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LITTORAL Monthly www.littoralwind.comWIND A Littoral Publication The last byte on the Marine World■ Vol: 01 ■ Issue 01 ■ May 2017 ■ MAHENG14304  Mumbai Rs.100 ■ Pages 52 Green Shipping India 2017The Dangerous Practices in Ship Breaking YardsTallestPride

NATIONAL INSURANCE THE NATION’S CHOICETrusted Since 1906 Specialised Insurance solu ons to cover UIN Advt 061/2015-16 every non- life insurance risk Insurance is the subject ma er of solicita onNational Insurance Company Ltd.(NIC) is today India’s oldest insurance Company with a 110 year old richhistory of Innovations and accomplishments in the twin fields of Product Development and Customer Service Delivery.Pioneer in many fieldsNational Insurance was the first to• Forge Bancassurance partnerships with leading Banks• Establish extensive Strategic Alliance with India’s top automobile manufacturers - MARUTI & HERO HONDA• As a leading insurer for Pradhan Mantri Suraksha Bima Yojana (PMSBY), NIC insures nearly 3 crore Indian Citizens and has tie ups with 220 leading banks and the Department of Post, Government of India.• NIC offers a bouquet of more than 200 products to fulfill the insurance requirements of a wide spectrum ranging from industrial risks to rural insurances.• National Insurance enjoys A.M. Best financial strength rating of B++ (Good). National Insurance Company Limited (A Govt. of India Undertaking) Registered & Head Office: 3 Middleton Street, Kolkata 700 071, 24x7 Toll Free Number: 1800-200-7710 www.na onalinsuranceindia.com IRDA Registration No. 58 CIN: U10200WB1906GOI001713Trusted Since 1906Visit us at www.nationalinsuranceindia.com /na onalinsuranceindia / NICLofficial / Na onal Insurance

Message from Managing Director Raja Vaiz Dear Valued readers, Chairman & I am glad to introduce Littoral Wind a new monthlyManaging Director magazine for the Indian Maritime Industry. Littoral Wind will be the most trusted resources available for the Indian maritime corporate world. This publication will provide its readers the best industry analyses and news coverage. Littoral communications Pvt Ltd would like to be the largest platform for the Indian Shipping industry. Through our events, Newsletters and publications and website the industry can depend on us for critical insight into the key issues impacting the Indian and global maritime Industry. 2017 we have planned to conduct three seminars which are important for the maritime sector. We have already successfully completed ‘Green Shipping India 2017’ seminar at Mumbai on 7 th April 2017. Our second event of the year is ‘The offshore wind energy India 2017’ which will be held at New Delhi, the National Capital on 1 st September 2017. When transformation is the mantra, information is power. Littoral will reflect India economics transformation, echoed its aspirations addressed its challenges and predicted its potentials across economically critical sectors. And I assure my clients that Littoral Wind will provide a huge audience engagement for your maritime business. Looking forward for your participation and supports. Kind Regards Raja Vaiz May 2017 | Littoral Wind | 3

LITTORAL Monthly WIND The last byte on the Marine World EDITORIAL TEAM CIRCULATION Kartiki Shastry Lawate Thomas John [email protected] Malavika Singh Dominic Ambrose CORPORATE OFFICE F – 01, A-08, First floor John P Rayen Haware’s Centurian Complex, [email protected] Plot No. 88/ 91, Nerul- East Navi Mumbai- 400 706 ART Arvind Bhimrao Avaghade CHENNAI OFFICE New No. 68, old No. 38 Rahul Kumar EAST Jones Street Saidapet, Chennai- 600015BUSINESS & ADVERTISING National Head Lijiya Jose, General manager [email protected] Marketing Manager TUTICORIN OFFICE: Violet Princy Natarajan No 5, South Raja [email protected] Tuticorin- 628001 LITTORAL COMMUNICATIONS PVT. LTD. Raja Vaiz: Chairman & Managing Director cmd@ littoralwind.com Rajeev Nambiar: Editor in Chief [email protected] • Vol:01 • Issue 01• May 2017 • MAHENG14304 • Mumbai . Rs.100/- • Pages 52Printed and Published by Shri Joseph Raja Vaiz at Room No.14, Building No.7 , Sahakar Nagar, Naigoan Cross Road, Wadala - West, Mumbai -400031 and printed at Jagruti Printing Press , 91,Trimurti, Tatya Gharpure road, Girgaon -400004 press(es) , Dist: Mumbai -400004 and edited by Shri.Rajeev Nambiar and owned by Littoral Communications Pvt. Ltd.4 | Littoral Wind | May 2017

INSIDE 08 26 ARTICLE ANALYSEThe Challenging Dangerous Practices in Ship years ahead Breaking Yards 12 32 INTERVIEW UPDATES Not only funds India Needs CMA CGM & amp;Efficiency Management System Adani Ports Joint Venture 14 36 COVER STORY EVENT Shivaji Memorial Green Shipping India 2017 in Arabian Sea 40 20 INSIGHT FACT & REALITY More Ballast Water Headaches ForWhy Living on a Cruise Ship is Shipowners Trading to California Cheaper than you think May 2017 | Littoral Wind | 5

Rajeev Nambiar From the desk Editor in Chief Dear Readers, CHEERS!!! We are happy to present you the first issue of “LITTORAL WIND”. This would be a monthly periodical and would hit the stands in the first week of every month. Await for the exciting delivery every month. The present scenario in the western world is not very heartening for the Shipping Industry. The Global slowdown t has affected the growth of sea-borne trade; Global fleet size is expanding owing to order backlogs with global shipyards, Vessel deliveries will have to grow at a steady pace and the Existing overcapacities is leading to demand crisis. But there are silver linings too. What is life without Challenges and a Sailor who is adventurous only knows it well. Amongst these challenges we wish to bring forward the views of the experts in the field and discuss the prospects and opportunities available and also the latest news and happenings in the industry. We would like to be the media to bring about a positive outlook and actions for the betterment of the Marine Worlds. We wish to be different and expect innovations in every issue, changing the Marine World Journalism. With a long coastline and economic transformation of India, there are lots of investment opportunities, at the same time more complications can arise. We wish to be the Media between the Industry and Authorities so that everything can be streamlined for a smooth transformation. We would be pleased and hereby invite the Industry experts to come forward and contribute there views so that it can reach the authorities. Also we are requesting the Authorities to contribute there views to the Magazine. We wish to have your suggestions and views, and would be happy to make your LITTORAL WIND a very interactive periodical. In this issue we have coverd Shivaji Memorial at the Arabian Sea as Cover Story and also interviews with Mr. Sohan Roy and Marius Vander Stoel are the needed information for this industry. News, updates and articles are added value for the readers. We promise that every issue would be better than the earlier issue. CHEERS! Once again Editor.6 | Littoral Wind | May 2017

d to 80 companiesrepresScindia House, Basement, N. M. Marg, Ballard Estate Mumbai 400001Tel : (022) 22623003, 22623912 Telefax : (022) 22623911 Email : [email protected] Website: www.iccsa.in

ARTICLE Mr. Sabyasachi Hajara Former CMD - Shipping Corporation of India, MumbaiThe ChallengingYears AheadRight since the days of the global melt the ship owners like herd of sheep dependent on the state of world down in 2008, rush to the ship yards for ordering economy and international trade. the shipping is new built vessel, thereby adding to The growth of global GDP has experiencing their wows for the future years. been muted for some time and difficult times and even in 2017, as per all available most unfortunately, Shipping is a secondary service indications, the growth is unlikely for the ship owners and the demand for shipping is a to be more than 3.5%. What has as well as all others derived demand which is totally caused further difficulty for shipping connected with the is the paradigm shift in the ratio shipping world, 2017 is also not likely The growth of global between the growths of international to be any better. The glut of shipping GDP has been muted trade vis-a-vis the GDP growth. Till capacity in virtually every sector, the global melt down, the growth in be it tanker, dry bulk, container or for some time and international trade used to be 2 or offshore, continues unabated and even in 2017, as 2.5 times that of the growth in GDP. the equilibrium between demand per all available However in recent times this ratio and supply may not be attained in indications, the has been hovering around 1 or 1.1 any of these segments at least till growth is unlikely to and in 2015, it had actually come 2018. Unfortunately ship owners be more than 3.5%. down below 1. do not appear to learn their lessons from history and anytime, any sector In 2017, the European region is shows a little promise of better days, unlikely to see much improvement in its economies and the uncertainty related to Brexit is likely to cause8 | Littoral Wind | May 2017

