Magazine-May-2017-Final-

LITTORAL Monthly www.littoralwind.com
WIND 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 2017

The Dangerous
Practices in Ship

Breaking Yards

Tallest
Pride

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Message from Managing Director

Raja Vaiz Dear Valued readers,
Chairman &
I am glad to introduce Littoral Wind a new monthly
Managing 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
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New No. 68, old No. 38
Rahul Kumar EAST Jones Street
Saidapet, Chennai- 600015
BUSINESS & ADVERTISING
National Head

Lijiya Jose, General manager
[email protected]

Marketing Manager TUTICORIN OFFICE:
Violet Princy Natarajan No 5, South Raja Street
[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 52

Printed 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,
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edited by Shri.Rajeev Nambiar and owned by Littoral Communications Pvt. Ltd.

4 | Littoral Wind | May 2017

INSIDE

08 26

ARTICLE ANALYSE

The 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 For
Why 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 companies

repres

Scindia House, Basement,
N. M. Marg, Ballard Estate
Mumbai 400001

Tel : (022) 22623003, 22623912
Telefax : (022) 22623911
Email : [email protected]
Website: www.iccsa.in

ARTICLE

Mr. Sabyasachi Hajara
Former CMD - Shipping Corporation

of India, Mumbai

The Challenging
Years Ahead
Right 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 cause

8 | Littoral Wind | May 2017

further problem for economic After a very decent lower demand. The substantial
development of this region. The 2015, tanker market addition to refining capacity in
world’s no 1 economy, the USA, is came down in 2016 middle east as also likely increase in
more promising where the growth Shale oil and gas production in USA
is likely to exceed at least 3%. and in view of due to higher prices don’t anger
However, the protectionist measures substantial deliveries too well for the crude oil segments
threatened by the present Trump of new buildings both . The most volatile will be the VLCC
administration doesn’t anger well segment where the average charter
for global shipping and in case there in 2016 and 2017, hire would come down to barely
are retaliating measures by other the rates are likely to 25000$ as against close to 40000
governments, particularly China, the and 60000 $ in 2016 and 2015
same 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 production
doing somewhat better and on the new buildings both in 2016 and
strength of the same the commodity 2017, the rates are likely to remain and consequent increased imports
prices all round for crude, iron ore, subdued in 2017 as well. Moreover, of iron ore to china, the capesize
coal 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 in
same is likely to remain stable in barrel per day and 558K barrel per all sizes,the rates are unlikely to
2017 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 is
segments of shipping is given here difficult tanker market due to slightly expected to be nearly 5%, in dry bulk
under: the fleet growth is likely to be 1%,
particularly due to much higher level
TANKER of recycling,. Moreover the ratio of
After a very decent 2015, tanker new built order to existing fleet is

market 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 seen
dry bulk owners exercise restraint and the offshore segment has also
in ordering further ships, hopefully suffered the consequence. The possibly the worst year in 2016 where
dry bulk market will see better days increase in oil prices is expected
beyond 2018. to revive some interest in ENP but the new building orders have been at
again the production curtail in the
CONTAINER 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 in
the 7th largest container fleet owner 2017 as well.
in the world, the container market a hurry, though that is what the ship
came up for a while but the increase The second hand
in rates were not sustained. However price of course has owners are banking on for slightly
major consolidation measures are slightly recovered
being taken in this segment and from its lowest level improved fate in the coming years.
going forward there will be only and there has been
3 principal alliances namely 2M, about 10% increase The second hand price of course
Ocean alliance and The alliance
controlling most of the capacity. in second hand has slightly recovered from its lowest
This measure is expected to result prices in 2016. Prices
in stabilisation of container freight level and there has been about 10%
rates in the coming years but the may go up, albeit
smaller players will find the going only marginally, in increase in second hand prices in
very tough unless they can develop
niche segments for themselves 2017 as well. 2016. Prices may go up, albeit only

OFF SHORE marginally, in 2017 as well.
Since the days of crash of oil
However the prices are still very
prices, the ENP (exploration and
production) 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 Ambrose

12 | Littoral Wind | May22001177

What is the future of Indian
naval architecture industry?

Naval Architecture has never been
properly explored in India. Creative
Naval Architecture almost doesn’t
exist. But if another revolution comes
up like what happened in China, it
would happen in India. But for that,
what we need to have is a long-
standing Government and a stable
currency value under a visionary
leader. I’m optimistic. That’s why
both of my daughters have opted to
become Naval Architects.

Do you think make in India has When we fail to and backwaters to avoid heavy Fresh
helped 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, work
we need more pace and strong China completes it in and train the next generation till their
investors. Inefficiency and corruption less than 3 years. It’s last breath. Options.
won’t attract investments. So far, high time for the private
the effect of Make in India is not sector to step in for You are also a Hollywood
that much visible in the Indian improving the efficiency producer. Can you tell us more
Maritime sector. But the current about this?
market crisis across the Globe to safe guard our It was my dream to become
will surely accelerate the Make in defense objectives.
India visions. a Film Maker. The day one of my
it should be taken care with utmost
What is your opinion about respect. Unfortunately, revolutionary creations as a Naval Architect got
allowing private sector into changes are not happening in the
navy 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 which
surviving out of Naval Projects. authorities. Even simple things like
When we fail to complete our voluntarily introducing total security is 143ft long and can occupy 141
Aircraft carrier in 10 years, China system using surveillance cameras
completes it in less than 3 years. are not taken care while preparing rowers), I decided go after my
It’s high time for the private the specification or while preparing
sector to step in for improving the the design. Rules for allowing dreams. Also, I made sure to bring
efficiency to safe guard our defense unmanned ships with remote control
objectives. system are to be introduced to defend up our Naval Architecture Division
piracy issues. Lighter and Greener
Recently the Government has ships and rigs are to be developed to as the largest in Middle East with
also decided to invite public reduce operating costs. Unexplored
funding 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 7500
these initiatives will boost the kilometers of our coast. LNG vessels Took a diploma in Film Production
industry? are to be introduced in our inland
and Direction from Hollywood Film
Lack of Funds is not the only
issue. As long as we don’t have an Institute before starting Marine BizTV
Efficiency Management System, no
funds can save this Industry. and my first Directorial Venture,

