singapore solutions 2015

2015

“Singapore has made enormous progress since I first came here in 1971”Olav Eek Thorstensen, Thome Group chairman, see page 19

Celebrating 50 years of maritime success

Shipmanagement companies on the rise

Shipyards build market position

Singapore Solutions 2015 | 1www.singaporesolutions.sg

contents2015

14The modern shoreline of Singapore is dominated by container terminals (credit: PSA)

5 Comment

Singapore 50 years of independence 7 The maritime industry played a key role in Singapore’s development

10 Singapore’s independence brought a new wave of maritime investment

12 Plans are already underway for the next 50 years of growth

maritime personalities15 Singapore’s maritime community features an array of personalities

16 Mike Meade established M3 as an OSV brokerage and consultancy

17 Caroline Huot leads Unimarine into new territory

18 David Loke represents a true Singapore success story

19 Olav Eek Thorstensen put Thome Ship Management on the map

20 Lionel Lee has developed Ezra as a diversified oilfield services company

maritime hub22 The 2015 budget has provided another boost for shipping

24 MPA is on a drive for sustainable development of the maritime sector

26 Singapore Registry of Ships continues to grow the national fleet

shipowners and managers30 Container ship owners battle with market pressures

32 New shipmanagement companies continue to emerge

33 BSM sees increasing enquiries in Asia

34 A new regime at V.Ships; Ishima provides an Italian connection

36 Mare Maritime sets up shop; Asian-Alliance takes a new identity; Neptune

goes with the tide

37 UMMS takes the initiative with software system

38 MTM Ship Management builds third party fleet

41 Gas carrier fleets expand

42 Heavy lifting in the Orient; Crowley opens for business

offshore support vessel operators44 Pacific Radiance invests in the future; POSH SSAVs set sail

45 Swiber Offshore eyes deepwater opportunities

48 Swissco stays the course

49 Vallianz goes offshore Mexico

50 Bibby builds OSV management operation; SPO completes PSV series

52 Emas chief executive leads the line

54 MDPL meets oilfield needs with a focus on Africa

56 Keppel has a full orderbook for 2015 for various construction and conversion projects

19 Thome Group was founded in Singapore in 1963, two years before independence

66 The IHC Workhorse AHTS has an advanced hybrid power system

Published April 2015

Editor: Steve Matthewst: +44 20 8370 1723e: [email protected]

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Chairman: John LabdonManaging Director: Steve LabdonEditorial Director: Steve MatthewsHead of Production: Hamish DickieFinance Director: Cathy LabdonExecutive Editor: Paul Gunton

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Singapore office:Riviera Maritime Media Singapore Pte Ltd Level 26, PSA Building460 Alexandra RoadSingapore 119963

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©2015 Riviera Maritime Media Ltd

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contents

Front cover: Singapore’s port has been a crucial part of the city-state’s growth in the last 50 years and will be in the future

2015

“Singapore has made enormous progress since I first came here in 1971”Olav Eek Thorstensen, Thome Group chairman, see page 19

Celebrating 50 years of maritime success

Shipmanagement companies on the rise


Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner.

shipbuilding and repair services 56 Shipbuilders build market position in the offshore sector

58 Sembcorp Marine Integrated Yard set for operation

60 Shiprepairers remain confident of business boost

62 Triyards has increased fabrication capacity at its facility

oil and gas hub 64 Singapore is a major hub for the offshore oil and gas industry

65 Rig builders face overseas competition

technology 66 IHC launches new Workhorse AHTS design

68 Focal Marine develops designs based on new technology: SeaTech leads tug designs

69 Rolls-Royce is developing its Singapore regional service hub

70 Tru-Marine offers turbocharger solutions; Rustibus provides manhole protection

72 Fendercare rope-splicing facility; Terasaki builds on electrical success

bunkering and lubes 74 Bunkering in Singapore faces up to new challenges

75 Metering gets into full flow

76 VPS takes on a new life; Unimarine tackles complexity

LNG bunkering and terminals 78 Investments aim to make Singapore the leading regional LNG hub

communications 81 Singtel delivers a new set of innovative solutions

port and terminals 84 The growth story of Singapore’s port continues; PSA’s Singapore Terminals

86 PSA International extends its global footprint

88 Jurong Port builds its credentials at home and overseas

89 Oil terminal development plans

90 Cruising in Singapore

class societies 92 Leading class societies set up maritime research facilities; A*Star technology for LR

93 ClassNK sets up new research projects

finance 95 International and local banks use Singapore as their Asian shipping base

97 A variety of other finance sources are available for maritime investments

P&I 99 Singapore’s first war risk insurance; Piracy risks

legal services101 International arbitration service is a major addition

education and training104 Simulation centre accelerates skills; Thome cadet scheme provides self-sufficiency

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3 Years in Existence, 21 Vessels Under Management No Great Legacy, Surely a Great Future Ahead

We manage with care

www.singaporesolutions.sg Singapore Solutions 2015 | 5

Steve Matthews

2015 is a special year for Singapore as it celebrates

the 50th anniversary of its independence in 1965.

In March the city-state’s founding father Lee Kuan

Yew passed away. He was the main driving force behind

Singapore’s modernisation. It has come a long way in that

time. Establishing such a small country as a self-sufficient,

sustainable, stable and influential economy in Asia is a major

achievement. Anyone comparing the maritime facilities then

and now could not fail to be impressed by the dramatic changes

and progress that have been made.

The maritime industry has played a big part in that

development story as was always planned by the newly

independent government. Right from the start significant

resources were devoted to building a world-class port and other

maritime infrastructure to benefit from the natural advantages

of its strategic location on international trade routes and in

Southeast Asia. That development is continuing today and into

the future as new port facilities and shipyard developments

take shape. Further reclamation work is creating new space for

these developments such as the new phases of the Pasir Panjang

Container Terminal and the integrated shipyard facility at Tuas.

This 2015 edition of Singapore Solutions outlines some

of these developments. They not only include the building

of the physical infrastructure of a major global port and

shipyard facilities but also the softer activities that provide

essential support to create a comprehensive international

maritime centre.

For many years Singapore has been a major energy hub, with

a number of long-established oil refineries and tanker terminals.

It is now focusing on adopting a similar role in the growing

liquefied natural gas (LNG) sector. New terminal and storage

capacity is being built as Singapore seeks to become the main

regional LNG hub.

It is also developing plans to introduce LNG bunkering and

Singapore has led the way in developing new international

guidelines for LNG bunkering in ports.

Standing behind many of these initiatives is the Maritime

and Port Authority of Singapore (MPA), the Government

agency that regulates the maritime sector in Singapore,

including the ship registry, which is another success story.

It has created a business environment that is positively

welcoming for shipping companies and seeks to make life as

easy as possible for new maritime companies and those from

overseas to establish a presence. MPA is constantly introducing

new initiatives and forging partnerships that will enhance

Singapore’s role and status as a maritime powerhouse.

Singapore is the main hub in Asia for the offshore

industry with a number of leading owners and operators

based there, supported by specialist designers. Although the

construction of standard offshore support vessels has mostly

moved to China, Singapore’s yards are securing work in

the specialist high tech area of conversions of tankers into

offshore floating production storage and offloading units

and conversions of conversions of gas carriers into floating

regasification units.

Singapore is becoming a significant centre for innovation,

with a number of leading international class societies and

technology companies developing research and development

centres in collaboration with local research and education

institutions. Banks, insurers and law firms are in increasing

abundance as Singapore enhances its role as the go to place

in Asia for maritime business. Some of these are described

in this issue.

O ver the years Singapore has become a melting pot

of the global maritime industry with local and

international staff working to build and expand

new businesses. The city state has become home for a wide

array of maritime industry personalities. In this issue of

Singapore Solutions we highlight just a few of those people

from a variety of backgrounds who have and are playing

their parts in the continuing development of this leading

global maritime hub.

Singapore It is not standing still. Further initiatives

are being brought forward, particularly to encourage more

maritime finance, insurance and legal services.

Congratulations to Singapore on its achievements in the

last 50 years. It is already looking ahead to the next 50 years

and putting into place the incentives and structures that

will provide for further growth in the years to come that will

cement Singapore’s position as the leading maritime trade

and technology hub in the region. SS

Celebrating 50 years’ progress and looking ahead

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Singapore50

Celebrating a long maritime heritage

T he celebration of Singapore’s 50th

anniversary of independence is a good

opportunity to explore how far it has

developed as a maritime hub, especially in

the years since it became independent but, of

course, its maritime history as a regional hub

goes back much further than that.

John Miksic at the National University of

Singapore pointed out in his book Singapore and

the silk road of the sea (1300–1800) that, contrary

to common belief, the history of Singapore as an

important city and an international port trading

hub did not start with the arrival of Sir Thomas

Stamford Raffles in 1819.

Singapore has been part of maritime trade

networks for more than 2,000 years. These

gradually extended from Southeast Asia both

eastwards to China and westwards to India, the

Middle East and Europe. Silk and other goods

were shipped through the region as long ago

as the 1st century. Traders from various parts of

Asia settled in Singapore, which is one of the

oldest capital cities in Southeast Asia.

The original name of Singapore was Temasik

and it emerged as a strategic location in the

region where Indian and Chinese traders and

travellers met. The city’s name was changed

from Temasik to Singapura in about 1390.

Singapura’s role was usurped with the founding

of Melaka as the dominant capital in the region,

but Singapura remained an important naval

base. It was a booming city and shipping hub in

the 14th and 15th centuries and up to about 1600.

Singapura means lion city in Sanskrit, which

is where its current name derives, along with its

merlion symbol, though there have never been

any lions in Singapore.

There was some Portuguese influence in

the 16th century. Even then there was intense

competition with the nearby Malay port of

Johor. Singapore had an official harbourmaster

up until about 1600. In the early 17th century

it became significantly depopulated, as it

became embroiled in disputes for control of

the strategically important southern end of the

Strait of Melaka.

The 200 years from 1600 to 1800 saw

Singapore’s role marginalised until a new era

began in the 19th century as it emerged as a key

colonial trading post for Great Britain. Raffles,

who was governor of Java, identified Singapore

as a potential commercial centre and port at the

southern end of the Straits of Melaka, and as

other options were rejected he signed a treaty

with the Malay official in charge of Singapore,

Sultan Hussein of Johor. His specific aim was

to attract local shipping to Singapore as well as

to develop its role as a way port between India

and China.

The attributes that make Singapore a

prosperous maritime and trading hub therefore

go back much further than Sir Stamford Raffles

and were recognised and exploited many

centuries earlier, only to be rediscovered by

the modern city’s 19th century founder. The

recent phase of Singapore’s history, including

since its independence in 1965, is therefore a

re-establishment of its rather more ancient status.

Constance Mary Turnbull, in her book A

history of modern Singapore 1819–2005, said that

by the time Sir Stamford Raffles, as agent of the

East India Company, signed a treaty with the

local chief permitting Great Britain to set up a

trading post in 1819, there were few indications

that Singapore had once been a prosperous port.

At that time Singapore’s population was only

about 1,000, but it then rapidly grew once again

as a trading post and began to attract increasing

numbers of immigrants, particularly from India

and China.

In 1826 Singapore, Malacca and Penang

became the British colony of the Straits

As Singapore marks the anniversary of its independence, the maritime sector also has cause to celebrate

Singapore’s role as a maritime hub goes back many centuries (credit: PSA)

www.singaporesolutions.sg8 | Singapore Solutions 2015

Singapore50

Settlements, under the rule of British India, and

in 1832 Singapore became its capital. In 1867

it became a crown colony of the British Empire

under direct rule from London.

During the high point of the British Empire’s

influence, in the second half of the 19th century,

the port expanded, new shipping and trading

companies emerged and more foreign and joint

venture shipping companies were attracted

to set up operations there. British shipping

company the Peninsular and Oriental Steam

Navigation Co (P&O) began serving Singapore

in 1845. In 1851 the famous Horsburgh

lighthouse was constructed at the port’s eastern

approaches by James Horsburgh, hydrographer

of the East India Co. The lighthouse is still a key

navigational aid.

The Singapore River and Boat Quay remained

the focal point of shipping and business but

became very congested. P&O established a

presence at New Harbour (which later became

Keppel Harbour) in 1852 followed by Jardine

Matheson & Co and other leading companies.

Keppel Harbour was named after Capt Henry

Keppel whose vessel anchored there in 1848. It

acquired its new name in 1900.

In the 1860s about three–quarters of all

shipping business was still done at Boat Quay.

Collyer Quay was among the first quays on the

river, but it rapidly became a major port of call

for liner services to Asia, prompting Rudyard

Kipling to describe Singapore as “the second

doorway to the wide world’s trade”.

However, the port facilities failed to keep

pace with the growth in maritime trade. During

the 1870s the volume of cargo handled and

ships berthed in the port increased considerably

but the infrastructure linking the port to the

town was wholly inadequate. It was not just

the calls of ships serving the Europe-Asian

trade that drove this growth. Singapore also

became the main export port for rubber from

Southeast Asia.

In 1861 the beginnings of what eventually

became the Port of Singapore Authority emerged

with the founding of the Patent Slip and Dock

Co, later the New Harbour Dock Co, and in 1864

a rival operation, the Tanjong Pagar Dock Co,

was established. By the end of the century it had

taken over all its rivals.

Singapore features in the novels of Joseph

Conrad who first arrived there in the vessel

Sissie in 1883. He returned twice more and was

in Singapore from July 1887 to March 1888

when he was appointed to his first and only

sea-going command.

Conrad was appointed mate of the steamer

Vidar in August 1887 until January 1888, trading

from Singapore around the Malay archipelago.

It was during this period that Conrad absorbed

some of the impressions that he used in his first

novel, Almayer’s Folly, and others that followed.

His time in Singapore was a turning point

in his literary career. It was in and around

Singapore that he heard many of the stories that

feature in his novels, including Lord Jim, which

was based on a real merchant navy officer,

Austin Williams, who was based in Singapore,

as was Capt Lingard, another famous character

in his novels.

Around the turn of the century Asiatic

Petroleum Co, part of Shell, established oil

storage and bunkering facilities on Freshwater

Island, later named Pulau Bukom, three miles

south of Singapore. The facilities were mostly

destroyed in the Second World War.

Singapore’s trade expanded eight-fold

between 1873 and 1913. In 1903 the port

had already become the seventh biggest port

in the world measured by the tonnage of

shipping calling there, but it became very

congested and modernisation of its facilities

was urgently needed.

In 1905 the Tanjong Pagar Dock Co was taken

over by the Government and became the Tanjong

Pagar Dock Board, which in turn, in 1913 became

the Singapore Harbour Board, a major public

utility. It invested heavily in new dock facilities

but incurred significant debts in doing so. Tanjong

Pagar facilities were developed to handle the

increasing traffic that followed the opening of the

Suez Canal in 1869. In 1913 Kings Drydock was

opened as the largest drydock in Asia.

A new dock, Empire Dock, was constructed

and opened in 1917. It remained the main cargo

handling area in the port until the 1960s. It was

finally filled in for redevelopment as part of

Tanjong Pagar Container Terminal in 1989.

Following the Second World War, when

Singapore was under Japanese occupation from

1942 to 1945, Singapore became a separate

crown colony in 1946. Trade and port operations

resumed, but there were some labour problems in

the port as communist influence from Malaysia

increased. A dock strike in 1945 involving 7,000

dock workers secured higher pay.

The Singapore Harbour Board had employed

port labour through contractors, but these were

under the control of the Malayan Communist

Party. The Board started to employ dock workers

directly. In 1948 a strike by the communist-

controlled Singapore Harbour Board Labour

Union was broken. This had wider political

implications as it effectively ended the communist

control of labour unions in Singapore.

In 1948 Sir Frank Swettenham, after whom

Port Swettenham, later Port Kelang, was named,

described Singapore as “the Clapham Junction

of the eastern seas,” in reference to the London

railway station that is the busiest in the England.

In 1957 Singapore was granted self-rule by

the British government. In August 1958, the

State of Singapore Act was passed in the UK

Parliament providing for the establishment of

the State of Singapore. Following a constitutional

agreement in London in 1958, elections were

held in 1959 which were won by the People’s

Action Party (PAP) and Lee Kuan Yew became

prime minister.

In 1963 Singapore joined the newly formed

Federation of Malaysia. Following political

disputes and rising tensions Malaysia asked

Singapore to leave the Federation. Singapore The port grew rapidly under British rule (credit: PSA)

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became an independent republic and a member

of the United Nations in its own right. But the

new city state faced huge challenges to establish

itself as a viable independent country.

In 1961 Shell opened a new oil refinery and

associated tanker berths at Pulau Bukom.

The Port of Singapore Authority (PSA) was

created a year before independence, in 1964,

specifically to take responsibility for Singapore’s

docks, which at that time still comprised only

limited cargo-handling facilities.

Independence prompts new maritime investmentA top priority for the newly independent

Singapore Government was to build its

economy, and invest in infrastructure, including

the port. This involved building new facilities

and improving productivity. Development of the

Jurong Industrial Estate had already started to

promote industrial development.

Jurong Port opened in 1965, having been

initially set up two years earlier. It started with

two berths. In 1970 cargo handled there reached

1 million tonnes, and it had expanded with four

new berths.

Tax incentives were introduced to attract

foreign investment. Industrialisation was aimed at

supporting the manufacture of high value goods.

In 1965 PSA put forward plans to build four

new conventional cargo berths at East Lagoon.

This plan was abandoned in 1966 and replaced

by plans for a container terminal with the

intention of it being a regional hub. A loan was

secured from the World Bank and construction

work started in 1967.

The new Government planned to make

Singapore the second biggest shipping,

shiprepair and shipbuilding centre in Asia

after only Japan. Shipbuilding and shiprepair

business almost doubled from 1966 to 1968.

In 1968 Singapore Drydocks and Engineering

Co, later renamed Keppel Shipyard, was set up

to run shiprepair activities and was responsible

for the six-drydock facility. Keppel Shipyard

later relocated to an island that was renamed

Keppel Island in 1983, where new drydocks

were constructed.

The Singapore Registry of Ships was set up in

1966, initially for locally owned vessels. In 1968

foreign ships were offered tax-free registration,

thus creating the first open register in Asia.

In the same year Singapore launched its own

national shipping line, Neptune Orient Lines.

The rapid growth in port traffic provided the

basis for development of supporting services for

shipping and related commercial activity.

The 1967 Land Acquisition Act paved the

way for the huge transformation of Singapore

into the modern city. This included the start

of huge land reclamation projects extending

along the coast from the Singapore River to

Changi in the east and to Pasir Panjang in the

west, incorporating the offshore islands into the

rapidly expanding industrial complex at Jurong.

This started the development of the massive port

complex and other maritime activities that is

still taking place today.

Jurong Town Corp and the Development

Bank of Singapore were set up in 1968. In the

same year the UK announced that it would

close its military bases in Singapore by 1971

and this opened up opportunities for new port

and shipyard developments. The PSA report for

1968 said: “It may be necessary to embark on

further construction.”

When the British left the naval bases at

Sembawang the PSA took over the facilities and

created Sembawang Wharves and Sembawang

shiprepair yard.

Sembawang Shipyard, carried out its first

commercial shiprepair in 1969. It was initially

operated under contract by UK shipbuilder Swan

Hunter. In 1973 shares in Sembawang Shipyard

were offered on the Singapore Stock Exchange,

funding an expansion programme that led to the

opening of a new drydock in 1975 able to handle

the largest tankers in service. New facilities were

added, including a floating dock in 1978 and

another in 1990. Investments were made in other

facilities including in Jurong Shipyard.

Sembawang Shipyard formed a new holding

company in 1995. It expanded its facilities and

Singapore50

Traditional breakbulk cargo handling was the mainstay (credit: PSA)


activities, and what is now the shipyard division

of Sembcorp owns five shipyards in Singapore.

The East Lagoon complex opened in 1972

and Singapore established itself as a major

transhipment port. The first container ship,

Nihon, arrived at the Tanjong Pagar terminal in

June that year. In 1974 Pasir Panjang Wharves

was created. By then, PSA operated five facilities

with a total of 12km of quay.

Singapore co-founded the Association of

Southeast Asian Nations (Asean) in August

1967 The Monetary Authority of Singapore was

established in 1970 to formulate and implement

Singapore’s monetary policies.

By 1970 petroleum was the biggest export

industry in Singapore. Esso built a refinery, and

by 1973 it had become the world’s third biggest

oil refining centre after Houston and Rotterdam,

with 30 major oil exploration companies located

there along with many other contractors and

other supporting companies.

Growth in container traffic was rapid,

and by 1975 Singapore could claim to be the

world’s third biggest port after Rotterdam and

New York. The effects of the 1970s oil crisis

and the slump in oil imports proved only a

temporary setback.

By the time of Singapore’s 40th anniversary

in 2005 it had become an important financial

centre and a leading international maritime

and communications hub. Massive port

development resulted in it becoming for a time

the leading container port in the world before

being overtaken by Shanghai in China.

In 1982 container throughput reached 1

million teu. Investment in high-tech automated

and computerised handling equipment and

control systems was stepped up to cope with the

rapidly increasing container volumes.

During the 1980s container throughput

increased six-fold. In 1990 Singapore handled

5.2 million teu. Throughput tripled again during

the 1990s. In 2000 throughput exceeded 10

million teu. Keppel Terminal and the new Brani

Terminal opened in 1991.

The Asian financial crisis in 1998 caused only

a short-term setback in Singapore’s economic

growth. The next major container terminal

development, Pasir Panjang Terminal, opened in

2000 with further extensions opening in 2003

and 2005. By 2003 throughput had reached

18.4 million teu. By 2005 it became the world’s

leading container port, with throughput of 20

million teu, moving ahead of Hong Kong.

The global financial crisis of 2008 saw

Singapore again go into recession for a short

period but it bounced back quickly. In 2012, as

the PSA marked 40 years of container operations,

it announced the development of a further two

phases of the Pasir Panjang Terminal, due to

be completed by 2020 and adding a further 16

berths. Singapore currently has 57 container

berths at six terminals.

In 2001 Jurong Port became a subsidiary

of the Jurong Town Corp. Reclamation at

Pulau Damar Laut in 1989 created additional

multipurpose berths there. The Jurong Port

Cement terminal opened in 1996. Jurong

Container Terminal began operations in 2001.

In 2013 Jurong Port handled 1.8 million teu and

13.5 million tonnes of cargo at 23 berths.

Singapore is now the second busiest port

in the world in terms of shipping tonnage

and is only behind Shanghai in terms of

containers handled.

In 1996 the Maritime and Port Authority of

Singapore (MPA) was established to develop

Singapore as a premier global hub port and

international maritime centre taking on several

strategic roles including port authority, and

national maritime representative. It also involved

responsibility for navigational safety and

regulating port activities, including bunkering.

Part of this major change also involved the

corporatisation of the PSA, with the new MPA

regulating its activities. This freed up the PSA to

develop overseas activities managing container

terminals in other countries, generating further

revenue. PSA is wholly owned by state holding

company Temasek Holdings.

In addition to its statutory regulatory

functions, MPA was also charged with working

with the maritime industry and other agencies

to enhance safety, security and environmental

protection in Singapore’s port waters, facilitate

port operations and growth, expand the cluster

of maritime ancillary services, and promote

maritime research and development and

workforce development.

Singapore remained effectively a one-

party state right through this period of

development. Two opposition members of

parliament were elected for the first time in

1984 and in the 2011 election six seats were

won by opposition parties.

Lee Kuan Yew resigned as prime minister

in 1990, having been in office for 31 years.

He was replaced by Goh Cheok Tong, but the

family dynasty was restored in 2004, when Lee

Kuan Yew’s son Lee Hsien Loong became prime

minister. He remains so as Singapore celebrates

its 50th anniversary.

As a result of government policy and

large-scale investment, Singapore’s industry

and export changed from labour-intensive to

high value-added products such as electronics

and chemicals. The role of the service sectors,

including finance, also expanded rapidly and

increased their share of Singapore’s economy. Its

GDP almost doubled in the first decade of the

21st century. Current strategy includes developing

Singapore as a leading world financial centre.

Singapore’s growing popularity as a cruise

destination led to the opening of the Singapore

Cruise Centre at Keppel Harbour in 1991.

Continued growth in cruise ship business led to

the development of another major new cruise

Containerised cargoes arrived in the port in large numbers in the 1970s (credit: PSA)


terminal, the Marina Bay Cruise Terminal,

which opened in May 2012, with two berths of

360m long and a draught of 11.5m.

The Singapore Tourism Board (STB)

celebrated its 50th anniversary in 2014. Its

chief executive, Lionel Yeo, commented:

“The development of tourism in the last 50

years mirrors the remarkable trajectory that

Singapore has taken in those decades. The work

of STB and our industry partners has helped to

create a modern cosmopolitan destination with

strong local character, one of the truly global

hubs in Asia.”

Speaking at a maritime heritage workshop

held at Nanyang Technological University in

September 2014, Khong Shen Ping, dean of

the MPA Academy, commented: “Singapore’s

success as a maritime nation was built on the

foundation of maritime trade. Singapore was

an entrepõt. Located along one of the busiest

waterways, our unique location and naturally

deep harbour had helped contribute to the

growth and success of maritime trade.

“But these are not all. The human endeavour

and strategic visions of our leaders had been

key behind the success of our port. From these

beginnings, we have built upon our maritime

heritage, which left an indelible stamp on our

cultural, economic and social development

when our migrants set foot on the banks of the

Singapore River and brought with them their

rich cultures and traditions.

“We have come a long way. Today, we are a

maritime nation with one of the busiest container

hub ports in the world, the world’s biggest

bunkering port, a leading international maritime

centre and a world leader in offshore and marine

engineering. The Singapore Registry of Ships is

also among the top 10 ship registries in the world

with one of the youngest fleets. The maritime

sector is a key pillar of Singapore’s economy,

contributing about 7 per cent of Singapore’s GDP.

The sector comprises more than 5,000 maritime

companies employing over 170,000 people.

Looking to the next 50 yearsIn an interview in January Singapore prime

minister Lee Hsien Loong commented on the

50th anniversary and his 10 years in office:

“Singapore has come a long way in 50 years.

We must use this as a jumping-off point, not as

a final destination. The 50th year is a good time

for us. It is like reaching the end of a 50m swim.

I touch, I take a breath and I swim on.”

He suggested that Singapore has an

outstanding future for generations to come,

but said that economic changes would include

slower wage increases and growth. He also

recognised that the political landscape will

change as Singaporeans seek alternative

voices in government to the PAP which

has ruled since independence. Singapore

will become more flexible in implementing

policies but he emphasised that it will remain

open to foreign investment and workers,

despite some recent restrictions on the

employment of foreign workers.

In February, the deputy prime minister Teo

Chee Hean, speaking to students at Nanyang

Technological University, said that one of the

challenges Singapore faces in the next 50 years

is finding compromises between conflicting

interests, along with ensuring the necessary

savings and investments.

In the maritime sector Singapore has

also come a long way in the 50 years since

independence. But it is still seeking to exploit

new opportunities to build on and enhance its

status as a leading global maritime hub.

At the end of September the Singapore

Shipping Association (SSA) held its annual

gala dinner, celebrating the organisation’s 29th

anniversary, at the distinctive Marina Bay Sands

complex. The event attracts a huge gathering of

more than 2,000 shipping industry people.

SSA president Patrick Phoon set out some

further goals for Singapore to develop as a

major international maritime centre. He focused

particularly on strengthening marine insurance

and ship finance activity.

“Over the past year the SSA Council has

commissioned consultants to assist in producing

reports in these two areas. In the field of marine

insurance, a working group has been tasked to

explore the creation of a Singapore War Risk

Mutual that would take advantage of economies

of scale to secure the best possible cover for crew

and ships, thereby achieving significant cost

savings for Singapore shipowners.

“In the field of shipping finance the

working group followed up on some of the key

recommendations proposed by the report with

the aim of developing Singapore as the premier

ship finance centre in Asia. Both projects are still

work in progress,” Mr Phoon said.

He stressed the strong role of the Singapore

Government in supporting shipping and

listening to the views of the industry. “Our

Association has been maintaining close dialogue

with our Government and the relevant agencies,

to continually reduce business costs, smooth

out kinks in our current systems and increase

productivity levels to help Singapore’s shipping

industry maintain its competitive edge in these

difficult times.”

He highlighted various collaborations

with MPA, including on navigational safety,

increasing productivity and attracting talent to

the maritime industry. With regard to increasing

productivity, a separate working group was

formed to look into the work procedures of

shipping agencies and address the bottlenecks

when dealing with other government agencies.

He looked forward to Singapore’s 50th

anniversary of independence and the SSA’s own

30th anniversary in 2015.

Mr Phoon’s comments and the initiatives

Singapore50

Investment in dedicated container terminals began to change the face

of Singapore (credit: PSA)

Driving innovation and

MacGregor is part of Cargotec.

Cargotec’s class B shares are quoted on NASDAQ OMX Helsinki.


that are underway demonstrate clearly that

Singapore is not content to stand still and is

continuing to be proactive in promoting itself as

the leading maritime centre in Asia. There are

likely to be more initiatives to attract shipping

businesses to the city state.

The MPA Academy’s Mr Khong, also looked

forward: “Looking ahead, we can expect

continued growth across Asia and Singapore

is well positioned to tap into Asia’s growth.

The Singapore Government is committed

to developing our maritime sector to seize

opportunities that Asia’s growth offers. We

continue to invest in port infrastructure

well ahead of demand. We are expanding

Pasir Panjang Terminal to increase our

handling capacity and, in the long term, our

container port activities will be consolidated

at Tuas with a next-generation port that

has an automated new-generation container

terminal and an integrated maritime hub

with state-of-the-art facilities.

“It is important for the Port of Singapore

to leverage on innovation and technology to

keep itself relevant. Because of this we are

working towards making our future port a

smart port that taps into new technologies

that enhance the productivity and efficiency

of port operations, while being sustainable

and environmentally friendly.

“We believe that more can be done. Hence,

in July 2014, we were the first port in the

world to organise a Smart Port Hackathon to

develop innovative solutions using numerous

dataset, to enhance productivity, efficiency and

sustainability in the Port of Singapore.”

He said that during Singapore Maritime

Week in 2015 there will be a conference about

the role of maritime heritage in the future of

harbour cities. This will effectively be a follow-

on from the maritime heritage workshop.

As a founding member of Asean, Singapore

is playing a leading role in developing a single

shipping market as part of the establishment

of the Asean Economic Community (AEC),

a Southeast Asia equivalent to the European

single market. Asean countries have agreed a

deadline for completing this work by 2015.

A longstanding and leading figure

in Singapore’s shipping community, Teo

Siong Seng, managing director of Pacific

International Lines said: “Asean is the new

growth frontier. It is a region of 600 million

people with a fast-emerging middle class,

young populations and an expected GDP

growth rate of around 5 per cent for the next

five years. The AEC will remove trade barriers,

encouraging further regional growth. This will

lead to greater intra and extra-regional cargo

movements, which create opportunities for

the broader maritime industry. It is clear that

a lot has been achieved but we need to work

together to take the final steps in realising the

goal of a single Asean market.”

Part of this project involves increased

co-operation among Asean countries on

maritime developments in the region.

“Activities and discussions such as these will

ensure that the region’s facilities, processes

and services will be ready to take advantage of

the immense opportunities that the AEC will

offer,” said Mr Teo.

Some progress is being made but the

timescale is challenging and there are some key

issues to be resolved.

Andreas Sohmen-Pao, chief executive at BW

Group, said: “Domestic economic policy in a

number of markets is calling for high levels of

local content. Under these policies, companies

are required to build a proportion of their

assets locally, employ local crew and, in some

cases, align with local partners in order to trade

within that country. These policies stand in the

way of the creation of a single Asean market.

They not only create additional costs for the

industry and local economies, but also affect

the efficiency of the regional maritime industry.

The industry needs to come together with

public and private sector partners to navigate

this challenge,” he said.

As Singapore and its maritime industry

reflect on the enormous progress it has made in

the 50 years since independence, it is clear that

there are major challenges and opportunities

ahead for Singapore in general and for its

maritime sector. It has come a long way, but

it is still looking and pursuing further projects

to enhance its position both regionally and

globally. SS

Singapore50

The modern shoreline of Singapore is dominated by container terminals (credit: PSA)


personalities

D anilo Raffa has become one of the

leading figures in the Singapore

shipmanagement community since

he first came to Singapore in 2007 with the

shipmanagement company Ishima.

Ishima was established in Singapore

two years earlier, in 2005, as a dedicated

shipmanagement operation of Italian

shipowner d’Amico, a family company with

a long history that extends back before the

creation of independent Singapore.

Mr Raffa has been in the maritime business

for 30 years. He graduated from the University

of Genoa in Italy with an MSc in naval

architecture and mechanical engineering, and

went on to work for a number of Italian

shipping companies. He also had a long stint

with Italian classification society Rina. He came

to Singapore in 2007 to take up the position of

fleet director with Ishima. He is now managing

director of the company which manages a fleet

of 22 tankers, 13 bulk carriers and five roro

vessels. (see page 34)

He told Singapore Solutions: “I have been in

Singapore since 2007 and before that I was in

various north European countries. Singapore is

a good place for business, especially shipping.

It is good for networking and for opportunities

to meet others in the industry. There are many

events at which we can discuss issues and

there are many maritime companies here

offering various support services.

“Costs in Singapore have become an issue

as they have increased. It has become more

difficult to find skilled people and rules have

tightened on bringing in foreign staff. We

have 45 people in Singapore and labour costs

are rising, especially for qualified technical

staff. The price of housing has stabilised

and has slightly dropped recently. But we

are keen to stay in Singapore. We have some

manning and technical management offices

elsewhere, including Manila, and the group

has a technical management office in Rome.”

D’Amico aims to balance resources and

management between Italy and Singapore.

But Mr Raffa has ambitious plans for Ishima

in Singapore, and he expects that by the

end of 2016 it will have a total of about

90 ships under management. In particular,

Ishima is looking to expand its third-party

shipmanagement portfolio, in addition to the

ships it manages for its parent owner.

As part of its business activities its

newbuild supervision team has site offices in

Korea, China and Vietnam, which report to

Ishima’s Singapore office.

“We started with two fleets, both

mixed, with dry bulk and tankers. We have

relevant technical experience in both and

have two fleet managers. Our marine and

technical departments are divided into fleets

with marine superintendents allocated

responsibility for individual ships.” SS

Managing director of shipmanager Ishima has brought an Italian dimension to Singapore’s shipping community

Bringing the Italian touch

Danilo Raffa heads Ishima in Singapore, which manages bulk carriers and tankers

Building a maritime communitySingapore’s maritime community has developed enormously in the 50 years since independence. In doing so it has attracted many local and international personalities who have stamped their mark on the shipping scene.

In this section Singapore Solutions highlights just a few of the industry leaders who have made their presence felt and continue to do so. Those who are not Singaporean have come to Singapore from various backgrounds and at various times during the last 50 years.


personalities

Creating an impression

O ver many years, both before and

after independence, seafarers

have arrived in Singapore

on various types of vessels and found

themselves attracted to the island as a

place to live and do business. Many of

Singapore’s maritime businesses owe their

origins to such shipping arrivals and the

first impressions that they experienced.

Mike Meade, founder, director and chief

executive of M3 Marine Group, falls into

that category. He told Singapore Solutions:

“I was 17 years old when I first came to

Singapore on board the Blue Funnel vessel

Melampus, operating on the Barber Blue Sea

service. We anchored and I went ashore by

boat to Collyer Quay and to Change Alley,

which is very different now.

“Blue Funnel was part of the Ocean

Fleets group, which was also linked with

China Navigation Co, and I was offered

a position in Asia. I later got work with

Swire Pacific Offshore delivering offshore

support vessels (OSVs) from Japan. I then

got a position with Swire Pacific Offshore in

Brunei and then in Mumbai High working

on OSVs, where I eventually became master.

I started looking at shore-based positions,

and Swire in Hong Kong offered me an office

position as a project manager in Dubai. I

was seconded to McDermott International,

but the Gulf War intervened.

“In 1990 I was involved in a major

conversion project in Singapore and I then got

promoted to a manager for Swire in Dubai,

with a fleet of 27 vessels. In 1995 I joined

Seacor Holdings for nine years and initially

moved to Houston in the US as head of global

sales. There was an opening at Seacor in

Singapore, which was a growth target for the

company, so I moved here in 2000.

“We started working with Jaya Holdings

to contract OSVs built in Japan. After the

yard went out of business Jaya started

building OSVs in Singapore. Seacor was

successful in Singapore and it bought

Seabulk and I was offered a position in

the UK when it bought a company in

Lowestoft, but I had not worked in the UK

for many years and was spending a lot of

time in Nigeria sorting out problems there.

So I went back to Singapore. After a year, in

2005, I set up M3 as a one-man company,

which coincided with the boom in the

offshore sector and related brokerage work.”

The name M3 originates from Mike

Meade Marine, but that name was not

permitted, so Capt Meade changed it to M3.

“It also reflects that fact that a lot of what

we deal with concerns cubic metres,” he

told Singapore Solutions.

That move was the beginning of a rapid

growth for M3. It now has two business lines,

a consultancy mainly involving technical

issues, which is heavily involved in doing

failure mode effects analysis (FMEA) work

for DP vessels, and M3 Marine Expertise

which is an OSV brokerage employing about

20 people. Revenue is split about 50-50

between the two activities.

“Singapore has become more expensive,

in particular for housing and cars, but is

otherwise reasonable. And there are many

positives such as a good business and

working environment.

“Setting up a business in Singapore is

quick and transparent. Raising finance is

straightforward, the legal environment is not

a constraint and corporate tax is low. There are

other incentives in terms of good education

and training, so it is cost-effective to recruit

and to train staff,” Capt Meade said.

“In oil and gas shipping Singapore is

a major hub. It is also a hub for offshore,

and some vessels built in China come

to Singapore for final fitting out and

bunkering.”

Capt Meade is mainly involved in

brokerage activities including sale and

purchase, chartering and newbuilding

for OSVs. He is a respected independent

offshore marine consultant, particularly in

the subsea sector and is the Asia Pacific

representative on the International Marine

Contractors Association (IMCA) marine

division management committee.

SeaTech founder looks to the futureHaving been a practising naval architect for

35 years out of Singapore, the founder of

privately-owned SeaTech Solutions sees the

city state as continuing to take the lead in

adopting maritime technologies not least on

the back of a nimbleness in adapting quickly

to anything new but also on commanding

the respect among industry players for

maintaining a business friendly environment.

Govinder Singh Chopra first started out in

the offshore marine business through a joint

venture before founding and incorporating

SeaTech in 2000.

Through the last 14 to 15 years, SeaTech

has already established satellite offices

in Shanghai, Mumbai, Johor Bahru and

Bangkok to tap the engineering expertise

otherwise difficult to source for at

competitive costs in Singapore.

But SeaTech’s founder has no qualms in

maintaining the headquarters in his home

city, not just because he is a Singaporean

citizen, but also because he is confident

Singapore will remain the gateway to key

markets in Asia including China and India.

Mr Chopra confidence is built on a strong

Singapore brand built on the honesty of its

people and transparency of its regulatory

environment. These in turn, command trust

within international business community:

“People like to do business with Singapore,”

he said.