further problem for economic After a very decent lower demand. The substantialdevelopment of this region. The 2015, tanker market addition to refining capacity inworld’s no 1 economy, the USA, is came down in 2016 middle east as also likely increase inmore promising where the growth Shale oil and gas production in USAis likely to exceed at least 3%. and in view of due to higher prices don’t angerHowever, the protectionist measures substantial deliveries too well for the crude oil segmentsthreatened by the present Trump of new buildings both . The most volatile will be the VLCCadministration doesn’t anger well segment where the average charterfor global shipping and in case there in 2016 and 2017, hire would come down to barelyare retaliating measures by other the rates are likely to 25000$ as against close to 40000governments, particularly China, the and 60000 $ in 2016 and 2015same may create serious problem remain subdued in respectively.for global shipping going forward. 2017 as well. BULK CARRIER Fortunately, Chinese economy is in view of substantial deliveries of Due to increased steel productiondoing somewhat better and on the new buildings both in 2016 andstrength of the same the commodity 2017, the rates are likely to remain and consequent increased importsprices all round for crude, iron ore, subdued in 2017 as well. Moreover, of iron ore to china, the capesizecoal etc have gone up substantially the OPEC and non OPEC decision of rates went up towards end of 2016.from second half of 2016 and the curtailing production by 1.2 million However due to glut in capacity insame is likely to remain stable in barrel per day and 558K barrel per all sizes,the rates are unlikely to2017 as well. day respectively is likely to maintain bring much cheer to the dry bulk the oil price at above 55$ per barrel owners in 2017, though unlike the A very short brief on different in 2017 and this could lead to a more tanker market, where fleet growth issegments of shipping is given here difficult tanker market due to slightly expected to be nearly 5%, in dry bulkunder: the fleet growth is likely to be 1%, particularly due to much higher levelTANKER of recycling,. Moreover the ratio of After a very decent 2015, tanker new built order to existing fleet ismarket came down in 2016 and May 2017 | Littoral Wind | 9

much lower in dry bulk and if the substantially all across the globe The ship yards have seendry bulk owners exercise restraint and the offshore segment has alsoin ordering further ships, hopefully suffered the consequence. The possibly the worst year in 2016 wheredry bulk market will see better days increase in oil prices is expectedbeyond 2018. to revive some interest in ENP but the new building orders have been at again the production curtail in theCONTAINER middle east could prove to be a its lowest level in at least 2 decades. After collapse of Hanjin Shipping, dampner. Over all, the offshore market is going to face tough time in The situation is unlikely to change inthe 7th largest container fleet owner 2017 as well.in the world, the container market a hurry, though that is what the shipcame up for a while but the increase The second handin rates were not sustained. However price of course has owners are banking on for slightlymajor consolidation measures are slightly recoveredbeing taken in this segment and from its lowest level improved fate in the coming years.going forward there will be only and there has been3 principal alliances namely 2M, about 10% increase The second hand price of courseOcean alliance and The alliancecontrolling most of the capacity. in second hand has slightly recovered from its lowestThis measure is expected to result prices in 2016. Pricesin stabilisation of container freight level and there has been about 10%rates in the coming years but the may go up, albeitsmaller players will find the going only marginally, in increase in second hand prices invery tough unless they can developniche segments for themselves 2017 as well. 2016. Prices may go up, albeit onlyOFF SHORE marginally, in 2017 as well. Since the days of crash of oil However the prices are still veryprices, the ENP (exploration andproduction) activity has declined low and this is a good time to acquire quality second hand tonnage provided one can ensure gainful deployment of the same. In short, overall 2017 is going to be a challenging year and challenge always brings opportunities. Survival of the fittest is possibly true for shipping more than almost any other sector. And I am sure, shipping industry, being very rescilient, would continue to not only survive but also strive ahead for the benefit of the international trade and the world economy. ■10 | Littoral Wind | May 2017



INTERVIEW Sohan Roy CEO – Aries Groups of companies Not only funds India Needs Efficiency Management System Holywood director, Entrepreneur and leading Naval Architect Sohan Roy a man from Kerala is the man of many facets. Listed among the Top Indian Business leaders in the Arab world by Forbes 2015 and 2016 Sohan Roy has operating business in 15 countries. Sohan Roy is not only a renounced naval Architect he is also the first Indian Hollywood director with mainstream Oscar entries. Littoral Wind had a face to face Interview with Roy about Indian Ship building industry. And here it goes: -Dominic Ambrose12 | Littoral Wind | May22001177

What is the future of Indiannaval architecture industry? Naval Architecture has never beenproperly explored in India. CreativeNaval Architecture almost doesn’texist. But if another revolution comesup like what happened in China, itwould happen in India. But for that,what we need to have is a long-standing Government and a stablecurrency value under a visionaryleader. I’m optimistic. That’s whyboth of my daughters have opted tobecome Naval Architects.Do you think make in India has When we fail to and backwaters to avoid heavy Freshhelped this sector? complete our Aircraft Water pollution. Marine Cities are to be formed in every port city for the Things are improving. But carrier in 10 years, Maritime professionals to live, workwe need more pace and strong China completes it in and train the next generation till theirinvestors. Inefficiency and corruption less than 3 years. It’s last breath. Options.won’t attract investments. So far, high time for the privatethe effect of Make in India is not sector to step in for You are also a Hollywoodthat much visible in the Indian improving the efficiency producer. Can you tell us moreMaritime sector. But the current about this?market crisis across the Globe to safe guard our It was my dream to becomewill surely accelerate the Make in defense objectives.India visions. a Film Maker. The day one of my it should be taken care with utmostWhat is your opinion about respect. Unfortunately, revolutionary creations as a Naval Architect gotallowing private sector into changes are not happening in thenavy ship building? Maritime and offshore sectors except into the Guinness Book of World on meeting the additional mandatory Indian Shipyards are currently requirements insisted by the Records (Longest Snake Boat whichsurviving out of Naval Projects. authorities. Even simple things likeWhen we fail to complete our voluntarily introducing total security is 143ft long and can occupy 141Aircraft carrier in 10 years, China system using surveillance camerascompletes it in less than 3 years. are not taken care while preparing rowers), I decided go after myIt’s high time for the private the specification or while preparingsector to step in for improving the the design. Rules for allowing dreams. Also, I made sure to bringefficiency to safe guard our defense unmanned ships with remote controlobjectives. system are to be introduced to defend up our Naval Architecture Division piracy issues. Lighter and GreenerRecently the Government has ships and rigs are to be developed to as the largest in Middle East withalso decided to invite public reduce operating costs. Unexploredfunding for Indian Navy’s Yachting Industry is to be promoted by supporting offices in 15 countries.ship building. Do you think introducing Marinas across the 7500these initiatives will boost the kilometers of our coast. LNG vessels Took a diploma in Film Productionindustry? are to be introduced in our inland and Direction from Hollywood Film Lack of Funds is not the onlyissue. As long as we don’t have an Institute before starting Marine BizTVEfficiency Management System, nofunds can save this Industry. and my first Directorial Venture,What is your advice for the DAM999. So far produced 4 OscarIndian naval architectureleaders? Qualified movies and received more Naval Architecture is the most than 50 International recognitionscomplicated Engineering Branch and including 5 Oscar nominations for DAM999. My next directorial venture is “Burning Wells”, a 3D movie based on the Kuwait War. Also, I’m heading “Project Indywood” a US$10 Billion project to revamp the entire Indian Film Industry in 5 years. ■ May 2017 | Littoral Wind | 13

COVER STORYThe Tallest Pride APLI Mumbai, (A Port Lands Initiative) a citizens’ forum that aims at making the city more liveable, accessed documents through RTI and concluded that the memorial site is unviable and tender conditions almost impossible to meet, said media reports. -Kartiki Shastry Lawate14 | Littoral Wind | May 2017

Even before the work on the city, who fear loss of livelihood if the statue) and Gateway of India (12 Rs 3,600 crore Chhatrapati structure is built. kms from the statue) till the statue Shivaji memorial begins, once the construction gets over. the project is shrouded in The fishermen are concerned These boats will be ferried through controversy. that the structure will affect their the area of the Arabian Sea where The latest issue being a public fishing grounds and as a mark of fishermen catch fishes and thus their interest litigation filed in Bombay protest, over 5,000 boats had been livelihood will be affected,” informed High Court against setting up flying black flags for the past four Parade. of construction site at Backbay days, a few months back and three Reclamation, Cuff Parade. The major wholesale fish markets – Other than the fishing community, Government of Maharashtra has Sassoon dock, Bhaucha Dhakka and environmentalist and citizen forum’s asked for a period of three weeks to Crawford – remained shut for the too are up in arms. complete. E back to the court with day, around last year. the correct replies for all the points APLI Mumbai, (A Port Lands raised by the PIL. This has meant an Damodar Tandel, the president Initiative) a citizens’ forum that aims immediate halt of all the work for the of the Akhil Maharashtra at making the city more liveable, construction site of the memorial. Machhimar Kruti Samiti (All accessed documents through RTI But this is among the many Maharashtra Fishermen Joint Action and concluded that the memorial controversies surrounding the 210m Committee) and Pradip Parade, site is unviable and tender conditions tall (close to a 12-storey) structure, an environmentalist, have filed an almost impossible to meet, said built entirely on an islet of 15.96 environment interest litigation with the media reports. hectare. National Green Tribunal stating that Even as the project was the said project will affect 110 kms of According to Environment announced around 2015 there are coastal area near Mumbai, threaten Protection Rules, 1986, of the several opposition. The first came the natural aquatic ecosystem and Ministry of Environment and Forest, from the Koli fishing community, consequently affect the livelihood of people who will be affected due to original inhabitants of the island over 80,000 fishermen. the construction of the project should be consulted and their view should be “Boats will be ferried from taken into consideration. However, Nariman Point (3.5 kms from the Parade said that no fisherman from May 2017 | Littoral Wind | 15

these societies were consulted. Works Department (PWD).Besides, we have approached all Senior officials from the PWDconcerned departments with ourgrievances but no department has also added that companies haveinvited us for discussion, he further also hinted at tying up with globaladded. firms based in European countries such as France, UK and so on, to Despite the controversies almost bring outside expertise to the project.13 companies attended the pre-bid meeting for the Rs 3,600 When completed the structure willcrore projects. These include firms be first-of-its-kind in the country.such as Larsen & Toubro (L&T),Afcons Infrastructure, Tata Projects, The memorial will be constructedHindustan Construction Company facing the Mumbai’s Girgaum(HCC) and Navayuga Engineering,informed officials in the state Public INTERIOR PLANNING • Archway will lead visitors to an entrance forecourt , modelled on Maratha palace. • Memorial will contain a temple of Tuljabhavani, the family deity of the Bhosale Royal family • It will have an Amphitheatre with 1,500 capacity where play on Shivaji life will be Staged • Museum, cafeteria, helipad and hospital planned16 | Littoral Wind | May 2017

