 (1)281 675 3139E [email protected]

1330 Enclave ParkwaySuite 200

HoustonTexas 77077USA

www.lr.org

November 2011

Lloyds Register is a trading name o the Lloyds Register Group o entities.

Services are provided by members o the Lloyds Register Group.

For urther details please see our website: http://www.lr.org/entities

Horizons

An impressive array o sophisticatedand challenging conversion projects,eaturing the changing o single-hulltankers into either double-hulledversions or very large ore carriers(VLOCs), has been carried out by ChinasHuarun Dadong Dockyard (HRDD).

Based on Chongming Island in the YangtzeRiver delta, the conversion projects carried

out by the shipyard will vastly extend theoperating lives o ships that had beenacing early obsolescence.

Lloyds Register has been actively involvedin nearly all o these conversion projectsrom conception to delivery. Teamwork

and partnership with HRDD has beenvital, says Henk Vanstaalduinen, LloydsRegisters Marine Operations Manager orGreater China.

And now HRDD is moving into newbuildingwith the construction o a group o 8,800

teu containerships due to start next year.The yard recently added a large gravingdock (see picture) which is now ully

operational and a series o steel andcoatings workshops with an 800-tongantry crane due to arrive soon. AlexanderLee, HRDDs Commercial Department

Deputy General Manager, says: We havedeveloped ast here and we had so much

HRDD moves into

the ast lane

HRDDs graving dock inauguration ceremony in October. The 380 metre long graving dock can handle new

construction repairs and conversions on ships o any size

From conversion projects to newbuilds theres no stopping the Chinese yard

help rom Lloyds Register. Now as wemove into new construction we acenew challenges.

As high energy prices, new emissionsrequirements and the prospect o the newballast water convention orce change

on the industry, such work may wellbe a template or the uture as ownersmay soon seek retro-t opportunities or

relatively young ships.

We have developed asthere and we had so muchhelp rom Lloyds Register

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