While cost of doing business has

caught up with the West, he believes that

Singaporean players still have a lot of room

by moving up the value chain into bigger

Mike Meade set up his own OSV brokerage business in Singapore

Mike Meade has established M3 as a leading OSV brokerage and consultancy company


and higher value offshore marine assets.

SeaTech has been in talks over the last

two years with potential clients looking to

build LNG dual fuel vessels.

SeaTech has looked into developing “a

vessel design that can help reduce the

capital expenditure for the owners and the

cost for the operators”, Mr Chopra said.

Newbuild LNG dual fuel vessel orders

has taken time to materialise in Asia not

least because the region has yet to impose

any emission control areas, unlike in the

North Sea.

Owners are also hesitant to invest in

such vessels until the related bunkering

infrastructure are in place.

The Maritime and Port Authority of

Singapore has already put in place incentives

to encourage uptake of the LNG bunkering

investment, with the aim of bringing new

terminals into operations by 2017.

Mr Chopra is confident Singapore will

be a first on LNG bunkering operations in

Asia because the island nation home to one

of the busiest port in the world has always

been “fast in adapting” to new technologies.

The seasoned naval architect also flagged

potential LNG dual fuel applications off

Brunei, where such new vessel concepts are

understood to have been floated during a

tug supply tender.

The SeaTech managing director said: “We

are targeting work on LNG dual fuel ferries,

tugs and port craft.”

SeaTech is undertaking the basic design

of potentially one of the world’s first seabed

mining vessel for Dubai-based Marine Assets

Corporation and Toronto-based Nautilus

Minerals (see page 68). SS

Leading Unimarine into new territorySingapore is the leading bunkering

and lubricant supply port in the

world, which makes that industry a

vital part of the Singapore maritime

sector. Many of the bunker and lube

suppliers in Singapore are part of

major international groups, but one

distinctly local company is specialist

lube oil supplier Unimarine. It is no

surprise, therefore, that its managing

director Caroline Huot is a leading

personality who has set out to give

Unimarine a very individual profile.

Originally from France, Ms Huot

told Singapore Solutions: “I joined

the shipping industry about 15 years

ago and have seen the full shipping

business cycle in that time.

“I started my career at oil majors,

the French companies Gulf and Total,

but I am more passionate about

shipping than oil. Shipping is a most

interesting activity as it is linked to

the global economy. I am also very

interested in engines of all types,

including cars and aircraft as well

as ship engines. I am not a technical

person by training, more economics

and commercial, but I have learned a

lot about technical aspects and I like to

visit ships whenever possible.”

Under her leadership Unimarine

has established a reputation as an

independent supplier and provider of

lubrication solutions for shipowners.

This independence does not always

go down well with some of the oil

major suppliers that are marketing their

own products. Unimarine was linked to

bunker supplier KPI Bridge Oil, but is

now fully incorporated as a Singapore

company in its own right. “Unimarine

is continuing to grow and the company

is well established in Singapore in our

new office.”

However, it is linked to tanker company

Unitankers, and it therefore sees itself

as part of a wider shipping organisation.

“We see ourselves as stakeholders in

shipping, so we are unlike other lube

suppliers that are mainly part of oil

companies,” she said.

Caroline Huot has established Unimarine’s reputation as an independent supplier

SeaTech Solutions managing director Govinder Singh Chopra


personalities

D avid Loke, group managing director

at turbocharger specialist Tru-Marine,

is a Singaporean who has lived in

Singapore since before independence. Over many

years he has built up Tru-Marine as a formidable,

market-leading company in Singapore. He has

been in his current position with the group

since 1992 and is responsible for Tru-Marine’s

leading position providing turbocharger repairs

and servicing for most of the leading original

equipment manufacturers (OEMs).

His career in the maritime industry started

after leaving school when he served in the

Singapore Navy. He then joined manufacturing

company Watt & Akkermans in precision product

manufacturing. He started Tru-Marine in 1977,

initially as a general shiprepair company. Wanting

to specialise in order to be more competitive, he

changed the focus of the business in 1985 to

concentrate on turbocharger repair and servicing,

which proved to be a far-sighted decision.

Mr Loke’s more than 40 years of technical

knowledge and business experience has served

to push Tru-Marine to the leading position

it now occupies, not just in Singapore but

internationally. He obtained a Master of Business

Administration (MBA) degree at the age of 49,

demonstrating his continued commitment to

business learning and development.

Mr Loke told Singapore Solutions: “From the

perspective of a home-grown enterprise, we have

seen the raising of national delivery standards

for Singapore to become the leading global

hub port it is today. This has been enabled

by well thought infrastructure and government

assistance programmes in supplier development.

The industry has been transformed from a

low cost to a value provider and the push for

internationalisation of local businesses like Tru-

Marine to become world-class players.”

“Tru-Marine is a home-grown company that

specialises in the maintenance, repair, overhaul

and supply of turbochargers in marine, offshore,

power plant and locomotive applications. A global

market leader for over 37 years, we have built

a strong reputation for our extensive technical

expertise, offering full turbocharger service

coverage from scheduled overhauls to in-situ

emergency repairs, representing the majority of

turbocharger makers as their authorised and

co-operative repair shop.”

From its origins as a local Singapore company,

Tru-Marine has expanded into an international

player. It now has seven overseas service centres, in

addition to its main base in Singapore. It has a total

workforce of about 200, making it the largest after-

market turbocharger servicing and repair company.

In recognition of his achievements Mr Loke

has received numerous business awards. Mr Loke

was named Marine Engineering Entrepreneur of

the Year 2007 Singapore by Ernst & Young, and

Entrepreneur of the Year 2008 by the Association

of Small and Medium Enterprises in Singapore.

Other awards endorsing the company’s

continual improvement include the Singapore

Quality Class Awards in 2002 and 2005 and

Enterprise 50 Awards in 2002, 2005, 2006, 2008

and 2009. Also in 2009 Mr Loke led the company

to be recognised by the Singapore Quality Award

(SQA), which is conferred on organisations that

demonstrate the highest standards of business

excellence. Mr Loke commented: “Tru-Marine

is well known for our enduring culture of

continuous improvement, which we embrace as

one of our fundamental strengths.”

With the SQA, Tru-Marine is the first

privately owned, small to medium-sized

enterprise (SME) as well as the first in the

shipbuilding and repair sector, to be on par with

other world-class organisations.

“The company leads in technological

innovation by creating intellectual capital in

turbocharger reconditioning. Since they were

started in 1991, our research and development

efforts have been maintained both in house

and through collaboration with various research

agencies and industry partners,” Mr Loke said.

“We like to think of ourselves as the global

marine SME. Developing capabilities through

innovative technology is one of Tru-Marine’s pillars

of growth as well as a key enabler for a SME like us

to move up the value chain and play our role within

Singapore’s proposed complete maritime cluster.

“The company has built an enduring

corporate culture of continuous innovation that

encompasses business as well as product and

service innovation. This has allowed us to improve

and build new capabilities, in anticipation of the

increasing sophistication in turbocharger design.

Tru-Marine’s research and development efforts

began back in 1991, when it broke new ground

as the first company to develop the tungsten inert

gas repair technique for turbine blades. Since then,

we have been known for reinventing turbocharger

repair techniques to become today’s industry

standards. We will continue to extend our product

and service lines with proprietary technologies.

“Remanufacturing was announced as

Singapore’s strategic progression towards

sustainable technologies in 2012, but we have

been an early adopter since 2009.”

Such is Tru-Marine’s success that it has been

recognised at the highest level in Singapore.

Tru-Marine was cited as a success story by

Singapore prime minister Lee Hsien Loong during

his address at the Singapore Manufacturing

Federation 80th Anniversary Dinner.

In 2012, remanufacturing work at Tru-

Marine was showcased to representatives from

several Asia-Pacific Economic Cooperation

(APEC) member economies. A hosted tour of

Tru-Marine’s Singapore workshop was part of a

meeting of APEC’s market access group where

industry and government experts from all 21

APEC economies were given an insight on how

remanufactured goods are returned from end-of-

life products to same-as-new specifications. SS

Turbocharger service specialist Tru-Marine has developed from modest origins in Singapore to become a world-leading player in its field

A Singapore-based success story

David Loke started Tru-Marine as a shiprepair company in 1977


T home was started in Singapore in

1963 by Fridtjov Thome, and so pre-

dates Singapore’s independence in

1965. Thome celebrated its 50th anniversary

in Singapore in 2013.

Mr Thome was a Norwegian who worked

in Mumbai and Hong Kong. He came to

Singapore in the 1950s to set up an office

for Wallem. He set up Thome & Co in

1963 performing agency work mainly

for Scandinavian owners, in addition to

chartering and shipbroking activities.

Olav Eek Thorstensen is the main

driving force behind Thome’s development

into a leading international shipping

services group and, in particular,r as a

shipmanagement company operating from

its Singapore headquarters.

“I have been in Singapore since 1971.

At that time it was already an important

port and regional operations centre,” he

told Singapore Solutions. Originally from

Norway, Mr Thorstensen met Mr Thome

while working for a Norwegian shipping

consultancy, Roed & Partners, which had an

office in Singapore.

In the mid 1970s Thome was looking for

new opportunities in the maritime sector.

Shipowner Karlander Shipping was building

two vessels for the Indonesian state oil

company Pertamina, and Mr Thorstensen was

the project manager, while Thome was acting

as general agent for Karlander in Singapore.

“In 1974 a Norwegian owner got a

contract to build two ships for Pertamina

in Indonesia and I was here to supervise

the building and delivery. Mr Thome then

invited me to move here permanently

and proposed that Thome should provide

technical services for Norwegian and other

north European shipping companies. The

term shipmanagement was not in common

usage at that time, but was only widely

adopted later in the 1980s.

“Thome Ship Management started in 1977

to reflect the fact that European shipping

operations had started to get expensive and

companies were looking for ways to reduce

costs. We got 15-20 vessels from owners in

Europe, which were put under the Singapore

flag with Singapore crews.

Mr Thorstensen became a partner in 1981

and took over as managing director of the

new company in 1985.

“When the Norwegian international

register started in the mid-1980s some

Norwegian owners started to take ships

back, so we started a manning office in

the Philippines to provide crewing services.

Singapore crews were also starting to get

more expensive. We also started to get

business from Japanese owners. Also in

the 1980s we started business relationships

with shipping companies in Indonesia and

other Norwegian companies that had ships

chartered to Pertamina.

Mr Thome retired in 1994 and sold his

shares in the Thome Group to Samundra

Petrindo, at that time called Osprey Maritime.

Mr Thorstensen said: “Mr Thome retired

and moved back to Norway and I was then

managing director with a 49 per cent stake

in the company. Mr Thome’s 50 per cent

stake was bought by Osprey Maritime and I

increased my stake to 50 per cent. In 1999

I took over full ownership of the company.”

“In the 1990s political problems in

Indonesia made doing business there more

difficult. Our shipmanagement had been

growing steadily since 1977 but the problems

in Indonesia were a setback, but we managed

to gain new business to replace it and we

have continued growing, especially in the

last five or six years.”

Thome now has about 230 ships under

management. “We are the biggest third party

shipmanager in Singapore in terms of size of

managed fleet.”

Mr Thorstensen is stepping back from

day to day involvement in the company. His

son is now Thome Group president but Mr

Thorstensen senior will remain active as

Thome Group chairman

“Thome has been instrumental in

development of the Singapore shipping

hub as a leading member of the Singapore

Shipping Association and the National

Maritime Board, which helped create the

Maritime and Port Authority of Singapore in

the 1990s, so I have been part of the growth

of Singapore as a leading maritime hub and I

have also been part of Singapore’s delegation

to IMO.

“Singapore as a whole has made enormous

progress since I first came here in 1971. At

that time the tallest building was only four

or five storeys tall. The whole city has been

transformed in the last 50 years.

“Thome is committed to staying in

Singapore and keeping its management

here. But future growth will not only be

in Singapore but also in countries such as

the Philippines, Indonesia, and Croatia. The

offshore sector will be a major focus for

growth.” SS

Putting Thome on the mapOlav Eek Thorstensen is the driving force behind Thome becoming the leading shipmanagement group in Singapore

Olav Eek Thorstensen established Thome as a leading international shipmanager

“Singapore has made enormous progress since I

first came here in 1971”


T welve years into its inception, Ezra

Holdings has evolved into a global

oilfield services group, operating a

total of 65 vessels and three yards across

five continents.

Its staff strength has also increased

exponentially from just three full-timers

in what was initially a subcontracting

shipyard to 8,000 employees in four

business divisions, subsea services, offshore

support and production, marine services

and well services.

What started from the basement of the

home of its founder Lee Kian Soo is now a

conglomerate with four listed entities on the

Oslo and Singapore stock exchanges. Mr Lee

handed over the reins at Ezra Holdings to his

son, Lionel, in 2001.

While Mr Lee senior established the

foundations of Ezra’s offshore support vessel

business, it is under his son’s leadership that

the Singapore-headquartered conglomerate

commenced its transformation into a

diversified oilfield services company.

From 2005 through to 2010, Ezra acquired

three yards, two in Vietnam and one in

Houston, US. In 2012, the yard operating

unit, Triyards, was listed on the Singapore

stock exchange

Managing director of Ezra Holdings,

Lionel Lee had set his sights on extending

Ezra’s operational footprint from shallow

to deepwater back in 1999, long before he

took on the role of managing director. He

embarked on an aggressive fleet building

plan to boost the deepwater operational

capacity of Emas group’s oilfield services.

EOC, which was renamed and listed as

Emas Offshore, owns and operates at least 12

anchor handling tug supply (AHTS) vessels

with bollard pull of at least 120 tonnes and

five platform supply vessels (PSVs) exceeding

3,500 dwt.

Mr Lee recognised that the only way to

build the required credibility to compete

for deepwater contracts would be through

acquiring a business with an established track

record. In 2011, therefore, Ezra announced

an acquisition bid for Norway’s Aker Marine

Contractors (AMC), to form the group’s

subsea construction and installation services

division. Mr Lee employed CJ D’Cort to head

up the new subsidiary, Emas AMC.

The acquisition of AMC coincided with

the start of the construction of Emas

AMC’s flagship multi-lay deepwater vessel,

Lewek Constellation. While this vessel was

being constructed at Triyards’ facility in

Vietnam, Emas AMC acquired two offshore

construction vessels, Lewek Express and Lewek

Centurion, from Helix Energy. As well as these

two vessels, Emas AMC operates a shallow

water pipelay vessel, Lewek Champion, owned

by Emas Offshore.

In total, Emas AMC has 12 vessels on its

operating fleet, accounting for 70 per cent

of Ezra Holdings’ reported US$1.5 billion

revenue for the 2014 financial year.

Mr Lee remains confident about the long-

term prospects for deepwater oilfield services,

despite the fall in oil prices. In October last

year, oil was trading at under US$80 a barrel

but plunged further to under US$50 a barrel

at the start of 2015, before recovering to

US$60 a barrel by mid February.

Speaking at the Ezra Holdings results

briefing in October, Mr Lee said: “Ezra is

prepared for a sub-US$80 oil price.” He

believes a rebound will take place in 2015, but

even at US$50, deepwater projects are still

viable in the US Gulf of Mexico. According

to his estimate, at the time of the briefing

deepwater contracts made up 70–80 per cent

of Ezra’s bids.

Mr Lee also said that Emas AMC and Emas

Offshore have good levels of employment for

2015. Fleet utilisation is around 80 per cent

for Emas AMC and between 85 per cent

and 90 per cent for Emas Offshore. “A lot of

projects for which we are bidding now are in

2016 and 2017,” he said.

The value of Ezra’s orders has doubled

over the last three years to US$2.4 billion as

of October 2014, driven in large part by its

subsea business. The growth of this subsea

revenue came on the back of Emas AMC’s

first pair of contracts, with Vaalco Energy

off Gabon, and with Noble Energy in the US

Gulf of Mexico. Emas AMC has secured three

contracts in a row from Noble Energy in the

Gulf of Mexico. These will make up 60 per

cent of its revenue in the financial year 2015,

Mr Lee said at the briefing.

The Singapore-based conglomerate forecasts

that about 50 per cent of its offshore capital

expenditure from 2015 through to 2019 will be

in water depths of more than 500m.

Ezra is particularly positive about the

prospects for subsea business. In February,

Emas AMC unveiled a new contract award

valued at US$105 million from Apache

Energy for subsea construction work to be

carried out by Lewek Constellation during the

first quarter of 2016 in the Julimar field

development off Australia.

Ezra remains positive about the long-term

prospects of deepwater.

Group chief financial officer, Eugene

Cheng said: “As onshore and shallow water

fields continue to deplete, and with no other

viable alternative energy source, it will be

a natural progression for the industry to go

into deeper waters. Ezra’s tendering activity

in the subsea construction space remains

healthy.” SS

Ezra has become one of the world’s leading oilfield services groups as it has expanded its activities

by Hui Hui Chen

Ezra goes globaloffshore

Managing director Lionel Lee has headed Ezra’s drive into deeper waters

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Budget gives shipping a boost

T he Singapore Government’s management

of its economy continues to be focused

on attracting investment and business to

the city state. The budget in February maintained

that position and it included specific tax incentives

for shipping as part of the Government’s policy to

support its status as a leading maritime hub.

The 2015 budget speech given by finance

minister Tharman Shanmugaratnam confirmed

that the Maritime Sector Incentive (MSI)

scheme will be extended with the specific aim

of strengthening the competitiveness of the

maritime sector. He added that the definition

of shipmanagement activities qualifying for

tax exemption under the MSI will be updated

(see below). Further details are expected to be

published by the Maritime and Port Authority of

Singapore (MPA) by May 2015.

Singapore’s economy is suffering similar

pressures to many other developed economies.

The lower oil price, along with falling transport

and housing costs, resulted in prices moving into

negative territory at the end of 2014 and early

2015, for the first time in five years. For the full

year 2014 Singapore’s consumer price inflation

was a modest 1 per cent, down from 2.4 per cent

in 2013. Housing and accommodation prices were

falling at the end of 2014 and that trend was

expected to continue in the early months of 2015.

Property prices fell in Singapore in 2014 by

about 4 per cent and are expected to fall by a

similar amount in 2015, which will slightly ease

the burden on employees.

The Monetary Authority of Singapore (MAS)

expects inflation to remain low at 0.5 per cent

to 1.5 per cent through 2015 subject to what

happens to oil prices. However, it is considered

unlikely that Singapore will fall into a worrying

deflationary cycle because of its continuing tight

labour market and associated wage increases,

leading to higher prices for food and for services.

Inflation of services costs, such as telecoms,

remained positive at 1.4 per cent.

Despite global economic uncertainty

Singapore’s exports remained relatively strong

in 2014, increasing by 2.3 per cent, excluding oil

product exports.

Although there is still pressure in the

labour market, partly due to tightened rules

on employing foreign labour, the growth in

salaries in Singapore is expected to slow in

2015, according to a survey of employers there.

About one-fifth of companies said that salary

levels would remain unchanged in the first

half of 2015, with the rest indicating increases

of up to 3 per cent, though 8 per cent said that

wages would rise by more than 5 per cent. The

survey of 500 companies revealed that about

half of them will freeze recruitment in the

first half of 2015, with 45 per cent planning

to recruit new staff. Shipping and logistics, oil

and gas were among the sectors expecting to

hire additional staff, though the survey was

carried out just before the big fall in oil prices

at the end of 2014.

Singapore continues to rate strongly among

global economies. In the 2014 annual survey by

the World Economic Forum Singapore retained

its ranking as the second most competitive

economy in the world, behind only Switzerland.

The Forum said that Singapore scored especially

strongly in labour market efficiency and

financial market development. It said: “The city

state boasts one of the world’s best institutional

frameworks. Singapore possesses world-class

infrastructure, with excellent roads, ports and

air transport facilities.”

As if that were not sufficient, another

study last year, by the Association of

Chartered Certified Accountants and KPMG,

reported that Singapore has the cleanest and

most comprehensive corporate governance

The 2015 budget reaffirmed the Singapore Government’s commitment to attracting investment into shipping

economy

The Singapore Government’s latest budget is designed to promote shipping business


requirements for companies in the Asia Pacific

region. Overall, Singapore ranked third behind

the UK and the US.

Further, a study by PricewaterhouseCoopers

on behalf of the World Bank, rated Singapore

as the fifth easiest place in the world to

file tax returns, covering both personal and

corporate taxation. It estimated that the

total tax rate for companies in Singapore,

taking into account all taxes, is about 18.4

per cent, compared with a global average of

40.9 per cent of commercial profits. Ahead

of Singapore were Qatar, the United Arab

Emirates, Saudi Arabia and Hong Kong.

According to figures from MAS, Singapore

achieved GDP growth in 2013 of 3.9 per cent

but this slowed from the second quarter

of 2014 and full year figure for 2014 was

expected to be about 3 per cent. It forecast

a similar range, of between 2 and 4 per cent

in 2015. It said: “Gradual improvements in

the global economy should provide support

to Singapore’s external-oriented industries,

particularly in segments that are more

closely tied to US final demand, such as

modern services. Investments from the US

into Singapore’s modern services sectors

have grown at an average pace of 22 per cent

over 2011–2013.

Other services industries with sizeable

exposure to emerging markets in Asia, such

as tourism and general insurance, would also

be supported by steady growth in the Asean

economies.” However, it warned: “A more

muted outlook for China and Europe could cap

prospects for global commodities, which in turn

could weigh on merchant trade and transport

and storage activities.”

The latest measures introduced by the

Singapore Government clearly reaffirm its

commitment to attracting more maritime

business, not just through measures directly

affecting shipping, but also in making the overall

business climate as user friendly as possible.

Summary of the 2015 budget measures affecting shippingExtending and enhancing the Maritime

Sector Incentive (MSI):

Under the MSI, ship operators, maritime lessors

and providers of certain shipping-related support

services can enjoy tax benefits. To further

develop Singapore as an international maritime

centre, the MSI will be enhanced.

The main changes are:

For ship operators 1) MSI-Shipping Enterprise (Singapore

Registry of Ship) (MSI-SRS). Tax exemption

on qualifying income derived mainly from

operating Singapore-flagged ships.

New: The automatic withholding tax

exemption regime will now cover finance

leases, hire-purchase arrangements, and

loans used to finance equity injection into

wholly owned special purpose vehicles

(SPVs) or intercompany loans to wholly

owned SPVs for the SPV’s purchase or

construction of vessels, containers and

intermodal equipment

2) MSI-Approved International Shipping

Enterprise (MSI-AIS). Tax exemption on

qualifying income derived from operating

foreign-flagged ships.

New: The definition of qualifying

shipmanagement activities for the

purpose of the MSI-Shipping Enterprise

(Singapore Registry of Ships) (MSI-SRS),

MSI-Approved International Shipping

Enterprise (MSI-AIS) award and MSI-

Shipping-related Support Services (MSI-

SSS) award will be updated to keep pace

with industry changes

For maritime lessors3) MSI-Maritime Leasing (Ship) (MSI-ML

Ship) tax exemption on qualifying income

derived from leasing ships, and 10 per cent

concessionary tax rate on qualifying income

derived from managing an approved shipping

investment enterprise.

New: The MSI-SRS and MSI-AIS award will

now cover mobilisation fees, demobilisation

fees, holding fees and incidental container

rental income that are derived in the course

of qualifying shipping operations.

4) MSI-ML (Container). Ten per cent

or 5 per cent concessionary tax rate on

qualifying income derived from leasing of

qualifying sea containers and intermodal

equipment that is incidental to the leasing

of qualifying sea containers, and 10 per

cent concessionary tax rate on qualifying

income derived from managing an approved

container investment enterprise.

New: Qualifying profits remitted from

approved foreign branches by MSI-AIS

entities will now enjoy exemption.

For providers of certain shipping related support services5) MSI-Shipping-related support services (MSI-

SSS). Ten per cent concessionary tax rate

on incremental qualifying income derived

from carrying out approved shipping-related

support services.

New: Existing MSI-SSS award recipients can

renew their award tenure for another five

years, subject to qualifying conditions and

higher economic commitments

6) The MSI-Maritime Leasing (MSI-ML) award

will now cover income derived from finance

leases treated as sale.

7) The enhancements to the MSI took effect for

existing and new award recipients from 24

February 2015.

8) The approval window to award MSI-AIS for

qualifying entry players, MSI-ML (Ship),

MSI-ML (Container) and MSI-SSS will be

extended until 31 May 2021. In addition, the

automatic withholding tax exemption regime

will be extended to qualifying payments

made on qualifying loans taken on or before

31 May 2021. SS

The Monetary Authority of Singapore expects GDP growth in 2015 between 2 and 4 per cent


MPA

T he Maritime and Port Authority of

Singapore (MPA) was created in 1996

following the passing of a Bill in

Parliament. This said that the MPA would take

over the functions of the Marine Department in

the Ministry of Communications, the National

Maritime Board and the regulatory departments

of the Port of Singapore Authority (PSA). The

MPA would regulate the newly corporatised

PSA. This move was seen as vital for Singapore

to maintain its position as a hub port and major

international maritime centre.

MPA’s functions include promoting the use

and development of the port, controlling vessel

movements and ensuring navigational safety,

and regulating marine services and facilities. As

such MPA acts as the key driving force behind

Singapore’s port and maritime development.

An important part of this role is to act in

partnership with industry to ensure the port and

maritime activities operate safely and effectively,

to expand the cluster of maritime services, and

to promote maritime research and development

to be at the forefront of innovation.

In January Singapore’s minister for

transport Lui Tuck Yew outlined these strengths

as he reviewed developments in 2014. He said:

“As one of the world’s leading international

maritime centres (IMCs) Singapore continues

to attract a broad range of maritime enterprises.

Last year, we welcomed new shipping

companies and maritime service providers to

Singapore, including shipowner operator Bumi

Armada and International Group Protection &

Indemnity (P&I) Club, Gard. With Gard’s new

branch office, we now have a total of seven

P&I clubs operating in Singapore. At the same

time, a number of maritime enterprises have

expanded their operations here. These include

ship operators Berge Bulk and Milestone

Chemical Tankers, and Italian shipbroking

company Bancosta (Oriente).

“Looking ahead, there is room for cautious

optimism in 2015. Lower oil prices will provide

some cost relief to shipowners and operators.

Economic growth is expected to pick up, and

Asia and Australasia will remain the world’s

fastest growing region.”

The transport minister said that the

Government remains committed to growing a

vibrant maritime Singapore as a key driver of

Singapore’s economy. “To sustain our position

as a global hub port and a leading IMC, we have

to stay ahead of competitors. This is why we

invest significantly in port infrastructure so that

we can consistently provide good connectivity

and service levels. MPA will continue to work

with stakeholders to test-bed new technologies

for our state-of-the-art hub port terminal.”

“As Singapore celebrates its 50th birthday

this year, we can take pride in the progress

we have made since our beginnings as an

entrepôt. The success of maritime Singapore

would not have been possible without this

close partnership between the Government,

industry and the unions. We must build on this

partnership to enable maritime Singapore to

scale greater heights,” Mr Lui concluded.

An annual business survey in Singapore

voted MPA the most business-friendly

government agency in 2014. This was the

third consecutive year that MPA has won

this accolade. The survey was conducted by

the Singapore Pro-Enterprise Panel and asked

business customers of government agencies

how well the agencies have performed in

delivering their regulatory functions. Over 4,000

responses assessed customer responsiveness,

transparency, reviews of rules, pro-enterprise

orientation and the cost of compliance.

One of the key roles of MPA is regulating the

sprawling bunkering sector by implementing

standards for traders and physical suppliers.

Late last year MPA introduced new

incentives to ease the transition to a mass

flow metering (MFM) system and encourage

the uptake of LNG fuel. The MFM system will

be made mandatory for bunkering of marine

fuel from 1 January 2017 as MPA moves

to raise the transparency and efficiency of

bunkering operations at the Singapore port.

To establish safety and operation protocols

for LNG bunkering, MPA is enrolling industry

support for a pilot programme to start by early

2017 (see page 75).

A test for MPA came with the bankruptcy in

November 2014 of OW Bunker. MPA acted in

concert with the Singapore Shipping Association

to ensure that there was no disruption to bunker

supplies in the port following the forced cessation

of the operations of a leading bunker supplier

and the arrest of several vessels. Industry

dialogue was quickly established with about 50

companies involved in bunkering to minimise

any impact. They were urged to carefully inspect

their contractual obligations, and to work closely

with their stakeholders to avoid or minimise

disruption in their operations.

“This has been a useful session for the

shipping and bunkering community to come

together to understand the current situation

and to discuss practical steps forward. MPA will

continue to work closely with SSA to manage the

situation. We will also work with our licensed

bunker suppliers to minimise any disruption

to bunkering operations in Singapore,” said

Andrew Tan, chief executive of MPA.

Another vital role of MPA is to ensure the

The Government body charged with promoting Singapore’s maritime industry has embarked on a drive for sustainable development

MPA on a mission

MPA is the regulator for maritime activities in Singapore (credit: PSA)


safety of navigation in Singapore waters. This

is no easy task given the volume and intensity

of shipping that calls into Singapore’s many

terminals and anchorages and transits the

Singapore Strait.

Part of this role involves maintaining the

most up-to-date navigation and information

services for vessels. Last year MPA awarded

a contract to develop and implement an

integrated hydrographic management system

(IHMS) to US-based company Jeppesen. The

contract is for two years, with an optional

three-year extension.

The IHMS will incorporate bathymetric

data handling, management and storage,

and integration with Jeppesen’s dKart source

management system and dKart Office tools

for electronic navigation chart (ENC) and

paper chart production and maintenance.

The system will provide MPA with a range

of functionalities which include covering the

production cycle of both ENCs and paper charts,

involving the compilation, quality control and

validation of ENCs. MPA can use the system

for the handling, management and storage of

existing and new bathymetric data.

In November 2014 MPA launched the

Maritime Safety Forum as part of the inaugural

Safety@Sea Week to share and promote safety

practices for the maritime community based

in Singapore.

The main topics discussed included

navigation and shipboard safety, passenger

ferry and cruise safety, and accidents and

follow-up actions that will address priority

concerns for different types of vessels.

As part of its drive to create a sustainable

maritime industry in Singapore MPA signed

a memorandum of understanding (MoU)

with the Singapore Management University

(SMU) to promote research and innovation

for a clean and green next generation port.

The MoU outlines areas for collaboration on

research and development between MPA and

SMU. Topics include clean energy and a clean

environment, energy management, simulation

and data analytics for maritime applications.

Mr Tan said: “Singapore is committed to

promoting a maritime industry that is not

only competitive but also efficient, responsible

and sustainable.” He said that by the end of

October 2014, 90 companies had signed the

Maritime Singapore Green Pledge, and close to

200 Singapore-flagged ships were recognised as

green ships under the Green Ship Programme

to encourage maritime companies to develop

and adopt green technologies.

Companies signing the Green Pledge

employ an array of solutions, ranging from

environmental management technology

to green design initiatives for vessels and

infrastructure. About 3,000 vessel calls

have enjoyed port dues concessions under

the Green Port Programme and S$17 million

of co-funding has been approved under the

Green Technology Programme.

Mr Tan said: “MPA recognises that some

maritime companies are ready to go beyond

the minimum mandated requirements of

IMO. The Maritime Singapore Green Initiative

was conceptualised in 2011 to encourage

first movers to adopt higher standards of

environmental sustainability.

“MPA believes in providing the right

conditions for maritime businesses in

Singapore to thrive. The MPA Sustainability

Office was established in April 2014 to promote

a culture of good practices in governance,

resource management and environment

sustainability within MPA as well as the

wider maritime industry in Singapore. This

new office seeks to better co-ordinate and

drive MPA’s overall sustainability efforts with

the industry.”

Another key role of MPA is to promote

the Singapore Registry of Ships. Singapore’s

registry ranks as the fifth largest in the

world. “As we grow the tonnage of the

Singapore flag, MPA is also actively engaging

the industry to bring about greater awareness

of sustainability trends and best practices,”

Mr Tan said (see page 26).

“In our drive to promote environmental

sustainability, we were the first ship registry

to provide incentives under the Maritime

Singapore Green Initiative to encourage the

industry to adopt clean and green technologies

and practices. Some examples of green

technologies for ships include hybrid diesel-

electric engines, new scrubber systems,

emulsified fuel systems and drag reduction

solutions. For port operators, these include

electric rubber-tyred gantry cranes and variable

speed drive.

“We are developing our maritime cluster by

attracting maritime companies to Singapore.

Compared to about 30 groups 10 years ago,

we now have over 130 international shipping

groups covering the container, tanker, bulk

shipping and offshore energy sectors. Today,

there are also over 30 law firms with maritime

practices, 20 Lloyd’s insurance syndicates, more

than 25 banks with shipping portfolios and over

30 key shipbroking companies in Singapore.

“Singapore’s maritime industry is rich

in heritage and is a dynamic industry that

offers good career prospects. For all of us

to stay relevant in this changing world, we

must all adapt as the world changes. That’s

basically how Singapore has survived since

independence.” SS

MPA BoardThe MPA Board comprises representatives

from across the maritime industry in

Singapore. In February the members of

the board for the next three years until

February 2018 were confirmed by the

minister for transport.

The chairman is Lucien Wong, who

has been MPA board chairman since

2009. He is chairman and senior partner

of law firm Allen & Gledhill. Andrew Tan

remains as chief executive. Commercial

shipping industry representation

includes the newly appointed Carl

Arnet, chief executive of BW Offshore,

Kam Soon Huat. Another new member,

who is general secretary and chief

operating officer of the Singapore

Organisation of Seamen; Singapore

Shipping Association president Patrick

Phoon; and Wong Weng Sun, president

and chief executive of shipbuilder

Sembcorp Marine. Other board

members include representatives from

the Singapore Navy, the prime minister’s

office and various businesses linked to

the maritime and port sector.

The MPA board is responsible for

providing strategic direction to help

develop and promote Singapore

as a premier global hub port and an

international maritime centre.

Patrick Phoon, Singapore Shipping Association president, is a member of the MPA board


ship register

Flying the flag

One of the first acts of the newly

independent Singapore Government

was to set up its own ship register

in 1966. At first it was limited to locally owned

vessels. But in 1968 its ambitions widened

and foreign-owned ships were offered tax-

free registration. This effectively established

Singapore as Asia’s first open register.

Since those early beginnings the Singapore

Registry of Ships has gone from strength to

strength. According to figures from the Maritime

and Port Authority of Singapore (MPA), which

administers the register, in 2014 the total

tonnage of shipping on its register increased by

an impressive 11.7 per cent from 2013 to reach

82.2 million gt, confirming its position among

the leading global ship registries.

The Singapore Registry of Ships maintained

its growth momentum last year. Compared to

2013, the total tonnage of ships under MPA’s

register grew by 11.7 per cent or 8.6 million gt.

In 2014, the total tonnage of ships under the

Singapore flag climbed to 82.2 million gt, from

73.6 million gt in 2013, consolidating Singapore’s

position as one of the top 10 ship registries in

the world. It also strives to maintain high safety

standards for ships on its register, something

that is recognised by port state control inspection

statistics, including the US Coast Guard.

Speaking at the Singapore Registry of Ships

Forum in November 2014, MPA chief executive

Andrew Tan commented: “The Singapore Flag

is now the fifth largest ship registry in the world

with one of the youngest fleets. I am happy to

share the fact that our commitment to safety

and quality has once again been recognised by

the US Coast Guard through the qualification

of the Quality Shipping for the 21st Century

(QUALSHIP 21) programme. Let us continue

the excellent work to maintain and operate

Singapore-flagged ships at the highest standards.

“As we grow the tonnage of the Singapore

flag, MPA is also actively engaging the

industry to bring about greater awareness on

sustainability trends and best practices. We

were the first ship registry to provide incentives

under the Maritime Singapore Green Initiative

to encourage the industry to adopt clean and

green technologies and practices. We currently

have close to 200 Singapore ships that have

qualified for the Green Ship Programme.”

Statistics from BRL Shipping Consultants

show the breakdown of the commercially

trading fleet that is registered in Singapore. The

statistics shown in the tables do not include

small locally trading vessels, fishing vessels or

service vessels such as tugs.

They show that at the end of February

2015, of the 2,460 commercial vessels under the

Singapore flag, about two thirds were tankers,

container ships or bulk carriers, which also

accounted for well about three quarters of the

aggregate deadweight capacity. Offshore support

vessels also have a strong presence in terms of

vessel numbers, with a total of 496 of varying

types (see graph).

There are a significant number of foreign

owners that use the Singapore registry.

Interestingly, the leading owner of Singapore-

registered ships, by some distance, is the

Singapore container and multipurpose vessel

operator Pacific International Lines (PIL) with

114 vessels. However, it is surpassed in terms of

deadweight tonnage by several tanker and dry

bulk operators, including Ocean Tankers, and

Brazilian bulker owner Vale.

Fellow Singaporean container operator

Neptune Orient Lines has fewer ships than

PIL but its larger vessels give its fleet a higher

total capacity.

Looking at the owners based in Singapore

operating commercially trading vessels, some of

the same names appear, but it is interesting to

see that there are still a significant number of

ships operated by Singapore companies that are

The Singapore Government’s strategy to grow its ship registry is continuing to show results


using other ship registries for various reasons.

The orderbook for owners based in Singapore

shows a different pattern and indicates the

growing importance of the offshore support

sector as part of the Singapore maritime industry.