Chowpatty beach 1.5 km away in the Location surroundings and a special shivajimid Arabian Sea. The total height of The nearest station to reach thisthe statue from its base will be 240 museum which having the realmetre consisting base level of 77 attraction spot will be Marine Linesmetre and statue of 210 metre.It will which is next to Churchgate at far artefacts used by Chattrapati Shivajibe constructed on rocks around it. south end on western railway route of Mumbai. Jetties will also be built during wars. Also one will see the The first phase will include from coastal location for travel andconstructing a bridge connecting transport. Another jetty also from originally written inspirational quotesthe memorial to the main land, a Gateway Of India for convenience ofvisitor centre buildings, a memorial visitor who already around, They can by him.garden, a Library, food court and a easily travel via ferries at gatewayconvention centre with approximately reaching directly to shivaji memorial. Surrounding this memorial10,000 footfall space. As per project plans the location will also be water sports activity Work on the memorial will be around the memorial can havedone in two phases. The memorial about 3000 people at a given time. adventure with Sound and light showwill have museum, exhibition gallery, It will have beautiful landscape inamphitheater, helipad and hospital. for onlookers. Adding more to it, aThe memorial will showcase replicasof Shivaji forts. Egis in India has Marine Aquarium is expected as perbeen appointed as the ProjectManagement Consultant.Egis in plans and special multi-level carIndia is the local arm of the Francebased Egis group. parking facilities will be made along This is one of the few projects with quick and prominent evacuationin the state with major politicalimplications. The state government plans via boats and helicopters inbudgeted Rs 3,600 crore for theentire project of which Rs 2,500 case of any sea and water disasters.crore has been estimated for the firstphase, for which tenders have been After overall study and research byinvited. The memorial will have atemple, museum, hospital, entrancemodeled on the Raigad fort and atheatre showcasing highlights ofShivaji’s life. Another major featureis a lift which will take visitors rightup to 180m or 60 floors inside thememorial, giving them a view fromthat height. planner and groups from IIT andESTIMATES considering every possible pros andStates estimated cost for shivaji memorial project –Rs.3,600 crore, including Rs.2,500 crore for first phase cons in a strict and planned manner,and Rs.1,100 crore for second.L &T ‘s Rs.3,826 crore bid to construct first phase of Major authorities like Western Navalproject approved by PWDOther Bidders – Reliance Infrastructure and Afcons Command, Fisheries DepartmentInfrastructure• IF L & T bid gets final cabinet go ahead , work on and MPT gave clearance to this project could start in July project that will be a national level• If tenders are recalled project would be delayed by at attraction in India being in Mumbai least four to five months city and hope possibly be listed at world heritage in future. Leaning towards eco-friendliness this place will have energy saver and efficient electricity fittings which will also use solar energy and will utilize ‘Storm & Rain Water’ with water recycle / reuse and treatment plans in place. ■ May 2017 | Littoral Wind | 17

SPOTLIGHT China’s first Home Built Aircraft Carrier18 | Littoral Wind | May 2017

LITTORAL MonthlyWIND The last byte on the Marine World A Littoral PublicationSubscription offerPeriod Price1 Year ` 12002 Year ` 23003 Year ` 3400 www.littoralwind.comLittoral Communications Pvt. Ltd. for advertisement and subscription contact: Ms.Lijiya Jose Mob: 09323528980, Tel: 02227704403.

FACT & REALITYWhy Living on a Cruise Ship is Cheaper than you think Eileen OgintzImagine a life where staff cater a year aboard Royal Caribbean including lodging, transportation to your every whim as you travel ships, even operating a company from port to port, food and the world and get treated like a as he travels. “My best friends entertainment. Think $3,000 a month VIP every day. You could order are all frequent cruisers on Royal total, which isn’t too bad considering what you like to eat without Caribbean,” he tells . a lot of people pay larger mortgages having to shop, cook or clean up. or rent. And Broadway-style entertainment is Saledo says that after 20 years always at your finger tips-- and you in the corporate world, he decided A genuine bargain would be don’t even need to buy a high-priced he wanted a new lifestyle that would between $50-75 a day, says Carolyn ticket. take him around the globe. Spencer Brown, editor in chief of Think you need to be a billionaire CruiseCritic.com. That’s equal or to make this dream come true? “The best way to accomplish that less than what senior independent Think again. Such a lifestyle can be vision was to live on a cruise ship,” living would cost, suggests Financial downright affordable if you live most he said. He does, however, maintain Planner Richard Kahler, president of of the year on a cruise ship. a condo in Miami where he spends a the Kahler Financial Group. Mario Salcedo, a single, 67-year- little time between cruises. old businessman, spends 350 days “If the lifestyle suits you, it’s easy Cruise experts say while costs to increase your cruising to as much vary widely, it’s reasonable to figure or little that suits you,” Kahler tells us. on average $100 a day to cruise20 | Littoral Wind | May2017

“Cruising is very flexible as most retire at sea — 27 percent completely and that more cruise lines nowcruises are one week to 21 days, so and 32 percent said it would be ideal are offering them with intriguingyou can mold your schedule around for a couple of years. Another 27 itineraries. “The convenience ofholidays and visits with family and percent said they might “if the price visiting both popular and more off-friends,” the financial adviser added, was right.” the-beaten-path ports of call all atnoting that you get the best rates once -- only unpacking once – iswhen booking as far in advance as “What easily grabs your something that only cruising canpossible. imagination when you think about really deliver,” she said. people who opt to live aboard The more someone cruises on cruise ships instead of in retirement Limson Liu, a spokesman forthe same line, the more loyalty communities is how much fun it must Regent Seven Seas noted that interestprograms will reward him or her with be to be out in the world, meeting in their 130-plus night world cruises isupgrades or free perks, like a meal new people and seeing new places growing. “It isn’t only older guests,”in a specialty restaurant, free laundry in a lovely atmosphere with good he said. “There is a real segmentor transfers. But for those who food and attentive service,” suggests of interest for those who have thecruise often – or those taking longer Spencer Brown, all the more means to get away like this.”journeys like a round-the-world attractive because it can cost lesscruise – the rewards could be worth than living ashore. Malcolm Myers reports he sailshundreds or thousands of dollars on Regent Seven Seas roughly halfsaved on things like free cruise days, So why aren’t more people the year and still maintains a condoSpencer Brown says. living out their golden years sailing in Florida. The best part? abroad? What keeps this from being Frequent cruiser Malcolm a huge trend for retirees, she said, “The people you meet and theSeldado said he typically turns down is that it’s best for those who are in friendships.”upgrades because he prefers to keep peak health because cruise shipsthe same stateroom throughout his have limited medical facilities. The downside? “Not as muchconsecutive cruises, spending 80 time with the grand children or forper cent of his time in the Caribbean Salcedo, for one, reports he is in fishing, which I love to do.” But(Cozumel is his favorite port) and the “excellent health.” On his turnaround Facebook and the internet help himrest of the year in Europe where he days in Miami, he always makes keep in touch.enjoys Barcelona. sure to schedule check-ups with his doctors. “The real key to a better life at According to a recent Cruise sea,” he said, “is you get to knowCritic poll, the majority of survey However, Spencer Brown said the people you interact with from therespondents said they would like to interest in longer world cruises company and if you behave and are continues to increase among cruisers not a grouch and help them, they will help you and look out for you.”  ■ May 2017 | Littoral Wind | 21

UPDATESChabahar Port Operations Progressing Fast: IndiaDevelopment operations in develop the integrated Chabahar to develop the Chabahar Port, for the strategic Chabahar Port Port, which has a special economic in Iran for which India will zone. Chabahar Port, located in which India will invest $500 million, invest $500 million is progressing Iran’s southeastern province of fast and the country has already Sistan-Baluchestan, lies outside the a trilateral agreement on Transport formed a global port company there, Persian Gulf and is easily accessed said India’s union minister for road from India’s western coast, bypassing and Transit Corridor has also been transport, highways and Shipping. Pakistan. Based on the MoU signed between India and Iran in May last signed by India, Afghanistan and According to Press Trust of India, year, India is to equip and operate two Nitin Gadkari said at the launch of berths in Chabahar Port Phase-I with Iran. Gadkari also said India was a roadshow for the National High capital investment of $85.21 million Authority of India’s (NHAI), “We and annual revenue expenditure keen on signing dollar-denominated have already formed a global port of $22.95 million on a ten year company there (Chabahar Port).” lease. Ownership of equipment will borrowing for major ports as the be transferred to Iranian side on Gadkari visited Tehran in May completion of 10-year period or for country sees potential in this sector. 2015 when the two nations inked an extended period, based on mutual a pact to develop Chabahar Port. agreement. Besides the bilateral pact He cited the successful experience In August, Gadkari said Iran had given ‘very good offers’ to India to of dollar-denominated borrowing in the past for port projects. Likewise, once the approved NHAI International starts getting revenues in dollars, it would be easy to get into dollar-denominated borrowing as there would be no need to hedge risk for funds from international market, he said.  ■22 | Littoral Wind | May 2017

* Are you very much eager to achieve success in Shipping, Ports and Marine Trade related business? * To get the latest news on Ports & Shipping Industry, Exim and Marine Trade at your door steps on every wednesday Please subscribe without delay Published on every wednesdayTo know updatedpilnefaosremvaistiitonwwonwS.hpioprptintogp, Moratr.iinne, Trade & LogisticsSalient Features:• Hourly Updated Vessel Position• Interactive Vessel Schedules• Updated Ports, Shipping, Logistics, Marine & Exim News• Trade Related Contacts / Freight Queries• Custom / Foreign Exchange Rates• E-Paper of Sagar Sandesh Latest Issue• Special & Previous Issues of Sagar Sandesh• Forthcoming Marine Events• Directory & Useful links For Further Assistance Professional Publications (P) Ltd. 21 “Lakshmi”, Satya Sai Nagar, Madurai -625003, Tamilnadu. Ph: 0452 4378300 / +91 72000 84864 Email: [email protected]

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ANALYSEDangerous Practices in Ship Breaking Yards26 | Littoral Wind | May 2017

major explosion on the tanker ACES on 1 November 2016, another fire broke out on a Greek owned LPG tanker, GAZ FOUNTAIN. The fire claimed five lives and seriously injured one worker. The tanker had already caught fire in December 2016, only one month after the explosion which claimed at least 28 workers’ lives on the spot. Another worker was killed in a separate accident, when a lifeboat crashed down from the UK based Zodiac owned SNOWDON. Clearly not enough has been done in Gadani to ensure even the basic security for workers. Despite these recent disasters, ship owners and cash buyers continue to trade vessels with Pakistan breakers – this quarter 22 ships were sold for breaking at one of the world’s most dangerous places to work. 37 ships were sold to the Chittagong breaking yards. As many as six accidents struck the industry the first months of 2017 killing three workers and seriously injuring another three. Mohammed The fire claimed five lives and seriously injured one worker. The tanker had already caught fire in December 2016, only one month after the explosion which claimed at least 28 workers’ lives on the spot.128 ships were sold for scrap aware of the detrimental effects of Azam was fatally crushed by a to the South Asian beaches breaking ships on tidal beaches for falling steel plate at Seiko Steel in the first quarter of 2017*. more than 20 years, yet the ease with shipbreaking yard – mentioned Eleven workers were killed which existing environmental laws before by the Platform in connection and at least four additional can be circumvented for the sake of to other fatal accidents – during the workers were injured whilst cutting the extra profit the shipping industry breaking of the Belgian CMB owned down the vessels manually on the makes by selling to the beach yards BULL HUNTER. tidal beaches of India, Bangladesh allows the worst practices to persist. and Pakistan. Beaching yards offer Two fatal accidents happened cheap, but dangerous and polluting In Gadani, Pakistan, yet at BBC Shipbreaking/KR yard: scrapping. Ship owners have been another tragedy caused the death Rongchang Tripura passed away of shipbreaking workers. After the after falling from the Greek owned May 2017 | Littoral Wind | 27

as oils and toxic paints. European companies accounted for half of the vessels beached in South Asia the first quarter and where involved in many of the fatal accidents that took place in this poorly regulated industry. For the first time, German owners topped the list with 26 ships sold to South Asian breakers, followed by Greek owners with 17 beached end-of-life vessels. German ship owners, Hansa Mare Reederei GmbH & Company KG and Peter Döhle Schiffahrts-KG, top the list of the worst dumpers this quarter with each having beached five end-of-life ships. Whilst grey- and black listed flags, such as Comoros, Palau and St Kitts and Nevis, continue to be particularly popular for end-of-life ships, also ships registered under the flags Malta and Cyprus ended up on the beaches. The EU RegulationGRENADA; and Shaheb Mia was Group chosen by Maersk to break on Ship Recycling will prohibit thecrushed by a falling steel plate its ships in Alang. The businesses induring the cutting of the SALZGITTER. the area and the Gujarat Maritime dismantling of EU-flagged ships inBangladesh continues to be the Board remain unwilling to sharebreaking destination where severe accident records, and information substandard yards such as thoseand fatal accidents happen most on what actually happened to thosefrequently, yet this has not been a workers who died was clouded in Alang, Gadani and Chittagong.deterrent for most shipowners and by the defensive messaging of thecash buyers to sell their ships to for industry in the media. However, by simply swapping flagbreaking. The lack of transparency in to that of a non-EU country before The Alang beach in India was Alang remains a serious concern,by far the most popular destination as does the fact that there is no selling the ship for scrap, shipfor end-of-life ships this quarter, hospital in Alang. Ships in Alangwith 69 ships sold for breaking. are taken apart in tidal waters owners can easily circumvent EUThe yards in Alang have recently using a method that is banned inbeen portraying their practices as Europe, the US and China and law.improved compared to Bangladesh that makes it impossible to ensureand Pakistan, but the overall rapid access for emergency vehicles Indeed, scrap dealers, such asunnecessarily risky conditions of and containment of pollutants suchbreaking ships on tidal beaches cash buyers GMS and Wirana, willremains. Serious accidents were The lack ofreported in Alang this quarter, transparency in assist them in doing just that. Theresulting in at least two fatalities. On Alang remains a4 March a worker died when a crane serious concern, as re-flagging before scrapping is acollapsed. There were rumours of does the fact thatanother worker dying after falling there is no hospital common practice and the Platformfrom great heights two weeks later,but this could not be confirmed. in Alang. identified 38 ships, including On 16 March there was a fatal two Malta flagged ships and oneaccident in a steel cutting workshopcalled Sohil Oxygen Co, whose Madeira flagged ship, that changedowner is also owner of the Lucky SteelIndustries, which is part of the Lucky their flag last quarter just weeks before hitting the beach. While the EU is trying to redress the shipping industry’s addiction to beaching with the Ship Recycling Regulation, we have seen that European ship owners continue to opt for the worst breaking yards, resulting in the death of workers and pollution of sensitive coastal zones. European ship owners will continue to profit from the worst forms of the business unless the EU develops a financial incentive to curb the re- flagging of the vessels to circumvent the legislation in place. ■28 | Littoral Wind | May 2017

NEWSSingapore Named Top MaritimeCapital of The World for3rd Consecutive TimeSINGAPORE - Singapore has once again clinched top place in a ranking of the world’s maritime capitals that Singapore will remain the most important city, with called the Menon Report. The study, by Norwegianconsultancy firm Menon Economics, looked at 24 many believing that the country has strong capabilitiesobjective indicators and garnered survey responses frommore than 250 industry experts across all continents. to handle digital transformation in the maritime industry.Singapore was also ranked first in the report’s 2015 and2012 surveys. In the ranking’s shipping, and ports and logistics This year, Singapore was ranked number one in three categories, Singapore emerged first due to its strategiccategories: shipping, ports and logistics, and attractivenessand competitiveness. Menon Economics said Singapore geographic location, as well as its position as analso scored impressive results in the remaining twocategories: second place in maritime technology and important centre for commercial management and thefourth place in finance and law. Significantly, Singaporejumped three places from fifth to second position in the world’s second largest port, said the report. Singaporemaritime technology category, underlining its efforts intechnology and research. In making predictions about the ranked top in overall attractiveness and competitivenessworld’s leading maritime capitals five years ahead, themajority of industry experts surveyed shared a consensus due to the ease of doing business and customs procedures. According to the report, seven in 10 experts regarded Singapore as one of the three most attractive cities in the world for relocating their headquarters and also identified it as one of the maritime capitals most prepared and ready to adopt digitalisation. Mr Andrew Tan, chief executive of Maritime and Port Authority of Singapore (MPA), said the accolade “will spur us to work harder to make Maritime Singapore the global maritime hub of choice.” ■ May 2017 | Littoral Wind | 29