This is further demonstrated by the listing of

owners in Singapore with vessels on order, where

offshore operators have a strong showing. SS

SINGAPORE REGISTRY OF SHIPS 2010-2014

YearGross tonnage

(million)2010 48.8

2011 57.4

2012 65.0

2013 73.6

2014 82.2

Source: MPA

FLAG REGISTRY SINGAPORE

Leading owners no dwt

Pacific Int. Lines 114 4,088,125

Ocean Tankers 85 7,800,784

Møller, AP 84 6,200,279

Swire Pacific Offshore 76 200,724

Wan Hai Lines 59 2,014,036

Neptune Orient Lines (APL) 45 4,688,716

Hong Lam Marine Pte Ltd 41 304,872

Pacific Carriers 34 1,520,959

NYK Line 31 2,668,659

Pacific Richfield Marine 30 54,823

AET Inc 29 4,128,509

Epic Shipping Pte Ltd 27 438,160

BW Group 26 1,904,643

Vale, Brazil 25 8,184,426

Eastern Pacific Shipping Pte 23 2,191,425

Norden 23 1,320,290

Regional Container 23 357,275

Schulte, Bernhard 22 749,402

U-Ming Marine Trans. 22 3,048,989

Emas Offshore 21 165,327

Kawasaki Kisen 21 1,505,759

TOP TANKER

Flag Registry Singapore no dwt



Maersk Tankers Denmark 32 2,373,044

AET Inc 29 4,128,509

BW Group 23 1,642,377


Odfjell ASA 14 410,284

Titan Ocean Pte 14 353,874

Berlian Laju Tanker 13 219,134

Stellar Shipmanagement 13 58,546

Offshore (all types) Bulk carrier ContainerTanker Gas (LPG + LNG) Others

SINGAPORE REGISTERED FLEET BY TYPE (NO OF SHIPS)

Offshore (all types) Bulk carrier ContainerTanker Dry cargo LPG Others

SHIPS OWNED BY SINGAPORE-BASED COMPANIES (NO. OF SHIPS)

Source: BRL

Bulk carriers account for almost 40 per cent of the Singapore flagged fleet by deadweight capacity


ship register

TOP TANKER

Country of domicile Singapore no dwt


AET Inc 52 8,059,994


Raffles Shpgmgmt Svces 37 882,073


BW Maritime Pte Ltd 28 4,108,912

MTM Ship Mgmt 26 549,451

World Tankers Mgmt 19 980,105

Nissho Odyssey Ship Mgmt 17 305,973

Titan Ocean Pte 17 633,121

NO OF VESSELS ON ORDER FOR SINGAPORE-BASED OWNERS

200

180

160

140

120

100

80

60

40

20

0Offshore (all types) Tankers Bulk carriers OthersGas carriers

(LNG + LPG)Source: BRL

TOP OFFSHORE OWNERS



Miclyn Express Offshore Pte Ltd 64 20,483



Swissco Offshore Pte Ltd 33 18,155

POSH 33 91,536

Jaya Holdings Ltd 29 65,961

Newcruz Offshore Marine Pte 23 28,078

RK Offshore Mgmt 21 41,230

Britoil Offshore 19 16,209

TOP OFFSHORE

Flag registry Singapore no dwt



Bourbon Offshore SURF 19 35,078

Britoil Offshore 19 16,209



POSH 17 45,997

Pacific Radiance Ltd 14 35,254

Jaya Holdings Ltd 12 30,920

Vroon BV 12 16,800

TOP BULK CARRIER


CPacific Carriers 27 1,677,996

United Ocean Ship 27 1,732,736

Da Sin Shpg Pte 20 1,117,603

Cara Shipping 12 1,846,749

COSCO Singapore 12 643,504

Nova Shpg & Logistics 12 1,387,306

Belden Shipping Pte Ltd 11 133,693


BW Group 8 2,564,674

China Navigation Co 8 312,210

TOP BULK CARRIER

Flag Registry Singapore no dwt

Vale 25 8,184,426

U-Ming Marine Trans 22 3,048,989

Thoresen & Co 19 955,974

Norden 18 1,074,320

Westfal-Larsen 18 798,989

Da Sin Shpg Pte 16 890,383


Kawasaki Kisen 14 1,055,522

United Ocean Ship 14 925,965

Kumiai Senpaku 12 1,678,488

TOP CONTAINERSHIP

Flag registry Singapore no teu

Pacific Int Lines 96 238,739

Wan Hai Line 59 153,881

Møller AP 50 248,904

Neptune Orient Lines (APL) 45 401,787

Regional Container 22 25,930

Lemos NS 12 149,200

Schulte, Bernhard 11 47,363

NYK Line 11 33,220

Rickmers, Bertram 10 25,504

SeaChange Maritime 9 14,825

TRADING FLEET COUNTRY OF DOMICILE SINGAPORE


Pacific Int Lines 126 4,405,633




Miclyn Express Offshore Pte Ltd

64 20,483

AET Inc. 58 8,066,023



Neptune Orient Lines (APL) 50 4,952,806

Raffles Shpgmgmt. Svces. 47 1,516,658





United Ocean Ship 34 1,794,855

BW Group 54 8,209,551

NYK Shipmgmt Pte Ltd 29 1,660,340

POSH 29 81,434

MTM Ship Mgmt 27 614,363

Newcruz Offshore Marine Pte

23 28,078

NEWBUILD ORDERBOOK COUNTRY OF DOMICILE SINGAPORE


Navig8 74 8,529,310

China Navigation 25 921,000

Cara Shipping 18 2,834,000

Otto Marine Ltd 20 79,000


BW Group 33 1,926,195


Sentinel Marine 14 48,100

AMK Securities 10 2,060,000


Pacific Int Lines 9 567,800

Basic Offshore Pte 8 33,400

Berge Bulk Singapore Pte 8 279,540

IMC Shpg Co Pte Ltd 8 456,000

Symphony Shipping 8 84,000

Pacific Carriers 7 554,900

Executive Offshore 6 28,000

Pacific Radiance Ltd 6 23,600

Quantum Scorpio Box 6 1,170,000


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owners and managers

Singapore-owned NOL Group which

operates the APL brand has sought to

implement a variety of measures to

improve the efficiency of its vessels and its wider

container operations, to cut costs while retaining

service levels demanded by customers.

NOL’s history goes back almost as far as

Singapore’s independence. It was set up by the

Singapore Government in 1968 to establish a

national shipping line for the newly independent

country. It embraced containerisation during the

1970s and entered the Asia-Europe trade in

1972 and became part of the ACE consortium

on that trade.

It went to the Singapore stock exchange in

1981 with an initial public offering to finance

further investment and expansion into a global

container service operator. Arguably the most

significant development since its foundation

came in 1997 when it merged with American

President Lines (APL), putting the combined

group among the world’s leading container

lines. The group adopted the APL branding for

its container shipping operations under the NOL

holding company. It is still majority owned by

the Singapore Government through state-owned

Temasek Holdings, which holds about two-

thirds of NOL’s capital.

NOL’s financial results for 2014 reflects its

efforts towards greater efficiency and also the

overall market conditions.

In 2014 NOL recorded a net loss of US$260

million, a figure that includes its APL-branded

container shipping operations and its logistics

and other activities. Although this compares

with a loss of US$76 million in 2013, the

previous year’s figure included a one-off gain of

US$200 million from the sale of its headquarters

building. This is the third successive year that

NOL’s pre-tax result has been in the red.

However, it improved core earnings before

interest and tax (Ebit) by 54 per cent to

US$76 million. Revenue was slightly down in

2014 compared with 2013 with freight rates

under pressure. The company attributed

its improvement to a “continuous focus on

operational efficiency and rigorous cost

management”, making US$430 million worth

of cost savings in 2014. The container operation

APL on its own recorded a loss in 2014 of

US$143 million.

NOL Group chief executive Ng Yat Chung said:

“In spite of challenging conditions, especially on

the US West Coast, our container shipping arm

reduced its operating losses, delivering a year-

on-year improvement in core Ebitda, reflecting

the progress made in its cost and efficiency

drive. While we are seeing some benefits from

the current trend of lower bunker prices, the

longer-term impact of the drop in fuel price on

container freight rates is uncertain.”

According to the company, of the US$430

million cost savings, 77 per cent was due to

bunker costs and its operating network, and

21 per cent from savings on terminals, land

operations and equipment.

APL reduced its fleet capacity by 12 per

cent in 2014 and adopted a more tighter policy

on cargo selection to improve its financial

performance. This contributed to the drop in

volume and revenue. APL president Kenneth

Glenn said: “Despite the difficulties, APL

performed better year on year due to stringent

cost management and operational efficiency.

We will maintain our focus on reducing

costs, leveraging network efficiencies, and

concentrating on yield management in key

trade routes. In addition, we have 19 chartered

ships scheduled for expiry in 2015. This will

further enhance our cost structure.”

More than half of the fleet now comprises

larger and more efficient newbuilds. At the

end of 2014 it had 29 recently newbuild

vessels contributing 53 per cent of its capacity,

with 67 ships accounting for the remaining

47 per cent. Its largest ships are five 14,000

teu ships built in 2012 and 2013. It also owns

a further five newbuild 14,000 teu ships that

are chartered out to Japanese operator Mitsui

OSK Lines (MOL) for three years and operate

alongside APL.

It has no further newbuilds on order at

present and no immediate plans to order any

more despite some of its competitors having

ordered larger ships. Its capacity retrenchment

has meant that it has slipped down the global

container line capacity league table in the last

few years, although it just about remained in the

top 10 in 2014 but is likely to fall further in the

ranking in 2015.

APL has taken delivery of all 10 of its 14,000

teu vessels and of six 9,200 teu ships. During

the year it scrapped two Panamax ships of

4,700 teu, but the main reduction in its capacity

came from the redelivery of chartered tonnage

with a total capacity of 155,000 teu. According

to the company this trend will continue in

Box ship owners stem the tide

The tough container shipping market has put severe pressure on operators at a time when they are also facing other challenges

APL is battling to reduce losses on its container services


2015 as more chartered vessels are redelivered,

further reducing its fleet size but improving

overall efficiency.

Fleet efficiency will be further improved as

more charters expire. The scale of improvement

is demonstrated by the fact that in 2014 bunker

consumption averaged 0.78t per feu, compared

with 0.96t per feu in 2012. In the fourth quarter

of 2014 unit bunker consumption was down

14 per cent year on year. Vessel utilisation has

also improved and was above 90 per cent in

2014. APL says that it will continue to focus on

costs and efficiency with industry overcapacity

expected to persist through 2015. It will also

seek further network efficiencies through

alliances with other operators.

Shortly after announcing its results NOL

confirmed the sale of APL Logistics to Japan’s

Kintetsu World Express for US$1.2 billion. This

will give NOL a much needed boost to its finances

and potentially provides a basis for investment

in new vessels, although it was expected to use

some of the proceeds to repay debt. Mr Ng said:

“This is a strategic move that will allow us to

focus on improving our liner shipping business.”

As this issue went to press there were

unconfirmed reports of a possible tie up with

Orient Overseas International.

PIL grows into container ageSingapore’s second largest international liner

operator, privately owned Pacific International

Lines (PIL) can claim to be its oldest, being

incorporated in 1967, a year before NOL was

established. After acquiring two general cargo

ships from owners in The Netherlands, it

proceeded to build a fleet of more than 60

ships by the mid 1970s. It acquired its first

container ship in 1981 and began investing in

more container ships which now dominate its

operations, although it still has a significant

multipurpose fleet. Although ranking lower than

APL, PIL is among the top 20 container ship

operators in the world in terms of fleet capacity.

For many years it mainly operated within

Asia but steadily expanded its services to the

Middle East and beyond. In recent years it has

focused particularly on China, reflected in the

huge expansion of its maritime trade. In 2013

PIL opened a China head office in Shanghai.

In 2014 PIL signed an agreement with China

Shipping Group to co-operate on container

shipping and other related activities, including

container manufacturing. PIL owns Singamas

Container Holdings, the world’s second largest

container manufacturer.

Most recently PIL is co-operating with China

Shipping Container Lines on a joint weekly

container service from China to West Africa, and the

first sailing left Shanghai on 20 January this year.

PIL is continuing to enhance its fleet with

modern tonnage, taking delivery of a series of 12

wide-beam container ships of 3,889 teu capacity.

The ships are deployed on various services from

Asia to South Africa and West Africa. The vessels are

each equipped with three 48-tonne capacity cranes

and one 35-tonne capacity crane for handling

containers in ports without container cranes. At the

beginning of 2015 Kota Sejati was the seventh vessel

in the series of 51,700 dwt ships to be delivered.

PIL has also taken delivery of a pair of 4,800

teu ships, Kota Lekas and Kota Legit, operating on

a joint service from Asia to the West Coast of

South America, with three other Asian operators,

Evergreen, China Ocean Shipping Co and Wan

Hai. PIL acquired these two ships through

a shipyard sale by China State Shipbuilding

Corp in Shanghai after the company that had

originally ordered them cancelled its order. PIL

operates a fleet totalling about 150 vessels.

Another significant development took place in

2013 when PIL successfully launched its first bond

issue in Singapore, the first part of a medium-term

programme aimed at raising S$1 million for further

investments. SS

Among other container ship owners based in

Singapore are the Singapore shipping trusts

First Ship Lease (FSL) and Rickmers Maritime.

FSL’s fleet includes seven container ships. It

also owns tankers and is recovering from a

traumatic period in 2013 as some of its tanker

charterers defaulted on their agreements.

In 2013 a new chief executive, Alan Hatton, took

charge together with other new senior executives

and set about returning FSL to financial stability

and putting it in a position where it can grow once

again. In the second quarter of 2014 FSL returned

to profitability for the first time in three years.

Mr Hatton said: “We came into FSL in August

2013 to address the challenges facing FSL.

Some of the previous contracts were defaulted by

lessees as they were unable to meet payments.

We have started the new year in a stable position

and are looking to build on that platform. We are

agnostic on ship types. We are driven by customer

demand and fundraising ability,” Mr Hatton said.

The container vessels in FSL’s fleet are

Panamaxes and feeder vessels. The Panamaxes

are chartered to Yang Ming Marine Transport Corp

and Evergreen and have stable contracts, but the

Evergreen ships are now 20 years old and the

charter market rates are still low, and they are due

to be re-delivered in 2016 and are unlikely to find

new business so will probably be sold.

“Large container ships are currently a bit

of a challenge and the economic situation is

still uncertain, so we are probably looking at

feeder ships for any new business in that sector.

The container market has become polarised

between very large ships, which we cannot

finance and much smaller vessels, so it is hard

to find a niche,” Mr Hatton said.

Rickmers Maritime owns a fleet of 16 container

ships of between 3,450 teu and 5,060 teu which

are chartered out to several leading container ship

operators including CMA CGM and MOL. The

trust is one-third owned by Rickmers Group with

the majority stake held by unit holders.

Rickmers Trust Management has invested in

improving the environmental performance of its

ships. It was involved in a research project with

Institut de Recherche pour le Développement

(IRD) in France. IRD installed a thermosalinograph

on board one of Rickmers Maritime’s vessels,

CMA CGM Onyx, to measure the temperature

and salinity of the Indian Ocean.

The device was set up in the engineroom,

and connected to a computer on the bridge,

sending data every six hours to help IRD further

understand the effects of climate change.

Rickmers is replacing the bulbous bows of

five of its 4,250 teu vessels to maximise the fuel

efficiency achieved through slow steaming. In

May 2014 MOL Destiny was the first vessel to

be retrofitted. As a result fuel consumption was

reduced by about 16 per cent when the vessel

is at optimal speeds/draughts.

Rickmers Trust Management has recently

recruited a new chief executive, Soren Andersen,

from APL in Singapore, where he was vice president

for network planning, alliance management and

fuel strategy. He will replace current chief executive

Preben Hansen at the beginning of June.

Rebuilding trust

Alan Hatton (FSL): Large container ships are currently a bit of a challenge


Singapore is a leading international, as

well as a regional hub for tanker and

bulk carrier owners and managers.

Several leading shipmanagement companies

have extensive fleets managed from there. These

include Wallem Group, V.Ships, Anglo-Eastern,

Bernhard Schulte Shipmanagement (BSM),

Fleet Ship Management and locally based Thome

Ship Management. Recent months have seen a

number of new shipmanagers emerging in the

city state. Some are linked to existing companies

while others are new start-ups aiming to get a

foothold in the Asian shipmanagement sector.

One of the longest standing third party

shipmanagers in Singapore and one of the

world’s leading managers, Thome Ship

Management has an overall managed fleet of

over 230 vessels, of which about 120 are tankers.

This makes it the biggest third party manager

in Singapore by fleet size. It has about 220 staff

in Singapore, though it has recently outsourced

some crewing back office functions to cheaper

locations in Asia, in particular, in the Philippines

where it employs about 300 staff. But Singapore

remains the focus for its business development

and fleet growth planning. Thome has been

in Singapore for over 50 years, pre-dating

Singapore’s independence (see page 19).

At the beginning of April 2015 a new

chief executive will take charge at Thome

Group in Singapore. Olav Magnus Nortun

replaces former chief executive of Thome Ship

Management, Carsten Ostenfeldt, who has

returned to Denmark and a senior position at

Nordic Tankers. Mr Nortun is Norwegian and

comes with extensive shipping experience at

class society DNV GL. Former Group chief

executive Olav Eek Thorstensen will continue

as Thome Group executive chairman while his

son Claes Eek Thorstensen will continue as

Thome Group president.

Mr Thorstensen said: “We have a separate

ship services division which specialises in

monitoring environmental aspects covering fuel

consumption and ballast water treatment for

example, and monitoring vessel performance

and benchmarking. New regulations pose a

particular challenge for smaller owners so

they need a larger organisation to provide the

necessary expertise. We have a specialist group

that can advise other parts of the business,

which is also valuable when there is a turnover

of vessels and when new vessels come into the

fleet. This dedicated group is focused on delivery

to the fleet management group.”

Mr Thorstensen said that finding sea-going

and shore staff is a continuing challenge. “We

Established and new shipmanagers in Singapore have positive ambitions to increase their fleets and diversify their activities

Shipmanagement population rising

shipowners and managers

A number of new shipmanagers are setting up offices


are using more seafarers from Myanmar, Sri

Lanka and China, with about 200 Chinese

officers so far. We are spreading our crew

services to more countries to find the necessary

seafarers. In total we have seafarers from 26

different countries.

“We have recently started Thome Offshore

focusing on offshore support vessels (OSVs),

Thome Oil and Gas specialises in managing

floating production storage and offloading units

(FPSOs). There is also a trend in shipmanagement

away from traditional shipowners towards

ownership by private finance funds, and we are

developing relationships with some of them.

“The offshore sector will be a major focus

for growth, with more high end vessels. For

example, Siem Shipping is managed from here

for Norwegian owners working in the Gulf

of Mexico for BP. But we need to develop our

expertise in this sector. We are targeting the

offshore sector.

“Oil tanker management is increasingly

demanding in terms of oil majors’ vetting

requirements and so that sector is likely to

grow more slowly. But bulkers are growing

strongly as owners are feeling the heat from

Port State Control and charterers’ requirements.

This means more bulker owners are looking at

third party managers such as Thome. Most of

our bulkers are Panamax and bigger,” said Mr

Thorstensen. “The average size of our bulker and

tanker fleets is about 90,000 dwt so our main

focus in on larger vessels, but we do have some

smaller vessels, too. We are also focusing on gas

carriers. Evergas has appointed us as manager

for new ethylene carriers and we also manage

vessels for BW Group.”

In February this year Thome confirmed

that it has become self-sufficient in recruiting

junior officers due to its in-house cadet training

programme. Launched in 2005, the Thome

Global Cadet Program has already trained

in excess of 1,350 cadets from at least 12

countries in Asia, Europe and the Far East.

Currently there are 650 cadets at various stages

of training with another 200 due to join soon as

deck, engine, electrical or catering cadets. This

scheme enabled Thome to fill all of its 2014

junior officer vacancies from within its own

pool of trained seafarers.

Thome’s initiatives to improve its

environmental footprint are not confined to its

ships. It is the first shipmanagement company

to achieve Eco-Office certification in Singapore,

following a successful environmental audit of all

its Singapore offices.

Wallem Ship Management is establishing

a new joint venture company in Singapore

with Norwegian owner Höegh Autoliners to

provide technical management for Höegh’s fleet

of vehicle carriers. The arrangement will involve

28 vessels that are currently managed by Höegh

Fleet Services. The plans should mean that all 28

ships will be under the technical management

of the new Singapore company by the end of

June 2015. Crewing management will continue

to be provided by Höegh.

This move follows the successful switch of

nine Höegh car carriers to Wallem in Singapore

in early 2014. Simon Doughty, Wallem Group

chief executive, said: “Our joint venture will

continue to develop high quality ship operations

and maintenance.”

Wallem Ship Management (Singapore) was

set up in 2013. It includes another joint venture,

NW Ship Management, with owner Nanjing

Tanker Corp. Wallem is keen to expand its

tanker management activity in Singapore.

Fleet Ship Management provides technical

management for about 40 ships from its

Singapore office. “We expect to double that

fleet size in the next three years,” said general

manager Amit Srivastava. The fleet is a mix

of tankers, container ships, bulk carriers and

car carriers. Mr Srivastava commented: “It is

getting harder to manage tankers due to the oil

majors’ vetting processes.”

BSM sees increasing Asian enquiriesAt Bernhard Schulte Shipmanagement (BSM)

Singapore, managing director Robert Maxwell

told Singapore Solutions that there is a lot of

interest in new business in Asia. “We have seen

an increase in enquiries especially for chemical

tankers and small product tankers but also for

larger vessels.”

BSM has a total of more than 70 ships

under management in Singapore, including oil

and chemical tankers, LPG carriers, bulk and

container ships. “We do not currently have

any offshore vessels under management. It is a

different ball game but we are looking at that

sector and in the depressed OSV market there

could be opportunities from owners looking

to reduce their ship management costs,” Mr

Maxwell said.

The BSM Singapore Ship Management Centre

(SMC) has been operating since 2000, but grew

from a long tradition of innovative shipmanagement

within the Schulte Group dating back to 1972.

“These building blocks form the foundation of

a forward-looking 21st century shipmanagement

ethos which, combined that modern technology

and engineering practices, delivers a fast and

responsive service focused on high efficiency and

maximum vessel availability demanded by the

modern shipping industry,” Mr Maxwell said.

“Previously the BSM Singapore SMC had

a reputation as tanker centric, but in recent

years our depth of experience has led to a

significant rise in the number of modern large

container ships and bulk carriers within the

fleet. Combining this with the expertise of our

sister company, Schulte Marine Concept, we can

offer a service starting from newbuild all the

way through the ship’s life to the recycling yard.

“In BSM Singapore we see our clients as long-

term partners, in fact some of them have been

with us for 15 years and have grown with us,

but we also look forward to working with new

clients who share our ambitions. Our customer

profile ranges from traditional shipowners

through investment houses to shore-based

industrials breaking into the shipping field.

They all have their own individual priorities and

we tailor our service to suit.

“Leveraging on the BSM global footprint,

the Singapore SMC is ideally placed to service

customers not just throughout Asia but also

from the rest of the world. In addition to being

the biggest SMC in the group and the centre of

BSM shipmanagement of petro-chemical vessels

in Asia.”

BSM Singapore has clients in Thailand,

Malaysia, Hong Kong and as far afield as Turkey.

Asian crewing resources cover the Philippines,

Burma, Indonesia and China.

Mr Maxwell told Singapore Solutions: “Our

multinational and multicultural experience

Robert Maxwell MD – BSM Singapore



allows us to manage a wide variety of ship

profiles, new and older, in line with owners’

aspirations, but always maintaining our core

values of safe, efficient and environmentally

friendly operation. This is supported by our

internally developed integrated shipmanagement

software, PAL.

“The human element is an area where BSM

Singapore is highly focused. We are running

in-house training for shore staff to ensure that

they are fully aware of the stresses and strains

imposed by their interaction with sea staff. We

work on the principle that it is very easy to use

the word ‘team’, but much more difficult to

make it a reality – hence the effort being made

to ensure that all players are fully involved and

know the game plan.

“In this ever more complicated and regulated

environment that we and our crew work in, we

see it as a challenge to better support our sea staff

with education and training. New technology has

reduced safety margins in machinery but also in

operations such as navigation and manoeuvring

where the navigating officers get less chance to

practice and rely much more on electronic aids.

BSM has recently opened a new bridge simulator

complex in our training centre in Manila, as part

of our commitment to seafarer education. Another

project we are pushing in Singapore is making

much more use of Voyage Data Recorder data

to analyse and audit navigating operations and

procedures to highlight where problems may exist.”

An Italian connectionIshima International Shipmanagement is part

of the Italian d’Amico Group. Managing director

Danilo Raffa said that Ishima currently manages

a fleet of 21 medium range (MR) tankers of

46–52,000 dwt and one 37,500 Handysize.

Ishima also manages 13 bulk carriers ranging

from 33,000 to 92,000 dwt and five roro vessels.

The bulkers are mainly owned by d’Amico

Group companies in Ireland and Singapore and

other European owners. The roros are managed

for European owners.

Ishima employs 45 people in Singapore. It

also has manning and technical management

offices elsewhere, including Manila. D’Amico

has a technical management office in Rome.

Of the current managed tanker fleet in

Singapore, three are fully owned by d’Amico, six

are owned by a d’Amico-Glencore joint venture,

two by a d’Amico-Mitsubishi joint venture. It

also manages three product tankers for Glencore-

owned ST Shipping. The rest are managed for

various third party clients including Japanese

owners and investment groups in Europe.

An affiliated crewing company, Sirius, based

in Genoa, is part of the d’Amico Group and

provides crews for ships under management

of both d’Amico and Ishima. The group has a

total of 80 ships under management in Rome

and Singapore. Ships managed in Rome are all

owned by the Group.

“We can achieve economies of scale by

managing a larger fleet and have manning

offices in Mumbai and Manila as well as in

Europe. We mainly use Filipino and Indian

crew and some from Romania and Ukraine,” Mr

Raffa said. “D’Amico aims to balance resources

and management between Italy and Singapore.”

The same management systems and

procedures are applied to ships managed in Italy

and Singapore and there are some synergies

from supporting each other’s ships in the

respective regions.

“There is no difference in operating costs

between Singapore and Italy. For tankers, if we

want to maintain high standards and oil major

approvals, there is no room for cost cutting. We

will only use genuine spare parts and the only

savings we make are through bulk purchasing

discounts. You cannot remain in business with

A new regime at V.ShipsThe leading shipmanagement group

in the world by fleet size, V.Ships, is

celebrating its 30th anniversary this

year. It manages a variety of ship types

from its V.Ships Asia Group office

in Singapore. V.Ships has recently

undertaken a management restructure

to streamline reporting lines and provide

every V.Ships management office with a

compliance director. But it will not affect

the shipmanagement fleets directly.

Abdul Lateef Siddiqui, offshore fleet

director in Singapore, said that the

Singapore office manages oil tankers,

chemical tankers and dry cargo ships

and also tanker conversions to floating

storage and offloading units (FSOs)

and FPSOs.

V.Ships currently manages about

80 ships in Singapore. The majority of

ships under management in Singapore

are tankers. It also has about 10 vessels

in the offshore fleet, including FSOs

and floating storage units (FSUs). “We

manage tanker conversions and we are

also managing a new FSU conversion

project starting in February,” he said.

Mr Siddiqui told Singapore Solutions:

“The biggest challenge for our industry

is the shortage of seafarers. Even when

the market is down there are shortages

so when the market picks up it will be

even more difficult. Recruitment of young

people is not enough.

“The problem is that many traditional

shipowners have been replaced by

financial investors who are not interested

in investing for the long term such as in

training cadets. One result is that many

senior officers are remaining at sea until

they are much older and there are fewer

younger officers coming through. There is

a need to convince more owners to invest

in recruitment and training of cadets. The

shortage of officers is also impacting on

wage levels.”

Ishima manages tankers, bulk carriers and roros in Singapore

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the oil majors if you try to do it on the cheap,”

Mr Raffa said.

Ishima also provides newbuilding supervision

for ships built by d’Amico and other interests

including investment funds and other owners.

“Some of them will come under our management

when they are delivered. The types of vessels

we are managing might expand if we get more

ships as a result of the work of the newbuild

supervision team. Its work goes from drawing

approvals to sea trials and also advising owners

on yard selection. We have site offices at yards

in Korea, China and Vietnam, reporting to the

Ishima office in Singapore,” he said.

“All our newbuilds have BWT systems and

for existing ships we will consider when to

retrofit. We have selected three BWT suppliers

depending on particular ship characteristics.

Chemical treatment is the cheapest but it is

more risky. These include additional restrictions

being imposed on discharges, so we generally

prefer uv or electrolysis treatment systems. We

have selected Panasia, Headway Technology

and Techcross. We advise owners, but the final

choice is with them.”

He said that by the end of 2016 the group will

have a total of about 90 ships under management.

“In 2015 Ishima expects to increase our fleet by

five units – four dry bulk units and one MR

tanker. In 2016 there will be four or five more dry

bulk and one or two more tankers.”

Mare Maritime sets up shopAmong the notable new entrants to the

Singapore shipmanagement scene is Mare

Maritime Singapore, part of the Greece-based

Mare Maritime Co shipping group.

Mare Maritime has been involved in tanker

operations in Greece for many years, but in

May 2014 it established a new shipmanagement

operation in Singapore. Since then it has started

to build up a managed oil and chemical tanker

and LPG fleet in Singapore, including chemical

tankers for owner Golden Stena Weco.

Mare Maritime Singapore managing director

Rohit Kapur said: “We set up an operation in

Singapore as it is the main hub in Asia and it is

a good time to do so. We have already grown our

managed fleet here. We are currently managing

chemical tankers and LPG carriers.

“Our main clients are Indian and Vietnamese

owners but we also have clients in other Asian

countries. We can offer 24-hour coverage with

the Greece office providing support. We are

marketing our services to major clients in Asia.

All ships managed in Singapore are for third

party clients. Mare Maritime-owned ships

are managed in Greece. The link with Mare

Maritime in Greece gives us strong credentials

for gaining clients in Asia,” Capt Rohit said.

Mare Maritime Singapore is managing three

chemical tankers, three LPG carriers and a small

oil tanker, a 4,000 dwt bunker tanker that is

operating in Dubai. It has recently taken delivery

of a newbuild very large gas carrier (VLGC),

Everrich 8, with three more to follow during 2015

for a Thailand-based owner

“We are providing full technical and crew

management. We are also setting up a crewing

company in India, Mare Maritime India, so that we

can access Indian officers.” Mare Maritime has a

crew management operation, VR Maritime Services

in India, which also has a presence in Singapore.

Mare Maritime is an associate of Philippines crew

manager Magsaysay and uses the Magsaysay

training centre in Manila for crew training.

Capt Rohit said that Mare Maritime expects

to grow its fleet to 20–25 vessels this year,

focusing on LPG carriers and tankers. “We

have vetting approvals from oil majors. We

have strong audit procedures and training

plans. We aim to establish Mare as a major

shipmanagement player in Asia.

“Expansion in Singapore is mainly focused

on gas carriers at present. It is still early days for

Mare Maritime in Singapore and we are growing

in small steps. We offer specialist gas carrier

management which few shipmanagers can do.

“Clients are currently more confident coming

to a management company in Singapore than


Mare Maritime is managing newbuild VLGC Everrich 8

Rohit Kapur is managing director of Mare Maritime Singapore


in Greece in view of the political, economic and

financial uncertainty there, whereas Singapore

is very stable and secure, so we are keen

to promote Mare Maritime Singapore as an

independent company.”

UMMS takes software initiativeUnion Marine Management Services (UMMS)

manages a fleet of 21 bulk carriers for two

main client owners.

UMMS managing director Vinay Gupta told

Singapore Solutions. “We need to be seen as a

complete ship manager for every type of ship.

UMMS has been in operation for two and a half

years so we are now looking to expand our fleet

gradually to create a critical mass fleet size.”

With a view to this planned expansion,

UMMS is investing heavily in developing an IT

management system. Mr Gupta said that the

company is developing its own shipmanagement

software system and UMMS Portal. The software

was developed by a company in the US, with

some coding work done in India.

“We are operators so we are trying to restrict

room for error. For example, we have developed

a toolbox for onboard requirements such as a

system for processing hot-work permits by ships’

crews. Previously it was done ad hoc, but now we

have a requirement for a daily work plan each

morning and the system will ask if any hot work

is required and associated permits and the system

will generate these permits and the requirement.

“In the past work reports were submitted

seven days after work was carried out but

now we know in advance so any additional

work can be triggered such as overhaul

of components or fixing deficiencies so

eliminating the risk of work being missed.

“This system will change safety and quality

management so that it is all integrated. This

transforms the approach to safety and has been

favourably received by crews. The noon report is

the finishing line and it is seen and signed off

here on a daily basis.”

Mr Gupta said that the system has been in

operation since February 2014 and there are

currently seven or eight modules running. “There

is no need for big manuals as the modules are

easy to use. The system means that required

surveys cannot be missed as the system will lock

if it is not carried out. We pay higher than average

wages and maintain good conditions on board

but we demand a lot from our crews.”

The system has parameters programmed into

it. Anything falling outside these parameters

will trigger an alert and a query to the vessel.

The system also sends advance alerts, such

as for fuel changeovers. It also includes lube

oil reports and also the tracking of bunker

samples for testing with reports uploaded to the

system. Purchase orders are tracked for each

ship, recording when the order is delivered, and

invoice generation and payments. There is a

system of approvals at different levels according

to the value.

“We wanted a system that has little room

for error and can maintain quality assurance for

owners, including when there are crew changes.

We wanted a simple system so that there is

minimal resistance. So far we have not had to

roll back anything that we have implemented.”

The next steps are to introduce payment

and planned maintenance modules that

will ensure that work performed outside

routines is recorded in the system and there

will be barcoding of spare parts to control

consumption and ordering.

“These systems are game changers. No-one

else is doing it in the same way,” Mr Gupta said.

“We are currently using it internally and there

are still a few more steps before we can market

it externally. It is web based, in real time, so it

does depend on ships having Internet access,

which currently many ships do not have, but it

will happen in the future.

“The costs of development and

implementation are not big and it is saving us

a lot of time and effort and achieving improved

safety assessments and re-assurance that no

safety certificates are overlooked and we know

exactly how much is spent on each vessel and on

what. We estimate savings of about 10 per cent

by using this system, which is significant when

profit margins for ships are narrow.”

Asian-Alliance takes a new identityAsian-Alliance Ship Management is a new

company, originally set up as Admiralty Ship

Management but changed its name due to

a conflict with the UK Hydgrographic Office

Admiralty brand name. The company was set up

by three people who previously worked at other

shipmanagement companies.

Chief executive Ashok Prasad told Singapore

Solutions that it took over management of

three Capesize bulk carriers in November last

year and another this February. He previously

worked with Anglo-Eastern Ship Management

in Hong Kong. “I decided to set up in

Singapore because all the support services

and ancillary services are here. The MPA gives

incentives to set up, including the maritime

cluster fund from which they assist new and

upcoming maritime companies. This funding

will support set-up costs for infrastructure,

training and IT so it helps to get a new

business up and running.”

The company was established in June 2014

Neptune Ship Management goes with the tideNeptune Ship Management (NSM) is in its fifth

year of operation in Singapore, following an

initial start-up in Mumbai in 2009. Its Singapore-

managed fleet includes three product tankers,

two chemical tankers and one very large crude

carrier (VLCC).

Managing director K Srinavas Patnaik said

that the company is also opening an office

in Lagos, Nigeria, to be close to one of

its tanker clients that has a product tanker

under Neptune’s management. Other clients

are based in Malaysia and Singapore. It also

provides crewing for offshore contractor

Modec, which operates FSOs and FPSOs, and

managed a major project involving an FPSO

transit through the Singapore Strait.

“Our aim is to win the management of

FPSOs, including conversion projects from

VLCCs. There are very few players in this

sector,” Mr Patnaik said. “We use Indian crews

for all our tankers.” It also has an office in

Indonesia that manages OSVs.

“We got our Document of Compliance from

DNV in February 2011 and picked up our first

ships within a few months and our first VLCC

later that year. We aim to have 10 more ships

under full shipmanagement during 2015, mostly

tankers but also we hope to have an FPSO.”

In addition to its shipmanagement operation

the group has a ship agency business in

Singapore, Neptune Ship Agency. A third group

company in Singapore is Star Shipping Services,

which is a chartering company for wet cargoes.

“Technical and crewing shipmanagement is

our core business but that is difficult financially

so we have diversified into other activities to

support our core shipmanagement function,”

Mr Patnaik said.

“We offer lump-sum contracts for crewing

that are fixed for 12 months and include wages

and travel. This enables owners to know what

their costs will be. We do not charge manning

fees on top, just one lump-sum all-in cost. We

have managed ships since 2011 on this basis

and we have never had to change the budgets.”



and started to look for business in September.

“Our first client is a Turkish owner and we are

also talking to North European and Japanese

owners. We are providing full technical

management for these ships but will provide

crew management if owners want it.

“We are currently concentrating on dry tonnage

but later we plan to expand into wet tonnage.

We offer a personalised service that is not

always available at the big shipmanagement

companies. Personalised service is important

in shipmanagement. For example, our

knowledge can be used to get the best type

and size of crew for a particular vessel based

on its operational profile. With our experience

we can offer good crewing connections and

can get the best crews for each vessel,” Mr

Prasad said.

Asian-Alliance has manning agencies

in India, Sri Lanka, Bangladesh and the

Philippines. “Getting good crew is critical for

shipmanagement and makes a big difference

for the owner.

“High standards of crew management on

tankers is now trickling down to bulk carriers

and major dry bulk charterers are applying

similar vetting processes to the ones used by oil

majors for tankers.”

Mr Prasad said that the company is aiming,

ultimately, to achieve a fleet of about 50 ships but

will grow at a sustainable rate to maintain standards.

“Although we are still a relatively small

company, our good contacts and long

relationships means we can get good prices

for purchasing and sometimes better than the

bigger management companies and we have

good payment terms and credit lines with

vendors and suppliers.

“We are looking to build up gradually and

build a stable and sustainable company with

a long-term commitment. We want to do

things properly and not cut corners or short

cuts, because it does not pay in the long run.

We have also set up an in-house ship agency

in Singapore which adds another part of the

service so we are not reliant wholly on third

parties.” SS

Vinay Gupta is heading a software revolution at UMMS

MTM builds third party fleetMTM Ship Management manages about

60 ships in Singapore, of which 44 are

tankers, comprising 11 product tankers

and 33 chemical tankers. A further four

chemical tankers are on order for delivery

by 2017. The rest of its managed fleet are

dry bulk and container ships. MTM also

has offices in Manila and Mumbai. The fleet

has expanded and will reach 60 in 2015

with the delivery of newbuild Handysize

bulkers of 40,000 dwt.

MTM Ship Management Singapore

started in 1988 initially as a charterer and

then become an owner. There was a big

change in 2007 when it changed ownership

and has grown strongly especially since

2009 as a third party manager. MTM Ship

Management was founded in Singapore

in 1988 to manage a fleet of six chemical

tankers. The biggest client owner is the

in-house MTM, which has 18 of its tankers

under management in Singapore. Other

client owners are from Japan and US and

London-based Greek owners.

Managing director Vijay Rangroo

commented: “The tanker market is

challenging with vessels still experiencing

waiting time. We provide a one-stop shop

of full technical and crewing management

and also newbuild supervision. As our fleet

has increased we need more crews and we

need to widen our recruitment.

“We are employing crews from Myanmar

and have an office in Yangon. Yangon is

growing as a crew source.”

The managed fleet is split into three

tanker fleets and one bulker fleet. “We

apply the same safety standards to both

ship types. Oil major vetting is always

challenging but it is partly dependent

on the owner investing appropriately so

it is not entirely under our control,” Mr

Rangroo said.

“Our new bulk carriers already have

ballast water treatment systems. The

challenge is in making decisions regarding

choice of systems and whether they are

approved and compliant. Compliance with

rules is part of a shipmanager’s life.

“We are focused on maintenance and

crewing and training and offer advice to

owners but they control the investment

decisions. For example, installing Internet

access onboard is costly, but we recognise

its importance and we spoke to a number of

providers and came up with a solution that

the owner is willing to pay for.”

He commented that Singapore has

become more expensive to live in and

therefore to employ high quality staff. “It

is not hard to find the talent we need but

it has become more expensive. So we are

moving some back-office functions out of

Singapore. Another option is to shift some

fleet management units elsewhere. High

costs are a risk to shipmanagement in

Singapore and some have already moved

some functions elsewhere.”

Vijay Rangroo (MTM): The tanker market is challenging


Thome Ship Management Pte Ltd, 16 Raffles Quay,#43-01 Hong Leong Building, Singapore, 048581Telephone: 65-6220 7291 | Email: [email protected] | Website: www.thome.com.sg

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T he first liquefied natural gas (LNG)

newbuilding for BW Pavilion LNG – the

new joint venture between Singapore-

based BW Group and Pavilion Energy, which is

owned by Singapore Government wealth fund

Temasek Holdings – has been delivered. BW

Pavilion Vanda is due to be joined by BW Pavilion

Leeara in the second quarter of 2015. BW LNG

has a 51 per cent stake in the joint venture.