CORPORATE NEWSMaritime London appoints BIMCO: Tankernew chief executive Freight Rates Continue Dropping UK maritime services’ promotional body Maritime London has Oil tankers experienced a appointed Jos Standerwick, tough start to 2017 as freight rates current director of development and for all crude oil and oil product external affairs at The Mission to tankers continued their decline Seafarers, as its new chief executive. following the brief lift at year- end, according to international Standerwick will take up his new shipping association BIMCO. position as of late July. He replaces long-time Maritime UK chief executive Although average earningsDoug Barrow who has moved on to become director of the UK Ship Register stood at USD 18,853 per day(UKSR). Maritime London chairman Lord Mountevans said the organisation by April 7, 2017, down fromwas delighted to be bringing in someone of Standerwick’s calibre to help USD 63,284 per day reported“take to another level its efforts to support and enhance not only the maritime on December 16, 2016, the veryservices sector, which we have been proud to serve for over 16 years, but the large crude carriers (VLCCs) mayentire maritime offering of the UK.” not yet have bottomed out. “This is a very exciting, if challenging, time for our industry,” commentedStanderwick, “and there has never been a greater need for a proactive trade Looking at the supply side,association to fight for the best operational environment and to engage with the 2016 low demolition trendthe global industry to attract investment to the UK maritime sector. My prime seems to be changing. Namely,objective will to ensure that the UK and London remain at the heart of the last year 2.6 million dwt was soldglobal maritime business.” for demolition, while a total of 0.9 million had left the fleet forProfits down at Qatar Navigation recycling at shipbreaking facilitiesas tough conditions persist by the end of March 2017.Qatar Navigation(Milaha) has Although slightly busier than 2016, this has been a slow startannounced net profits to what BIMCO expects will be “a busy year for tanker demolition.”of QR 236mn for the first As cargo volumes are notquarter of 2017, compared expected to grow that much in 2017, the increase in demandto QR 352mn for the same must come from longer sailing distances, and changes to theperiod in 2016. Earnings volumes from one country to the next, BIMCO informs.per share of QR 2.12 were China rules the crude oilrecorded for the three months tanker market, as in many other shipping markets, havingended March 31, 2017, been solely responsible for the incremental crude oil tonne milecompared to QR 3.10 for the demand growth since 2010. The country is set to do it again insame period in 2016. 2017.Milaha Maritime & Logistics’ net profit declined by QR 14mn, mainly as a However, BIMCO said that “the US could spoil the party.” Asresult of continued rate pressure in its container shipping unit. supply cuts from OPEC dropped from their highest supply level everMilaha Gas & Petrochem’s net profit declined by QR 46mn as a result at 33.9 mb/d in October 2016, the US witnessed an increase ofof a “global downturn in shipping rates that impacted all major sectors we supply. This lifted US crude oil stocks to their highest level ever,operate in,” said the company in an earnings statement. while global stocks sidestepped.Milaha Offshore’s net profit decreased by QR 25mn, with QR 22mn ofthat related to impairments. H.E. Sheikh Ali bin Jassim Al Thani, chairmanof Milaha, said the business had continued to face the same challenges as itsaw in 2016, but that it remained confident in its ability to drive growth andcapitalise on new opportunities. Milaha’s president and ceo, AbdulrahmanEssa Al-Mannai said: “Given the difficult environment we are working in, weposted solid operational results.“We will continue moving ahead with our multi-year growth strategy tobuild a stronger and more sustainable business.”30 | Littoral Wind | May 2017

CORPORATE NEWSOil and gas services firm Amec Major shippingposts bigger loss nations join forces to promote digital certificates Today Director General of the Danish Maritime Authority, Andreas Nordseth, signs an agreement with Singapore and Norway on cooperation on digital certificates. The agreement is intended to make more countries migrate from paper certificates to digital cer The Danish Maritime AuthorityAmec Foster Wheeler, the consists of four artificial islands made world news when it announced British global oil and gas along with associated drilling, as services company with offices well as production facilities. The on 24 June last year that from then onin Abu Dhabi, Oman and Doha contractors’ delivery of reimbursableand which is being bought by John engineering, procurement and Danish ships were no longer to set toWood Group, said its full-year pretax construction (EPC) scopes of workloss grew as the oil market decline is overseen by Zadco, in addition to sea with heaps of paper certificates.forced companies to delay or cancel commissioning and start-up supportcontracts. of the facilities. Today the Danish Maritime Authority The company’s loss before tax The work is slated for completion only issues digital certificates, whichwas £542 million (Dh2.55 billion), in December this year. It also woncompared with a pretax loss of a three-year technical services are very efficient and save time and£235m a year earlier. agreement contract awarded by Oman Oil Refineries and Petroleum money for both shipowners and The company reported a 15 Industries Company SAOC (Orpic) inper cent fall in its full-year adjusted 2015 for the Mina Al Fahal Refinery authorities.trading profit to £318m for the and Sohar Refinery, Aromatics andyear ended December 31. Revenue Polypropylene plants, both in Oman. More countries will followslipped to £5.44bn pounds from That year the company was also£5.45bn a year earlier. awarded a contract by the Oman Denmark Today the Danish Tank Terminal Company for the “Given conditions in natural front-end engineering design of the Maritime Authority has concludedresources end markets, our 2016 Ras Markaz Crude Oil Park Project intrading performance was robust, as Oman. This project involves phased a Memorandum of Understandingwe benefited from the breadth of development of a terminal designedour business – especially the record to hold about 200 million barrels of (MoU) with the maritime authoritiesperformance from solar – cost saving crude oil, making it one of the largestactions and the fall in sterling in the oil storage facilities of its type. in Singapore and Norway. The MoUsecond half of the year,” said thechief executive Jonathan Lewis. Amec Foster Wheeler has been has been signed on the occasion active in the Middle East since 1930. “We continue to expect another Today, the company supplies a wide of the maritime event Singaporeyear of decline in oil and gas activity range of services and technology toin 2017 and for solar activity to all sectors of the process industry Maritime Week and establishes thereduce significantly from the record in the Middle East includinglevels seen in 2016.” environmental, oil and gas – both basis for the three countries’ efforts to onshore and offshore – refining, Amec has won a number of petrochemicals and power. As well spread the use of digital certificates.projects in the region. as the UAE, Oman and Qatar, the company has an established Director General Andreas In 2015 its contract for UZ750 presence in Saudi Arabia and Iraq.project, which began in 2008, was Nordseth from the Danish Maritimeextended to redevelop the UpperZakum field about 80km offshore Authority: ”It is an important step thatnorth-west of Abu Dhabi, which Norway, Singapore and Denmark – three major shipping nations – join forces to spread digital certificates. Cooperation makes it easier for us to promote the use of digital certificates and make more countries enter upon the digital course.” Further reduction of burdens ahead Digital certificates have the potential to give us much more than faster postal delivery: ”E-certificates are merely the tip of the iceberg. The certificates as such are only the beginning. The next step will be for the authorities to exchange and inspect certificates via the databases of one another rather than to do so on board the ships,” explains Andreas Nordseth.  ■ May 2017 | Littoral Wind | 31

UPDATES CMA CGMAdani Ports Joint Venture• CMA CGM subsidiary CMA Terminals & APSEZ to jointly operate container terminal 4 at Mundra Port for 15 years• As per the JV agreement, the partnership contract can be extended twice for 10 more years• Mundra Port container handling capacity rises to 5.5 million TEUs, making it India’s largest container port• Construction of the container terminal 4 has been completed three months ahead of schedule• CMA CGM is world’s leading shipping and logistics group• APSEZ is India’s number one private port infrastructure companyCMA CGM, a leading Rodolphe Saadé belief in the potential growth of worldwide shipping group CMA CGM trade between India and the rest of and Adani Ports and Special the worlEconomic Zone (APSEZ), India’s Chief Executive Officerleading port infrastructure developer Speaking on this momentousand part of the Adani Group, today occasion, Mr Karan Adani, CEO,signed a joint venture agreement, APSEZ, “This is a notable milestoneto operate a new container terminal for us, as with the commissioning(CT4) at Mundra Port, for next 15 of this terminal, Mundra port willyears with an option to extend it twice become India’s largest container-for 10 more years. handling port. This strategic partnership with CMA CGM in the We have been present in India for Container Terminals business bringsover three decades now and employ significant value to Mundra port. With4,000 people. This joint-venture with this new development, Mundra portAdani Ports reinforces our position is perfectly primed to set the bar evenin one of the world’s fastest growing higher on the crucial parameters ofeconomies and highlights our firm32 | Littoral Wind | May 2017

efficiency, productivity and faster container gantry cranes which shipping and intermodal solutionsturnaround times for larger vessels, will accommodate seven rows ofwhich will directly translate into containers and one operational lane. covering accessibility to and fromcompetitive advantages for ourcustomers. Mundra port continues For CMA CGM, CT4 is its 51 inland locations, 6 gateway portsto be conscious of its environmental first port investment in India, andresponsibilities and has installed demonstrates its ambition to further and 7 feeder ports in the country.world class equipment, which vastly increase its presence in this strategicreduces air and noise pollution.” and fast-developing country. CMA The company offers connections to CGM is present in India since 1984. The two partners have completed With around 4,000 staff members its port terminals through dedicatedthe CT4 project three months ahead and 29 offices, it is calling 13 portsof schedule making Mundra Port the in India, and offers to its Indian block trains and other intermodallargest container-handling port in customers 11 direct weekly shippingthe country. The port was already the services connecting India to Europe, options.country’s number one multi-purpose Africa, North America, Southport facility. CT4 will be the only America, Asia, Australia and the This new investment adds to thecontainer terminal on the west coast Middle East.of India where the world’s largest 27 container terminals that CMAcontainer ships can call. CMA CGM’s investment in Mundra shows how confident the CGM has today in its portfolio, CT4 has four units of 65 tonnes company is about the opportunitiescapacity of Rail Mounted Quay in India, where economic growth rate and is a key step in its strategyCranes capable of handling 18,000 is expected to be one of the fastestTEU vessels and Super Post and Ultra among large economies in 2017 to further expand its position inLarge Container Vessels and an according to recent data from theannual capacity of 1.3 million TEUs. International Monetary Fund. CMA port operations. CGM expects trade between India The terminal spans over 27 and the world is likely to grow and APSEZ continues to rapidlyhectares, with a 650-meter long generate opportunities for exportersquay and a draft of 16.5 meters. and importers. In India, CMA CGM expand its container terminalsThe yard equipment will include Group offers a wide range oftwelve 41 tonne lift rubber tyred footprint across India’s coastline and further augments APSEZ’s existing three container handling facilities at Mundra, Hazira and Kattupalli, an under construction transhipment hub in Vizinjham in Kerala and two other under construction terminals at Ennore in Tamil Nadu and Dhamra in Odisha. It will allow Adani Ports to fulfil its stated vision of handling 200 million metric tonnes of cargo well before the year 2020. ■ May 2017 | Littoral Wind | 33

INTERNATIONAL EVENTSingapore Maritime Lecture Provides Insightinto Driving Forces of Logistics export and production market to a consumption and services country – a signal of the country’s growing middle-class. As such, Dr Trefzger opined that increased volatility in global trade will be a new normal, providing opportunities in the form of new regional growth areas. As with many other industries, the logistics industry is influenced by technology, data and predictive analytics, which increases capacity and productivity, without additional inefficiency. Success will be dependent on the mastery of these, as information based on real-time data enables customers, partners and logistics providers to make the right decisions. With technological adoption in the logistics industry and a greater emphasis on knowledge-based activities, manpower would have to keep pace and become increasingly upskilled as “eWarders” equipped with the know-how and experience in predictive analytics and expertiseThe annual Singapore Maritime This was followed by a fireside chat in data-driven supply chain Lecture took place earlier moderated by Professor Annie Koh, today, with 400 senior maritime Vice President, Office of Business management.representatives gleaning insights Development and Professor ofinto the key drivers of today’s Finance (Practice), Singapore The final factor that Dr Trefzgerlogistics industry. Being a critical Management University.element in the global shipping supply spoke was on consolidation. Whilechain, developments in the logistics The first factor that Dr Trefzgersector hold key lessons for maritime spoke about was on the end this has brought about fundamentalindustry players. Additionally, consumer who has ever-changingfactors driving changes in logistics needs and will be the ultimate driver changes in the carrier landscape,also mirror those experienced by of all activities. Demand for deliverytoday’s maritime industry. on the same or next day, increased there remains expectations and access to products from across the The 11th edition of the yearly world as well as a greater need for opportunities for transformation.forum featured a keynote address transparency of a product’s source,by Dr Detleft Trefzger, Chief have led to fundamental changes This can be achieved throughExecutive Officer of global freight in the design and execution offorwarding and logistics giant supply chains – from production synchronisation among all playersKuehne + Nagel International AG, to consumption. The growingwho spoke on the topic “Driving middle class in developing Asian in the logistics industry such as inForces of the Logistics Industry”. nations have also led to shifts inDr Trefzger is also a member of global distribution patterns. Dr improving data quality, demand-the International Maritime Centre Trefzgercited the example of China,(IMC) 2030 Advisory Committee. which has moved from being an driven and visibility enabled planning, collaboration, as well as complementary value chains of carriers and forwarders. To summarise the discussion, Professor Annie Koh noted that keys to the logistics industry’s transformation include - building trust with customers, leveraging technology and talent development. At the same time, industry players must be agile, bold and collaborative.  ■34 | Littoral Wind | May 2017

MAX CONTAINER SERVICES Max Container Services is engaged in providing empty container depot operations, Container repairing, Trans shifting etc with utmost care by experienced and professional personnel. Mumbai Uninterrupted handling service round the cloak, Generator for having continuous supply of power, Hydras, Cranes, Forklifts and other moveable equipments to meet our requirements. The Company has clients comprising of Shipping lines (MLO, NVOCC, Coastal Lines) and other shipping service providers (CFSs etc) The Company has clients comprising of Shipping lines (MLO, NVOCC, Coastal Lines) and other shipping service providers (CFSs etc) Address: Office No.S/07/63,2nd Floor, Haware Centurion Complex, Plot No.88-91, Sector-19A, Nerul, Seawood (E), Navi Mumbai- 400 706. Telephone: 9167211362 Email:[email protected] PTC: Mr.Ramesh Kumar Tolana

EVENTGreen Shipping India 2017The most Environmental GUEST OF HONOURInternational ShippingEvent The Orchid,Mumbai 7th April 2017“GREEN SHIPING Dr. Malini Shankar, I.A.S.INDIA 2017 TOPICS”: Director General of DG Shipping, Mumbai• Innovative Green Technologies. KEYNOTE SPEAKER• Future Green Ports and Terminals. Mr. Sabyasachi Hajara Former CMD Shipping• Green Ship Designs & Ship Building. Corporation of India (SCI).• Ship Recycling.• Ballast water treatment & waste water management.• Impact on IMO Emission Regulations.36 | Littoral Wind | AMparyil22001177

-Lijiya Jose SPEAKERS“Green Shipping India 2017 , The Most Environmental Dr. M. Abdul Rahim International Shipping Event “ conducted by “Littoral FIMarEST FRINA RegionalCommunications Pvt.Ltd “, was inaugurated by Dr. MaliniShankar, I.A.S, Director General of Shipping, Mr.Raja Vaiz, Manager,Chairman & Managing Director, Littoral Communications Pvt. Ltd., South Asia, ClassNKMr. Sabyasachi Hajara, Former CMD of Shipping Corporation ofIndia.This seminar captures a one day programme of presentations, Mr. Arun Kumar Guptapanel discussions and Q & A session at the event, which took place Managing Directoron 7th April ,2017 in The Orchid , Mumbai. This event broughttogether 50 leading shipping industry people all over the world Indian Ports Global Ltd (IPGL)and was well attended by the eminent personalities and expertsfrom Shipping Industry. Mr. Sandith Thandasherry CEO Dr.Malini Shankar, I.A.S, Director General of Shipping gracedthe inaugural ceremony and gave us a very gracious & immensely Navgathi Marine Designs &benefited inspiring speech A Key Note Address was given by ConstructionMr.Sabyasachi Hazara, Former CMD of Shipping Corporation ofIndia who humorously encouraged us by his addressing. AMparyil22001177||LLititotorrailaWl Winidnd| 3| 737 The speakers who shared their findings , views about the“Green Shipping India 2017” and inspired us by their greatwords were “Dr Abdul Rahim Regional Manager – South Asia,Class NK”, “Mr. Arun Kumar Gupta -Managing Director ofIndian Ports Global Private Limited”, “Mr. Sandith Thandasherry- CEO, Navgathi Marine Designs & Construction”, “Dr. AnandHiremath - Lead Coordinator Responsible Ship Recycling Projects”,“Mr. Kunal Sharma - Surveyor-Ships & Technical Services, IRClass“,“Capt. Shailesh Karmarkar-Business Development Manager,RINA Services” and the moderators who set the themes were“Mr.Lalatendu Acharya - Director – Technical ,Vedam Design “,“Mr.Atul Kumar-Chief Manager and Head , Seimens”,”Capt.RahulVarma-General Manager- Sustainable Shiprecycling consultant,Lilly Maritime Pvt. Ltd”. In this seminar the speakers were mainly briefing about theInnovative Green Technologies, Future Green Ports and Terminals,Ship Designs and Ship Building, Ship Recycling, Ballast Water andWaste water Management, Impact on IMO emission regulation. The seminar was sponsored by Max Container Services,National Insurance, Leela Shipping and was supported by IndianPrivate Ports and Terminals associations-IPPTA, Indian NationalShip Owners Association, Mumbai and Nav Seva Ship agentsassociation- MANSA, Indian Coastal Conference ShippingAssociation, Shipyard Association of India were the importantorganizations supported this seminar. Ms.Lijiya Jose, General Manager, Littoral Communications Pvt.Ltd., conveyed her gratitude to all participants, particularly sessionmoderators, panelists and presenters in her capacity as conferencechairperson. She extended her thanks to the local organizingcommittee for their efforts, and expressed her satisfaction withthe interactive nature of the discussions while congratulatingparticipants on the extensive networking that had taken place.

EVENTGREEN SHIPPING SPEAKERSINDIA 2017 Dr. Anand Hiremath Lead Coordinator38 | Littoral Wind | May22001177 Responsible Ship Recycling Projects GMS, Gujarat Mr. Kunal Sharma Surveyor Indian Register of Shipping Capt. Shailesh L. Karmarkar Business Development Manager -Marine RINA India Pvt Ltd

MODERATORS Mr. Atul Kumar Head – Marine Solutions,Siemens Ltd., Mumbai, India Mr. Lalatendu Acharya Director - Technical Vedam Design & Technical Consultancy Pvt. Ltd. Capt. Rahul Varma GM Ship Management/ Sustainable Ship Recycling Consultant Lilly Maritime Pvt. Ltd. MAparyil22001177||LLititotorraallWWinindd||3399