The 161,870m3 newbuilds delivered by Hyundai

Heavy Industries will join the 138,000m3 BW

GDF Suez. The two new ships have secured

employment with a three-year charter to Chinese

energy company Sinopec.

Pavilion Group chief executive Seah

Moon Ming said: “With growing Asian LNG

demand, the delivery of the new LNG vessels

is a significant milestone in Pavilion Energy’s

capability build-up, as part of our plans to be an

integrated LNG company.”

In September 2014 BW Group ordered two

LNG carriers, to be built at Daewoo Shipbuilding

& Marine Engineering in South Korea. The two

173,400m3 capacity vessels will be delivered in

late 2017 and early 2018. They will bring BW’s

LNG fleet to 20 vessels.

The LNG carriers will be of an advanced

design featuring dual-fuel propulsion with partial

reliquefaction systems to provide low boil-off rates.

BW Group chief executive Andreas Sohmen-

Pao said: “We look forward to receiving high quality

and technologically advanced newbuildings.

With an expanding fleet of well built and well

maintained vessels, BW will continue to strive for

outstanding service to customers. We have strong

ambitions in the LNG sector and these vessels will

continue our steady growth in the sector.”

LPG DeliveriesIn the liquefied petroleum gas sector (LPG) BW

LPG made a profit of US$256 million in 2014, more

than doubling the US$125 million in 2013. BW

LPG said that the 98 per cent utilisation of its fleet

“demonstrates technical quality and the strength

of commercial deployment driven by long-term

relationships with blue-chip charterers”.

At the end of the year it had a fleet of 36

owned and operated LPG vessels. In November it

took delivery of the first of eight VLGC newbuilds

from Hyundai Heavy Industries, the BW Aries,

which is operating on a time charter with an oil

major. The second ship BW Carina was delivered in

February. Two more vessels in the series are being

delivered in the first half of 2015, two more in the

second half of 2015 with the final two scheduled

in the second quarter of 2016.

It has also exercised a purchase option on

the 2013-built VLGC Vermillion that it was

operating on a time charter expiring in the first

quarter of 2015.

Despite the slump in the oil price, BW

LPG is optimistic about prospects with strong

demand for LPG products. “Supply, demand

and infrastructure build out suggest continued

strength in 2015. Fleet expansion and the rate

of export growth will dictate the overall impact

on the 2016 chartering market, with longer-term

continuing growth expected.” Its strategy remains

to achieve high utilisation of its fleet with a mix

of long-term charters and spot exposure.

The company’s operations will initially involve

five 85,000m3 capacity newbuild ethane carriers

which have been chartered to Nanjing-based

Oriental Energy Co for 10 years, with options for

a further five years. Hartmann will provide the

technical management for the vessels. The new Eco

Star 85K ships will feature three-cylinder tri-lobe

tanks, with three cylinders combined into one.

According to Jaccar the new company’s

purpose is “to develop the ethane business,

focusing on marketing, branding and commercial

management of ethane carriers internationally”.

Alfred Hartmann, chairman of the supervisory

board of Hartmann, said: “We found that our

strengths complement each other very well,

particularly in this highly specialised market. UEC

provides expertise for our customers’ benefit.”

Another Singapore-based LPG vessel operator

is continuing with its fleet expansion plans, having

secured finance from CIT Maritime Finance for two

more vessels, which are being bought secondhand.

Epic Gas chief executive Lars Vang

Christensen said: “The two vessels we acquired

through this financing are cost-efficient and

ideal for short to medium-haul transport and

redistribution of LPG and chemical gases to the

smaller gas terminals.” SS

Owners of LNG and LPG carriers are investing in new capacity to meet rising demand for gas transportation

Expanding gas carrier fleets

owners and managers

BW LPG has the largest fleet of VLGCs in the world


S ingapore’s geographic location and

communications links have proven

an advantage in the choice of the

city state as a base for regional heavy-lift

and project shipping. Orient Project Shipping

is one company that has established a

significant presence in this niche sector.

Orient operates in the breakbulk heavy-

lift sector, mainly on long-term projects,

managing director Patrick Evans told Singapore

Solutions. He said that the past two years

were challenging but remains optimistic that

specialist heavy lift shipping companies such

as Orient can be successful.

“In the multipurpose sector traditional

owners have been replaced by financial

investors, and they have had too much say

and their priority was generating cash flow

and they are willing to accept very low prices.

We are now seeing consolidation into bigger

groupings and the days of independent vessel

operators are numbered,” Mr Evans said.

Orient assumed its present name two years

ago following a change of major shareholder.

It is now owned by Mr Evans and another

partner. Mr Evans said that Singapore, Hong

Kong and Tokyo were the main locations

for heavy-lift shipping in Asia. “We set up

here in Singapore in 1990 with business

from SAL in China. SAL Heavy Lift was later

bought by Japanese owner K Line. So as

Singapore celebrates its 50th anniversary of

independence, we are celebrating 25 years in

Singapore, which has become a major hub.”

Following its establishment in Singapore

the company gained Japanese investment

and became agent for Big Lift in Asia. Orient

is now an agent for German owner Peter

Dohle’s multipurpose fleet and has a link

with Japanese group Nippon Yusen Kaisha

(NYK) Line’s module team.

“The heavy-lift market has been

commoditised. Consolidation in shipping will

continue with major consequences and it

is more difficult for players that are more

independent, like us. There are some other

players in this market in north Asia. We do

a lot of work with China Ocean Shipping

Co. The number of operators is suppressing

rates,” he told Singapore Solutions.

Mr Evans suggested that there could be

new opportunities in Africa as countries there

invest in infrastructure. “We are chasing a

number of projects, including some major

LNG projects such as in Yamal in Russia and in

Mozambique. There is also piecemeal business

in project shipping such as equipment for the

offshore industry. Australia has traditionally

been strong for heavy-lift business.

He said that 2015 started off more

strongly, but he was not sure if it would

last. “We have no intention to become a

vessel owner as it is too risky. We only

take positions to operate ships for specific

projects to limit our exposure. Taking a ship

on as an owner or time charter would mean

it is too easy to lose money. Operating ships

is very expensive.” SS

Specialist heavy-lift operator Orient Project Shipping has retained its independence in a competitive market

Crowley in Singapore is managing new heavy-lift deck barges

AAL to expand heavy-lift fleetMultipurpose heavy-lift vessel owner

Austral Asia Line (AAL) is planning to

add to its fleet of 14 owned vessels,

ten of 31,000 dwt and four of 19,000

dwt. The vessels feature a heavy lift

capacity of 700 tons. AAL is part of the

Schoeller Holdings Group and moved

its headquarters to Singapore in 2009.

AAL operates regular sailings between

Asia and North America, and Asia and

Australasia, with additional sailings for

specific projects.

Heavy lifting in the Orient

owners and managers

“The heavy lift market has been commoditised”

ASL Marine


First incorporated in 2006, Pacific

Radiance is one of the fastest rising

stars among Singapore-based offshore

support vessel (OSV) operators, building on

the foundation laid by Pang Yoke Min who

established the business.

Mr Pang is widely considered to be one of

the pioneers of Singapore’s offshore marine

industry, having co-founded Jaya Shipbuilding

and Engineering in the 1970s. The company

was set up with the primary intent of building

OSVs on speculation for resale to vessel owners.

It later became a subsidiary of Jaya Holdings.

Mr Pang decided to break out of shipbuilding

and move into shipowning in 2002 when he

hounded Strato Maritime Services with Sunny

Mok, a former colleague at Jaya Holdings. In

2006 Mr Pang left Jaya and incorporated Pacific

Radiance, now the listed parent company of

Strato Maritime Services.

The co-founders of Pacific Radiance have

since handed over the reins of the business to

the next generation. Mr Pang’s son, James, took

over as managing director of the newly listed

company in 2013. Pacific Radiance now has over

130 vessels in its OSV fleet.

In the same year the management of Pacific

Radiance decided to go for a public listing to

expand its capital base for reinvesting for future

growth, James Pang told Singapore Solutions. A

decision was made to go for a home base listing

because Singapore has cultivated an investor

community familiar with the offshore marine

industry, he said. The initial public offering took

place in November 2013.

Shortly after the Singapore listing, in

December 2013, a joint venture between

Pacific Radiance and Indonesia’s PT Logindo

Samudramakmur was floated on the Jakarta

stock exchange. The joint venture, Logindo,

was formed with the aim of penetrating the

Indonesian OSV market while complying with

the cabotage requirements that apply to OSVs

plying Indonesia’s territorial waters.

Pacific Radiance will look at replicating the

Logindo model in other countries that impose

cabotage laws, Mr Pang said. He indicated the

possibility of a listing in Mexico, once Pacific

Radiance’s OSV operations there have reached

a sizeable scale. Mexico was among the target

markets on Mr Pang’s radar when he embarked

on the strategy of expanding Pacific Radiance’s

reach globally.

He recalled that Pacific Radiance‘s first

contract outside Asia was in East Africa.

That was quickly followed by breakthroughs

with Brazil and Mexico. Pacific Radiance has

already set up a local office in Mozambique

and a workshop in Tanzania. In Mexico, Pacific

Radiance put a joint venture in place last year

and reflagged a vessel that is now working

under a charter lasting over six months.

Geographical diversification has seen its

income share from Asia reducing to 65 per cent

from over 90 per cent, according to Mr Pang.

“The end game is we want to have a spread of

assets operating globally in fields operated by

independents, international oil companies and

national oil companies,” he explained.

Diversification may be high on the agenda,

but increasing volatility in oil prices may mean

that Pacific Radiance’s priorities could be

weighted towards growth in emerging markets

such as Mexico and Indonesia, where relatively

inelastic energy demand has to hold off cuts in

capital spending.

With countries such as Indonesia moving to

extend cabotage restrictions to more offshore

marine asset classes, Pacific Radiance is also

considering investment in offshore construction

and construction support vessels including

liftboats and pipelay vessels, Mr Pang told

Singapore Solutions.

To support its rapid expansion, Pacific

Radiance is investing in a new shiprepair yard

in Singapore. The 30,000m2 Crest SA Yard,

located close to the group’s office, will feature

two drydocks and facilities for equipment

fabrication, testing and maintenance when it

begins operations by the end of 2015. Mr Pang

sees the yard investment as a step towards

gaining greater control over the supply chain:

“We can carry out repairs, modification and

maintenance of our own vessels,” he said.

In common with other Singapore-based OSV

players, Mr Pang expressed confidence about

the country’s continued relevance as a regional

offshore marine hub. Besides Singapore’s

strategic location, the efficiency of the port, fast

turnaround times and high quality workmanship

of shiprepair jobs performed at local yards have

reaffirmed the city state’s leading position in the

regional maritime market.

While land scarcity in Singapore could

translate to higher set-up costs, Mr Pang said

these would be amortised over the operational

life of the yard, which will span over more than

20 years.

Pacific Radiance is investing some US$50

million in two graving docks measuring 100m

and 90m long at Crest SA Yard.

Through this investment in its own facilities

Pacific Radiance is looking to save millions of

dollars from drydocking its vessels at third-party

yards. Mr Pang said that the drydocks will also

be offered for thir-party vessel repairs on an ad

hoc basis.

POSH SSAVs set sailJust before the end of 2014, PACC Offshore

Services Holdings (POSH) began mobilising the

first of its two semi-submersible accommodation

vessels (SSAVs), POSH Xanadu, for its maiden

charter contract. The introduction of this vessel

marked the start of a new phase of the operator’s

diversified offshore marine business.

The departure of POSH Xanadu from

Singapore’s Jurong Port took place just eight

months from the initial public offering (IPO) of

POSH on the Singapore stock exchange.

POSH’s key shareholder, the Kuok Group,

has its roots in Malaysia. But it chose to list

POSH on the Singapore exchange instead of the

Malaysian bourse.

The IPO raised S$388.3 million, which

enabled POSH to complete the construction of

two SSAVs, POSH Xanadu and POSH Arcadia,

which were acquired from a distressed seller.

In an interview last year, chief operating

Investing in the futurePacific Radiance is not just investing in OSVs but in shiprepair facilities to support its vessels

James Pang: Pacific Radiance is considering investment in OCVs

offshore owners


officer Lee Keng Lin described the two SSAVs as

a game changer for the business. POSH expects

the SSAVs will contribute 50 per cent of the

group’s earnings before interest and tax within

the next two years, Mr Lee said.

The first SSAV, POSH Xanadu has already won

a contract from Brazil’s Petrobras confirmed at

US$80.5 million for one year, plus an option to

extend for a second year. The revenue accretion

from POSH Xanadu, alone for a full-year charter

should more than quadruple the contribution

of offshore accommodation business to POSH’s

group turnover. For the last financial year ended

31 December 2014, offshore accommodation

accounted for US$29.3 million or just under 10

per cent of the operator’s annual revenue.

POSH is reportedly marketing the second SSAV,

POSH Arcadia, for work in Brazil. Each of the SSAVs

comes equipped with accommodation for 750

people, which means that they dwarf the 191-person

to 300-person ship-shaped accommodation vessels

already in its operating fleet.

Mr Lee hinted at an interest in further

expanding the SSAV fleet to between six and

eight units, with an eye on developing demand

off Brazil and Mexico.

The operator is cautiously optimistic

about the potential of the Mexican offshore

accommodation vessel (OAV) market, for which

state-owned Pemex has projected demand for

thousands of extra beds during the next few

years. In its February 2015 financial results

briefing, POSH flagged a level of uncertainty

about prospects in Mexico due to various local

factors and declining oil prices. It continues to

pursue opportunities there, but it is also eyeing

charter possibilities in other regions.

Since then, oil prices have regained some

ground, but as long as the market remains

volatile POSH is unlikely to commit to any

SSAV investment given it has already delayed

the deliveries of the vessels on its existing

newbuilding programme.

As of February this year, POSH had 21

newbuilds under construction. Its newbuild count

includes two firm plus two optional inspection,

maintenance and repair (IMR) vessels. Mr

Lee described the IMR units as multipurpose

service vessels, and indicated interest in remotely

operated vehicle (ROV) operations. By branching

into IMR and expanding its OAV fleet, POSH

will have the potential to offset the impact of

any slowdown in any new developments on its

offshore marine business.

Unlike most OSV players in Asia, POSH had

invested heavily in mid to deepwater vessels

from its first entry into the oilfield services

sector. It has 30 OSVs, including a mix of anchor

handling tug supply (AHTS) vessels ranging

from 8,000bhp to 16,000bhp and 2,200 dwt to

4,100 dwt platform supply vessels (PSVs). Its

OSV business contributes US$139.5 million, or

60 per cent, of the group revenue. Utilisation of

its OSV fleet averaged 84 per cent through 2014,

down from 89 per cent a year earlier.

POSH derives a further US$41.4 million

(18 per cent) of its group revenue from

the transportation and installation (T&I)

business, which was developed from its

2007 acquisition of, among others, SEMCO,

a floating production, storage and offloading

vessel (FPSO) towage operator and Maritime,

a T&I service provider.

The T&I business unit operates 43 vessels

including AHTSs of 4,000bhp to 8,000bhp, semi-

submersibles and launch barges.

In 2015 POSH is scheduled to tow the first

Petronas floating liquefied natural gas (FLNG)

vessel, PFLNG-1, from Okpo-based Daewoo

Shipbuilding & Marine Engineering to Bintulu,

Malaysia. In 2016 it will tow the central processing

facility now under construction for the Inpex

Corp-operated Ichthys gas and condensate project

from Geoje-based Samsung Heavy Industries to

the field location off Western Australia.

POSH earns the remaining 9 per cent of its

revenue, or US$23.8 million from its harbour

tug and emergency response business (HSER).

The HSER unit operates 31 vessels comprising

3,200bhp to 5,000bhp azimuth stern drive

harbour tugs and heavy-lift crane barges with

working load capacities of 60 to 1,500 tonnes.

The operator has a standing licence granted

by the Maritime and Port Authority of Singapore

for the provision of towage serves to vessels

within port limits. Its emergency response

division offers salvage, wreck removal, rescue

and oil spill response services.

Swiber Offshore eyes deepwater opportunitiesThe divisional chief executive of Swiber Offshore

Construction, Nitish Gupta, is leading the

Singapore-listed business into newer territory off

Mexico and Nigeria, having already established

a dominant position in Asia Pacific.

Mr Gupta said that Swiber has five vessels on

its operating fleet reflagged for work in Mexican

waters. These include the pipelay vessels Quetzal

(formerly Aziz) and Swiber Concorde plus three a

AHTS vessels. The five vessels have completed

two projects since they were mobilised to Mexico

in 2012. They are working on two more which

are scheduled for completion by the third

quarter of 2015.

Mr Gupta is confident that Pemex will

maintain its upstream spend despite lower oil

prices as Mexico seeks to stem the decline in

its hydrocarbon production. He sees entry into

Mexico as a natural progression for Swiber,

given that the cost of operating in the Central

American country is similar to that in Asia. The

reflagging of the five vessels took place as Swiber

pursued tenders and prospects worth over US$2

billion for several contracts off Mexico.

Mr Gupta confirmed that his intention is not

just to stop at shallow water projects in Mexico.

Instead, Swiber will be eyeing opportunities

for its first deepwater multilay vessel, which is

due for delivery from a Chinese yard in 2017 or

2018, as Mexico opens up its hydrocarbon-rich

deepwater basins for foreign investment.

Mr Gupta describes the deepwater newbuild

POSH is mobilising two SSAVs Posh Xanadu and Posh Arcadia


offshore owners

that is under construction as a very high

specification vessel designed for multiple

installations. The vessel will come equipped

with a 5,000-tonne capacity Huismann crane

with provisions for multilay operations in up

to 3,000m of water. There are only a handful

of deepwater multilay vessels available in the

market and these have often been called on for

complex jobs across the globe.

Swiber has specified a high transit speed of

over 14 knots for its latest newbuild to facilitate

long distance voyages between jobs. Besides

offshore Mexico, Swiber will be targeting

deepwater work across all deepwater basins

off Brazil, the Gulf of Mexico, Africa and some

pockets of Asia and Australia.

Within Africa, Mr Gupta said that Swiber

has been marketing its vessels through a joint

venture partner for contracts off Nigeria and

sub-Saharan Africa. The shallow waters of the

Niger Delta are well suited for both the offshore

construction vessels and offshore support

vessels operated by Swiber and its affiliate,

Vallianz Offshore. He said that there were no

Eighteen years from its first incorporation as

an independent engineering, procurement,

installation and commissioning (EPIC)

outfit, Swiber Holdings stands as a listed

entity on the Singapore stock exchange

with a market capitalisation of over S$121

million as of February 2015.

Swiber, previously known as Swissco

Berjaya, was initially the representative

office of offshore support vessel

(OSV) owner and operator, Swissco in

Indonesia. In the 1990s, Raymond Goh,

then heading Swissco Berjaya, decided

to venture into the EPIC business.

Swiber went for a separate listing and

was among the first EPIC players on the

Singapore stock exchange.

Mr Goh recruited his founding team,

including Nitish Gupta, the current

divisional chief executive of Swiber

Offshore Construction, and Darren Yeo,

now the chief executive of Vallianz

Offshore. The business started with a

small fleet comprising shallow water

offshore construction vessels (OCVs)

and OSVs.

Swiber embarked on its EPIC business

with a third party-chartered heavy-lift

vessel Da Li Hao and pipelay vessel Swiber

Conquest. It soon expanded its fleet to

seven derrick crane and pipelay vessels

plus more than 20 subsea construction and

diving support vessels, submersible launch

barges and flat top cargo barges.

Swiber was also operating a fleet of

OSVs, but with its transformation into

an EPIC contractor a decision was made

to transfer the OSV business to Vallianz

Offshore. This went for a back door

listing on the Singapore stock exchange

through a reverse takeover by acquiring

Enzer Corp.

The year 2010 marked a turning point for

Swiber, having listed its subsea business

unit, Kreuz Subsea, on the Singapore

Exchange’s secondary board, Catalyst.

Kreuz, which specialises in diving support-

related services, was subsequently sold

to Headland Private Equity Fund and was

delisted in March 2014.

Vallianz is keen to establish itself as

an entity independent of Swiber. It now

describes Swiber as a key client for its

vessel services. Vallianz has taken over

the driving seat for the standing oilfield

services joint venture with Rawabi Holdings

in Saudi Arabia.

Swiber makes an EPIC move

Swiber has an extensive fleet of OSVs

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offshore owners

signs of activity waning off Nigeria, especially

in the months leading up to the February 2015

general election there.

In Asia, Swiber has made inroads into

Indonesia, Vietnam and Brunei, but it is in India

where the Singapore-listed company, having

established a strong foothold, could potentially

level up the playing field against the industry

leaders in the contests for both shallow water

and deepwater projects.

At the time of writing, Swiber was awarded

a US$310 million contract. Singapore Solutions

understands that this is tied to Oil and Natural

Gas Corporation’s (ONGC’s) eight-platform

Daman field development.

Swiber is understood to have made use

of a rare window of opportunity extended to

bidders to propose designs for the planned

production structures and to have outbid the

other contenders by a large margin. Daman is

among the first contracts awarded by ONGC

following suspension of its outstanding tenders

at a time of volatile oil price movements. Mr

Gupta is nonetheless positive about prospects in

India: “Projects will open up in India because it

is a major oil and gas importer,” he said.

His optimism is backed up by India’s drive to

boost domestic hydrocarbon production to offset

import requirements. The Indian Government,

under the administration of prime minister

Narendra Modi, has specifically directed project

owners to speed up oil and gas tendering

processes, according to sources.

Just days before the award of the Daman

contract, ONGC tendered out the delayed

multiplatform Bassein expansion project, a sign

of its renewed resolve to press on with shallow

water developments.

There is also optimism in the industry that

brownfield projects, including the Pipeline

Replacement Project-4 (PRP-4) offshore

Mumbai, will proceed. Swiber is among the lead

contenders for this project.

Off the east coast of India, ONGC and privately

owned Reliance Industries have outlined their

intent to develop several deepwater discoveries

in the Krishna-Godavari Basin. How soon the

projects will take off will depend on further

clarity of new domestic gas pricing policies,

among other things.

Mr Gupta estimates the total value of

contracts offered in ongoing tenders in India

come up to around US$1.5 billion.

Swiber has a long string of successes winning

contracts on offer under India. This is due in

part to Mr Gupta’s experience when he was

heading up projects in the South Asian country

at Global Industries. During his early years with

Swiber, the business undertook its first floatover

installation at ONGC’s B-193 field development

in 2013.

Mr Gupta said that his personal choice to settle

down in Singapore contributed to his decision to

take up the job offer at Swiber in 2006.

He said the island nation offered a business-

friendly environment with good government

support, crediting International Enterprise

Singapore for helping Swiber identify markets such

as Mexico, Africa and Saudi Arabia. “Logistically,

Singapore is the best place to cultivate an offshore

construction business, with many stockists based

out of the country and same day customs clearance

for spare parts,” he said.

Swissco stays the courseSwissco Holdings stands out among the

vessel operators that established themselves

in Singapore soon after independence having

stayed its course and seen a rise in its fortunes

along with the island nation’s elevation as a

shipping and offshore marine hub.

The first vessels in Swissco’s operating fleet

were wooden boats doing supply runs at just

US$800 per trip for the entity then known as

Sea Well Industrial Ship Services (SWISSco).

These vessels served their purpose during

Swissco’s start-up years through the first oil

boom in the 1970s. But in the 1980s, when

transhipment activity picked up as oil prices

sank to historical lows, Swissco was back in the

market searching for more efficient assets.

The oil price crisis saw foreign-owned OSV

operators laying up their vessels, some of which

were eventually offered for sale. Swissco took

the opportunity to purchase its first steel boat,

an OSV, at just US$500,000. The chief executive

of Swissco, Alex Yeo, told Singapore Solutions:

“We spent another US$500,000 to fix her up and

eventually bought a second unit.”

The first OSVs in Swissco’s fleet were initially

deployed for supply runs, but as the regional oil

and gas industry rebounded, the outfit was

called on to transport drill pipes to offshore rigs.

The family behind Swissco are among

the entrepreneurs to have benefited from

Singapore’s rise as a modern shipping and

offshore marine hub, while others, including

some stevedore owners, exited the business.

Swissco has, nonetheless, diverged from

the typical growth path taken by other

prominent OSV players in Singapore. Mr Yeo

explained that the business had refrained from

entering into direct competition with some of

Swissco’s key clients, typically engineering,

procurement, installation and commissioning

(EPIC) players such as Saipem and McDermott

International. While others attempted to move

up the value chain by branching into EPIC,

Swissco decided to do the direct opposite.

It sold down its shares in Swiber, formerly

Swissco Berjaya, which ventured into the

offshore construction business.

Set up initially in Indonesia, Swissco Berjaya

was drawing charter revenues from exploration

drilling activity, which experienced a slowdown

following the collapse of the Suharto regime

there. Swissco Berjaya reinvented itself by going

into the offshore construction business under

the leadership of Raymond Goh.

Today, Swissco owns a small interest in Swiber

and Mr Yeo has taken the company set up by his

Nitish Gupta: Swiber’s deepwater newbuild is a high specification vessel for multiple installations

Alex Yeo: Swissco is diversifying into the liftboat business


father down a very different growth path.

In July 2014 the company shareholders

endorsed the acquisition of Scott & English,

a mobile offshore drilling unit owner and

operator. Through Scott & English, Swissco

owns and operates seven 250ft jack-up drilling

units. Three such rigs had been working on

multi-year charters in the shallow waters off

Mexico, while two others are being converted

into accommodation units.

Mr Yeo views the nearshore waters of Mexico

as a segment in which the jack-up rigs will thrive

as more modern rigs will find it a challenge

to compete on the same operating day rates.

Furthermore, investors have stayed away from

rigs of these specifications, which has translated

to limited options for any field operators.

Swissco is not going to renew its fleet of

250ft jack-ups, but Mr Yeo does not rule out

opportunistic acquisition of distressed 350ft

newbuild jack-ups in the market. “We are better

off to sit for a while and wait for speculative

opportunities to come to a stage when we can

take a second look at and buy from the market,”

Mr Yeo told Singapore Solutions. “Swissco intends

to expand its offshore drilling business in

Mexico, where our current clientele is.”

Under Mr Yeo’s leadership, Swissco has

also entered liftboat and accommodation

jack-up businesses. In partnership with Ezion

Holdings, Swissco owns four jack-ups – one

accommodation unit and three drilling units.

In addition to the accommodation jack-up

business Mr Yeo believes emerging demand for

maintenance of ageing offshore infrastructure

across Southeast Asia will support Swissco’s

diversification into the liftboat business. Swissco

has placed a newbuild order with Triyards for a

liftboat to be delivered in 2016.

The offshore marine asset class is gaining

traction with national oil companies in

Southeast Asia that are seeking cost effective

solutions to meet the maintenance requirements

of shallow water platforms, particularly off

Brunei and Sarawak, that are approaching 40 to

50 years of age.

Swissco also enjoys an advantage of having

aligned with Ezion, which was an early entrant

into the liftboat business in Southeast Asia.

Swissco remains committed to growing

its OSV fleet while acquiring new business

interests. It has 10 newbuild OSVs lined up

for delivery – four 80–90 tonne bollard pull

anchor handler tug supply (AHTS) vessels, plus

accommodation workboats and crewboats. The

Singapore-listed OSV player has also bought a

one-year-old remotely operated vehicle (ROV)

support and survey vessel previously owned

by Harkand. The ROV support vessel will be

Singapore-listed Vallianz Holdings doubled

its fleet size from 26 to 55 offshore support

vessels (OSVs) in 2014 by acquiring

significant interests in Indonesia-based

PT Swiber Berjaya. The acquisition of a 49

per cent stake in the Indonesian company

previously owned by its sister company,

Swiber Offshore, added 18 Indonesia-

flagged OSVs to Vallianz’s fleet.

This was followed by another acquisition

of a 45 per cent stake in Holmen Heavylift

Offshore, which gives Vallianz access to

three semi-submersible launch barges.

Vallianz has already absorbed 21

vessels from Swiber Offshore’s fleet by

taking over a 50 per cent stake in an

OSV joint venture with Saudi Arabia-based

Rawabi Holding. The transfer of interests

in Rawabi and Swiber Berjaya gives

Vallianz a significant presence in Saudi

Arabia and Indonesia.

Vallianz’s chief executive Darren Yeo

touted the joint venture with Rawabi

Holding as the second largest OSV player

directly chartering to Saudi Aramco. The

leading OSV player in Saudi Arabia had on

order a series of shallow water draught

anchor handling tugs specifically for the

Middle East. In December, it unveiled a five-

year charter on a specialised vessel with a

Middle East national oil company, bringing

its vessel count in the region to 23 units

from the third quarter of 2015.

By November 2014, Saudi Arabia

accounted for 70 per cent of Vallianz’s

income. But this is set to change with

the acquisition of Swiber Berjaya and

its conscious efforts in broadening its

footprint to new markets in Latin America

and West Africa.

Offshore Mexico, Vallianz clinched its

first stand-alone OSV charter last year from

Pemex. It had already accumulated years of

in-country experience supporting Swiber

Offshore’s engineering, procurement,

installation and commissioning (EPIC)

activities.

The 3,000 dwt DP2 platform supply

vessel Rawabi-19 underwent modification

before starting a two-year charter with

Pemex transporting mud for production

platforms from the first quarter of

2015. Under Mexico’s current maritime

regulations Rawabi-19 will need to be

reflagged under the local registry after two

years of in-country operations.

Vallianz has six Mexican-flagged

vessels under its operating fleet, including

two pipelayers, Aziz and Swiber Concorde.

Vallianz intends to focus on further well

intervention support contracts off Mexico,

with a view of expanding its in-country fleet

to between 10 and 20 vessels, according to

Mr Yeo. In addition to Mexico, he is looking

at growth opportunities in Colombia,

Venezuela and Argentina.

Vallianz is operating a 10,800 bhp

anchor handler tug supply (AHTS) vessel

and several flat top barges in support

of derrick barge Swiber PJW-3000s

offshore construction campaign at

the Total-operated Vega Pleyade field

offshore Argentina under an EPIC contract

awarded to Swiber Offshore which is due

for completion during the second or third

quarter of 2015.

Vallianz goes offshore Mexico

Vallianz has a joint venture with Saudi Arabian company Rawabi


offshore owners

targeted for light inspection, maintenance and

repairs jobs.

Swissco also provides shiprepair services

for OSVs at its two yards at Penjuru. Mr Yeo

observed, however, that the share of shiprepair

revenue has diminished over the years. Swissco’s

marine assets now fetch up to US$100,000 for

jack-up drilling units, considerably more than

the US$800 per trip for each supply run back in

the 1970s.

SPO completes PSV seriesSwire Pacific Offshore (SPO) has completed

the delivery of a series of four L Class platform

supply vessels (PSVs). The fourth and final

vessel in the series, Pacific Liberty, was named in

early February at the builder Maizuru Shipyard

of Japan Marine United Corp.

SPO managing director Neil Glenn said: “The

naming of Pacific Liberty marks the completion

of our successful partnership with JMU for

the L Class series, our new generation of large

PSV vessels. This fuel efficient and technically

advanced vessel will join her sisters, Pacific Leader,

Pacific Legacy and Pacific Legend, in providing safe,

reliable and high quality services to our clients

around the world.”

The first vessel, Pacific Leader was delivered in

April 2014, followed by Pacific Legacy in August

2014 and Pacific Legend in September 2014.

The 5,252 dwt Pacific Liberty is designed

with deepwater operations in mind meeting

the DP2 requirements. The vessel has a large

cargo carrying capacity and bulk cargo system

and features fuel-efficient propulsion pods and

a four-engine diesel electric power plant. The

propulsion system uses a computerised power

management system that can be programmed

to ensure optimisation of the diesel engine load

and fuel consumption.

The bulbous bow design takes into

consideration varying operating speed,

draughts and sea states. The main deck has

a clear deck space of 912m3. The Cargomaxx

bulk system uses a pressure vacuum system to

load and unload the cargo and has a product

weighing system to accurately measure a

product delivered as an individual parcel or as

an aggregated amount over a period of time,

allowing dry and wet bulk cargoes to be carried

in five separate tanks.

SPO, which is part of the Swire Pacific Group

and has been in Singapore since 1975, operates

a diverse fleet of 90 offshore support vessels,

including anchor handling tug supply vessels,

PSVs, ice-breaking supply vessels, seismic

survey vessels, windfarm installation vessels,

accommodation barges and multipurpose

vessels. SS

UK-based Bibby Ship Management

operates about 13 vessels in Singapore

including its specialism, LPG and

chemical tankers.

Another group company Bibby Offshore

has a separate office in Singapore which

focuses on managing offshore support

vessels (OSVs). “We are looking to expand

the offshore sector in particular, including

for owners in China,” Arvind Mohan,

managing director in Singapore, told

Singapore Solutions.

“The Singapore set-up has been geared

for shipmanagement activities including

technical management and associated

services such as newbuilding supervision,

inspections, technical and consultancy

services, among others. Our objective is

to become a leading specialist marine

services business, providing a full suite of

services to operators of all vessel types

serving the global offshore and related oil

and gas industry while at the same time

maintaining activity in other niche sectors

and markets such as wind, roro, tankers

container and dry bulk which continue to

present opportunities similar to and in line

with our offshore strategy.

“Bibby Ship Management has

reference customers and demonstrable

expertise for large oil majors and subsea

engineering customers, particularly in the

North Sea and the Asian region. Our

experience as both an offshore owner and

manager means that we understand both

sides of running vessels. This first-hand

knowledge is why we are perfectly placed

in the offshore industry as well as other

shipping sectors.”

Mr Mohan said: “Bibby Ship

Management (Singapore) currently

manages a variety of offshore vessels,

including platform supply vessels (PSVs),

dive support vessels (DSVs), anchor

handler tug supply (AHTS) vessels and a

floating production storage and offloading

vessel (FPSO), tankers, and the dry bulk

sector. We continue to partner and work

with strategic partners in the region in

order to make our business and our

presence in Asia a success.

“As part of our offshore strategy we

recently entered into a new joint venture

with United Ship Management (USM).

Bibby-USM Shipping is managed out of

Singapore. USM has its roots and holds

relationships in the Chinese markets

and with Bibby Ship Management’s

expertise. Our focus has been in

developing relationships in these

markets for specific vessels segments

through this venture. In addition, we are

working on exploring training avenues

through our offshore training centres

in India and expanding this reach and

expertise to our countries within the

Asia Pacific region.

Bibby Ship Management (Singapore)

recently secured two significant contracts.

One is to act as technical and crewing

manager for FPSO OSX 2, with project

managers Technomar & Associates. The

second contract is with Samson Global

to manage two PSVs, one of which is the

newbuild Ocean Turquoise 1.

Mr Mohan said: “It is a great privilege

to have partnered with Tecnomar &

Associates and Samson Global, both

of whom are leading players in the

offshore industry.”

Arvind Mohan (Bibby Ship Management Singapore): We currently manage a variety of offshore vessels

Bibby grows OSV management


KC 190x130 Adv Mar15 3/16/15 10:10 AM Page 1

hph_ad_template.indd 1 02/02/2015 09:35


C J D’Cort is not afraid of owning

up to often playing the typically

confident but dominant and

assertive Dutch man.

For the chief executive of Emas AMC these

essential traits are crucial to the make-up of

an offshore mindset, which is embodied in the

pioneering feats of two industry giants, the

controversial figure of Pieter Schelte Heerema

and his son, Edward, with whom Mr D’Cort

spent time during the early years of his

offshore career.

At Emas AMC, Mr D’Cort is able to combine

these traits with what he describes as the

resilient and entrepreneurial Singaporean

spirit, to stand among the first offshore marine

players in Asia to have established a global

operational footprint.

He joined Emas AMC from SapuraAcergy,

the deepwater joint venture between Malaysia’s

SapuraCrest and Acergy before the latter’s

merger with Subsea 7.

At SapuraAcergy, where he was chief

executive, he was very involved in the design

and building of deepwater pipelay vessel Sapura

3000, SapuraCrest’s first deepwater vessel.

His first years at Emas AMC were mostly

devoted to the project management of the

construction of Lewek Constellation, the key to

Emas AMC’s deepwater ambition.

While Sapura 3000 has been designated

primarily for work in Asia Pacific, Mr D’Cort

says that Lewek Constellation is intended from

day one for global operations.

The merger between Emas Offshore and

Aker Marine Contractors back in 2001 was

also intended to support the global ambition

and the marketing of Lewek Constellation. He

views the merger as an entrepreneurial move,

as was the decision to build the vessel at

Triyards in Vietnam.

Triyards, the yard operating arm of Emas

AMC’s parent company Ezra Holdings, had

no experience in building such a complex

vessel before.

Both the choice of yard and the merger

raised several eyebrows within the offshore

marine industry.

Emas Offshore was pursuing a Norwegian

outfit with twice the operating history in the

offshore marine sector.

Later Mr D’Cort acknowledged the

sceptics’ point of view, but he argued that

the merger is the only way into the high end

market for Emas.

He credits Emas for taking advantage of a

very short window of opportunity offered by an

unprecedented consolidation.

Through the merger with AMC, Emas

Offshore has been able to position itself

on the global stage alongside others that

survived the consolidation, such as Subsea

7, Technip, Saipem, Heerema Marine

Contractors and Allseas.

By merging with AMC, Emas instantly

widened its global footprint and acquired

a team with understanding of the offshore

marine business in the western hemisphere.

The global footprint is also necessary to support

the cost of operating a complex vessel such as

Lewek Constellation, he added.

“With Lewek Constellation, the established

players did not accept the vessel was being

built in-house, in a Vietnamese yard, but Emas

AMC stayed the course and did not blink.”

The company, with support from its

experienced project management team attached

on site at Triyards, was able to take delivery of

the deepwater, multilay vessel within schedule,

Mr D’Cort declared.

Lewek Constellation went on to defy its

critics further by delivering its first offshore

construction contract on time off Gabon. The

contract, with US-based Noble Energy, was

the result of goodwill built up through a

legacy project Emas AMC inherited from the

acquisition of AMC.

Emas AMC had to deliver two 160km-long

umbilicals as the final milestone. The project,

which was managed out of Houston, was

completed on schedule. Emas AMC was

subsequently awarded three contracts with

Noble in the Gulf of Mexico, tied to the Big

Bend, Dantzler and Gunflint field developments.

“We never gave in to the difficulties we were

facing: I told the team not delivering is not an

option”, Mr D’Cort said.

More recently, he led his team to clinching

the first offshore installation contract for Lewek

Constellation closer to the Singapore base of

Emas AMC.

The contract with Apache Corp, which

operates the Julimar development project, is

scheduled to begin in the first quarter of 2016.

Having laid the first steps to an international

deepwater business for Emas AMC, Mr D’Cort

said that the next challenge going forward is

to bring the three teams in Singapore, Houston

and Oslo together.