INSIGHT More Ballast Water Headaches For Shipowners Trading to California Stev Candito40 | Littoral Wind | May 2017

management performance standards that are much more stringent than the International Maritime Organization (IMO) standards and even more stringent than those of the United States Coast Guard (USCG) such that there is currently no technology available to meet their standards, but at least those requirements have been delayed as noted above. Where the headache arises is with California regulations that still contain ballast water exchange, reporting, and recordkeeping requirements applicable to all vessels of at least 300 gross tons capable of carrying ballast water that call at California ports. The new regulations authorize the CSLC to pursue civil penalties not to exceed $27,500 per violation for each of these requirements. These new regulations now classify violation types, clarify the penalties for these newly-classified violations, and create an initial, informal dispute resolution step to the civil penalty enforcement procedures set forth in CMISA. Further, although mid-ocean ballast water exchanges are still a permitted from of ballast water treatment, the regulations now explicitly state where mid-ocean exchanges must occur. More specifically, where a vessel must conduct a ballast water exchangeAs many will recall depends on whether its voyage begins outside the Pacific Coast vessels from their first scheduled Region (PCR). The PCR is defined drydocking after that date. However,from October 2015, this legislative delay did not mean as all waters on the Pacific Coast of headaches for shipowners tradingCalifornia delayed to California were over. North America east of 154 degreesthe implementation On April 19, 2017, the W longitude and north of 25 degrees California State Lands Commissionof its interim ballast (CSLC) announced new regulations N latitude, exclusive of the Gulf regarding civil penalties forwater discharge standards by violations of California’s Marine of California. Vessels on voyages Invasive Species Act (CMISA)four years, from January 1, 2016 (California Public Resources Code originating outside the PCR must §§ 71200 – 71271), and how theto January 1, 2020, because of CSLC will adjudicate any violations. conduct ballast water exchanges These new regulations take effect inthe lack of available treatment two short months on July 1, 2017. 200NM off the California coast,technologies. It also extended by California has always been and in waters 2,000 meters deep. known for its ballast waterten years, to January 1, 2030, These requirements also apply tothe implementation date for its vessels on voyages beginning withinfinal performance standard (zero the PCR that take on ballast waterdetectable living organisms). The outside the PCR. Vessels whosedelay applies to newly constructed voyages begin within the PCR mustvessels on or after January 1, 2020 conduct ballast water exchangesfrom their first arrival in California 50NM off the California coast, andafter delivery and to existing in waters 200 meters deep. The May 2017 | Littoral Wind | 41

CSLC’s new regulations provide 3 violations for a $1,000 penalty Actions” to resolve an allegedfor penalties of $5,000 to $27,500 for every 30 days that pass andper tank depending on the severity forms have not been submitted. The violation short of an administrativeof the violation (Minor, Moderate regulations also make falsificationor Major). of a Ballast Water Management hearing. Report a misdemeanor punishable As you may recall, the regulations by a jail sentence not to exceed 1 California’s announcementalways required vessels to maintain year. Somewhat beneficially, theonboard ballast water management new regulations now at least require of new civil penalty enforcementplans, logs, and copies of Ballast the CSLC to engage in “PreliminaryWater Management Reports. They provisions confirms its commitmentalso required the submission As you may recall,of Ballast Water Management the regulations to regulating ballast water, evenReports, Annual and Supplemental always requiredTechnology Reports (relating to though they delayed the mainballast water treatment system vessels to maintainusage) and Hull Husbandry Reports onboard ballast water discharge requirements because(relating to anti-biofouling). Thenew regulations provide for Class management plans, technology that meets the2 Recordkeeping violations and logs, and copiesClass 3 Reporting violations. The of Ballast Water performance standards does notfirst Class 2 or Class 3 violation onlyrequires a Letter of Noncompliance, Management Reports. currently exist, and even thoughbut subsequent Class 2 violationscall for a $10,000 penalty and Class Congress continues its effort to pass the Vessel Incidental Discharge Act (VIDA), which would preempt California’s (and other state’s) ability to pass their own state regulations. Therefore, vessels trading to California must take heed of their ballast water management compliance headache in California, while they continue to contend with their ballast water obligations under the IMO and USCG regulations. ■42 | Littoral Wind | May 2017



UPDATES1,000 vessels withSustainable CoatingsAkzoNobel’s ongoing solution from the Intersleek range a leading role in our ongoing are eligible to enrol in AkzoNobel’s efforts to make shipping award-winning carbon credits commitment to making shipping initiative, which financially rewards more sustainable them for investing in sustainable more sustainable.” With around technologies. “The rapid adoption reached another of Intersleek 1100SR shows that five vessels coated per week since ship owners and operators are landmark recently with realizing the benefits of investing its launch, Intersleek 1100SR’s in sustainable hull coatings,” saidthe 1,000th application of Intersleek Oscar Wezenbeek, Managing uptake by LNG owners means the Director of AkzoNobel’s Marine1100SR, the biocide-free fouling Coatings business. “The fuel savings company’s Intersleek coatings are delivered by Intersleek 1100SR –control coating. The milestone and the fact that it allows vessels now used on 35% of the global LNG to get up to speed even after longwas achieved with the Al Gattara stationary periods – means it is fleet. Supplied by the AkzoNobel’s not only a sustainable solution inLNG (liquefied natural gas) tanker terms of decarbonisation, but also Marine Coatings business as part a solid financial investment. We’reoperated by Nakilat Shipping Qatar delighted to see so much support of its International® range of for, a technology which is playingLtd. products, Intersleek 1100SR wasDelivering outstanding macro launched in February 2013 as theand micro fouling control with shipping industry’s first patentedimproved static resistance, even in slime release biocide-free foulingwarm waters, the product enables control coating.vessels to reduce drag and achieve The 1,000th application offuel efficiency and emissions savings Intersleek 1100SR comes as theof 9% on average. Intersleek range celebrates its 21stMoreover, ship owners and anniversary this year, having savedoperators that upgrade from a $3 billion of fuel and 32 million tonsbiocidal coating to a biocide-free of CO2 to date. ■44 | Littoral Wind | May 2017

ADVERTORIAL Moxa Future Projection - Mr.Kasim General Manager- MoxaCan you tell us more about Moxa maritime instruments the offshore communicationMoxa services to the marine have environmental certificate networks & what makes youand oil & Gas industries? from international bodies. How stand different in this globala. We are in to industrial networking, is it necessity for the future market? industry? computing & automation Any communication network built solutions, with over 25 years These Certifications are tested and is planned for longer time. Moxa of experience in this industry. approved. Itsvery much necessary to offers a new advanced technologies Marine & O&G are one of the achieve Off-Shore Safety, Reduced like Industrial grade Ethernet key focussed segments for Moxa, maintenance cost & interoperability. switches ATEX Zone 2 approved besides Smart Power, Smart Rail & All our Marine products are IEC with 10Gbps uplink communication Intelligent Transportation System. 60945 4th, DNV, ABS and IACS E-10 with<20ms network redundancyb. Our marine solutions include compliance for offshore we provide technologies. We also provide ATEX industrial marine computers, products with UL/cUL C1D2, ATEX Zone 2-certified, Sunlight-readable, marine panel computers, and Zone 2, IECEx, Cyber Security IEC- IP66-rated panel computers. Our marine displays and are covered 62443-2 certifications. I/O controllers with Active OPC by our industry-leading three- Server, for seamlessly integrating year warranty which are perfect Considering the emerging with Scada are the other unique for ECDIS, radar and conning market of DP Vessels how far solutions. Solutions from Edge to in integrated bridge system Moxa is ready for this these Core – Wired or wireless differentiate applications making most raising demands? Moxa with others. reliable choice for end users &system integrators. We have full range of solutions Keeping in mind of recentC. For O&G Industry we provide in marine computers which are key Chennai Oil spill incident how Improved flexibility with wide in Dynamic positioning. We also Indian Industry is ready to face range of products from Edge to provide Edge connectivity products this problem? Core Solutions. Our products to communicate with field devices to comes with added Safety, have a better control systems. I can Its evident that we need to have Increased Availability, with say we are fully ready with solutions more secured systems in the ports. It Greater Reliability to withstand and required certifications for these again reinforces that we have to use extreme weather conditions and applications. Many solutions are technologies to avoid these mishaps. temperature changes. already deployed globally. This incident will enhance the robust surveillance systems, communication Can you tell us more about & control systems requirement in your company services for industry. What is the projection about your company for the coming financial year 2017-18? What would be your strategies for the same? In India we have grown well from last 2 years. We expect this year also should be a double digit growth. Moxa core value is customer focus. We want to carry on with the same strategy and bring out new innovative solutions to our customers every year. ■ May 2017 | Littoral Wind | 45

INTERVIEW Marius van der Stoel Director and founder of Dutch engineering firm Greendock Realising Sustainable - and Economical - Ship Dismantling Dreams Specimen Malavika Singh ourselves in today – seeking further investment so we can finally solve the problem of sustainable solutions for ship recycling. We are in talks with several interested parties, but we are still in the d evelopment phase. The feasibility study we have produced includes a business plan, organisational structure and financial requirements where we have worked out a sensibility scenario The topic of ship dismantling is a matter of commercial, environmental, political, and human interest. With the impending opening of the multi-million dollar Panama Canal expansion – which will see a dramatic increase in the size of ships able to navigate this Central American shipping corridor – the current global fleet of Panamax vessels could become economically obsolete and bound for the murky world of ship dismantling. But according to, Marius van der Stoel, Director and founder of Dutch engineering firm Greendock, ship owners and brokers could do their wallets – and conscience – a huge favour when the time comes to send a vessel my plans to everyone – from on its final journey by opting for an evolutionary and eco-friendly new concept. The Foil Dock idea could, believes its creator, see the ship dismantling industry transformed into a well-regulated, continue because you have a very good idea!’ HSE-aware global industry. Seeking further investment to see his vision realised, Mr van der Stoel chatted to Malavika Singh46 | Littoral Wind | May 2017

Mr van der Stoel, please tell expensive way of doing it, because objective now is to bring the variousme the reasons behind the a quayside was never designed as parties involved in such a project -creation of Greendock. How a demolition yard. It is not 100 per the business community, the politicallong has it taken you to get to cent sustainable as there are spills arena, harbour authorities, pressurewhere you are today? and leakages along this quayside. groups and financers – together in It is however a big improvement a collaborative arrangement that We found that there was a in comparison to the practice of would result in a profitable shipproblem in the world which was well beaching. But we thought we could dismantling business that works indiscussed but had no viable solution: offer another, more attractive an environmentally friendly mannerhow to recycle large commercial alternative. We have developed a with humane working conditions.vessels. Up until six or seven years concept which was both sustainableago it was basically done on far and economical – the Foil Dock. Our Could you walk me throughaway beaches in India, Bangladesh this concept?and Pakistan before it was banned A lot of casualties occurby the EU. It was a terrible practice when they dismantle First of all, this new conceptbecause of the damage it did to a vessel – deaths are makes it possible to build a drythe local environment, and also dock at ten per cent of the costbecause of how unsafe it was. A very common – and this price compared with a traditionallot of casualties occur when they is before you consider dry dock. Specially designed fordismantle a vessel – deaths are very the longer term effects scrapping large commercial vessels,common – and this is before you of dealing with harmful by applying efficient workingconsider the longer term effects of methods, we believe a vessel candealing with harmful substances substances such as be scrapped in two weeks resultingsuch as asbestos without any of the asbestos without any in very competitive scrapping pricesnecessary protection. So the main for sustainable ship dismantlingalternative at the moment is to send of the necessary to be offered to the relevant shipvessels to China or Turkey where protection. owners. It is not the conventionalthey are demolished or dismantled shape of a traditional dry dock; thealongside a quay. This is a very whole dock has been designed solely May 2017 | Littoral Wind | 47

INTERVIEWfor dismantling and recycling ships, – from government authorities to and also Hapag-Lloyd in Hamburgcreating the optimal environment technicians and consultants – the who said they were very interestedfor this process. When we finalised response I get is ‘Please continue to see Greendock’s concept broughtthis development, we conducted a because you have a very good idea!’ to life. In 2014, Hapag-Lloydcomprehensive feasibility study and dismantled, I believe, over a dozenbusiness plan which was presented The enthusiasm I have received vessels in China or Turkey. Weto the German development bank, during this process gives me the calculated the price per tonnage ofDEG. That was very well received power and motivation to go forward. what it currently costs to clean it upand DEG is in principal, prepared and to make scrap out of it and whento play a large role in the financing. We have also participated in you compare us to existing practices,And this is the position we find EU workshops with some very we are very competitive. So a numberourselves in today – seeking further enthusiastic people and we have of companies have expressed aninvestment so we can finally solve visited several shipping companies, interested to cooperate once we arethe problem of sustainable solutions the Norwegian Shipping Association up and running.for ship recycling. We are in talkswith several interested parties, but The feasibility study Who else works on thesewe are still in the development we have produced matters with you atphase. The feasibility study we have includes a business Greendock?produced includes a business plan, plan, organisationalorganisational structure and financial structure and financial We have a small team, includingrequirements where we have worked requirements where engineers, financial consultants,out a sensibility scenario based on we have worked out organisational consultants; wevarious financial models, so it is very a sensibility scenario teamed up with a small team of tendetailed. based on various people which we can adapt and be financial models, so it is flexible with for the solution we areWhat has the feedback been looking at. With that team, we alsolike so far from the industry? very detailed. conducted these studies. We have also developed an organisational It has been very positive! When structure to operate a GreendockI introduce my plans to everyone facility. We already have a blueprint48 | Littoral Wind | May 2017

to start with a Greendock: We know We are looking at the for that; the dry dock creates thethe financial items, and we know size of the Panamax environment for far more efficiencythe operational items, and we have vessel. If you look at the in the whole process. A quayside isa team to implement them. We are widening of the Panama not the right environment in which toaiming at a delivery on a turnkey Canal, these existing demolish a vessel.basis. Panamax vessels will Have you visited any ofAre there particular vessel basically become these beaches in India ortypes that you are targeting too small. Bangladesh yourself?with the Greendock concept? the steel plates were cut too large. Frequently. I know these people; We are looking at the size of The smaller you have to cut it, the they are very enthusiastic about ourthe Panamax vessel. If you look at more expensive it becomes. The old ideas and concepts, because theythe widening of the Panama Canal, beaching method of cutting was with have no alternatives. It is the brokerthese existing Panamax vessels will gas. Whilst the people are paid very who rules the business. He buys thebasically become too small. They poorly, gas is still very expensive. vessels, and he sells the scrap. Hewill not be competitive in modern But rather than use gas, our method goes to Bangladesh and offers theshipping, so they will be a burden for includes the use of hydraulic shears, vessel to the people working there,each ship owner. The feasibility study meaning we can cut the steel to an and they have no influence at all onexamined this market intensively. acceptable size at a reasonable cost. the process - they do the dirty workWe have used mathematical models for practically nothing - just a couplefrom the University of Groningen Can you put a timescale on of dollars a day.to predict the number of vessels your first Foil Dock becomingwhich will be offered for recycling operational? So will you have an emphasisin the near future, and we see an on training and educating theincreasing number of hundreds of Once a leading investor steps in, local workforces who used toships per year. Less than a decade we have a plan to develop it between work on beached vessels?ago, this number would have been 18 or 24 months to commenceat just ten or 20 vessels per year: operations. You have invested an Absolutely. We will change thein the near future, you will see 100 enormous amount of time into this dirty and dangerous work into properor 200 of these vessels offered for concept. qualified and safe work. We wouldrecycling. We think we can demolish introduce lean and zero accidentone Panamax vessel in two weeks. How optimistic are you of principles. This would enable us toSo with 100 per centutilisation, a seeing it realised? implement management systemsFoil Dock could work on 24 vessels like ISO 31000 risk managementa year. Of course, in our models, we I’m absolutely sure this will and the ISO 30000 ship recycling happen because it is such a management system – a specific also looked at utilisation degrees competitive alternative. I know management system for safe andwhich are significantly lower. These exactly the price of demolishing environmentally sound ship recyclingdocks could also dismantle two by existing practices, and we have facilities. No ship recycling yardhandy-sized vessels simultaneously detailed calculations that we can has ever been awarded the latter,to maintain volume levels. offer a significantly lower price, and because they do not have the still have a profit. In our models, environmental practices. If you createWhere in the world do you we have an internal rate of return an environment like you have in, forenvisage a Greendock of between 20 per cent (worst case example, the autmotoive industry,ship recycling facility being scenario) and 50 per cent (best case you can use lean principles, whichimplemented? scenario). It is a very interesting and makes your process very efficient. sound proposition for an investor; That is also included in our concept; If you look at all of the aspects, the market is there, the clients are not only in the Foil Dock, but alsoyou have to locate your ship recycling there and we have several letters of in the labour process, or workingfacility where the ship scrap clients intent from the steel manufacturers method as you call it.are, which is Asia. Ships are built of who want to buy the total yearlycertified steel of a very high quality production. Our concept is not only Moving forward, what is thewhich can be used as a resource for based on the Foil Dock, our concept biggest challenge you face?steel manufacturers. The uses for is also based upon integrating pre-the scrap metal include re-rolling cleaning into the total scrapping Finding the right investor whomills and electric arc furnaces. In process. We have the environment wants to start the first Greendockthe past these electric arc furnaces facility in the world; it’s as simple ascouldn’t accept shipping plates that. Once the first dry dock is up andfrom the beaching industry because running, we will be very successful. ■ May 2017 | Littoral Wind | 49

NEWSHuge Maritime Training Centre To Open in RotterdamBefore the end of the year, level projection (water, quay) from the most advanced – and indeed one of the largest – the bridge wings. For the seven maritime training centres in the world will be opening engine room simulators, the centre in Barendrecht: Simwave. A total of 59 simulators will be installed will be constructing a full-size replica at the 5,000m² location, including life-size replicas of a ship’s bridge of a ship’s engine room across two and engine room. The founders have announced that they will open storeys of the building. This will be a second centre in Singapore next year. Ultimately, they will be realising complemented by simulators for five such centres at various maritime hotspots around the world. tugboats, offshore support vessels MARITIME SIMULATION and inland vessels, as well as Right now, preparations are simulators that focus on navigation, in full swing for transforming a building in Barendrecht into one communications and emergency of the world’s largest and most advanced maritime training centres. response operations for vessels “Kongsberg’s simulators and technology play a crucial role in own name and with their own look & transporting chemical, LNG, LPG or this context,” explains co-founder feel. However, we provide more than Marcel Kind. “We offer shipping just facilities – we can also offer our oil products. companies and other maritime clients extensive support by a team organisations the opportunity to of training specialists, mathematical Co-founder Joost van Ree: perform trainings, assessments and modellers and other experts. You research at our premises under their could call it ‘maritime simulation as “We will be offering our clients a service’. the best training and assessment FULL MISSION Among other things, the 5,000m² options available. In addition, our training centre will be housing ‘full infrastructure is very well suited for mission’ simulators that feature a more or less full-scale replica of a applied research. And finally, the ship’s entire bridge, supported by a 360° projection. A ‘world first’ in this layout of the centre not only allows context is the simulator’s surface- for terminal operations exercises. We can also accommodate extensive advance testing, in terms of accessibility and safety, of plans for expanding or constructing a port or waterway, the relocation of a large- scale structure or the deployment of tugboats.” ■50 | Littoral Wind | May 2017