“It takes processes to break down the

resistance, to introduce the software of the

business across three regional offices of close

to 1,000 people. The truly seamless Emas AMC

will emerge in the next two to three years,” Mr

D’Cort said. SS

Emas chief executive leads the line

CJ D’Cort has brought his entrepreneurial spirit to Emas AMC as it has broken new ground in OSV projects

CJ D’Cort is chief executive of Emas AMC

offshore


Emas Offshore Ltd, formerly Oslo-

listed EOC, went for a secondary

listing on the Singapore stock

exchange last year, as it focuses on expanding

its share of revenue from the offshore support

and accommodation segment.

In 2014 its parent company, Ezra Holdings,

announced the consolidation of its offshore

support and floating production business

under one subsidiary, together with the

renaming of EOC as Emas Offshore.

Emas Offshore’s chief executive Jon

Dunstan said that because Singapore has

an investor population that is familiar with

the offshore support business, it is a natural

choice for a secondary listing, just as the Oslo

stock exchange was the logical place to raise

funds in 2007 for EOC which at the time was

focused on floating production.

The transformation of Emas Offshore is also

reflected in the composition of its 51-strong

fleet, which now includes 28 offshore support

vessels (OSVs), five offshore accommodation

vessels (OAVs) and two floating production,

storage and offloading vessels (FPSOs).

FPSOs will no longer anchor Emas

Offshore’s business. Mr Dunstan said that he

does not wish to add any more FPSOs to its

fleet, but will look into “engineering, project

management and construction supervision for

production floaters”.

Ezra Holdings is providing the engineering,

procurement and construction (EPC) of

mooring systems through its subsidiary,

London Marine Contractors (LMC).

In January, LMC won a subcontract from

Sembcorp Marine’s Jurong Shipyard for the

EPC of an external turret to be installed

on board a leased FPSO owned by Brazil’s

Odebrecht Oil & Gas and Teekay Corp.

LMC will design the mooring lines, analyse

the risers and provide engineering support for

the integration of the turret and swivel stack

on the FPSO, which is undergoing conversion

from the Navion Norveiga shuttle tanker at

Jurong Shipyard. The FPSO will go on charter in

the Libra field off Brazil.

Mr Dunstan said, however, that Emas

Offshore will consider redeploying the two

FPSOs Lewek Arunothai and Lewek Emas after

the existing contracts run their course.

Mr Dunstan, who joined the Singapore-

based Emas Offshore from LMC, feels that the

expertise and culture acquired from executing

FPSO projects could be used to extend

Emas Offshore’s presence in the offshore

accommodation sector.

A large number of OAVs are active in

providing production support. As well as being

less exposed to fluctuations in exploration

and production spend, given they tend to be

contracted on a longer term for committed

field developments, these marine assets are

also not as commoditised as OSVs.

OAVs are widely used for hook-up

operations, which involve crane support

and light fabrication work that will call on

project management and safety protocols, Mr

Dunstan explained.

He was quick to point out that Emas Offshore

has already accumulated seven to eight years of

track record in operating OAVs, even though

this experience may have taken a back seat

compared with floating production projects.

Emas Offshore has three OAVs in

operation. The 500-person Lewek Crusader

has two standing long-term charters for

construction support for FPSO projects. The

300-person Lewek Chancellor is on contract off

Congo and the 300-person Lewek Conqueror is

serving a long-term charter off Brunei.

In 2016, two monohull DP3 300-person

accommodation vessels commissioned to

Xiamen Shipyard in China will join its operating

fleet. The newbuild contract with Xiamen

includes an option for two further vessels.

Mr Dunstan considers the dynamic

positioning vessels as well suited for work in

the mature hydrocarbon basins off Southeast

Asia. “Having a DP3 vessel is quite an

advantage when navigating through a seabed

filled with pipelines in Brunei,” he said. The

newbuild vessels, however, would also be

considered for contract opportunities in Asia

Emas Offshore boosts OAV sector

The recently created Emas Offshore emerged from the consolidation of two Ezra Holdings businesses

The OAV Lewek Conqueror is operating offshore Brunei


offshore

Oilfield services company Marine

Delivery (MDPL) was start-up in

Singapore in 2007. It began operations

in 2008 as a chartering company and

carried out more than 40 fixtures in its

first year.

“The oil price fluctuation is not a big

deal. We take a step-by-step approach

so we are not scared by the oil price

drop,” said chief executive Amandeep

Singh. “In fact the oil price fall will help

companies like us. There has been a

systematic failure of the oil support

industry, with a lot of speculators.

Oil companies have been exposed in

the last five years to various types

of offshore support vessels (OSVs),

and now the market is becoming more

specialised. Oil majors are becoming

more selective as to which vessels they

hire so they are looking at the specs for

each vessel. This means owners must

look for an asset that can deliver value.

Our strategy is to provide an advantage

over our competitors.”

Over the last two years MDPL

has been designing new vessels in

collaboration with engine manufacturer

Caterpillar for propulsion systems. “We

have made modifications to existing

models to provide added value to

oil majors. A crucial factor in oilfield

operations is safety, so we added

modules to the platform supply vessel

(PSV) design so that it also becomes

a lifesaving boat. We will keep these

aspects in our new design,” Capt Singh

told Singapore Solutions.

“Oil companies want more efficiency

and flexibility but with no increase in

capex. The downturn is focusing minds

in order to survive in a tough market.

We are focused on meeting oil major

requirements and not cutting corners

and costs. We are not getting involved in

any speculative contracts.”

Last year MDPL had eight vessels in

service before selling three of them to

cash out. It has been particularly active

in Africa supported by CS Offshore,

operating in West Africa with offices in

Lagos and Port Harcourt in Nigeria.

CS Offshore and MDPL have common

shareholders so are associated

companies but have separate operations.

MDPL is an owner but does not operate

vessels itself. MDPL vessels are

operated by CS Offshore in West Africa

but CS Offshore also operates vessels

from other owners.

MDPL has recently endorsed two

multi purpose PSVs, MDPL Randeep

and MDPL Anjali, delivered in 2014. Both

4,000 dwt vessels are operating for CS

Offshore in West Africa.

MDPL also has a company in Malaysia,

MDPL Offshore, and has recently

registered a new company in Dubai.

“Singapore is a key hub for the

offshore sector in the region as it is close

to offshore activity and local owners

do not enjoy and cabotage benefits.

But using the Singapore flag is difficult

for OSVs because it limits operational

flexibility, due to cabotage restrictions

in most countries,” Capt Singh said. “We

are looking to expand in Africa, including

Angola and East Africa and are also

looking at joint-venture partnerships in

countries where we operate.

“We are now looking at various

techniques to gain a competitive

advantage such as energy efficiency,

safety and meeting cabotage rules. So we

need to build vessels that can offer added

value to oil companies and are different

from standard designs. We are looking

at new technologies such as hybrid, gas

propulsion and green technology.

“For a relatively new company like

ours there is the added challenge of

proving credentials. Competing on price

is not an answer so we have to offer

added value to the charterer. The low oil

price will get rid of some excess tonnage

if it remains low for some time, and there

will be a lot of changes in the offshore

industry as a result.

MDPL is working with vessel designers

and OEMs such as Caterpillar on new OSV

designs with enhanced features, meeting

oil companies’ requirements. These are

ordinary boats that have been reconfigured

to the advantage of oil companies.

MDPL also owns anchor handling tug

supply (AHTS) vessels, harbour tugs and

an accommodation and heavy-lift barge.

Marine Delivery meets oilfield needs

Pacific, India and West Africa.

“We hope to have 10 OAVs in the next

three years,” Mr Dunstan said of the fleet

building plan.

As Emas Offshore looks forward to revenue

expansion in the OAV segment, the outlook of its

OSV business remains hazy amid an environment

of unfavourable oil price movements and

developing supply glut, as new tonnage looks set

to flood the market in the next few years.

Mr Dunstan acknowledged competition has

increased even as tendering volume slows. But

he maintained that Emas Offshore is in a good

position to hold out through the downturn with

over 50 per cent of its fleet on long-term charters.

Deepwater anchor handling tug supply

(AHTS) vessels of 10,000 bhp and above,

which attract long-term charters, make up

a significant percentage of Emas Offshore’s

operating fleet, he added.

The company is on track to expand its

presence in the deepwater basins off West

Africa, having gained access to facilities and

resources through local partners in Nigeria,

Angola, Ghana and Congo. Mr Dunstan

is also looking at tender opportunities for

construction support and survey work in the

emerging East Africa hydrocarbon provinces.

Being based out of Singapore, along

with its parent company Ezra Holdings, Mr

Dunstan said that Ezra Offshore enjoys access

to infrastructure and expertise that are built

around the shipbuilding and shiprepair industry

there. These will carry Emas Offshore towards

increasing significance in the offshore marine

industry, he suggested. SS

Amandeep Singh (MDPL): We will launch a new design later this year


shipyards

S ingapore does not produce any oil

and gas of its own and is limited by

the availability of land and labour.

But Singapore’s leading yard operators, Keppel

Offshore & Marine (O&M) and Sembcorp

Marine, have been able to hold their ground

against competitors in the world’s top

shipbuilding nations, China and South Korea

– not least because they have been extending

their operational bases beyond the shores of the

country in which they are based.

Keppel (O&M) and Sembcorp Marine had

already established a presence in China long

before China ventured into offshore marine

manufacturing and supply.

Keppel operates a shipyard in Nantong

for constructing offshore support vessels

(OSVs) and tugs, and has an offshore marine

engineering unit in Shenzhen. Sembcorp

Marine owns significant interests in Cosco

Shipyard Group Co and is affiliated to

Shenzhen Chiwan Sembawang Engineering

Co. The two yard operators also have extensive

operational footprints in other lower cost

Southeast Asian countries including Indonesia

and the Philippines.

Investments in their overseas yard

developments are not just driven by cost

considerations, but are motivated by market

requirements. Adopting a near market, near

customer strategy, Keppel has extended its

market reach by setting up facilities in some of

the world’s most active hydrocarbon-producing

provinces in the Gulf of Mexico, Brazil, North

Sea, the Caspian region and Qatar.

In the United Arab Emirates, Keppel has an

interest in shiprepair and shipbuilding yard,

Arab Heavy Industries. As Singapore Solutions

is going to press, Keppel is looking to finalise

a yard collaboration deal with Mexico’s state-

owned Pemex.

Ever since its incorporation in 2001 as the

umbrella entity for established yards Jurong,

SMOE, Sembawang Shipyard, PPL Shipyard and

Jurong SML – Sembcorp Marine has established

yards in four overseas bases in addition to China

– Sabine Pass in Texas, US, Kakinada in India,

Aracruz in Brazil and Lowestoft in the UK.

Sembcorp Marine also has a standing

memorandum of understanding with Saudi

Arabia to carry out feasibility studies on yard

development in the world’s top petroleum-

producing country.

Investments in yard developments have

enhanced Keppel’s and Sembcorp Marine’s

Shipbuilders in Singapore have had to adapt to changing demand and react to competitive pressures


Keppel has a full orderbook for 2015


standing in key hydrocarbon-producing

countries keen to develop local offshore marine

industries. With resource nationalism on the

rise particularly in emerging economies such

as Brazil, Mexico and Indonesia, Keppel and

Sembcorp Marine are better placed through

their local yard presence to meet increasing local

content requirements.

Such overseas investments carry certain

country risks: Keppel and Sembcorp Marine

were recently subjected to scrutiny from ongoing

anti-corruption probes against Petrobras

senior executives in Brazil. Both Singapore

yard operators have denied any wrongdoing,

but against a backdrop of volatile oil price

movements, the fallout in Brazil is far from over.

As Singapore Solutions goes to press Sembcorp

Marine was reportedly in talks with rig-leasing

unit, Sete Brasil over delayed payments totalling

S$59 million on a contract for seven drillships to

be built in Brazil.

Sete Brasil has also missed payments to

another Brazilian yard operator, Estaleiro

Atlantico Sul, which has in turn terminated its

US$6 billion drillship construction deal with the

rig-leasing unit.

Keppel said that its subsidiary Keppel FELS

Brasil (BrasFELS) has received significant

milestone payments equivalent to 85 per cent,

50 per cent and 25 per cent of contract value

for the first three of six semi-submersibles

being built for Sete Brasil. “Although there

may be some delays in further payments, it is

unlikely that Sete Brasil will cancel their projects

with Keppel considering the significant progress

achieved on the construction of these rigs,” the

yard operator said in a statement.

Amid the upheavals in Brazil, Sembcorp

Marine’s chief executive, Wong Weng Sun had

maintained the Estaleiro Jurong Aracruz yard in

Brazil remains on track to begin operations by

the end of 2015.

As of February, Sete Brasil was reported

to be arranging a long-term credit line with

the Brazilian Development Bank and trying to

obtain new lines of short-term financing.

Keppel first set up shop there through a joint

venture, FELS Setal. The joint venture took over

the 36-hectare Verolme yard in Angra dos Reis.

It had already acquired another 5 hectares of

land for a smaller module construction facility,

the Niteroi yard in Rio de Janeiro.

The big fall in oil prices from the second half

of 2014 shook up the market valuations of listed

offshore marine players, including the shipyards

that rely heavily on offshore work.

Keppel (O&M) and Sembcorp Marine, which

had once been considered safe havens for

investors, took some of the biggest hits on the

stock market, but their share prices appeared to

have held up to a certain degree against selling

pressure in recent times.

The sell-off triggered by unfavourable oil

price movements is in fact a reminder of how

far Singapore-based maritime and yard players

have progressed up the value chain since the

early days of independence.

Singapore-based yard operators have

made significant advances. Rig-building

contracts account for the bulk of Keppel

O&M and Sembcorp Marine’s outstanding

orderbooks, a far cry from the 1960s when

the yard players relied on shiprepair jobs as

their main revenue source.

The last 50 years have witnessed Keppel

O&M’s and Sembcorp Marine’s meteoric rise to

be among the leading yards not just for newbuild

rigs but also conversions of floating production,

storage and offloading (FPSO) vessels.

As of March 2015, the Singapore-based

rig-building unit of Keppel O&M, had already

delivered 101 rigs, including 58 built to its

KFELS B Class design. Under the leadership

of the previous chief executive, Tong Chong

Heong, Keppel O&M gained a Guinness

World Record as the largest manufacturer

of offshore rigs, having delivered 21 rigs

during 2013.

Sembcorp Marine’s proprietary PPL Pacific

Class design jack-up has also established a

dominant global footprint. Some 38 out of 73

rigs delivered from PPL Shipyard were built to

PPL Pacific Class designs as of early 2015.

Keppel O&M and Sembcorp Marine

accounted for 70 per cent of floating production,

storage and offloading vessel conversions as

of 2011, according to data released by the

government of Singapore, although global FPSO

conversion volume has seen a decline in recent

years on delayed tenders and final investment

decisions by field operators.

In the 1970s and 1980s, Keppel and then

Promet Berhard’s (now Sembcorp Marine’s)

Chow Yew Yuen (Keppel O&M): Less than 20 per cent of the jack-up rigs on the order backlog are without charter contracts

PPL Shipyard is busy with work


shipyards

PPL Shipyard ventured into rig building. When

Keppel O&M and Sembcorp Marine took on

their first FPSO conversion projects, the two

yard groups had already been involved in

converting and jumboising commercial vessels.

One industry veteran commented that Keppel

O&M and Sembcorp Marine’s breakthroughs

into the offshore marine would not have been

possible without having first stablished strong

foundations in undertaking shiprepair work.

Unlike the assembly line shipbuilding

culture dominant in South Korea and China,

Singapore-based yard operators acquired

project management skills from taking on ad

hoc shiprepair jobs that are applicable also to

handling offshore marine construction work.

Buoyant shiprepair activity in Singapore

stemming from during the early independence

days had also allowed the two leading yard

groups to build the required cash reserves and

core labour force required for reinvestment to

upgrade their capabilities.

By the mid 1970s, the shiprepair industry

of Singapore had a turnover in excess of S$700

million with over 18,000 workers on its payroll.

Singapore was also emerging as an oil-

refining hub, and this, together with its strategic

position on the Far East trade and tanker routes,

translated to an increasing volume of vessels

stopping over for repairs and maintenance.

For the financial year of 2014, rig building,

offshore and conversion contributed over 70 per

cent of Sembcorp Marine’s turnover compared

with 11 per cent from shiprepair.

Against the backdrop of reduced rig

contracting activity on the back of sub-US$70 oil

prices, analysts raised questions about potential

cancellations of rig-building orders. Keppel Corp

chief executive Loh Chin Hua responded that

the rig builder has been very disciplined and its

orderbook is of the highest quality.

Keppel O&M chief executive Chow Yew Yuen

said less than 20 per cent of the jack-up rigs on

the order backlog are without charter contracts

and with the exception of the Can Do drillship,

the rest of the orders are contracted.

Sembcorp Marine’s 2014 financial results

acknowledged weaker demand in the offshore

rig-building segment but looked to offsetting

the impact from continued demand for repair,

upgrading and life-extension work on offshore

vessels, LNG carriers and cruise ships.

Mr Chow echoed a similar sentiment in

a press interview earlier this year when he

highlighted the two floating liquefied natural

gas (FLNG) conversion contracts valued at over

US$1.4 billion on Keppel Shipyard’s orderbook

as a cushion against any slowdown in rig

building or FPSO conversion activity. The US$1.4

billion contract secured from Golar LNG could

also potentially mark the world’s first pair of

converted FLNG vessels. He also believes lower

bunker fuel costs translating to better margins for

shipping companies could stimulate demand for

shiprepairs and upgrading.

Both Keppel O&M and Sembcorp Marine

are covered at least through 2015 by their

order backlogs. As of February 2015, Sembcorp

Marine said it has 10 rigs under work in progress

or planning phase. Mr Chow said that Keppel

O&M’s orderbook will be full through 2015 and

over 80 per cent and 60 per cent, respectively, in

2016 and 2017.

However, Keppel O&M and Sembcorp

Marine remain exposed to the risks of deferred

deliveries, with Transocean having indicated in

its February 2015 fleet status report that the

delivery of the first of five jack-ups placed with

Keppel in November 2013 will be postponed by

six months to the third quarter of 2016. Keppel

O&M said its impact will not be significant

and would give the yard some space between

projects given that 15 newbuild projects are to

be delivered this year. SS

Sembmarine Integrated Yard set for operationsBy the third quarter of this year, the

second phase of Sembmarine Integrated

Yard at Tuas is scheduled to enter

into operations. Sembcorp Marine

is developing the integrated yard

development, taking place in stages over

three to four years, on 206 hectares of

land at the western tip of Singapore.

Singapore Solutions understands

that the integrated yard was originally

mooted as part of the proposed merger

between Sembcorp Marine and its rival,

Keppel (O&M). Sembcorp Marine carried

on with yard development after the

merger fell through.

In 2014, Sembcorp Marine unveiled a

S$222 million investment in the second

phase of the yard’s development, which

will see the construction of three further

drydocks and a multifunctional steel-

fabrication facility. The yard operator

cited robust demand for the four very

large crude carrier (VLCC) drydocks

under the first development phase as

the basis for the investment in additional

drydocking capacity.

Jurong Shipyard is understood to have

already commenced shiprepairs at the

integrated yard. Industry sources said the

current plan on the table is for Jurong SML

and Sembawang Shipyard to move into the

new yard location first, while PPL Shipyard

and SMOE will follow at a later stage.

The Sembmarine Integrated Yard at Tuas

Contact us today for more information: Arvind Mohan | Managing DirectorT: +65 6436 3660 E: [email protected] www.bibbyshipmanagement.com/SS

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Your Maritime Partner

Our experience as both an offshore owner and manager means that we understand the commercial pressures, technical issues and crewing challenges of running vessels. This first-hand knowledge is why we are perfectly placed to be your partner in the maritime industry. This is further demonstrated through a strong heritage and expertise in shipping spanning over 200 years.


S ingapore-based shiprepair yard

operators remain confident the

shiprepair expertise built up in the

industry and operating out of one of the world’s

busiest ports mean that they will benefit from a

surge in shiprepair activity for commercial vessels

and offshore support vessels (OSVs).

With no sign of a significant recovery in the

oil price at the start of 2015, many shipowners,

particularly those exposed to the offshore

marine sector, have put their newbuilding

investments on hold, with some indicating

delays of at least six months. Conversions of

tankers into floating production, storage and

offloading (FPSO) vessels have also slowed

on delayed final investment decisions for oil

and gas developments, such as Maersk Oil’s

Chissonga project off Angola.

In contrast, tanker operators are among the

top beneficiaries of recent trends, registering

a surge in their operating day rates as traders

snapped up floating storage to hold inventories

for better crude prices in the future.

Keppel Offshore & Marine’s chief executive

Chow Yew Yuen said in a recent media interview,

that lower bunker fuel costs were providing for

better operating margins for vessel operators,

which will in turn support an increase in tanker

repair activity. Other yard operator executives

such as ASL Marine’s executive director Ang

Kok Leong, have warned that the increase in

tanker repair activity stemming from a contango

oil market (where the current oil price is lower

than prices for future delivery) could be a short-

term phenomenon if low oil prices persist.

Meanwhile, leading yard operators have

reported an increasing number of enquiries

from tanker operators for shiprepair services,

a senior yard executive told Singapore Solutions.

This corresponds with an increasing number of

tankers and gas carriers calling at Singapore.

The Maritime and Port Authority of Singapore

(MPA) has played a key role as a one-stop clearing

house for vessels, offering clear guidelines on the

procedures and tariffs for vessel owners that

translate to reduced red tape when compared

with neighbouring Indonesia’s main centre for

shiprepair yards, Batam.

Foreign vessel owners, nonetheless, are

offered free entry to Batam, which puts the

Indonesian island city in a good position to

benefit from any spillover in shiprepair activity

from Singapore. Its proximity to Singapore

translates to investment in Batam’s shipbuilding

and shiprepair industry. Singapore-based yard

operators such as ASL Marine and Paxocean

have set up facilities there.

Singapore also enjoys the competitive edge

of having a well developed network of stockists

offering a wide range of equipment that is not

easily accessible in Batam and even China,

where major equipment providers have set up

manufacturing bases.

Unlike in Singapore, yard operators complain

that manufacturing centres or stockists in

China are generally not located centrally around

shipbuilding or shiprepair centres, meaning

equipment often takes days to arrive.

Similarly, in Batam, even if yard operators

such as ASL Marine have taken to stocking up

on spares to facilitate their shiprepair business,

additional days have to be factored in when

equipment has to be sourced from Singapore.

There are a lot of stockists offering very good

prices and it is rare not to find equipment in

Singapore, according to ASL Marine’s Mr Ang.

Operating out of Batam does, however, provide

ASL access to lower prices. According to Mr Ang’s

estimate, labour costs in Indonesia are at least

15 per cent lower than in Singapore, although

some owners still prefer Singapore over Batam for

drydocking their vessels.

The limited amount of seafront area now

available for yard developments in Singapore is

another reason why ASL and Paxocean are among

the yard operators to have established shiprepair

facilities in Batam. ASL can accommodate tankers

up to Aframax size in its Batam yard, while

Paxocean offers drydocking capacity for up to

four Panamax-sized vessels.

Mr Ang said that competition among yard

operators for shiprepair is restricted to a certain

extent by their drydocking capacities.

The two largest shipyard groups in

Singapore, Keppel Shipyard and Sembcorp

Marine, could be tempted to go for larger

vessel repair jobs to fill their bigger drydocks

during a slowdown in newbuilding activity. But

it remains to be seen if this approach could be

Shiprepair yard operators hope to benefit from lower oil prices as owners look to repair vessels rather than opt for newbuild orders

Shiprepairers confident of new business

shiprepair

ASL Marine has established shiprepair facilities in Batam


sustained for any great length of time.

Keppel Shipyard and Sembcorp Marine’s

Jurong Shipyard are the only yard operators in

Singapore capable of drydocking very large crude

carriers (VLCCs).

Keppel’s combined yards in Tuas, Benoi and

Gul are capable of offering repair and conversion of

small and medium-sized vessels up to larger tankers,

LNG carriers, livestock carriers, drilling tenders and

derrick lay barges. Its three biggest drydocks – Tuas,

Raffles and Temasek – have capacity for vessels

between 150,000 dwt and 360,000 dwt.

Jurong Shipyard operates four drydocks

totalling 1.1 million dwt capacity, with the

largest able to accommodate vessels up to

500,000 dwt. This facility was developed in

anticipation of what in the 1970s was expected

to be ever increasing sizes of tankers, although

the standard size of the largest tankers later

settled at about 320,000 dwt.

The operational start-up of the first phase of

it integrated yard development at Tuas in August

2013 means that Jurong now has an additional

four VLCC drydocks with a combined 1.5 million

dwt capacity.

With the additional drydocking capacity, Mr

Ang believes that the Keppel and Jurong yards

will still avoid head-on competition against the

two smaller yard operators, as priority will be

given to repairs of VLCCs over smaller vessels.

Competition is stiffer within the OSV sector

where owners are offered the option of afloat

repairs to reduce time spent in drydock. Sembcorp

Marine’s subsidiary Jurong SML is one of a

number of yard operators including Mencast, Kim

Heng Offshore & Marine Holdings and Kwong

Soon Engineering Co that undertake afloat repairs.

Larger yard operators often subcontract

work out to niche players, such as Mencast,

which has developed specific expertise for

thruster and propeller repairs. Through its

affiliations with equipment manufacturers,

Mencast has been commissioned to repair

propellers and thrusters not only in Singapore

but also in China and Batam.

Mencast’s chief executive Glenndle Sim, told

Singapore Solutions that it is continuing to explore

memoranda of understanding and joint ventures

with international clients and service hubs to

provide storage of equipment and after services.

Mr Sim said: “The culture of Mencast is to

fully engage and treat customers as partners.

We share our values with them and gather

constant feedback on their needs. Being a good

paymaster works towards mutual benefits and

to establish a long-term client relationship.

“We are always practical in sources and taking

initiatives for new technical advances. For example,

we worked with Becker Marine on its Mewis Duct.”

Mencast has a yard able to accommodate a

jack-up rig and offshore vessels and workshop

facilities to accommodate up to 100 tons of heavy

duty equipment and thrusters for servicing.

Recent projects including unloading six

used thrusters, each weighing more than 40

tons from barge to shore, transporting them

from the waterfront to the workshop and

completing a major overhaul of them.

Mencast’s senior manager of corporate

sales and business development Roy Chong

explains owners’ preference for Singapore-based

contractors for equipment repairs.

His observation ties in with a general industry

opinion that Singapore-based contractors tend

to possess a stronger service culture than those

in China. Yards in China tend to take on more

shipbuilding than shiprepair projects, as China

lies off the major shipping routes. The assembly

line culture of the Chinese shipbuilding industry

does not necessary breed the project management

skills associated with shiprepair work, Singapore

shiprepairers suggested.

In Singapore, Mencast is regularly called on

for propeller polishing or balancing, tied to vessel

repair work at the four larger yard operators. Mr

Chong estimated that each propeller repair job

can take several days to complete, while work on

thrusters can span over a month.

Mencast has about 25 divers on its permanent

payroll and a series of 10-34m long dive boats

that can be called on to support afloat repairs.

Mencast has also sought to undertake repairs

on larger offshore structures, having most

recently taken in a Seadrill jack-up rig, West

Cressida, still waiting for mobilisation on its next

time charter.

While Singapore appears to retain an

edge over its Asian neighbours in shiprepair

capabilities, it risks losing out on cost-

effectiveness if productivity does not catch up

with the projected rise in labour costs, as the

government clamps down on foreign labour.

Singapore yard operators face fewer difficulties

hiring locals to fill supervisory level positions,

such as senior repair managers, but foreign

labour makes up a large majority of junior staff,

ASL Marine’s Mr Ang commented.

The Singapore Government has expressed

its intent to reduce the foreign labour quota

from one Singaporean to five foreigners to one

Singaporean to 3.5 foreigners over the next few

years. This move has prompted calls among

offshore marine players to grant exemption from

the quota for the industry that has long been

dependent on lower cost labour to fill positions

otherwise not taken up by local workers.

Even for supervisory positions such as that

of shiprepair manager, salaries have been on the

rise. But industry players could be granted some

relief as a result of the spare capacity building

up in the offshore marine sector due to less

newbuilding activity.

The industry tends to look to leading yard

players Keppel and Sembcorp Marine for the

benchmark in setting salary packages.

Besides wage pressures, yard operators

also face increasing cost from higher safety

requirements being imposed. For example,

additional staging is now required for work

carried out above 1m. Yards in Singapore face a

tougher regulatory regime than their counterparts

in Batam, although some yard operators impose

similar safety standards across both locations.

Despite the rising labour costs and increasing

competition, operating margins on shiprepair

appear to resist any downward pressure. They

remain at between 10 per cent and 15 per cent,

some yards suggested. The value of each repair

job ranges broadly from US$200,000 up to US$2

million for full blasting.

Vessel owners are more willing to spend on

repairs than on newbuilding, one yard operator

observed. SS

Propeller reconditioning is often subcontracted as part of larger contracts


E zra Holdings has quadrupled its

fabrication capacity through its yard-

operating subsidiary, Triyards, with an

eye to broaden its product offerings.

In 2014, Triyards acquired Australian

company Strategic Marine and its two yards

– a 147,600m2 yard in Vung Tau, close to

Triyards’ existing facility there offering

operational synergies and room for growth,

and another yard in Singapore. This brings

Triyards’ combined yard holdings in Vietnam

and the US to over 400,000m2 across four

locations in Ho Chi Minh City, Vung Tau,

Houston and Singapore.

Triyards’ chief executive Chan Eng Yew said

Strategic Marine brings with it normalised

revenue between US$50 million and US$70

million from Strategic Marine’s aluminium

shipbuilding and shiprepair activities. The

Strategic Marine acquisition broadens the

clientele base for Triyards’ steel products.

Triyards can also cross-sell aluminium vessels

to its existing customers, he said.

Mr Chan is also eyeing growth in shiprepair

business as the acquisition brings with it some

11,000m2 of yard area in Singapore after buying

out Strategic Marine.

While space often presents a challenge in

Singapore for newbuilding activity, the large

number of vessels calling on the busy port

translates to opportunities for shiprepair

business for Triyards.

Beyond the aluminium shipbuilding and

shiprepair businesses, Mr Chan is counting

on the spare capacity at the Vung Tau yard for

additional block fabrication capacity to shorten

Triyards’ newbuilding cycle.

Triyards has built up a sizeable orderbook

primarily on the back of a series of liftboat

orders. The first seeds of its liftboat construction

business were planted in 2007, when Ezra

Holdings was considering owning and operating

these niche offshore marine assets.

Demand for liftboats is showing signs

of picking up outside their traditional

stronghold of North American waters, with

national oil companies in the Middle East

and Southeast Asia looking to improve

the efficiency and safety level of offshore

operations by using such self-elevating

units in accommodation support, light

construction work and well servicing.

Mr Chan said that Triyards will not be

using the Vung Tau yard acquired from

Strategic Marine for liftboat construction,

because there is still available capacity at its

current facilities.

Having delivered seven liftboats, Triyards

has developed expertise in techniques such

as lattice construction, which it now looks to

apply in its pursuit of orders for newbuild rigs.

It is marketing its proprietary TDU-400 design

jack-up drilling unit, with rated operational

capacity of drilling wells to 32,500ft in up to

400ft of water.

The TDU-400 design jack-up comes with an

elongated hull, which differs from box-shaped

rigs in the market, Mr Chan said.

Triyards has commenced exploratory talks

with Vietnamese interests for the construction

of the TDU–400 jack-up. “It would be ideal

to deploy a jack-up rig built in Vietnam in

Vietnamese waters,” Mr Chan remarked.

Operating yards in Vietnam brings Triyards

closer to potential opportunities stemming

from the domestic oil and gas industry.

Mr Chan said that Triyards is also eyeing

fabrication work in Vietnam through soft

collaboration with local partners.

Triyards may bid for fabrication contracts

on a stand-alone basis, independently from its

affiliate companies at Ezra Holdings. But Mr

Chan said that the yard operator will also look

into joint bids with the two business units,

Emas AMC and Emas Offshore, for engineering,

procurement, construction, installation and

commissioning contracts.

Fabrication projects make up under 5 per

cent of Triyards’ orders on hand, but Mr Chan

hopes to grow the business by 15–20 per cent

year on year by securing more contracts for

jacket, topsides or liquefied natural gas (LNG)

plant modules ranging up to 20,000 tonnes.

He acknowledged that Triyards would need

to start from ground zero and build its track

record in the fabrication business. SS

shipbuilding

Triyards quadruples fabrication capacity

Fabrication capacity at Ezra Holdings-owned Triyards has increased substantially in the last decade

by Hui Hui Chen

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42E


Far East Levingston Shipbuilding (FELS)

and Promet were two of only eight rig-

building yard operators left standing in

the 1980s. The other yards chose to exit the

business after a drastic oil price decline to US$10

per barrel killed demand for offshore drilling

services and newbuild rigs.

Instead of shutting down their rig-building

businesses, the Singapore-based yard pair pressed

on. FELS (now Keppel FELS) went ahead to build

a harsh environment jack-up rig before securing a

buyer, while Promet (now Semcorp Marine’s PPL

Shipyard) scaled down and carried on with rig

repair and upgrading projects.

FELS eventually sold the jack-up rig, built jointly

with Friede & Goldman and one other French

contractor, to Sante Fe (later Global Sante Fe

Corp and now Transocean). Santa Fe subsequently

placed orders for three more jack-up rigs.

FELS managing director, Choo Chiau Beng

further convinced Keppel’s management to

invest against the odds of a market downturn,

in a 1,600-tonne sheerleg floating crane, the

Asian Hercules as well as lease the 400,000 dwt

drydock made dormant after Mitsubishi Heavy

Industries pulled out of the shiprepair business

in Singapore.

Keppel Shipyard also held back from taking

on a merger proposal with Sembawang Shipyard

put forward in 1985 by managing consulting firm

McKinsey & Co.

Keppel chairman at the time, Sim Kee Boon

told Wall Street Journal: “When you are talking of

merger, you are talking of shutting down. Those

problems are not insurmountable, but you have

to think of all the shareholders involved.”

Meanwhile, Promet managed to pull through

the downturn and acquired the Baker Group

Singapore, owner of the Baker Marine class

jack-up designs, in 1995. In 1997, Promet was

renamed PPL Shipyard after a management buy-

out of the rig-building yard.

In 1998 Sedco Forex – which later merged

with Transocean – took on PPL Shipyard for

the construction of a fifth generation semi-

submersible rig. Now named Cajun Express, the

semi-submersible was delivered to the rig owner in

2000. Sante Fe also placed an order with FELS for

the first Mod VI Universe Class jack-up rig Galaxy I.

PPL Shipyard also embarked on the

development of a new jack-up design, the Baker

Marine Class 375, which was later renamed PPL

Pacific Class 375.

While PPL Shipyard was working on its own

jack-up design, Keppel Shipyard was also working

towards delivering the first jack-up to be built to

its proprietary KFELS B Class design, which

was developed by its offshore technology and

development unit after it acquired the design and

drawing rights to two Friede & Goldman Mod V

design jack-up rigs.

In 2001 PPL Shipyard found itself in a position to

compete on an equal basis with Keppel FELS (FELS

had been renamed in 1997) for a greater share

of the jack-up drilling segment when Sembcorp

Marine took up a 50 per cent shareholding as it

sought to break into the rig-building market.

Sembcorp Marine’s first investment in the

business coincided with a pair of rig orders from

Sante Fe. The rig owner ordered a jack-up from

PPL Shipyard and a semi-submersible rig from

Jurong Shipyard.

In October 2001 merger talks between the two

yard groups resurfaced at a time when there was

consolidation in Singapore’s banking and media

and publishing industries.

The proposed merger fell through, with

management from the two sides failing to reach

terms, but Keppel FELS and PPL Shipyard were

nonetheless ready financially and operationally,

to cash in on what was widely described as the

Norwegian wave of rig-building activity during

the 2000s.

That decade saw the dramatic rise of John

Fredriksen-backed Seadrill while other Norwegian

stalwarts, including Erland Bassoe and Bjørn

Skeie played their part in the expansion of the

global offshore drilling rig fleet.

PPL Shipyard’s sister yard Jurong Shipyard

also moved into jack-up construction, beginning

Singapore is now a major hub for the broad offshore oil and gas industry including building rigs and offshore support vessels

Keppel FELS up to the mark

offshore marine hub

Keppel’s new Can Do design blowout preventer drillship


with a series of newbuild orders from Norway-

based speculator Petrojack. The dissolution of

Petrojack saw the sale of its first pair of jack-ups

built to PPL Shipyard’s rig design to Denmark’s

Maersk Drilling.

Maersk Drilling, then known as Maersk

Contractors, had embarked on a fleet

modernisation drive. It went ahead to order

four CJ50 design jack-up rigs from Keppel FELS

after repairing its business relationship with the

rig builder following an earlier disagreement

over a delayed newbuild rig project. The delayed

rig, B-222, was built to a new design from

The Netherlands-based Marine Structure

Consultants (MSC).

Maersk accepted the second MSC design jack-

up, B-223, from Keppel FELS and the relationship

between the two continued with a collaboration

on the construction of the first semi-submersible

rig, the DSS20 design Maersk Explorer for operation

in the Caspian Sea.

Relationship building is a key success factor

for the two Singapore-based yard groups. At

times this has extended to supporting aspiring

drilling start-ups.

In 2003, Keppel FELS entered into a joint

venture with start-up Ensco to develop and build a

KFELS B Class jack-up rig, the Ensco 106, marking

the start of a long partnership, eventually leading

to the Singapore yard operator picking up an

interest in the US-based drilling outfit.

Standing among the world’s top drilling

contractors by fleet size, Ensco has repeatedly

turned to Keppel FELS for the construction of

most of its jack-up rigs.

Sembcorp Marine and its rig-building

subsidiaries have adopted similar approaches

selectively with some drilling contractors. It

extended a loan offer to US-based Vantage

Drilling for the construction of a jack-up rig,

Topaz Driller, in PPL Shipyard in the second half

of the 2000s. Vantage took delivery of four jack-

up rigs from PPL Shipyard.

Rig builders face competitionSingapore-based rig builders are facing what is

an increasingly inevitable head-on clash against

their competitors in the world’s top shipbuilding

nations, China and South Korea.

During the early 2000s, Singapore rig

builders thrived on jack-up rig construction

while the shipbuilding giants in South Korea,

Hyundai Heavy Industries, Samsung Heavy

Industries and Daewoo Shipbuilding & Marine

Engineering, strengthened their grip on global

drillship construction business. Competition only

arose between rig builders in Singapore and

South Korea over newbuild contracts for semi-

submersible drilling units.

The landscape was set to change when

shipbuilders in China, encouraged by state and

central government support, took their first steps

into offshore marine construction.

Initially, newbuild rig contracts in China

were divided among a handful of yard operators

– Yantai Raffles Shipyard (now CIMC Raffles

Shipyard), Dalian Shipbuilding Industry

Offshore Co, Cosco Shipyard Group Co, Shanghai

Waigaoqiao Shipbuilding Co and Zhenhua Heavy

Industries Co. At the end of the first decade of the

21st century, more Chinese yard operators entered

the rig building market.

With strong financial support, Chinese yards

are able to extend favourable terms. There are

reports of heavy tail-end payment of up to 99

per cent, or just 1 per cent downpayment, for

rig-building orders. South Korean yard operators

were able to offer similar payment terms through

the support of their export credit agencies.

Singapore yard operators had to dip into their

pockets to secure rig orders from owners seeking

yard financing.

During the rig-building upswing from the

second half of 2010, Singapore’s two leading

yard groups, Keppel Offshore & Marine and

Sembcorp Marine, were offering terms of up to

20 per cent at the time of placing the order and

80 per cent on delivery for a large number of

their newbuild jack-up orders. These payment

terms were needed to stimulate rig-building

demand, which had been hit by the 2008

financial crisis.

Today, financing terms like these appear

to be the norm rather than the exception.

But as the outlook of offshore drilling market

weakened, along with a dramatic decline in oil

prices during the second half of 2014, analysts

began to issue warnings about the risks from

cancellations of rig-building orders with large

on-delivery payments.

Fortunately for Singapore-based rig builders,

their longer track record in the business gives

them the additional edge to attract rig owners

with less need for extended payment terms.

Most of the approximately 60 newbuild orders

taken on by aspiring rig builders in China are from

first-time rig owners. This represents a higher

default risk that could result in consolidation of

the shipbuilding industry.

Yard operators in Singapore are not immune

to exposure to potential delays in rig deliveries.

Rig owners including Transocean and Seadrill are

understood to have asked to postpone deliveries

of newbuild projects by between six months to

one year in both Singapore and China.

Competition has intensified between Singapore

and South Korea, with yards in each country

seeking to extend their product ranges amid

the current downturn. South Korea’s SHI and

DSME made inroads into the jack-up rig segment

by clinching orders for a number of North Sea-

classed units offered under competitive tenders

against their Singaporean rivals. But Keppel and

Sembcorp Marine also embarked on newbuild

drillship projects in Singapore and Brazil.

Sembcorp Marine has on its orderbook

nine newbuild drillships for Sete Brasil and

Transocean, to be built to its Espadon design.

Keppel is building a 20,000 psi blowout preventer

drillship on a speculative basis to its newly

developed Can Do design.

Drillship construction is not entirely new

to Singaporean yard operators given that

conversion of the first ship-shaped drilling

unit was delivered from Keppel Shipyard

back in 1979. Sembcorp Marine’s Sembawang

Shipyard upgraded drillship Neptune Explorer

in 2009. More recently, Keppel FELS was

commissioned to complete the construction on

an Ensco-owned drillship towed from South

Korea to Singapore.

There remains a common understanding

within the industry that jack-up rigs can be built

more efficiently in Singapore while South Korea

retains an edge with assembly line drillship

construction. But the lines have become blurred

under challenging market conditions. The top-

tier rig builders in Singapore are also likely to

pull ahead of their closer rivals in South Korea

in the development of new drilling technologies

for the next oil and gas frontiers.

The race is on between Singapore and South

Korea to be the first to deliver the first 20,000 psi

blowout preventer drillship or a full-blown Arctic

class offshore drilling unit. SS

Sembcorp Marine has built rigs for Transocean such as Transocean Honor


R oyal IHC has developed a new design

for a hybrid anchor handling tug

supply (AHTS) vessel as it seeks to

boost its presence in the Asian offshore sector

from its base in Singapore. This latest design

follows its IHC Packhorse and Packhorse Maxi

platform supply vessel (PSV) designs, which

were completed in 2014.

Francis Tang, managing director at IHC Asia

Pacific, told Singapore Solutions that the design

has been developed with hybrid propulsion

with both power take off (PTO) and power

take in (PTI) to boost power when required for

operations and to have capability for supply

run operations and anchor handling. It features

power output of about 9,000kW.

The basic propulsion system can operate as

diesel-mechanical, but the hull configuration

is optimised around the most fuel-efficient

design. Mr Tang said that the new design gives

an extra 8–12 per cent fuel saving compared

with existing hybrid designs in the market.

“Our hybrid system has unique concepts

compared to others on the market. That is the

main advantage.”

The design has been developed in house

by IHC’s own electrical and automation

departments. It has provision for a ballast

water treatment system and its accommodation

also meets the latest regulations such as IMO’s

Special Purpose Ships Code (SPS Code) 2008

and the Maritime Labour Convention (MLC)

2006. The official launch of this new design is

expected in the first half of 2015 and the first

vessel could be in service in 2016.

“We have completed all concept engineering

and we are already handling some enquiries,

but we have no firm contracts yet. The current

market uncertainty is leading to a cautious

approach by owners in placing new orders,”

Mr Tang said.

The design has been engineered to be built

anywhere, including China, US (for Jones

Act operations) and Brazil (to meet local

content requirements). “We can supply the

engineering and equipment package for local

yards while keeping the vessel specifications

and performance characteristics. We are very

excited about this design.”

Mr Tang said that this latest initiative

is part of the company’s strategic focus on

the offshore sector in Singapore and the

neighbouring region. “We have been in

Singapore for the last 10 years with the original

In an effort to boost its presence in the offshore market Royal IHC has developed an AHTS design with Asian owners in mind

The IHC Workhorse AHTS has an advanced hybrid power system

IHC launches new Workhorse AHTS design

technology


focus on dredging. We have a workshop in

Singapore to support dredging operations.

But in the last two to three years we decided

to expand our products and services in the

offshore sector for this region. We have been

pursuing leads to supply mission-specific

vessels and equipment in the region to meet

the needs of the offshore industry.”

Recent orders for Southeast Asia operators

include a diving support equipment package.

“This is a major breakthrough and establishes

our reputation and cements our position in this

sector,” he said.

“We are not just focusing on selling new

vessels but also equipment packages, so we

have a buffer against a downturn in the OSV

newbuild market and have flexibility.”

IHC is supplying a diving support package

comprising a full air dive system equipment

package including compression chambers to

PT Seascape Surveys Indonesia, a subsidiary

of Mermaid Marine. The package includes IHC

Hytech launch and recovery systems, deck

decompression chambers, an IHC Hytech diving

control container and a machinery container.

“When offshore activity first started in

Singapore the idea was to sell OSVs to owners

here,” said Mr Tang. When I started as managing

director in February 2014 we looked to expand

to supply our services and equipment to owners

and develop enough volume to justify having

our own workshop closer to clients in the region,

in Malaysia and Indonesia. It is logical to be

here at the heart of the market. We will continue

to be here and need to be here for the long term

even though the business is cyclical,” he said.

“Currently the PSV market is saturated

and the oil price is also an issue so there

is a downturn. But we need to continue

developing our products and designs to be

ahead of the market and be close to clients

to meet their needs. We will continue to

focus on the offshore sector and elevate our

presence here. We will focus on vessels but

also on stand-alone offshore equipment and

vessel packages, providing engineering and

equipment solutions.

“Our Singapore operation can be further

enhanced with workshop and logistical

functions once we have sufficient market share

and business volume, but this is more of a

longer-term plan,” he concluded.

AHTS WorkhorseRoyal IHC’s AHTS Workhorse is a new design,

with an advanced hybrid power system,

featuring both power take off (PTO) and

power take in (PTI).

The variable-speed main engine gives more

flexibility than a fixed-speed engine. It features

a shaft generator and propulsion motor

combined in a single unit. A two-way converter

can handle various frequencies and convert

back to the required frequency. Touchscreen

control ensures optimum fuel efficiency, while

the power management system constantly

directs the power system to give optimum

power. There is a manual override provision

for safety.

Mr Tang said: “This development follows

research among owners and operators based

in Asia. Its aim is to address operational

issues identified by operators, who say that

with conventional power systems they are not

operated at an optimum level.”

IHC carried out a load balance analysis

and model test to estimate the fuel saving

compared with a conventional hybrid system

and found savings of 8–12 per cent depending

on operating conditions.

The hullform allows the IHC Workhorse

to operate with low fuel consumption during

towing and cargo supply runs. The hybrid

mechanical and electric propulsion system

provides flexible operational modes for

manoeuvring, transit, dynamic positioning,

towage and anchor handling.

A large-capacity waterfall double-drum

anchor-handling towing winch is installed on

the deck for deepwater mooring, towing and

anchor handling operations. The large deck

area above the AHT winch is strengthened

for the installation of side-launch remotely

operated vehicle (ROV) handling systems,

secondary winches or storage reels to

broaden the entire operational capabilities

of the design.

Further refinements of the final detailed

design were still being worked on prior to the

official launch. SS

MAIN FEATURES

Length oa 82.1m

Length bp 72.9m

Breadth moulded 19.4m

Depth 8.5m

Design draught 6m

Maximum draught 6.6m

Classification Approval in principle obtained from ABS

and DNV GL

Speed 15 knots in deep water in calm

conditions at 6m draught

Deadweight 3,000 tonnes at design draught

Cargo deck area 635m²

Deck cargo load 1,000 tonnes

Deck loading 10 tonnes/m²

Cargo tank capacities

Base oil/liquid mud/brine

782m³

Fuel oil (total) 2,027m³

Potable water 946m³

Dry bulk 240m³

Recovered oil 1,363m³

Bollard pull 100mt at 100 per cent mcr, 150mt

with PTI

Deck machinery equipment

Anchor handling towing winch, double-drum waterfall type low pressure

electro-hydraulic winch

Maximum pulling capacity

300mt

Brake holding capacity 450mt

Deck crane Knuckleboom crane 5 tonnes @ 10m

Accommodation 50 people

PROPULSION AND THRUSTERS

2 × CPP propellers

Hybrid with main engine + PTI, per shaft 4,500kW

2 × FP bow thrusters 850kW

2 × FP stern thrusters 850kW

Diesel generator sets

2 × main propulsion engines, each rated at 3,000kW

2 × main generator sets, each rated at 1,950kW

2 × shaft generator/propulsion motor, each rated at 1,500kW

1 x emergency generator, rated at 250kW

Francis Tang (Royal IHC): We are not just focusing on selling new vessels but also equipment packages


technology

O ffshore support vessel (OSV) designer

Focal Marine & Offshore is working

on new designs to meet the latest

industry requirements. General manager Shu

Jun told Singapore Solutions that enquiries for

standard OSVs are down due to overcapacity and

the fall in the oil price. “But we are still getting

enquiries for subsea and inspection, maintenance

and repair (IMR) vessels. The current situation

will help in some ways by putting discipline in

the market and reduce speculative orders and

control costs and improve competition. We are

focusing on producing cost-effective designs.”

At the end of last year Focal won a contract

from Emas Marine for the design of a DP3 IMR

vessel. The Focal 539 design vessel will have

twin propellers and three bow thrusters, a 160-

tonne crane and a walk-to-work facility. It will

have accommodation for 239 people.

Another recent order for one of its designs

is for a Focal 527 subsea offshore construction

vessel (OCV) with diesel-electric propulsion. The

105m long vessel will have a 150-tonne capacity

active heave compensated subsea crane and

accommodation for 120 people.

“We are focusing on OCVs and subsea and

IMR vessels, which is where all recent enquiries

are. The Emas contract is a new design. We are

focused on customised designs that are client

driven rather than producing standard designs,”

Mr Shu said.

“We have increased manpower and have

55 staff. But the focus is now on increasing

productivity rather than headcount in view of

the current market situation.”

He said that, as well as OSV designs, Focal is

developing tanker designs in the 10,000–20,000

dwt capacity range, but it is waiting to see how

the market develops.

“Despite the oil price drop, achieving fuel-

efficient designs is still a priority for owners.

Fuel prices could rise again and there are still

environmental regulation reasons to be more fuel

efficient. As some offshore projects are postponed

some operators are focusing more on maintaining

existing projects which is good for IMR vessels in

particular. But owners are currently cautious

about committing to new vessel orders.

“We expect to get a contract for one of our

Focal 527 designs from a Malaysian operator.

The first version of our Focal 527 design is being

built in China and will be delivered later this

year, but we have already designed an improved

updated version.

“For the offshore support industry Singapore

is the main hub for the Asia Pacific region. We are

glad we are here in such a dynamic hub where it

is easy to do business and everything we need is

here such as oil companies, yards, finance, lawyers

and equipment supply. Singapore is one of three

main global hubs for offshore support, along with

Norway in Europe and Houston for the Americas.

SeaTech puts tugs on the mapSeaTech Solutions International has

established itself as a leading designer of tugs

and offshore support vessels, among others.

“We are boutique ship designers, but we focus

especially on platform supply vessels and tugs,

bunker tankers and other tankers and some

specialist ship types such as cement carriers,”

managing director Govinder Singh Chopra told

Singapore Solutions. “We do tug designs for

many clients in Asia. We are the leading tug

designer in Asia and many of our designs

are in operation in ports around Asia. We are

particularly positive about tugs.”

More than 50 tugs have been designed by

SeaTech. They include tugs for leading owners

such as Multraship Towage & Salvage. Most

SeaTech designed tugs have been built by

various shipbuilders in Singapore.

Mr Chopra said: “We aim to customise

designs for owners’ individual requirements.

There is a trend towards overall lifetime cost

savings and optimising the power-cost ratio so

that lifetime costs are lower even if the initial

cost is higher. We look at overall systems and

not just the hull design. We believe we offer

cost-effective solutions.”

SeaTech’s main office is in Singapore, with

about 50 staff, and the company also has

offices in India, China and Thailand. In total, it

employs more than 130 staff. Over the last 15

years it has executed over 500 projects for more

than 150 clients in 24 countries.

It recently secured a major contract to

design a specialist seabed mining vessel for

Dubai-based Marine Assets Corp (MAC) and

Canadian company Nautilus Minerals for use

on the Solwara 1 project. Nautilus plans to

mine copper and gold with a chartered vessel

from MAC to act as the floating base for its

Focal Marine works on new technology

Vessel designer Focal Marine is embracing the latest technology to give it a competitive edge as owners look for even greater efficiency

Shu Jun (Focal Marine): We are focusing on OCVs and subsea and IMR vessels

operations off Papua New Guinea. MAC will

contract with Fujian Mawei Shipbuilding in

China to construct the vessel.

The DP2 vessel will measure 227m long

and 40m wide. It will be powered by a 30MW

diesel-electric propulsion system and will be

completely outfitted and equipped as an offshore

construction vessel (OCV) for worldwide use. It

will be fitted with two main crane, a 200t active

heave compensated subsea cranes – a 100t ship-

to-ship crane.

It will be equipped for seafloor resource

production and onboard ore storage. In operation

it will be stationed over the allocated area and

support seafloor production equipment, such

as specialised seafloor production tools. These

include a riser and lifting system comprising

a subsea pump, a riser system and associated

handling systems.

Ore storage holds are arranged amidships

and equipped with a completely enclosed cargo

handling system which will transfer the ore

directly to any hold and from the holds to

incoming Handysize bulk carriers for export.

The vessel is able to accommodate 180 people.

According to SeaTech it is the first vessel of its

type in the world.

Rolls-Royce builds local linksRolls-Royce’s marine business in Singapore

is an important contributor to the company’s

global operations. Arnaud Ayral, senior vice

president, marine services Asia, told Singapore

Solutions that Rolls-Royce has about 120 people

employed in a variety of roles covering regional

sales and services, customer training, ship

design of its successful UT offshore support

vessels and various administrative activities.

Its marine staff in Singapore are spread

across three sites - the Centennial Tower office,

the service workshop in Tuas and the training

centre, which incorporates simulators, located

on the Seletar campus.

Rolls-Royce equipment is onboard about

1,800 vessels, both commercial and naval,

operating in Southeast Asia, with Singapore

accounting for more than 1,000 of these.

Rolls-Royce Singapore is the Asia regional

service hub.

Mr Ayral said: “Putting customers at its

heart, Singapore is being further developed as

the Asia regional service hub. At the service

workshop in Tuas, we have a team of mobile

service engineers deployed throughout the

region and extensive workshop capability

for the repair and overhaul of Rolls-Royce

equipment. We continually invest in our

people, especially in terms of technical skills

and competence.

“Rolls-Royce Power Systems in Singapore

also has a significant marine presence. Its

portfolio includes the MTU brand. It recently

opened an additional logistics centre in

Singapore, enabling a 5 per cent improvement

in the availability of spare parts and setting a

new standard for customer service.

“Singapore has a global reputation for

complex vessel and rig design and build, as well

as being a major shiprepair centre, so we are

well positioned in the Tuas Marine cluster to

comprehensively support these activities. Any

unscheduled downtime can cost our customers

significant sums. It is therefore vital that we

deliver to the highest standards of reliability and

respond quickly by being in this part of the world.

“Another trait that sets the service centre

apart from competitors is a proactive approach

to engaging with customers. We routinely

engage customers six months to a year in

advance of scheduled maintenance. This

ensures we can plan with the customer for the

maintenance that will be necessary.

“We count all the major Singapore-based

international offshore oil and gas companies

as our customers. They all build and operate

highly complex offshore vessels where our

systems are critical. In terms of merchant

vessels, customers range from cargo ships to

ferries and tug boats. We also have a strong

interest in the Singapore market for conversion.

Customers’ main requirements are reliability,

cost-efficiency and innovative solutions. Rolls-

Royce is at the forefront of developing LNG as

a marine fuel for Asia. We are pleased to be the

first to supply gas engines for cargo ships and

tug boats in Asia.”

Rolls-Royce has secured a contract to supply

two all-gas engines for power generation to a

floating liquefied natural gas (FLNG) vessel

under conversion at Keppel Shipyard for owner

Golar LNG Ltd. The vessel being converted to

an FLNG vessel, Hilli, was a former LNG carrier.

The contract represents the first time that this

Bergen engine size and type is being used for

marine application.

Bergen B33:40V20AG is a compact and

powerful gas engine with world-leading

environmental performance in terms of low

emissions of NOx, CO2, SOx and particulates.

The energy consumption is also exceptionally

low, helping Rolls-Royce to win the bid by

offering a more efficient all-gas solution

compared to its competitors’ dual-fuel

options. The power generated will be used for

liquefaction processes, supporting the energy

needs of the crew onboard and other complex

offshore operations.

Richard Bowcutt, Rolls-Royce, senior vice

president of commercial marine – Asia Pacific,

said: “We are excited to collaborate with Keppel

SeaTech has designed a seabed mining vessel

Hilli arriving in Singapore for conversion



technology

Shipyard on this groundbreaking conversion of

Golar’s LNG carrier into an FLNGV through the

supply of our Bergen B33:40V20AG engines.

The contract awarded by Keppel is recognition

of the innovativeness and cost-efficiency of

our engines and demonstrates the faith that

the market has in our LNG engines which are

perfectly suited to FLNG vessels where the LNG

is readily available to fuel the engines.”

The contract with Keppel Shipyard includes

an option for an additional two engines for a

second Golar LNG carrier Gimi. The engines

are scheduled for delivery next year and the

conversion of Hilli is expected to be completed

in the first quarter of 2017.

In another project Rolls-Royce has entered

a partnership with Singapore-based offshore

marine logistics company Chellsea, which

has ordered eight Rolls-Royce UT 771 WP

vessels. This innovative design reduces fuel

consumption and increases safety. The vessels

are powered by Rolls-Royce MTU gensets – an

example of how its acquisition of the German

engine supplier is enabling it to offer more

comprehensive equipment packages. Rolls-

Royce’s UT OSV design recently celebrated 40

years of development and evolution.

Rustibus provides manhole protectionApart from sophisticated vessel designs and

high level equipment supply and servicing,

Singapore is also home for other more mundane

pieces of equipment, but no less crucial for safe

maritime operations.

An example is the Safe Edge manhole

protection cover of supplier Rustibus.

According to the company Safe Edge offers a

simple solution to a problem where the marine

industry otherwise uses more laborious, less

secure and more costly methods. Rustibus said

that at present there is still no standardised

method that secures the hazards around open

manholes. It is currently left to interpretation

by individual companies.

A company spokesman said: “Safe Edge

is a manhole protection cover that eventually

will become available to fit most types of

manholes on marine and offshore installations.

The first versions are already in the market,

and a number of shipping companies have

already invested in this cost-effective insurance

against crew injuries caused by overlooked,

unprotected or improperly protected open

manholes on deck.”

Prevailing practices include a number of

creative solutions ranging from no protection

to welding in place some rods surrounded by

tape or ropes in an attempt to offer some safety.

Safe Edge is designed to prevent falls and

other injuries associated with open manholes

onboard vessels and offshore installations.

When in use, Safe Edge clearly indicates

the presence of a potential hazard area, and

therefore creates a safer environment for the

crew on deck. It is specifically designed to allow

ventilation and utilities to remain accessible

while still covering the hole and protecting the

crew. A highly visible fluorescent orange base

creates a barrier that prevents loose objects

being knocked down as well as crew falling

into the open manholes. The lid is designed to

carry a maximum load of 450 lbs (225kg) and

is also highly visible with reflective warning

colours. It is easy and quick to install compared

to current methods. It weighs only 18 lbs

(9kg), which is below health and safety rules

requirements, and it is therfore a risk-free

product to handle and use.

The current Safe Edge is designed to fit the

most common model of international standard

manhole (NS6261/ISO 5894). Any vessel no

matter what size, form, or geographical area,

can fit this product as long as it has manholes

that conform to the standard. Rustibus plans to

increase the range of sizes available.

According to Rustibus: “Safe Edge as a

concept reinforces the safety mindset and

culture and permeates from and within

the Rustibus organisation. It reflects the

commitment to safety at all levels.”

Tru-Marine boosts turbocharger solutionsTru-Marine is a longstanding specialist in

providing servicing and repair services for the

increasingly important turbocharger equipment

on board vessels in Singapore.

Group managing director David Loke

said to Singapore Solutions: “Tru-Marine is a

home-grown company that specialises in the

maintenance, repair, overhaul and supply of

turbochargers in marine, offshore, power plant

and locomotive applications. A global market

leader for over 37 years, we have built a

strong reputation for our extensive technical

expertise, offering full turbocharger service

coverage from scheduled overhauls to in-situ

emergency repairs.

“We represent the majority of turbocharger

makers as their authorised repair shop,

including Mitsubishi Heavy Industries, Mitsui

Engineering & Shipbuilding, Kawasaki Heavy

Industries, KBB Kompressorenbau Bannewitz,

and Napier Turbochargers. Through ongoing

advances of relevant, high quality reclamation

Safe Edge provides a safer environment for crew working on deck

Richard Bowcutt (Rolls-Royce Asia Pacific): We are excited to collaborate with Keppel on this groundbreaking conversion

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SINGAPORE HONGKONG MYANMAR INDIA PHILIPPINES NETHERLANDS USA

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alternatives, we have been able to revolutionise

commonplace repair methods to deliver better

value by optimising the performance and

lifespan of useful components.”

The company has progressed beyond local

waters to serve from seven full-facility service

stations. In addition to its headquarters in

Singapore it has overseas bases in China

(Shanghai, Tianjin and Guangzhou), the United

Arab Emirates (Sharjah), The Netherlands

(Rotterdam) and the US (Houston).

“The company leads in technological

innovation by creating intellectual capital in

turbocharger reconditioning. Since it started

in 1991, our research and development efforts

have since been maintained both in house as

well as through collaboration with various

research agencies and industry partners.

“We will continue to establish an expanding

network of service stations that offer the same

capabilities and delivery standards as our home

base in Singapore. We plan for a service station

at important ports of call. We like to coin

ourselves as the ‘global marine SME (small-

and-medium-enterprise)’.”

Mr Loke said that the business of

turbocharger maintenance and repair is labour

and knowledge intensive. “We will continue

to extend our product and service lines with

proprietary technologies; bringing about

‘creative destruction’ to phase out the rest of

the market.

“Tru-Marine is the first company to have

developed laser-aided additive manufacturing

technology for the repair of new-generation

turbochargers made in super alloys. This

technology revolutionises the treatment of

damaged components that were previously

condemned and discarded due to limitations of

existing repair methods. We are now able to restore

those condemned components to become as good

as new, extending their useful life and achieving

substantial repair quality and productivity gains.”

Tru-Marine Group has a mobile team of

200 engineers and technicians, believed to be

the world’s largest pool of specialists by an

independent turbocharger repairer. “We represent

the majority of the turbocharger makers. By

virtue of our authorisation, our service engineers

receive regular training on the latest turbocharger

designs and instructions. Every engineer is a fully

qualified turbocharger expert, with over 10 years

of experience in Tru-Marine.

“We have a strong performance-

based culture. Our colleagues have a

good understanding of the company’s

strategic direction and their own roles and

responsibilities in helping to achieve those

goals,” Mr Loke said.

New rope-splicing facilityAnother example of basic seafaring needs

being met by the development of the latest

technology and service provision was

demonstrated last year when Fendercare

Marine Products (Asia Pacific) launched

a new rope-splicing facility in Singapore.

Fendercare Marine is owned by UK marine

services company James Fisher & Sons.

The service provides the splicing of

polypropylene (PP), nylon and a mixture for

ropes of up to 12 strands. The type of rope

ends that are available include covered soft

eye, thimble eye and thimble and master link.

Fendercare said that it will also consider any

special customer requirements.

Rohan Pande, Fendercare Marine’s business

development manager, said: “Fendercare

Marine Asia Pacific has been long established as

a leading stockist of high tenacity PP, mixture,

nylon and UHMWPE (ultra-high molecular

weight polyethylene) rope products for the

mooring, towing, offshore and oil and gas

industries. We import and sell approximately

3,000 coils of ropes every year from India,

Korea and Germany. By adding a rope-splicing

facility, we can offer a fully comprehensive rope

service to our existing and new customers.”

Fendercare Marine Products (Asia Pacific)

was established in Singapore in 2000. In

addition to ropes it also supplies Yokohama

fenders and oil-transfer hoses, buoyancy and

deck and quayside mooring equipment.

The company has completed more than

500 ship-to-ship (STS) transfer operations

using its equipment since 2007. During that

time its range of locations has also increased.

The company operates in six designated STS

locations in the region. It has also been involved

in emergency operations to assist in lightering

cargo from potentially dangerous vessels

and situations. It maintains a large stock of

equipment and a pool of highly experienced

local mooring masters.

Terasaki builds on electrical successTerasaki Electric Co has established itself as

a leading supplier of automation systems for

both marine and shore-based applications. It

is particularly active in the newbuild market

including offshore support vessels (OSVs).

Among its products are electric power

distribution systems, including switchboards

and other equipment, and cargo control systems.

A recent project is to supply systems for

a platform supply vessel (PSV) built to Focal

Marine & Offshore’s 506 design. This is a

76m long, 3,500 dwt capacity vessel that will

be built in China and chartered to operate

offshore Brazil. Terasaki is supplying its Mega-

Guard cargo control and monitoring system,

which is also used extensively on tankers. The

system provides operator workstations giving

an overview of cargo and ballast systems. It

includes radar level sensors and transmitters

and temperature sensors. On the PSV the

equipment will be used to monitor fuel tanks,

clean and dirty oil, water, brine and methanol.

The vessel also has a dedicated dynamic

positioning (DP) system, Mega-Guard DP,

designed for the offshore support industry

and other marine applications. This includes a

console and control panel with manual control

joystick, as well as an automatic position-

keeping facility. It meets DP1, DP2 and DP3

standards and features a simulation trainer

mode that can be used when the thrusters are

in individual operation. It can be used to train

and familiarise operators with the system in an

operational environment.

Terasaki Electric Co (FE) was set up in

Singapore in 1973 as a joint venture with Terasaki

in Japan and has become a major regional supplier

of electrical switchboards and control systems.

It has steadily expanded. In 2005 it established

a new automation division in Singapore to

provide greater servicing and repair capability for

automation and instrumentation equipment. Its

most recent expansion saw a new factory being

opened in 2012 occupying 75,000m2. Terasaki

Group has a global presence with a wide network

of service centres to support its products. SS

technology

Tru-Marine developed laser-aided manufacturing technology


bunkering and lubes

I n 2014 Singapore was once again the

leading bunkering port in the world even

though the total bunkers supplied in the

port was, at 42.4 million tonnes, a fraction

down on the previous year. However, 2014

had thrown down a number of challenges

including the bankruptcy of a major supplier,

a big drop in fuel oil prices, implementation

of new requirements for mass flow metering,

the implementation of emission control areas

(ECAs) mandating use of 0.1 per cent sulphur

fuel in Europe and the US, the introduction

of LNG bunkering, and continued efforts to

raise standards.

By mid February this year the price of

heavy fuel oil in Singapore was about US$365

per tonne. This is about half what it was at

its peak in 2014 and reflects the dramatic fall

in oil prices during late 2014 and early 2015,

although they have picked up slightly since

their lowest point in January.

The Maritime and Port Authority of

Singapore (MPA) has maintained its drive to

improve bunkering standards in the port. It

has introduced several new initiatives to ensure

that it retains its leading position as a bunker

supply port and adapts to new challenges.

MPA confirmed that it will implement

mandatory use of mass flow meters for

supplying marine fuel oil in the port from

the beginning of 2017. However, to assist the

transition, bunker suppliers and bunkering

vessel operators are eligible for benefits

under the Productivity and Innovation Credit

scheme, administered by the Inland Revenue

Authority of Singapore for costs incurred

in adopting the mass flow meter. This is in

addition to a S$80,000 lump-sum incentive

from the MPA on approval of each fitted

mass flow meter system for eligible bunker

tankers, which are those in existence at

the time MPA announced the mandatory

requirement in April 2014.

MPA has appointed the National Metrology

Centre (NMC) as the data verifier to carry out

the acceptance tests for mass flow meters. The

test data will be analysed by NMC to determine

the measurement uncertainty for compliance

to the requirement of the SS600 Singapore

Standard Code of Practice for Bunkering.

Updated versions of the SS600 and the

SS524 Singapore Standard Specification for

Quality Management for Bunker Supply

Chain (QMBS) were published in late

2014. The revised SS600 includes better

safeguards to provide greater transparency

in bunkering transactions, to strengthen

customers’ confidence. The revised SS524

incorporates the latest developments in

international quality management systems

and practices, bringing it in line with

international benchmarks.

Also starting from January 2017 MPA will

require all bunker surveying companies to be

licensed. Currently, they are only accredited.

This move is aimed at raising standards and

allows MPA to have greater oversight of bunker

ExxonMobil has seven bunker tankers fitted with mass flow meters

While retaining its position as the leading global bunkering port, Singapore is facing a number of challenges

Bunkering faces the future


surveying companies and bunker surveyors.

MPA is working on the concept of electronic

Bunker Delivery Notes (e-BDNs) which will

allow instantaneous transfer of bunkering

data to both buyers and sellers. Using the

data transmission capability of the mass

flow meter and 4G connectivity within the

Port of Singapore, the e-BDN concept will

change the way the bunker industry operates.

Where paper-based bunker delivery notes are

currently used as documents for invoicing

and payments, the e-BDN will increase the

productivity of all the stakeholders involved in

the supply chain and minimise the possibility

of human error.

The port authority is also exploring the

use of technology to automate bunkering

processes to reduce manpower needs on

bunker tankers, such as the use of automated

mooring systems.

MPA has worked with the oil and bunker

industry to make 0.1 per cent sulphur fuel

available to ships from January 2015, even

though that requirement does not directly

affect shipping in Asia.

A pilot programme in early 2017 will focus on

developing the supply chain for liquefied natural

gas (LNG) bunkering in Singapore. The MPA is

providing up to S$2 million per vessel for up to

six LNG-fuelled bunkering vessels. The pilot will

involve evaluating the most cost-effective mode

of LNG delivery to test and establish operational

standards and procedures.

Speaking at the biennial Singapore

International Bunkering Conference and

Exhibition event in October 2014, MPA chief

executive Andrew Tan said: “The bunkering

industry is an important and integral part

of our global hub port. As a top bunkering

port, we will continue to raise our bunkering

standards to ensure fuel quality and

reliability. MPA continues to work closely

with all our stakeholders to address the key

issues and prepare the bunkering industry for

the future.”

MPA is working with the ports of

Antwerp, Rotterdam and Zeebrugge in

Europe to harmonise technical standards

and procedures for LNG bunkering. It has

also completed a study with Lloyd’s Register

on technical standards and procedures for

LNG bunkering in Singapore and following

this is working with industry stakeholders

to develop a technical reference for LNG

bunkering in Singapore.

Mr Tan said: “Given the international

nature of shipping, we are excited to work

with the Antwerp Port Authority, the Port

of Rotterdam and the Port of Zeebrugge

to harmonise the global LNG bunkering

standards. We have made good progress in our

discussions and will continue with our efforts

to prepare the Port of Singapore to be ready for

LNG bunkering in the near future.”

In November 2014 the failure of a leading

bunker supplier, Danish company OW Bunker,

caused major problems in bunkering ports

around the world, including in Singapore. As a

result of OW Bunker’s bankruptcy some bunker

suppliers in Singapore were severely exposed

financially. Singapore-based bunker trading

companies OW Bunker Far East (Singapore)

and Dynamic Oil Trading Singapore filed for

liquidation in November, with KMPG appointed

as liquidator for both companies.

A major cause, though not the only

one, of OW Bunker’s failure was an alleged

US$125 million fraud at Dynamic Oil Trading

(Singapore). Singapore was one of OW Bunker’s

major revenue earners. Several bunker traders

and suppliers there have filed large claims

An increasing number of bunkering

vessels are already being fitted with

the meters, which are intended to

reduce the scope for disputes over the

quantities of bunkers being supplied.

The first bunkering vessel to use a

mass flow meter was an ExxonMobil

chartered vessel in 2012. According to

ExxonMobil it can save vessel operators

up to an estimated three hours and

US$7,000 per delivery, based on a

delivery of 1,000 tonnes at US$600 per

tonne due to avoiding the cost of using

a quantity surveyor and the time taken

for traditional tank gauging.

Molina Albright, ExxonMobil

general manager for marine fuels for

the Asia Pacific region, said: “Fuel

quantity shortages continue to be an

ongoing issue facing customers. But

with mass flow metered deliveries,

customers no longer gamble on

quantity. The majority of fuel supplied

by ExxonMobil’s chartered vessels in

Singapore is now delivered using the

mass flow metering system, helping

customers to benefit from the valuable

time and cost savings.”

Most of ExxonMobil’s fuel deliveries

in Singapore are now delivered by seven

bunker vessels equipped with mass

flow meter technology. It has already

supplied more than 1 million tonnes of

fuel in Singapore using mass flow meters.

ExxonMobil says it is working towards 100

per cent delivery of its fuel via the system.

The mass flow meter system ensures

the integrity of quantity measurements

by using calibrated and tamper-evident

seals fitted by the Weights and Measures

Office of Singapore. The pipelines,

valves, gauges and other equipment on

the bunkering vessels are independently

sealed and information systems are

secured by a sealed transmitter sending

data to a secure printer.

In further support of the introduction

of mandatory mass flow meters, the

MPA has accredited a new mass

flow meter training course devised

by the International Bunker Industry

Association (IBIA). The course will give

detailed information on installing and

operating mass flow meters as well

as the technical and legal issues of

ensuring their accuracy.

Metering in full flow

Singapore is still the world’s leading bunkering port


bunkering and lubes

against the two Singapore companies.

The uncertainty resulted in at least seven

bunker tankers in Singapore being arrested

as part of these claims against their bunker

cargoes. However, this is still a small proportion

of the bunkering vessels licensed by MPA so it

did not cause any significant disruption to

bunker supplies.

In February 2015 KMPG indicated that

Dynamic was owed as much as US$329 million

and that investigations were continuing over

its dealings with another Singapore marine

fuel company, Tankoil Marine, which is its

biggest single debtor. The problem seemed to

centre around a large unauthorised credit line

given by Dynamic to Tankoil. MPA has revoked

the bunker supply and craft operating licences

of Tankoil due to discrepancies in records kept

onboard its bunkering tankers.

MPA has also revoked the licences of

another bunker supplier, Hong Fatt Oil

Trading, for similar reasons. The MPA said:

“As part of MPA’s ongoing regulatory efforts

to ensure the safety, reliability and quality of

bunker supplies in Singapore, routine checks

were conducted last year on Hong Fatt Oil

Trading Pte Ltd and Tankoil Marine Services

Pte Ltd. MPA’s separate investigations into

the two companies revealed discrepancies

and wrongful declarations in the records

kept on board their bunker tankers. There

were also incidences of transfers of bunkers

between bunker tankers that were done

without MPA’s approval.”

MPA has previously cancelled the licences

of other bunker suppliers for breaches in an

effort to clean up the bunker supply business.

In September 2014 it cancelled the licences

of Northwest Resources following the

conviction of one of the company’s directors

for bunkering-related corruption offences.

Unimarine tackles complexityAccording to lube oil supplier Unimarine,

there is now more complexity in the

lubricants market due to changes in

regulations. “Customers are more confused,”

Unimarine’s global marine lubricants director

in Singapore Caroline Huot told Singapore

Solutions. New grades have been introduced

and there is switching between grades due to

ECAs coming into force.

“There is a lack of alignment between

OEMs (original equipment manufacturers).

New engine designs are being introduced

that are more efficient eco designs and have

implications for lube oils. Previously lube oils

were developed alongside new engine designs.

But that practice has slipped.

“There have also been changes on the

supply side. Oil refining is not very profitable

so refiners are cutting costs and part of

this is a reduction in the volumes of lube

oils being kept in bulk and cuts in training

of lube oil experts at oil companies. So

OEMs’ and lube suppliers’ interests are not

currently aligned.”

“Ship operators are also under cost

pressure regarding shipboard skills that

are relevant for the efficient use of lubes,

especially at present, so there is also

misalignment onboard.”

Ms Huot highlighted the industry trend

towards BN25 lubes for use with low sulphur

fuel. This has been introduced by most lube

suppliers, but it is not always available for

vessels trading to Europe and the US so

it is causing compliance problems for ship

operators. If BN25 is not available owners

have to look to other solutions such as BN40 in

an adapted configuration. “But some suppliers

have discontinued BN40 products in favour of

universal oil, so the situation is messy and will

take some time to resolve,” she said.

“This means there is added complexity

for ships regarding feed rates, how many

lube oil grades to carry on board and how

many grades ships are able to carry in tanks.

Keeping drums of lube oil on deck is difficult

and poses safety issues. So owners are in a

difficult position.”

Ms Huot told Singapore Solutions that the

fall in the crude oil price has so far only had

a limited effect on lube oil prices. About 50

per cent of the cost of lube oil is the base

oil and the other 50 per cent is the cost of

additives. The price of base oil depends on

supply and demand of marine lubes so there

are differences between regions. “There will

be some impact on lube oil prices but it will

be limited.”

Unimarine will be running a technical

seminar at Sea Asia 2015 to offer practical

advice to owners and operators focusing on

managing complexity in a safe and efficient

manner. “Our specialists will be speaking.

We also do in-house seminars for our clients

and share our experience in managing grades.

Complexity is the hot topic for lubes regarding

the impact of regulation, cost pressures, skills

requirements and technology.

“New vessels and new engines throw

up challenges for operators and this has an

In July 2014, a year after its sale by DNV

GL, the former DNV Petroleum Services

was renamed Veritas Petroleum Services

(VPS). Under this name it will continue its

role as a leader in providing marine fuel

analysis and surveys. Although the name

change was announced earlier in the

year, in July it unveiled a new corporate

and brand identity.

Bill Stamatopoulos, VPS group

commercial director, said: “Against this

backdrop of an ever-changing landscape,

businesses today face mounting

technological, financial, operational and

regulatory challenges and risks. We will

continue to leverage our deep technical

expertise and market-leading insights,

and invest in innovative technology to

help clients navigate the increasingly

complex world of fuels so that they can

focus on their core business.”

Singapore is one of four VPS fuel

laboratories, the others being in

Rotterdam, Houston and Fujairah.

In January 2015 it appointed a new

managing director for the Americas,

Michael McNamara, based in Houston.

The introduction of the 0.1 per cent

sulphur in fuel limit in emission control

areas in January provided a new reason

for using VPS fuel testing services.

Even though the limit currently applies

in North Europe and the US, ships are

taking bunkers in Singapore and other

global ports that need to be compliant.

And shipowners need to have confidence

that their fuel will meet the requirements

if tested in those areas.

VPS takes on a new life

Bill Stamatopoulos (VPS): We will continue to invest in innovation


impact on costs. New products come at a cost.

Availability is an issue, as are operational

challenges on board so we aim to reduce

operational stress on superintendents and

onboard engineers.”

Ms Huot said that Unimarine is continuing

to grow and the company is well established

in Singapore in its new, larger office. “We

have also opened an office in Hamburg

and are opening new offices in Piraeus and

Shanghai. This growth is reflected in volumes

of business. Growth in offices will enable us

to service existing clients better and be close

to the growing number of Greek and Chinese

clients, so offices there are important. We

have a long-established office in New York.

Singapore remains our biggest office but the

two European offices are growing fast.

“We are unique in the market as traders and

physical suppliers and we bring a proximity

and wide variety of services. Pure traders

offer only price, while suppliers have other

priorities and interests. We are a dedicated

marine group and have shipping interests

through Unishipping so we also understand

the shipowner’s perspective.”

“We focus on long-term relationships with

clients in terms of the optimum maintenance

of assets. We are competitive but we will

not compromise on technical standards and

services. We play a part in both cost saving and

preventative maintenance and the efficient

running of ships.” SS

Shell Marine Products in Singapore

supplies a range of lubricating oils for ships

calling in Singapore. But with a number

of new challenges facing ship operators,

including new engine designs, different

marine fuels, operating factors such as

slow steaming and new environmental

regulations such as the revised vessel

general permit in US waters requiring

environmentally friendly oils, selecting the

most appropriate lube oils for individual

vessels and operating conditions is even

more crucial to limit potential damage and

optimise engine efficiency.

According to Jan Toschka, general

manager of Shell Marine products, this

means not just supplying lube oils but

providing a wide range of supporting

services for owners, including providing

expert advice and consultancy, such as for

vessel chief engineers on the optimum lube

oil feed rates. “Offering a suitable product

should be coupled with the appropriate

expert advice for changeovers and feed

rates,” Mr Toschka said.

Shell has introduced a number of

services to support owners. They include

its Rapid Lubricants Analysis, which

includes a comprehensive lubricant

sampling plan, recommendation of the

most appropriate test suite for each

piece of equipment and advice on

sampling frequency and how to take a

representative sample of used oil.

The Shell Rapid Lubricants Onboard

Alert is a portable device providing

onboard measurement and the recording of

magnetic iron content in oils and greases.

Lube oil standards

More than one million metric tonnes of ExxonMobil fuel has been delivered using the mass flow metering system

Selecting the right lube oil is vital to avoid damage


Singapore does not possess any

hydrocarbon resources but the island

nation could well evolve into Asia’s

liquefied natural gas (LNG) hub, having already

established its position as among the world’s top

three oil trading and refining centres.

The US Energy Information Administration

attributes Singapore’s success to its location with

easy access to the sea and its strategic position

near the Strait of Malacca.

LNG has been touted as the clean fossil fuel-

burning energy source of the future. Singapore

therefore needs to develop its LNG industry

if it is to retain its place among the world’s

most important energy hubs. Many global

energy companies have regional headquarters in

Singapore, which provides a solid foundation for

the nation’s nascent LNG industry.

However, Singapore is highly urbanised and

its LNG ambition is also fuelled by the urgent

need to secure the energy for its gas-dependent

economy. Natural gas provides close to 80 per cent

of Singapore’s fuel mix for electricity generation.

Singapore relies heavily on Indonesia and

Malaysia for piped gas supplies, importing about

7 million tonnes of piped gas each year from the

two neighbouring countries.

Singapore’s first LNG terminal on Jurong

Island started importing the fuel in May 2013,

initially with two storage tanks with capacity for

up to 3.5 mtpa. In January 2014, a third tank with

additional regasification facilities came on stream,

lifting the LNG handling capacity to 6 mpta. The

Government of Singapore has also looked into

building a second LNG terminal at a different site.

Singapore LNG Corp (SLNG), the private

entity established to develop and operate the

terminal in Jurong, maintains its focus on

meeting domestic requirements.

In an interview with Singapore Solutions,

SLNG chief executive John Ng highlighted the

increasingly important role of LNG in Singapore’s

energy mix as demand for gas grows in tandem

with Singapore’s economy in the years to come.

Mr Ng stressed SLNG’s primary focus remains

to ensure that there is ample capacity to meet

current and projected domestic demand, but he

also said that any additional capacity over and

above Singapore’s needs will be used to provide

ancillary services such as vessel cool-down (the

pre-cooling of tanks and lines before LNG cargo is

loaded), storage and reload operations.

The economic success of Indonesia and

Malaysia has seen gas demand surging in the

two countries that provide the bulk of Singapore’s

gas supplies. As recently as 2011, the Government

of Indonesia indicated its intent to renegotiate

the standing gas sales contracts with Singapore.

Developing LNG import and storage capacity

is indeed, as Mr Ng indicated, an economic

necessity for Singapore. But he also hinted at

Singapore’s larger LNG ambition. In a statement

issued on the recent award of a S$700 million deal

to South Korea’s Samsung C&T Corporation for

the latest Phase 3 development of the Singapore

LNG terminal, he said: “We are also turning the

next page of the Singapore LNG story as we build

up the terminal’s capacity to allow Singapore

to respond to new business opportunities in the

regional or global LNG markets.”

The Phase 3 development of the terminal

on Jurong Island involves the construction of a

fourth LNG tank to boost distribution capacity

from the current 6 mtpa to about 11 mtpa.

At 260,000m3, the fourth LNG storage

tank is set to rank among the largest in the

world and able to receive a full cargo load

from a Nakilat Q-Max LNG carrier. Other key

Aiming to be regional LNG hub

Investment in LNG terminals and storage facilities is part of a plan to make Singapore the leading LNG hub in Southeast Asia

LNG hub

SLNG has two jetties in operation and plans to add a third


facilities to be added include a new terminal

substation, additional open rack vapourisers

and LNG booster pumps, and equipment to

allow the correction of the Wobbe Index. This

indicator of the interchangeability of gases may

need correcting for the regasified LNG to meet

Singapore’s gas specifications.

The regasification facilities are expected to

be completed by 2017, while the fourth tank is

expected to be completed by 2018.

Prior to embarking on the Phase 3 development

in August 2014, SLNG has already successfully

preformed six vessel cool-down services and one

storage and reload service. As of November 2014,

SLNG has received 39 LNG vessels delivering

more than 120 million British thermal units of

LNG to Singapore.

Mr Ng said: “SLNG has completed one storage

and reload deal to date and is actively engaging

with potential customers for future use of storage

capacity for storage and reload purposes.”

Through services such as storage and reload,

SLNG is playing a part in creating greater liquidity

to support the positioning of Singapore, and the

larger Southeast Asia region, as the conduit

between the major and emerging suppliers in

Australia, the Middle East, East Africa, North

America and Europe.

SLNG is also expanding its capacity to

receive LNG vessels in anticipation of future

LNG bunkering requirements. A third jetty is

under construction adding to two already in

operation. Mr Ng said the third jetty is designed

to accommodate smaller LNG vessels of 10,000 to

40,000m3 capacity and may potentially be used by

LNG bunker barges.

However, he also said that only the civil

structure of the tertiary jetty is completed.

Installation of the topside equipment including

the loading arms and mooring hooks, will only

be carried out once SLNG is able to establish a

business case for offering LNG bunkering services.

“While there are signs that LNG-fuelled

ships are gaining in popularity, much is still

dependent on how willing and ready the

international shipping community is to switch

to using LNG as bunker fuel, either partially or

fully,” Mr Ng explained.

Besides the regulatory controls, Mr Ng

said that four other key drivers are required to

encourage the switch to LNG as bunker fuel: fuel

price, supply availability, location of bunkering

facilities and vessels’ operational profiles.

He described the current lack of investor

interest as a chicken and egg dilemma. On the one

hand, operators and LNG suppliers are reluctant

to invest in LNG bunkering infrastructure in the

absence of sufficient LNG-powered ships. On the

other hand, shipowners are unwilling to convert

to or build LNG-fuelled ships in the absence of

the required LNG supply infrastructure at the

right locations.

Mr Ng added that economic considerations

would swing vessel owners’ approach

towards meeting increasingly more stringent

environmental requirements in load ports,

whether through using the more expensive

low sulphur marine gas oil, to continue with

their current fuel type with emission abatement

equipment or to use LNG.

SLNG is, nonetheless, supportive towards

Singapore’s vision in expanding into LNG

bunkering. Mr Ng said that Singapore is already

a major bunkering port situated strategically

along major trading sea routes, complete with

strong regulations on bunkering activities, and

therefore has the necessary prerequisites to

develop LNG bunkering.

The Maritime and Port Authority of Singapore

(MPA) is working towards supplying LNG as

bunker fuel by 2020, beginning with a pilot

programme in early 2017 aimed at defining

operational protocols (see page 75).

Under this pilot programme, the MPA will

evaluate different modes of LNG delivery,

including ship-to-ship transfers and terminal-to-

ship transfers to determine the most cost-effective

method. As an incentive for participating vessel

owners, MPA will fund up to S$2 million a vessel

for up to six LNG-fuelled bunkering vessels.

In order to promote LNG bunkering, a trading

hub also needs to be cultivated to ensure the

clean-burning fuel can be made available in

varying cargo sizes required to feed a wide range

of LNG-fuelled vessels.

Some 25 companies have set up LNG trading

desks in Singapore, including Germany’s EOn,

and Switzerland-headquartered Glencore. BG

Group has moved its global centre for LNG

to Singapore, and Shell has moved the global

headquarters for its gas business there.

The Energy Marketing Authority of Singapore

is set to appoint two more LNG importers to

support the expansion of the SLNG terminal and

increase the inventory available beyond meeting

the power generation needs of Singapore.

The two LNG importers would each import 1

million tonnes in addition to the 3 million tonnes

contracted to the current aggregator, BG Group.

Along with two other local conglomerates,

Sembcorp and Keppel Corporation, Pavilion

Energy, an LNG-focused player backed by

Singapore’s sovereign wealth fund Temasek

Holdings, has reportedly indicated interest.

Pavilion Energy has secured a 10-year LNG

deal with Total for the supply of 0.7 mtpa from

2018 and a 20-year contract for the supply of 0.4

mtpa from BP from 2019.

Pavilion has also signed an agreement to

purchase 20 per cent in Tanzania Blocks 1, 3

and 4 from Ophir Energy in the emerging gas-

producing East African country.

Besides building its portfolio of LNG

supplies, Pavilion Energy has entered into a

joint venture agreement with BW Group to

acquire, manage and charter LNG carriers and

vessels. In December 2014, the joint venture

BW Pavilion LNG took delivery of a pair of

Singapore-flagged LNG carriers, BW Pavilion

Vanda and BW Pavilion Leeara from South Korea’s

Hyundai Heavy Industries.

Pavilion’s chief executive Seah Moon Ming is

promoting the development of a Singapore LNG

price index decoupled from oil prices to facilitate

regional LNG trade. SS

SLNG’s main priority is to ensure that there is ample capacity for domestic demand

MISSION ‘ROW AROUNDSINGAPORE ISLAND’ (RASI) 2015In April 2015 four volunteer rowing teams drawn from Singapore’s maritime community will

row around Singapore Island in ocean-going Cornish Pilot Gigs to raise vital funds for The

Mission to Seafarers.

• To make a donation to the rowing teams online, please visit: JustGiving.com/MissionRASI

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2 BOATS, 12 OARS, 140KM: 24 HOURS


communications

Singapore is a hub of innovation in the

maritime and offshore communications

industry. Demand for improvements

in low cost crew welfare services is driving

shipowners and managers to invest in solutions

that can offer low bandwidth voice, text and

e-mail and controlled Internet access.

The majority of commercial vessels are

linked to L-band satellite networks, operated by

Inmarsat, Iridium Communications or Thuraya

Telecommunications Co. These networks are

available through global and regional distributors

who provide value-added services to help

shipmanagers optimise the available capacity

for communications. For owners willing to pay

more, distributors can offer very small aperture

terminal (VSAT) technology using C-band or

Ku-band frequencies in the electromagnetic

spectrum. Later this year they will be able to

offer services using Ka-band technology.

Singapore Telecommunications (Singtel)

is a major distributor of Inmarsat’s L-band

FleetBroadband (FB) services, which are

delivered to ships through FB150, FB250 or

FB500 terminals. Singtel also has its own

VSAT solutions that it can deliver via its own

satellites ST-2 and ST-3. When ships are outside

the coverage of these satellites the Ku-band

VSAT services are accessed through a network

of partner-owned satellites. Singtel can also

reduce maritime telecommunications costs, as it

controls a ground teleport in Singapore, which

can receive and transmit calls, via the satellites,

to and from several locations throughout

Southeast Asia.

For VSAT and FB services, Singtel has

developed innovative value-added services to

improve vessel operations and crew welfare, said

Singtel product director Song Lee Meng. Singtel

has a portal for online crew communications,

pre-paid and post-paid seafarer voice and texting

services and a method of compressing voice to

minimise the bandwidth. In April it plans to

introduce two new products to its portfolio of

value-added services.

“We are introducing two new innovations

– all-in-one (AIO) Mobile and AIO Smartbox,”

said Mr Song. “AIO Mobile is an application for

Android and Apple mobile devices. It is specially

designed for low bandwidth conditions, which

are encountered in the maritime environment.”

Its efficient use of bandwidth lowers the costs of

voice and video over IP. Mr Song said the mobile

application uses 10 times less bandwidth than

similar services, such as Skype.

“Because of the efficient bandwidth

utilisation, AIO Mobile is suited to operate over

FB, where data speeds can depend on the amount

of traffic and operators need to maintain good

services and low call costs,” he explained.

The costs of seafarer communications are

a concern of ship operators and managers but

especially of seafarers who are usually expected

to pay. Crew calls can cost on average around

US$1 per minute. Mr Song said that Singtel’s

new application for mobile phones will slash

these prices to rates seafarers would expect to

pay for terrestrial mobile phone calls. “With

AIO Mobile, a voice call could be as low as 15c

per minute if calls are completed in the top 10

destinations, such as Singapore, India, Malaysia,

Indonesia and the Philippines.” These are some

of the main countries supplying seafarers.

“Because we use our telecommunications

infrastructure in Singapore and the efficient

voice codec, we can lower the costs so they are

10 times cheaper than many other services.

Our application is designed for voice over

IP and multimedia, so it allows texting.

Images can be attached, and audio and video

recordings can be sent with this solution,” Mr

Song explained.

Singtel has also developed the AIO Smartbox

as an onboard unit for centralising a ship’s IT

functions. It allows captains and shipmanagers

to administrate crew Internet access. “It has

a firewall function that allows captains and

managers to block websites and control the

Internet traffic. So a captain has the flexibility

to issue different vouchers to the crew, to

control how much and how long they can

use the Internet. He can control online and

communications time, ensuring crew get their

rest,” Mr Song said.

“The AIO Smartbox can control the switching

between maritime VSAT and FB.” Inmarsat’s

service on its fourth generation of satellites

would be the back-up to the Ku-band. “The AIO

Smartbox will be rolled out for Ku-band VSAT

Delivering a new set of innovative solutions

Singtel is set to introduce new value-added services AIO Mobile and AIO Smartbox to enhance crew welfare and give captains better Internet control

by Martyn Wingrove

Inmarsat launched the second Global Xpress satellite during the first quarter of this year


communications

as there are times when ships will be out of the

Ku-band coverage and can fall back to FB.” Mr

Song said that Singtel customers could begin

trialling the AIO Mobile and AIO Smartbox

services from April.

Singtel already offers an AIO voice service on

fixed lines with analogue phones, where seafarers

can purchase vouchers or pay after making the call.

“We also offer Internet access, where we have a

connection portal that allows crew to buy vouchers

and access online services,” said Mr Song.

Singtel’s maritime online portal has the

CrewXchange section for exchanging comments

and views, where it acts as a social media site,

similar to LinkedIn and Facebook, for seafarers.

It has chat groups and sections that maritime

companies can ‘lease’ for their own social

media requirements.

Another value-added service is a maritime

mobile video surveillance solution that

minimises the bandwidth use. This is for

companies that need some video surveillance

on board their vessels but do not have large

broadband capacities for video transmission.

“The video is compressed so small clips are

sent to shore while higher resolution video is

recorded and stored on board,” Mr Song said.

“Sometimes, the service can be configured so

that when vessels are close to shore they can

send video via the cellular networks.”

Singtel will be able to offer Ka-band

VSAT services from the middle of this year

when Inmarsat introduces a regional service.

The UK-based satellite operator is in the

middle of building a constellation of its fifth

generation of satellites, which will deliver the

Global Xpress (GX) service. The first of three

Ka-band satellites was commissioned during

the second half of 2014 and a second is due to

enter service in the second quarter of this year

while a third is due to be commissioned in the

fourth quarter.

As part of this system, Inmarsat is rolling

out the Fleet Xpress and FleetBroadband Xtra

services. Fleet Xpress is a hybrid solution, which

will deliver Ka-band over the GX network with

an FB service as a back-up. This will be available

when Inmarsat has completed commissioning

the GX constellation before the end of this year.

In the interim, the FleetBroadband Xtra service

will be available with Ka-band coverage over the

Indian Ocean from the commissioned Inmarsat-5

F1 satellite and FB for other shipping areas.

FleetBroadband Xtra will be phased out once the

other two GX satellites are commissioned.

Inmarsat’s president of maritime solutions

Ronald Spithout said FleetBroadband Xtra

had been introduced following requests from

customers and the successful testing of GX VSAT

systems. “The FB Xtra service will allow customers

to take advantage of the Ka-band alongside their

existing L-band services,” he explained. “As

coverage becomes available with the launch of

our next two GX satellites, they will ultimately

progress to the full Fleet Xpress service.”

Singtel will be able to offer Fleet Xpress

and FleetBroadband Xtra services as a Tier 1

distribution partner. It is also looking at boosting

VSAT capacity using C-band and Ku-band. “We

have long-term capacity plans under evaluation

to see which satellite services will be needed and

whether we need to launch our own satellites,”

Mr Song said.

ST Teleport also offers satellite

communications services to the shipping and

offshore oil and gas sectors, using its own

infrastructure in Singapore. It uses a diverse

network of third-party satellites and ground-

station, terrestrial network and Internet

exchanges to deliver these services. It can provide

end-to-end remote VSAT communications

solutions to shipping in the Indian and Pacific

Oceans and throughout Southeast Asia.

It can offer voice over IP services, as well

as broadband capacity for online access for

crew. ST Teleport uses satellites operated by

Intelsat, Eutelsat, SES and others to provide

redundancy in connectivity in case there is a

problem with the satellites or obstructions block

the signal. It can provide the VSAT hardware,

including the onboard terminals, as well as

the support services. ST Teleport also runs a

technical operations centre to provide back-up

support to maritime and offshore clients. It can

deliver remote diagnostics and troubleshooting

for equipment, then engineers can fix any

problems from the onshore base.

Recently, ST Teleport agreed a partnership

with Eutelsat to offer data and video services

in Asia. This involves using the new Eutelsat

70B satellite to provide Ku-band coverage over

Southeast Asia waters from India to Australia.

ST Teleport also has the option of using the

Eutelsat 172A satellite for a broader reach over

the Asia Pacific region. The two companies

completed the installation of a new gateway at

ST Teleport’s earth station complex in Singapore

to connect with the Eutelsat 70B satellite.

When signing the agreement, ST Teleport

managing director Joseph Chan said: “We

are pleased to partner with one of the

premier satellite operators to bring advanced

and secure satellite services over a wider

geographical coverage to our customers.

Through our strong earth station expertise,

particularly in Asia, and Eutelsat’s satellite

technological leadership, we aim to bring a

new level of high performance, cost-effective

connectivity solutions and comprehensive

coverage to customers in this region.”

Asian VSAT services supplier SpeedCast

International has expanded its maritime

network through satellite capacity agreements

and its operations in 30 different teleports.

In February, SpeedCast gained a contract to

supply Ku-band VSAT services to bulk carriers

and tankers operated by Gearbulk. Under a

multi year agreement, SpeedCast will offer

high performance broadband connectivity for

mission-critical and crew communications

on 50 cargo vessels. Gearbulk fleet support

systems manager Dan Rooney expects the

vessels will benefit from more efficient and

enhanced operations and improvements in

crew welfare, all delivered in a financially

controllable package.

“We required a comprehensive

communications solution on board our vessels

to support our mission of delivering flawless,

efficient and customer-focused operations,” he

said. “SpeedCast has the demonstrated expertise

and the global infrastructure and support to

deliver a solution that will meet our needs today

and for many years to come.”

During the fourth quarter of 2014,

SpeedCast was awarded a contract to provide

broadband connectivity to Emas Group’s

subsea construction vessels. This involves

network connectivity to 12 vessels operated by

subsidiary Emas AMC for mission-critical data

and voice applications. Emas AMC will use

the connectivity for vessel-specific functions,

including shipmanagement solutions, voice

telephony and crew communications.

SpeedCast also gained a contract to deliver

VSAT services to Allseas Group’s new flagship

heavy-lift and offshore construction vessel. The

service will include operational applications,

as well as crew communications. SpeedCast

already serves the rest of the Allseas fleet,

including Solitaire, Audacia, Lorelay, Calamity Jane

and Tog Mor. SS

Singtel has developed innovative value-added services to improve vessel operations


port and terminals

Strong traffic growth at Singapore’s

port continued in 2014. In terms of

gross tonnage of shipping arriving in

the port, it achieved a 1.9 per cent increase

over 2013 and hit an all-time record high of

2.33 billion gt. The majority of this total was

accounted for by container ships and tankers,

with each contributing about 30 per cent.

Total container throughput at the port reached

33.9 million teu, an increase of 4 per cent over

2013, while total cargo tonnage handled at the

port rose by 3.5 per cent to 580.8 million tonnes.

Operator PSA International’s multipurpose

facilities handled 0.96 million tonnes of general

cargo and 1.29 million vehicles.

During the 51 years since the Port of Singapore

Authority (PSA) was created the port has invested

heavily in new facilities, especially, but not solely,

in container berths and handling equipment.

The PSA was quick off the mark in investing

in container terminals and its first dedicated

container berth was opened at Tanjong Pagar in

1972. At that time, the PSA also operated Keppel

Wharves, Jurong Port and Sembawang Wharves,

which was the former British naval base that had

closed in 1971. Pasir Panjang Wharves opened in

1974, which meant that the PSA was responsible

for about 12km of wharves.

As container traffic began to soar a second

container terminal, Keppel Terminal opened

in 1991. This was quickly followed by the

Brani Terminal, and in 2000 the Pasir Panjang

Terminal opened,

The PSA was also quick to start investing

in automation and electronic systems, with its

paperless electronic Portnet system introduced

in 1984.

Singapore’s container throughput grew

rapidly as demand increased, new terminals

came into operation and handling capacity was

added. It reached annual throughput of 1 million

teu in 1982 and 5 million teu by 1990. The new

terminals in the early 1990s contributed to

throughput doubling to over 10 million teu in

1994 and doubling again, reaching 20 million

teu in 2005. Since then it has surpassed 30

million teu annual throughput. Although the

rate of growth has slowed in recent years,

mainly due to global economic and trade trends,

the 33.9 million teu achieved in 2014 retains its

position as second biggest container port in the

world after Shanghai.

A key change happened in 1997 when the

PSA was corporatised, giving it greater freedom

to invest and adopt a more proactive business

strategy. This included the ability to invest

and participate in the management of overseas

terminal facilities.

In the mid 2000s PSA International, as it

is now called, began to establish joint venture

terminal management agreements with leading

container ship operators, recognising the

operators’ wishes to have dedicated terminals

and more control over operations. The first

was with Mediterranean Shipping Co (MSC) in

2005 at a terminal at Pasir Panjang. The MSC-

PSA Asia Terminal opened the following year.

In 2008 a joint venture at Keppel Terminal

with Singapore-based Pacific International Lines

(PIL) to operate the PIL-PSA Singapore Terminal

was agreed. A similar arrangement was agreed

with Japanese carriers Nippon Yusen Kaisha

and Kawasaki Kisen Kaisha (K Line) to operate

the dedicated car terminal, Asia Automobile

Terminal (Singapore), also at Pasir Panjang.

PSA’s Singapore TerminalsPSA’s Singapore terminals are Tanjong Pagar,

Keppel, Brani and Pasir Panjang Terminals 1,

2, 3 and 5. In total PSA operates 57 container

berths equipped with 212 ship-to-shore

container cranes and an aggregate designed

annual capacity of 40 million teu.

Singapore’s port continues its growth

Singapore’s port has been a central part of the city state’s development right from its early beginnings and investment in its facilities continues to be a key government strategy

Tanjong Pagar container terminal has been a mainstay of PSA operations since it first opened in 1972


PSA also operates multipurpose facilities,

including the Pasir Panjang Automobile Terminal

and Sembawang Wharves. The Automobile

Terminal has three roro berths with a quay

length of 1,010m. Sembawang Wharves has four

berths with a total quay length of 660m.

Plans are already underway to build Phases

3 and 4 of Pasir Panjang Terminal. This will add

a further 16 container berths by 2020, bringing

the total annual container throughput capacity

at PSA’s terminals to 50 million teu. The first

berths at Phase 3 opened in 2014.

The new facility will also see major

investment in automated container handling

with an automated yard crane system. Testing

is also taking place for an automated guided

vehicle system.

The PSA is already planning even further

ahead with the proposed development of the

new Tuas container port. When this is completed

it alone have an annual capacity of 65 million

teu. As part of the project to develop this huge

new Tuas container facility Jurong Town Corp

(JTC) awarded a contract to The Netherlands

company Royal Boskalis Westminster to reclaim

land for the new complex, which is expected to

open in 2027. The initial reclamation work is

due to be completed in 2018. In addition to the

reclamation it will also involve construction of

3.4km of new quay. The first berths at Tuas are

expected to be operational by 2022.

In 2014 PSA International handled a total

of 65.4 million teu at all its global terminals.

This was an increase of 5.8 per cent from 2013.

Just over half this total, 33.55 million teu, was

handled at PSA Singapore Terminals, a rise

of 4.1 per cent from 2013, while its overseas

terminals achieved a 7.8 per cent increase to

31.89 million teu.

Tan Chong Meng, group chief executive

of PSA, said: “Last year was challenging for

the shipping and port industry. Global trade

growth was modest and that, coupled with

the introduction of many mega vessels,

resulted in overcapacity and low freight rates

for liner carriers. The increasingly large ships

and complex alliances have also led to much

greater operational demands being placed

on port operators. This is a structural shift

that will impact all ports as ships across all

shipping routes continue to upsize. Amidst this

challenging backdrop, the PSA Group has put in

a credible performance.

“While the throughput figures might have

given the perception that 2014 was a typical

year, we knew 2014 was business unusual. The

industry awoke to harsh new realities: a mismatch

of mega vessels and ports, more complex alliance

arrangements, reduced shipping reliability,

and port congestion. It was a challenging and

uncertain time for the industry. As more mega

vessels enter service in 2015, we may continue to

see operational challenges this year.”

In 2014, as part of its efforts to develop

the latest container terminal technology to

improve efficiency and productivity, PSA and the

Maritime and Port Authority of Singapore (MPA)

agreed to extend their collaboration on research

and development to develop new technologies for

future container terminal operations.

MPA will provide an additional S$15

million, while the PSA will provide additional

co-funding of up to S$15 million over the

same period. This will bring the total amount

committed towards the programme to S$50

million, up from the initial S$20 million.

The programme will continue its focus on the

key areas of port automation, intelligent planning

and control systems, and green port solutions.

MPA chief executive Andrew Tan said: “With

PSA SINGAPORE TERMINALS - CONTAINER TERMINALS

Terminal Berths Quay length (m) Max depth (m) Quay cranes

Tanjong Pagar 7 2,100 14.8 27

Keppel Terminal 14 3,200 15.5 40

Brani Terminal 8 2,400 15.0 33

Pasir Panjang T1 7 2,500 15.0 28




Source: PSA

Development of the next phases at Pasir Panjang Terminal are well underway (credit: PSA)


growing demands on ports to accommodate ever

larger ships and growing amounts of cargo, it is

imperative that we leverage on new technologies

to increase our port efficiency and productivity.

Through co-funding of such research and

development efforts, we hope to see the

adoption of new systems and technologies that

will significantly enhance the competitiveness

of Singapore as a global transhipment hub and

bring benefits to the rest of the industry.”

Tan Puay Hin, regional chief executive for

Southeast Asia at PSA International, added:

“PSA is pleased to continue this partnership

with MPA as we gear up for the development

of the future terminals at Pasir Panjang

Phases 3 and 4 as well as Tuas. The innovative

technologies developed under the programme

will transform our terminal operations and

take our productivity and process efficiency

to new heights. We will be better prepared to

manage greater business complexities as our

customers’ requirements evolve. This will also

enhance the value proposition of Singapore as

a global transhipment hub.”

As part of efforts to ensure it has the

operating and engineering skills that it will

need, PSA has signed a memorandum of

understanding with the Institute of Technical

Education (ITE) worth over S$2 million,

(US$1.4 million) to equip ITE students with

a deeper understanding of container port

operations and technology. Students from

the engineering disciplines will be exposed

to an array of port equipment and cutting-

edge automation technologies, which PSA is

implementing in its new container terminals.

Mr Tan at PSA International said: “We

are applying more automation and intelligent

technologies to transform our capabilities and

enhance productivity. With this new level of

collaboration, we will continue to develop the

skilled talent PSA needs to grow as a global

champion in our industry.”

Pasir Panjang Terminal Phases 3 and 4 are

the next major milestone in the expansion of

Singapore’s port. The decision to go ahead with

this development was made in 2004 and the

reclamation work was completed in 2014.

Among its features are automated container

yard and rail-mounted gantry cranes supported

by intelligent control systems, which are

intended to increase productivity and contribute

to environmental sustainability.

The leases for the present container

terminals at Tanjong Pagar, Keppel and

Brani, which are close to the Singapore city

centre, expire in 2027, and the land is set

for redevelopment. This is the reason for the

need to bring the new Tuas container terminal

complex into operation by that date.

It is planned that all PSA’s container terminal

activities will eventually be consolidated

at Tuas. Its planned 65 million teu annual

capacity is expected to be sufficient to meet

long-term demand for container throughput.

Consolidation will also avoid the present

need for containers to be transported by truck

between the various existing terminals, adding

to congestion, costs and harmful emissions.

PSA International going globalFollowing its corporatisation, PSA International

began exploring business opportunities overseas

to apply the experience and knowledge it had

gained operating and developing container

terminals in Singapore to benefit other ports

seeking to develop and operate new facilities.

Its first overseas project was Dalian

Container Terminal in China in 1996. Since

then PSA has forged agreement with a

number of ports in Asia and the Middle East

in particular to develop and manage new

container terminals.

Among its recent new projects, in December

2014 it signed an agreement with PT Pelabuhan

Indonesia II, Mitsui & Co, and NYK Line to

jointly construct and operate a new container

Keppel Terminal was the port’s second container terminal in 1991 (credit: PSA)

port and terminals


terminal at Tanjung Priok Port in Jakarta,

Indonesia, the country’s leading container

port. The terminal is needed to meet growing

demand for container handling capacity

as its container traffic increases. Mitsui’s

participation is through a Singapore-based

port development and management company

Portek International.

This is PSA’s first collaborative container

terminal project in Indonesia. The new terminal

will be developed and operated by a newly

established project company PT New Priok

Container Terminal One. It will have an annual

handling capacity of about 1.5 million teu, an

overall berth length of 850m and a 16m draught

alongside, allowing the facility to accommodate

some of the largest container vessels in service.

The terminal will also limit harmful

emissions and promote energy conservation

and environmental protection by exploring

the use of environmentally friendly facilities

such as cold ironing, which involves the

provision of shore-to-ship power to enable

ships to avoid using their own diesel

generators while in port.

June 2014 saw the opening of the LYG-

PSA Container Terminal in Lianyungang,

China, built to serve the Chinese regions

of Shandong and Jiangsu. When it is fully

completed the terminal will have a quay

length of 1,700m, giving it the capacity

to handle 2.8 million teu annually, with

container cranes that have a 23-row outreach.

This will enable the terminal to handle the

latest generation of container ships.

PSA International’s Mr Tan said at the

opening ceremony: “This investment is PSA’s

first major foray into the Yangtze River

Delta region, one of the most important

economic regions in China which is served

by the New Eurasia land bridge leading into

central and western China. PSA is committed

towards making Lianyungang-PSA Container

Terminal a great success to benefit the whole

port and its hinterland; we also want to

PSA is investing heavily in high tech container handling equipment (credit: PSA)


continue strengthening our partnership with

Lianyungang Port Group into the far future.”

“While the throughput figures might have

given the perception that 2014 was a typical

year, we knew 2014 was business unusual.

The industry awoke to harsh new realities:

a mismatch of mega vessels and ports, more

complex alliance arrangements, reduced

shipping reliability, and port congestion. It

was a challenging and uncertain time for the

industry. As more mega vessels enter service

in 2015, we may continue to see operational

challenges this year.”

PSA Marine tug venturePSA is not only a terminal operator. It

has a subsidiary PSA Marine, which is

involved in providing marine services,

including towage. As well as providing

towage services in Singapore PSA Marine

is also active in international partnerships

and PSA marine recently agreed to form

a joint venture in Oman in the Middle

East. PSA Marine Qalhat SAOC (PSAMQ)

has been established with Golden Dunes

International to operate towage operations

in Oman for Oman LNG at the port of

Qalhat under a 10-year contract.

The joint venture company operates four

newbuild tugs, each with a 70-tonne bollard

pull ahead and 65-tonne bollard pull astern.

OLNG Sur, OLNG Seeb, OLNG Masirah and OLNG

Muttrah are of the new Ramparts 3200CL

design from Canadian designer Robert Allen.

They were built in Hong Kong at Cheoy Lee

Shipyards.

Main propulsion for each tug comprises a

pair of Caterpillar 3516C HD diesel engines,

each rated 2,000kW at 1,600 rpm and each

driving a Schottel SRP 1515 fixed-pitch Z-drive

unit in azimuth stern drive configuration.

Jurong Port builds upJurong Port facilities were set up in 1963 by

the Singapore Economic Development Board

to support the growth of the Jurong Industrial

Estate. The port officially commenced

operations in 1965 with two berths and later

became corporatised as a subsidiary of JTC

Corp in 2001. Cargo handled at Jurong reached

1 million tonnes in 1970 and four new berths

were built.

Reclamation of mud flats and land at Pulau

Damar Laut began in 1989 to create more

deepwater multipurpose berths. The Jurong

Port Cement Terminal was added in 1996. The

Jurong Container Terminal began operations

in 2001. Jurong Port now operates a general

cargo terminal, a bulk cargo terminal, a cement

terminal, a container terminal, a roro terminal

and two barge terminals.

Recent developments include the opening

of a lighterage and ship-handling facility at

Penjuru in 2008, followed in 2012 by a similar

facility as part of the new Marina South

Wharves development.

Today, the main terminal has 32 berths

with draughts ranging from 2.2m to 15.7m

and can accommodate ships up to 150,000

dwt. The multipurpose facilities at the main

terminal provide for the handling of dry and

liquid bulk cargo, general and heavy-lift

cargo and containerised cargo. In 2013, it

handled a total of 21.5m tonnes of cargo of

all types.

A major development at Jurong Port is its

Offshore Marine Centre (OMC), a common-

user purpose-built facility for the offshore and

general marine sectors. It has been operated

and managed by Jurong Port since 2011.

A recent major project entailed OMC

completing a roro offload operation for

client Rotating Offshore Solutions moving

a 500-tonne base frame structure from

Batam to OMC for refitting work. The base

frame measures 26m × 26m × 23m and

was fabricated in Batam by Mitsui Ocean

Development & Engineering Co (Modec).

A six-month retrofitting contract involves

assembling a 1,700-tonne compressor module.

Prior to the operation, the staging site was

prepared with support stools for the jack-down

of the structure.

The barge transporting the base structure

arrived at OMC on 31 January and the offload

operation started on 1 February with the

shifting of the barge followed by the roll-off

of the structure using two sets of 22-axle self-

propelled modular transporters.

This is the first time OMC has undertaken

a roro operation. It will handle the loading of

the final assembled compressor module in six

months’ time.

Jurong Port’s lighterage terminals at

Penjuru and Marina South Wharves play a vital

role as a base for handling ship supplies to the

many vessels that take stores and spare parts

while calling in Singapore or in the anchorages.

Jurong handles about 650,000 tonnes of cargo

annually at its two lighterage terminals.

Penjuru has a 150m long berth and 3,000m2

of wharf space. Eleven of Singapore’s major

lighter and out-of-port-limit boat operators

are based in Penjuru. The Marina South

Wharves facility was developed and built

by MPA. It is convenient for ships taking

supplies in Singapore’s eastern anchorages.

The terminal has a 10m long wharf and

occupies an area of 3,900m2.

Jurong Port is making its contribution

to sustainable and environmentally friendly

port development in Singapore. In January it

confirmed that it is to install solar panels on

more than 95,000m2 of warehouse roof space,

Jurong Port’s Offshore Marine Centre handled its first roro operation in January

port and terminals


making it the largest port-based solar panel

facility in the world. The system is expected

to generate 10MW of electricity at its peak

capacity. It is scheduled to be completed by the

end of 2015.

The installation will cost S$30 million and

is a collaboration with solar leasing provider

Sunseap Enterprises in partnership with

SolarPV Exchange. The electricity generated

will be used by Jurong Port, with excess

electricity to be channelled into the Singapore

power grid for other users.

Jurong Port chief executive Ooi Boon Hoe

said: “This project is testimony to our ongoing

efforts to promote environmental sustainability.

The project will help promote Singapore as a

hub for green energy generation.”

That initiative was followed by another

announcement in January that in 2016 Jurong

will have what it claims are the world’s first

green berths, made of recycled concrete

from existing berths and yards. They will

also use green construction materials, such

as green cement, green steel mesh and green

reinforcement bars. The berths will have a

depth alongside of 13.8m.

Mr Ooi said: “Construction of these green

berths is one of several initiatives Jurong

Port has taken to promote environmental

sustainability. This and other initiatives based

on a green port study supported by MPA will be

implemented progressively.”

Overseas venturesLike PSA Jurong Port has also ventured into

overseas collaborations, starting in 2001 with

its first joint venture, with Rizhao Port (Group)

Co, to manage the port of Rizhao in China. The

joint venture, Rizhao Jurong Port Terminals,

manages and operates seven bulk cargo berths.

Rizhao Jurong Port Terminals handles mainly

grains, woodchips, tapioca and edible oils. It

has a total berth length of 1,777m. Its 350m

long bulk grain berth can handle ships of up to

100,000 dwt and has an annual cargo-handling

capacity of 25 million tonnes.

Jurong’s second overseas venture was

again in China, this time at the Port of

Yangpu. SDIC Jurong Yangpu Port is a joint

venture by Jurong Port and SDIC Yangpu Port

Co to manage and operate a multipurpose port

for general bulk cargo such as coal, iron ore,

steel, sugar, project cargo and containers. Coal

and iron ore make up about 60 per cent of its

cargo throughput. Total dry bulk throughput

capacity is 10.5 million tonnes a year. It also

has a container terminal with capacity to

handle 680,000 teu annually.

Yangpu Port is one of the busiest deepwater

ports in Hainan Province, China. In 2012,

it handled 8.85 million tonnes of cargoes,

including 360,000 Teu of container cargo. It is

the main port serving the Yangpu Economic

Development Zone, a rapidly developing

industrial zone in northwest Hainan.

Jurong Port’s most recent overseas venture

is at Marunda, a new multipurpose port in

Jakarta, Indonesia. Marunda Center Terminal

is managed by PT Pelabuhan Tegar Indonesia,

a joint venture between Jurong Port and

Indonesian partners PT Tegar Primajaya and PT

Multikarya Hasilprima.

The first phase of the common-user port

opened in August 2014. It has three liquid bulk

berths and three general cargo and dry bulk

berths. Each berth can handle vessels up to

10,000 dwt.

The next phase is due to open in the first

half of 2016 and will have a further three liquid

bulk berths and three dry bulk berths. These

facilities will be able to handle larger vessels of

up to 30,000 dwt.

Oil terminal growth plansSingapore is host to several oil refineries and

oil storage terminals as part of its role as a

leading Asian regional oil industry hub. Tanker

terminals are therefore an important feature of

the landscape as oil tankers ply their trade in

and out of the port.

Most of the terminals are owned as part

of the oil refinery infrastructure, but there

are also some independent privately owned

facilities that are keen to secure some of

this massive volume of oil that passes

through Singapore.

One of these Universal Terminal (Singapore),

The distinctive Marina Bay Cruise Centre can accommodate the largest cruise ships in service


has created a new business trust under

Singapore’s business-friendly legislation and

is planning an initial public offering (IPO)to

raise up to S$1 billion from investors to finance

further expansion of its facilities. The terminal

is located on Jurong Island and the marketing

material for the new share launch describes it

as one of the largest independent oil storage

terminals in Asia. The terminal is owned by

Singapore-based oil trader Hin Leong Trading

and Chinese oil company PetroChina. It has

15 oil tanker jetties, including two that can

accommodate very large crude carriers, with

78 storage tanks with a total capacity of 2.33

million m3.

Leading banks Standard Chartered, HSBC

and Singapore-based DBS are co-ordinating

the share offering. The planned launch of the

IPO in December was delayed due to market

conditions but was expected to go ahead in

the first half of 2015.

Cruising in SingaporeCruise ships arriving in Singapore call at the

Singapore Cruise Centre in Keppel Harbour

which opened in 1991 and the newer Marine

Bay facility, which opened in May 2012. The

latter has two berths of 360m long and a

draught of 11.5m.

The purpose-built Marina Bay Cruise

Centre is part of a much bigger Marina Bay

development and enables large cruise ships

to call close to the city centre. The distinctive

and large 28,000m2 terminal incorporates a full

range of passenger facilities.

It can accommodate vessels of up to

220,000gt, which includes the largest cruise

ships currently in service and can handle 6,800

passengers at each of its berths.

The Singapore Cruise Centre was

developed as part of the HarbourFront Centre

in 1991. Its more limited vessel facilities

meant that some cruise lines that operate

larger ships have switched to the newer

Marina Bay Cruise Centre. But it is still the

base for Asian cruise line Star Cruises, as well

as ferry services to Indonesia.

Singapore is also establishing a name for

itself as a hub for superyachts. It has seen

significant growth in the number of such

luxury craft calling in Singapore to take

advantage of its port facilities and attractions

for passengers. Yacht services company

Yachting Singapore says that its business has

been growing by about 20 per cent a year in

each of the last three years.

Singapore has extensive refit and repair

facilities for superyachts, including those at

three yacht marinas – Raffles Marina, One15

Marina Club, and Marina at Keppel Bay. There

are docking facilities for yachts up to 120m

long. Singapore faces tough competition from

what are often regarded as cheaper facilities in

nearby Thailand and Malaysia. SS

The Singapore Cruise Centre is a base for ferry services to Indonesia

port and terminals

www.ishimaship.com


classification

T he Maritime and Port Authority

of Singapore (MPA) has signed a

memorandum of understanding (MoU)

with US-based classification society ABS to

promote maritime research and development

(R&D) and innovation.

The five-year agreement with ABS will

involve collaboration on R&D into alternative

and clean fuels, including liquefied natural

gas (LNG) bunkering, covering operational

configuration studies, risk assessment and safety.

The programme will also include developing

resilient, next-generation port systems relating

to the safety and security of new port facilities

and where processes such as traffic management,

safe navigation, security measures, situational

awareness, decision making and the associated

management measures have to be continuously

assessed and updated.

MPA chief executive Andrew Tan said:

“MPA works closely with classification societies

to undertake research activities in Singapore.

This MoU with ABS will strengthen Maritime

Singapore’s R&D capabilities in the areas of green

shipping, future port and maritime technologies.

It also aims to promote Singapore’s position as a

global maritime knowledge hub.”

ABS chairman and chief executive Christopher

Wiernicki said: “For more than 50 years, ABS has

been committed to working alongside MPA,

industry and academia to foster the safe and

environmentally responsible growth of the

Singapore marine and offshore industries.”

MPA and ABS already collaborate in the

ABS-MPA Maritime Technology Professorship

programme at the Singapore University of

Technology and Design (SUTD), which aims

to build up SUTD’s capabilities in maritime

education, and on R&D to boost the development

of marine and offshore technology.

A*Star technology for LRLloyd’s Register (LR) is continuing to develop its

Global Technology Centre in Singapore, which is

focusing on the offshore oil and gas industry and

related engineering and safety aspects.

“We have set up our Singapore Global

Technology Centre (GTC) to advance technical

innovation in the industry and support

economic growth in the region. In collaboration

with business, academia and public research

and development agencies, we will focus on

four research themes critical to safety in the

energy and marine sectors. The Singapore

GTC is a joint project between Lloyd’s Register

and A*Star (Singapore Agency for Science

Technology and Research), and we welcome

research proposals from across the industry,”

the UK class society said.

Richard Sadler, LR’s chief executive, said:

“Our investment in the new Lloyd’s Register

GTC in Singapore, coupled with the agreement

with A*Star, represents a shared vision to

create a long-term centre of excellence for

technology, innovation and research that will

benefit Singapore, industry and society at

large. It underlines our global commitment to

understanding the sciences and technologies

that help to ensure that people are safe and that

essential assets perform as required.

“Along with our GTC at the University of

Southampton in the UK, the Singapore GTC will

serve as a cornerstone for our global research and

development network.”

The main research themes at the GTC are

subsea drilling and well control equipment, risk,

deepwater floating offshore installations and

enabling emerging technologies.

As part of the initiative, it is establishing a

joint lab facility with A*Star’s Institute for High

Performance Computing (IHPC) to co-develop

applications and solutions in the marine and

offshore sectors.

By 2017, up to 150 full-time engineers,

researchers and doctoral students will be

employed and working together with industry

on projects of mutual interest with third parties.

LR joined forces with A*Star in September

2012. The capabilities and resources of the

new centre will be scaled up over five years to

work on mutually identified projects between

LR and A*Star under their research agreement.

Investment in the centre is expected to reach

US$35 million.

A*Star is establishing itself as a centre for

maritime research and has also recently agreed

a new research collaboration on ship design with

Sembcorp Marine, the University of Glasgow and

the University of Glasgow Singapore. In January

they signed a three-year MoU to develop new

hull designs for large ocean-going vessels and

make them more environmentally friendly.

They will use computational modelling and

visualisation technologies to design vessels

with improved hydrodynamics for better

Leading class societies are developing maritime research facilities in Singapore with the support of MPA

Collaboration promotes maritime research

MPA and ABS sign an agreement to promote R&D


fuel efficiency. They will also collaborate and

innovate on features to reduce harmful exhaust

emissions and discharges by enhancing the

vessels’ scrubber and ballast treatment systems.

Sembcorp Marine and A*Star will analyse

and improve gas abatement technology, using an

enhanced scrubber design to address the emission

of harmful gases. The collaboration will employ

multi-physics computation to build modelling

and simulation capabilities.

A*Star’s IHPC has developed significant

maritime-related computational R&D

capability in areas such as fatigue prediction for

enhanced structural integrity, marine corrosion

prevention, efficient gas flow emission

control, hull optimisation and integrated risk

assessment of assets using the analytics of

condition monitoring. It will also make use of

its industrial R&D experience from its marine

and offshore industry collaborations with

Lloyd’s Register and the Southampton Marine

and Maritime Institute, part of the University

of Southampton.

“By harnessing the power of computational

modelling and simulations, we help shipbuilders

optimise design to improve efficiency and

environmental sustainability of large commercial

vessels. This can significantly impact the way

ships are built and accelerate the advancement of

more fuel-efficient and greener vessels,” said Prof

Alfred Huan, executive director of A*Star’s IHPC.

ClassNK sets up research projectsIn February Japanese class society ClassNK

signed an MoU with MPA to promote R&D and

innovation in the maritime industry. The five-year

collaboration will focus on enhancing ship safety

and environmental sustainability.

It will concentrate on four main areas: fatigue-

related research and evaluation of structural

integrity for safe and reliable construction and

operations of ships, data analytics to assist in real-

time anomaly detection of machinery, real-time

monitoring of emissions and condition-based

monitoring of structures for ship and machinery

operations; applied research in emissions control

and alternative fuel engine technologies to achieve

reductions in SOx, NOx and particulate matter;

and research on developing a tropical marine

energy test site and tidal energy generation,

material biofouling studies and energy storage

systems for shore power supply.

MPA chief executive Andrew Tan said: “We

are happy to partner with ClassNK on this

important initiative to jointly develop innovative

solutions and tools addressing ship safety,

emission control and marine renewable energy.

The signing of this MoU is a reflection of the

emphasis we place on innovation and R&D and

signifies a shared vision to make the industry

safer, more efficient and greener.”

The signing ceremony also marked the

opening of the new ClassNK Global Research

and Innovation Center (GRIC), ClassNK’s first

research centre outside of Japan. GRIC will

carry out research with industry, academia and

government agencies in Singapore and from

around the world on various projects such as the

development of an exhaust gas cleaning system, a

feasibility study for a marine renewable energy test

site in Singapore and a pilot-scale demonstration

for a zero-emission desulphurisation process for

maritime applications.

GRIC will be involved in a new joint research

project launched in December 2014 to develop an

exhaust gas cleaning system (EGCS) to control

SOx emissions from ships outside emission

control areas (ECAs). ClassNK will work with

NYK Line, the Monohakobi Technology Institute,

Nanyang Technical University, Sembcorp Marine

Technology and a leading EGCS manufacturer to

simplify EGCS operations, reduce costs and unit

sizes and minimise CO2 emissions for installation

across a range of vessel types.

There will also be a pilot-scale

demonstration project to develop a zero-

emission desulphurisation process for maritime

applications (ZEDSMart). Building on these

opening projects, GRIC will quickly expand its

scope of maritime research.

ClassNK is launching a new feasibility study

for a new marine renewable energy testing facility

to be built in Singapore. The study will pave the

way for the establishment of the world’s first

marine renewable energy testing facility to be

located in the tropics. Singapore is one of the

countries leading efforts to attract new marine

renewable energy installations and the testing of

the technology involved.

The study will assess the feasibility of

establishing a testing facility for 1/5–1/10 scale

tidal wave generator systems in the waters

off the coast of Singapore, including surveys

of tidal forces, as well as environmental and

operational viability assessments. This work

will be carried out by a consortium led by

ClassNK and the Energy Research Institute at

Nanyang Technical University (ERI@N), with

support from other leading research institutes

and consultants including the European Marine

Energy Centre (EMEC), Denmark-based water

and environment consultants DHI and oil,

gas and mining infrastructure development

specialists Fugro.

Prof Subodh Mhaisalkar, executive director

of ERI@N, said: “Our goal is to make Singapore

a leader in the new maritime energy technology

and we consider this facility an important

step to achieving that goal. ClassNK, with its

background in maritime energy and offshore

research and extensive experience assessing

both maritime and offshore structures, is the

perfect partner to help verify the feasibility of

this innovative new facility.”

This feasibility study would facilitate the

establishment of the world’s first facility capable

of practically testing renewable marine energy

technologies in high temperature tropical waters

such as those found in Southeast Asia.

In 2014 MPA signed an MoU with another

class society, DNV GL, to promote maritime R&D

focusing on LNG technology, green ports, marine

environment and resources, and organisation of

maritime-related thought leadership forums.

Dr Henrik Madsen, DNV GL’s Group president

and chief executive officer, said: “Singapore

has emerged as one of the key centres for

innovation in the shipping world, especially in

terms of promoting technologies and systems

which develop and promote green outcomes.

We have built up a relationship with MPA over

the past several years, as we have both jointly

and separately championed projects which have

sought to reduce emissions and improve fuel

efficiency in shipping.”

DNV GL is also establishing a dedicated LNG

and gas consulting unit in Singapore to support

development plans for gas and LNG infrastructure

in Asia. DNV GL’s Arve Kallekley said: “DNV GL

is demonstrating its continued commitment to

Singapore’s ambition of becoming Asia’s natural

gas hub.” SS

Andrew Tan (MPA) and Yasushi Nakamura (ClassNK) sign the MoU

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Finance

Shipping finance finds a home

A ccording to the Maritime and Port

Authority of Singapore (MPA) there

are more than 20 major banks in

Singapore with shipping finance portfolios, but

other financing options are also available there,

including shipping trusts, the Singapore stock

exchange and various private equity arrangers.

Although the international shipping banking

scene has changed in recent years following

the problems faced by many banks, some big

international names are present and highly active

in Singapore, including the two leading Norway-

based shipping banks DNB and Nordea, along

with German banks HSH Nordbank, Nord LB and

DVB Bank, and the UK-based but Asia-focused

Standard Chartered Bank.

DNB says that its client base includes some

of the largest shipping companies in Asia. DNB

Singapore has a team of brokers and research

analysts that specialise in the energy, offshore and

maritime sectors and cover a broad spectrum of

Asian companies within these sectors. It acts as

lead arranger and underwriter of syndicated loans

in those sectors and is the leading global shipping

bank, as mandated lead arranger and bookrunner

for shipping and offshore finance deals.

It has also had an investment banking

operation in Singapore since 2007 that is active

in Asian markets through merger and acquisition

and capital markets transactions, including

public and private equity raising, debt raising,

restructuring and structured products such as

sale and leasebacks.

There are three Singapore-based banks that

are particularly active in shipping finance – DBS,

United Overseas Bank (UOB) and OCBC Bank.

DBS is Singapore’s leading locally based bank

and has provided funds for both mainstream

shipping and offshore projects. DBS provides

finance for vessels with a loan-to-value ratio of

up to 70 per cent for terms up to 12 years for

vessels registered in Singapore, Malaysia, Hong

Kong, India or Japan.

A recent survey of shipowners by German

ship finance bank HSH Nordbank has identified

the growing importance of Asia for shipping and

ship finance. Although the German bank has had

its problems following the banking crisis in 2008

and has cut back its shipping portfolio and is no

longer the world’s leading ship finance bank, it

still has a significant shipping book and says that

it remains committed to financing shipping. It

retains a shipping desk in Singapore and is keen

to expand its Asian shipping finance portfolio.

HSH Nordbank polled shipping clients,

mainly in Europe and East and Southeast Asia as

part of its, Shipping goes to Asia 2015, exercise. It

surveyed 460 non-Asian and 70 Asian companies.

The findings revealed that it is primarily

Asian providers of capital that are increasing

their exposure to ship finance. One-third of

respondents are already collaborating with Asian

banks in financing newbuilds or purchasing

secondhand ships. About 16 per cent obtain

capital primarily from strategic investors in Asia.

In addition, 80 per cent expect Asian providers

of capital to penetrate ship finance, which has

traditionally been dominated by European banks,

to an even greater extent in future.

Projects being financed in Asia mainly

involve newbuilds or secondhand ships rather

than refinancing existing loans. One-third of

the non-Asian respondents said they have or are

planning joint projects with Asian banks. Local

banks in Singapore and China mostly provide

finance orders at Asian shipyards. There is also

an increase in private equity finance in Asia,

but bank loans remain the predominant source

of funding.

Ingmar Loges, global head of the shipping

international clients unit at HSH Nordbank,

said: “The steadily increasing significance of

Asia for the shipping sector is strongly correlated

with the financial clout of the providers of

capital and the key position of Asian shipyards in

building new ships. On top of this, a number of

established European banks have reduced their

exposure to ship finance substantially on account

of the difficult situation in shipping and the strict

regulatory requirements.”

For shipping companies that already have

a presence in Asia, almost 80 per cent named

access to the growth market and thus to cargo

as the main reasons for their move to Asia.

The proximity to banks and investors was not

decisive, accounting for only 9 per cent and 5

per cent, respectively. But 67 per cent of those

companies without offices in Asia stated that

through a local presence, beyond market access,

they wished to move closer to Asian investors (67

per cent) and banks (44 per cent).

All market participants considered

geographical proximity and personal contacts to

be extremely important for business in Asia. This

is why 60 per cent already have their own offices

in Asia, most of them represented through their

own subsidiaries. Singapore was identified as the

International and locally based banks and other finance providers are using Singapore as their main base for Asian shipping and offshore investments

More than 20 major banks have shipping desks in Singapore


Finance

most important location for European shipping

companies, followed by Hong Kong and the

Chinese mainland.

However, despite Asia’s increasing importance,

they still make strategic decisions, such as fleet

development or the award of contracts to shipyards,

in their home country. Their offices in Asia mainly

provide operational corporate functions, such as

marketing and sales, freighting and crewing.

Interestingly, and perhaps surprisingly,

European owners were more optimistic with

regard to their business prospects than their

Asian counterparts. Christian Nieswandt, global

head of domestic shipping clients and global liner

and container finance, said: “The Asian shipping

industry is in a substantially better position than

many other market participants thanks to strong

intra-Asia cargo traffic and views the current

situation as the normal state of affairs.”

The survey indicates the growing importance

of Asia, and Singapore in particular, as a source of

finance for European as well as Asian shipowners.

Another German bank, Nord LB, said that

it is seeking to encourage Asian private equity

funds to invest in shipping. In 2014 its Singapore

office set up funds to provide finance for up to

20 vessels. In an interview reported in Germany,

Thomas Buerkle, the Nord LB board member

responsible for risk management, said: “In Asia,

you have investors that put their money in ships,

as they believe that the slump is so deep now that

it offers good opportunities.”

An example of a shipowner seeking private

funds is the JL Asiatic Fund. Owner Asiatic Lloyd

Maritime partnered with Singapore fund manager

JL Capital to launch the fund. It used the proceeds

to purchase several secondhand container ships,

some of them from struggling German finance

providers including KG funds and banks.

Asiatic Lloyd Maritime is a Singapore-based

owner linked to German shipowner Atlantic

Lloyd, both owned by the Bunnemann family.

Since Asiatic Lloyd Maritime was established in

2008, it has amassed fleet of 12 container ships,

including two 9,034 teu ships, with others of

1,100 teu capacity.

The owner believes that Singapore is now

a more promising location to raise funds from

private investors than Germany. The success of

the fund has led to plans for a second similar

fund to finance further vessels.

Shipping finance initiativesThe Maritime and Port Authority of Singapore

(MPA) actively seeks to develop the ship finance

sector in Singapore though initiatives such as the

Maritime Finance Incentive (MFI) scheme.

A structure that has been used by some

maritime companies to establish a presence in

Singapore is the business trust. Although not

specifically designed for shipping companies,

business trusts are intended to be suitable for

companies that operate with stable cash flow,

such as from vessel charters. This was the basis

for the setting up of some specific shipping trusts

in Singapore such as First Ship Lease, Rickmers

Maritime and Pacific Shipping Trust, though the

latter is no longer in operation.

Business trusts are operated by a trustee

manager that is legally responsible, but whose

shares are normally owned by the main

sponsor. In the case of shipping this is usually

a shipowner. Funds for investment in vessels

are raised through the offering of units that

are traded on the Singapore stock exchange,

combined with bank loans. Unitholders benefit

from the direct exposure to the cashflow that

is generated by the vessels. In theory this was

intended to provide an attractive source of

income, but in practice the slump in shipping

earnings in recent years meant that the value

of the units and returns to investors were

disappointing, and after an initial surge, no

further shipping trusts have been set up.

The Internationalisation Finance Scheme

(IFS) was introduced by the Singapore

Government to assist Singapore companies to

obtain loans for overseas projects through a

system of co-sharing default risks between

From April 2015 it is being extended to

include mergers and acquisitions to finance the

acquisition of equity stakes in businesses with

the intent of overseas expansion that is linked

with their core business.

Accessing the scheme is through accredited

banks that include Singapore-based DBS,

OCBC Bank and United Overseas Bank and

international banks HSBC and Standard

Chartered. It also includes Orox Leasing

Singapore, which provides loans for shipping

companies to acquire vessels. SS

The Netherlands bank ABN Amro has

launched a new Asian corporate finance

advisory business focusing on energy,

commodities and transport. It is setting

up a new team in Singapore that will focus

on mergers and acquisitions business in

Asia and provide equity capital markets

business capabilities there.

Maureen DeRooij, country executive

for greater China and chief executive of

wholesale banking Asia, commented,

“ABN Amro has a very long heritage in Asia

and is a trusted banking partner for energy,

commodities and shipping companies in

the region. We believe the time is right to

expand our advisory capabilities, to further

harness our sector expertise and global

footprint for these clients.”

ABN Amro launches Asian finance business

The Singapore exchange is used by a number of shipping companies to raise finance


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P&I

S ingapore is a major centre in Asia for

protection and indemnity (P&I)

insurance, with most of the leading

international P&I clubs having operations there

along with several locally based P&I brokers. There

have also been a number of new Asia-focused P&I

products. Insurance is one of the key business

areas that have been highlighted as ripe with new

opportunities that can further boost Singapore’s

status as a maritime business centre.

In February the Standard Club Asia (Standard

Asia) launched a new Singapore War Risks

Mutual (SWRM) class. It says that this is the

first Singapore-based national mutual war risks

insurance. The SWRM will operate as a class of

Standard Asia, with its own class committee that

will act with a high degree of autonomy.

The aims of the new product are supported

by the Singapore Shipping Association (SSA).

Patrick Phoon, president of the SSA, said: “The

idea was first mooted by the SSA with the aim

of strengthening Singapore’s offerings in the

marine insurance sector to boost our status as an

international maritime centre. Having invested a lot

of time and effort on this project, I am pleased to see

its fruition. Singapore now joins the ranks of other

leading maritime nations to have its own dedicated

war risks facility. Our shipowners will benefit from

flexible coverage and more control over their war

risks insurance cover at competitive rates.”

Teo Siong Seng, chairman of Standard Asia,

said: “Standard Asia is headquartered in Singapore

to be at the centre of a vibrant shipping hub.

Our aim is to provide not only P&I insurance at

a reasonable price but also to provide shipowners

with a complete range of insurance covers, backed

by the club’s high standards of professional service

and leading financial strength.”

Standard Asia is managed by Charles Taylor

Mutual Management (Asia). Its managing

director, David Roberts, said: “Shipowners will

receive real-time advice, service and claims

handling. Shipowners will be able to benefit

from the success of the SWRM. The cover offered

by the class will include P&I war up to US$550

million, hull war up to the insured value of the

ship, detention and diversion expenses, sue and

labour, discretionary cover and optional additional

insurance such as loss of hire.”

There will be a dedicated team in Singapore

to provide advice and claims handling, with

premiums paid into a Singapore-based insurer.

The SWRM is based on the club’s standard war

risks coverage.

This move provides a significant boost to the

further development of Singapore as a marine

insurance hub in Asia and is aimed at Asian

owners. It will further increase the pool of marine

insurance knowledge and expertise in Singapore

and build up an insurance fund there.

The coverage is available for SSA members,

whatever flag their ships are flying, and owners

of ships registered in Singapore. Owners can enter

any number of their ships and are not required to

enter their whole fleet. It is a stand-alone product

and other P&I cover can still be obtained from

another P&I club.

Piracy risks resurgentNorwegian P&I club Skuld has warned that piracy

risks in Southeast Asia have increased again

recently despite the anti-piracy focus switching to

Africa in recent years.

Skuld said that there has been a surge of piracy-

related incidents, including thefts and robberies as

well as vessel hijackings for cargo siphoning, during

2014. Further incidents have already been reported

in the first months of 2015. Ships, particularly

smaller tankers, should consider taking mitigation

and loss-prevention measures.

Skuld said: “There has been a noted increase

in the number of incidents in Southeast Asian

waters with respect to piracy as well as other

physical crimes against crews and vessels. While

thefts and robberies, often at anchorage, have

been a problem for some time, it is the hijacking of

small tankers for the purpose of stealing the cargo

on board which has become a relatively new and

significant issue.”

During 2014, the International Maritime

Bureau noted 16 hijacking incidents and

ReCAAP, the regional co-operation agreement

on combating piracy and armed robbery against

ships in Asia, recorded 11 siphoning incidents,

although those numbers include some incidents

reported by both organisations. Further incidents

of tankers being hijacked for their cargoes have

been reported in 2015.

While cargo theft mainly affects smaller

tankers of less than 5,000gt, other attacks and

thefts have affected bulk carriers, container ships,

and tugs and barges.

Skuld referred to a safety alert bulletin issued in

early 2015 by International Marine Transportation

Singapore, which recommends action to reduce

the risks. These include: participation in piracy

reporting schemes to share information; using

designated safe anchorages in Indonesia, where

possible; advance preparation and risk analysis,

having plans and implementation onboard; and

having practice drills and onboard procedures for

responding to incidents.

An incident report from the US Office of Naval

Intelligence in December 2014 indicates that, where

a vessel was well prepared, both physically as well

as in crew training, it was possible to frustrate the

pirates’ designs. SS

Singapore’s first war risks insurance

Singapore’s role as a leading hub for marine insurance is growing as new initiatives take shape

Ships in Southeast Asia are vulnerable to robbery and theft


Maritime arbitration is a service that

Singapore offers companies to resolve

disputes, and that the Government

believes will provide another major addition

to the range of maritime services available in

Singapore.

Before the Singapore Chamber of Maritime

Arbitration (SCMA) was established in 2004,

arbitration that took place in Singapore was

on an individual case basis. Initially part of

the Singapore International Arbitration Centre

(SIAC), in 2009 SCMA became a separate entity

using a model based on that of the London

Maritime Arbitrators Association. In that way

SCMA provides a dedicated framework for

maritime arbitration in Singapore.

Start up funding came from the Singapore

Maritime Foundation, but in the long-term it is

intended to be self-financing. In 2014 it reported

an increasing case load. In 2015 it is publishing

the latest, version 3, of the SCMA rules to

reflect changing demands. Discussion with

the Maritime and Port Authority of Singapore

(MPA) is considering the longer-term plans and

SCMA expects the amount and scope of its work

to grow in 2015.

Speaking as part of SCMA’s Distinguished

Speaker Series in November 2014 Steven Chong,

commented on the development of maritime

arbitration in Singapore.

“Singapore’s rise in prominence in the

international arbitration scene has been

nothing short of remarkable,” said Justice

Chong It was not more than 20 years ago

that we were, in the frank assessment of

others, a jurisdiction naïve of the needs of

international commercial arbitration. Today,

however, international opinion about us could

not be more different. From international

surveys to legal bulletins, Singapore has been

completely recast as a regional leader in Asia

and a country within a magic circle of global

arbitration players.”

He continued: “There is no doubt

that Singapore is blessed with an excellent

geographical location. We are situated right in

the heart of an increasingly integrated Southeast

Asia while the two fastest growing economies in

the world today, China and India, are also not

far away. Singapore is therefore a convenient

location to arbitrate for many businesses in the

region. Our recent success has coincided with

an exponential growth in global transnational

commercial activity.

“The Government’s liberalisation of the legal

services sector has also contributed significantly

to the deepening pool of legal expertise which

can be found in Singapore. In the past few years,

Building an international arbitration centre

SCMA takes further steps to establish Singapore as a leading centre for international maritime arbitration

maritime law

Singapore is now a major centre for resolving maritime disputes


maritime law

a considerable number of foreign law firms and

leading UK barristers’ chambers have set up

offices in Singapore and many of them belong

to the top 30 arbitration practices as ranked by

the Global Arbitration Review.

“The conditions in Singapore should be

even more favourable to develop Singapore as

the pre-eminent seat for maritime arbitration.

Singapore is one of the largest ports in the

world. Many of the leading shipowners in the

world are either headquartered or have offices

here. We have attracted many of the leading

P&I clubs of the world to set up offices here

with Japan P&I Club being the latest. There is

now sufficient critical mass of key players in the

maritime community in Singapore and the local

maritime arbitration community is certainly

well-poised to reap the benefits.”

SCMA data shows that its caseload has

consistently increased since it became a separate

entity in 2009. In its first year SCMA handled

six disputes but by 2013 it had increased to 20.

In 2014 it had already reached that number

by the middle of the year. Almost half the

cases involved only international parties. “This

certainly speaks of the growing international

recognition and acceptability of the SCMA’s

arbitration rules,” Justice Chong said.

In late 2013 SCMA launched a new

procedure, Expedited Arbitral Determination of

Collision Claims (SEADOCC), to deal with the

apportionment of liability for ship collisions

through arbitration. “With all the virtues of

being a practical, efficient, and cost-saving

way to settle collision disputes, I am optimistic

that this will be yet another significant avenue

by which cases will be channelled to the

SCMA. The future for maritime arbitration

in Singapore therefore looks very bright,”

concluded Justice Chong.

This process provides that a dispute may be

referred to arbitration and then held in abeyance

while mediation is attempted. If parties are

able to settle their dispute through mediation,

their mediated settlement may be recorded as

a consent award that is generally accepted as

an arbitral award, and is generally enforceable

in approximately 150 countries under the New

York Convention - an international convention

on the enforcement of arbitral awards.

If parties are unable to settle their dispute

through mediation, they may continue with the

arbitration proceedings.

Other recent new developments are also

intended to enhance Singapore’s role in the

resolution of commercial disputes. In November

2014 the Singapore International Mediation

Centre (SIMC) was launched to provide for

the mediation of international commercial

disputes. It is intended to complement SIAC

and Singapore International Commercial Court

(SICC) to position Singapore as the leading

destination for legal services and resolution of

disputes in Asia and beyond.

In January 2015 the new SICC was launched

to hear disputes over global business deals.

Chief Justice Sundaresh Menon said: “The

establishment of an international commercial

court will build upon and complement the

success of our vibrant arbitration sector

and make our judicial institutions and legal

profession available to serve the regional and the

global community. At the same time, it will grow

our legal services sector and might even expand

the scope for internationalising Singapore law.”

New movesLast year Singapore-based law firm Rajah &

Tann launched a new Southeast Asia alliance

Rajah & Tann Asia bringing together eight law

firms and 500 lawyers from nine countries. Lee

Eng Beng, managing partner of Rajah & Tann,

said: “This launch marks a major milestone.

Rajah & Tann Asia is born and bred in Asia and

looks forward to serving clients in this region.”

In November 2014 law firm Norton Rose

Fulbright appointed Russel Low as a shipping

and offshore counsel in its Singapore office. He

focuses on offshore shipping and construction,

covering engineering and construction

contracts, ship and rig building projects and

disputes, drill rig and FPSO charter parties,

management and operational contracts, sale

and leaseback of offshore vessels, service and

management contracts and supply chain/

procurement contracts.

Gervais Green, head of the Asia Pacific

shipping, offshore oil and gas and finance, said:

“Russel’s experience will further enhance our

Singapore offering, as well as our market leading

shipping and offshore practice across the Asia

Pacific region, which includes teams in Australia,

Hong Kong, Shanghai, Beijing and Tokyo. We

have seen a rise in demand for legal services from

the offshore sector across Asia, and in relation to

FPSO and FSRU projects in particular.”

Commercial Court rulingIn a significant case last year the Singapore

International Commercial Court rejected an

argument by container operator Compañía Sud

Americana de Vapores (CSAV) that multiple

claims for cargo loss arising from a common

incident or cause could be considered individually.

According to law firm Clyde & Co the claims

arose in relation to the carriage of coffee by

CSAV from Peru and Colombia to Bremen over a

six-month period. Nine of the ten claims alleged

damage caused by sweating or condensation

inside the containers during carriage. The tenth

claim alleged damage to the cargo by ingress

of water through a hole made in the container.

The carrier applied to the High Court for an

order that the claims should be heard separately,

which would result in a number of the smaller

value claims being dealt with under the fast

track procedure, thereby potentially limiting the

extent of costs that may be recovered as well as

the ability to submit expert evidence.

The Court ruled that the cargoes were all

carried on the same terms and so any legal

issues were likely to be common to all the

claims. In addition, it seemed likely that the

sweating and condensation claims would raise

common issues about the carrier’s system for

preventing such damage.

Clyde & Co Singapore commented: “The

decision provides a useful reminder of the potential

significance of tactical and procedural issues when

dealing with multiple cargo claims. However, it

is important to note that in order for claimants

to maximise the potential advantages that may

be obtained by grouping claims in appropriate

cases, it is helpful for details of all relevant claims

to be submitted to Clyde & Co together where

possible, to enable the most beneficial strategy to

be developed from the outset.” SS

Recent cases have highlighted concerns about

the impact of Singapore’s Fair Consideration

Framework (FCF), which was introduced in

2014, on maritime companies in Singapore

seeking to employ foreign labour. This follows

the Ministry of Manpower taking action against

companies deemed to be using discriminatory

practices against employing Singaporeans.

Maritime company Prime Gold International

was heavily fined for employing foreign workers

after having discarded Singaporean workers.

FCF requires that all Singapore companies

have recruitment practices that are fair and

non-discriminatory for Singaporean workers.

There is a particular issue in the maritime

industry as many companies find it difficult

to recruit suitably skilled and experienced

workers in Singapore and therefore tend to

recruit from overseas. However, under FCF

they must ensure that they can show they

have taken all reasonable steps to recruit

local staff first.

Employment warning


education and training

A new simulation centre opened in

Singapore last year. The Wavelink

Maritime Simulation Centre is a training

arm of the Singapore Maritime Officers’ Union

(SMOU), housed at the Devan Nair Institute for

Employment and Employability. The centre has

four different types of simulator to provide for the

various training needs. It cost some S$4 million.

The centre has been developed to provide

training and certification for cadets and officers

and is part of SMOU’s efforts to encourage more

Singaporeans to take up a seafaring career.

For ecdis training it has 16 workstations, a

main bridge with 240-degree visualisation and a

secondary bridge with 120degree visualisation.

The simulators use Transas NTPRO 5000 software.

The centre also has an integrated engineroom

and liquid cargo handling simulator with 20

workstations for training engineering cadets and

officers. They are powered by Transas ERS 5000/

LCHS 5000 software.

SMOU general secretary Mary Liew said:

“Traditionally, seafaring skills are very much

time-based learning. That is to say, the longer you

work onboard a ship, the better skills you have.

But now with simulation training, the cadets

and officers’ skills are accelerated with real-time

feedback in a risk-free environment. Thus, they

become better officers, have better jobs and better

lives. It is a win-win situation for them as well as

the shipping companies.”

Andrey Sitkov, director of the simulation

business division at Transas Marine, added: “We

are confident that the quality of Transas simulation

solutions will greatly contribute to the challenging

task of attracting more Singaporeans to the maritime

industry and increasing the safety of navigation.”

Transas has also carried out an upgrade of a

simulator complex at another training centre, the

Western Shipping training centre, for Singapore-

based owner Western Shipping, which manages

tankers and provides crewing management and

training for bulk carriers.

The upgrade involved conversion to the latest

NTPRO 5000 to support ecdis training to the later

international standard.

A new full mission simulator was also installed

for advanced training. It is equipped with 8.4in

panel touchscreen computers that can run various

manoeuvring controls and display layouts on a

single panel according to the type of simulated

ship model. It also includes search and rescue, and

tug and mooring functions.

Thome cadet scheme provides self-sufficiencyShipmanager Thome Group says that its in-house

cadet training programme has now enabled it

to become self-sufficient in the recruitment of

junior officers.

Since its launch in 2005 the Thome Global

Cadet Program has trained more that 1,350

cadets from 12 different countries. There are

about 650 deck, engine, electrical and catering

cadets at various stages of training at any one

time. In 2014 the scheme enabled Thome to

recruit all its junior officers from its own pool

of trained cadets. The scheme is designed to

ensure that Thome can meet its growing officer

requirements as its fleet increases.

Michael Elwert, director of group strategy,

human resources and support, said: “We place a

great deal of importance on our cadet programme

and are delighted that it is proving so successful.

We recognise the importance of providing quality

training to our seafarers and the difference it makes

towards them and ultimately the performance of

the vessels they operate. We believe that training

is the key to operating safe and efficient ships on

greener seas. The level of training we provide is

specialised and is over and above the standard

recommended by STCW.”

Sartaj Gill, head of group training, added:

“Our cadets are a multinational and multicultural

group, fully representative of the diversity within

Thome Group.”

Direct Search in SingaporeDirect Search Asia in Singapore is a new

recruitment business focusing on the shipping,

maritime, logistics and oil and gas sectors. It also

has an office in the UK, but it aims to have a

global reach.

Managing director Jason Tay said that Direct

Search Asia chose Singapore as its headquarters

because of the city state’s strength as a major

international maritime centre. “Leveraging

on business relationships and legislation

compliances, I anticipate creative partnerships

happening. Such collaborations can help propel

Direct Search Asia forward to create a regional

influence within the shipping and maritime

sector in Asia,” Mr Tay said.

MPA forges education linksThe Maritime and Port Authority of Singapore

(MPA) has established close working ties and

partnerships with institutes of higher learning

and research institutes to undertake research

activities and build up the institutions’

capabilities in maritime education and research

and development (R&D).

A recent partner is the Singapore Management

University (SMU) with which MPA signed a

memorandum of understanding (MoU) to promote

innovation and research for a clean and green next-

generation port. SMU and MPA will collaborate on

R&D in the areas of clean energy and environment,

energy management, and simulation and data

analytics. The MoU also covers partnerships in

education, public outreach programmes, and the

provision of advisory services by SMU. SS

Simulation centre aims to accelerate skills

Investment in new training facilities is intended to help attract more local recruits into the maritime industry

Thome’s cadet training programme is meeting its officer recruitment needs

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