What is your advice for the DAM999. So far produced 4 Oscar
Indian naval architecture
leaders? Qualified movies and received more

Naval Architecture is the most than 50 International recognitions
complicated 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 STORY

The 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 Lawate

14 | 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 PWD
concerned departments with our
grievances but no department has also added that companies have
invited us for discussion, he further also hinted at tying up with global
added. 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 will
crore 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 constructed
Hindustan 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 planned

16 | Littoral Wind | May 2017

Chowpatty beach 1.5 km away in the Location surroundings and a special shivaji
mid Arabian Sea. The total height of The nearest station to reach this
the statue from its base will be 240 museum which having the real
metre consisting base level of 77 attraction spot will be Marine Lines
metre and statue of 210 metre.It will which is next to Churchgate at far artefacts used by Chattrapati Shivaji
be 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 and
constructing a bridge connecting transport. Another jetty also from originally written inspirational quotes
the memorial to the main land, a Gateway Of India for convenience of
visitor centre buildings, a memorial visitor who already around, They can by him.
garden, a Library, food court and a easily travel via ferries at gateway
convention centre with approximately reaching directly to shivaji memorial. Surrounding this memorial
10,000 footfall space.
As per project plans the location will also be water sports activity
Work on the memorial will be around the memorial can have
done in two phases. The memorial about 3000 people at a given time. adventure with Sound and light show
will have museum, exhibition gallery, It will have beautiful landscape in
amphitheater, helipad and hospital. for onlookers. Adding more to it, a
The memorial will showcase replicas
of Shivaji forts. Egis in India has Marine Aquarium is expected as per
been appointed as the Project
Management Consultant.Egis in plans and special multi-level car
India is the local arm of the France
based Egis group. parking facilities will be made along

This is one of the few projects with quick and prominent evacuation
in the state with major political
implications. The state government plans via boats and helicopters in
budgeted Rs 3,600 crore for the
entire project of which Rs 2,500 case of any sea and water disasters.
crore has been estimated for the first
phase, for which tenders have been After overall study and research by
invited. The memorial will have a
temple, museum, hospital, entrance
modeled on the Raigad fort and a
theatre showcasing highlights of
Shivaji’s life. Another major feature
is a lift which will take visitors right
up to 180m or 60 floors inside the
memorial, giving them a view from
that height.

planner and groups from IIT and

ESTIMATES considering every possible pros and
States 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 Naval
project approved by PWD
Other Bidders – Reliance Infrastructure and Afcons Command, Fisheries Department
Infrastructure
• 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 Carrier

18 | Littoral Wind | May 2017

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FACT & REALITY

Why Living on a Cruise Ship is
Cheaper than you think

Eileen Ogintz

Imagine 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 cruise

20 | Littoral Wind | May2017

“Cruising is very flexible as most retire at sea — 27 percent completely and that more cruise lines now
cruises are one week to 21 days, so and 32 percent said it would be ideal are offering them with intriguing
you can mold your schedule around for a couple of years. Another 27 itineraries. “The convenience of
holidays 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 at
noting that you get the best rates once -- only unpacking once – is
when booking as far in advance as “What easily grabs your something that only cruising can
possible. 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 for
the same line, the more loyalty communities is how much fun it must Regent Seven Seas noted that interest
programs will reward him or her with be to be out in the world, meeting in their 130-plus night world cruises is
upgrades 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 segment
or transfers. But for those who food and attentive service,” suggests of interest for those who have the
cruise 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 less
cruise – the rewards could be worth than living ashore. Malcolm Myers reports he sails
hundreds or thousands of dollars on Regent Seven Seas roughly half
saved on things like free cruise days, So why aren’t more people the year and still maintains a condo
Spencer 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 the
Seldado 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 ships
the same stateroom throughout his have limited medical facilities. The downside? “Not as much
consecutive cruises, spending 80 time with the grand children or for
per 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 him
rest 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 know
Critic poll, the majority of survey However, Spencer Brown said the people you interact with from the
respondents 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

UPDATES

Chabahar Port Operations
Progressing Fast: India

Development 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

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24 | Littoral Wind | May 2017

May 2017 | Littoral Wind | 25

ANALYSE

Dangerous Practices in Ship
Breaking Yards

26 | 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 Regulation

GRENADA; and Shaheb Mia was Group chosen by Maersk to break on Ship Recycling will prohibit the
crushed by a falling steel plate its ships in Alang. The businesses in
during the cutting of the SALZGITTER. the area and the Gujarat Maritime dismantling of EU-flagged ships in
Bangladesh continues to be the Board remain unwilling to share
breaking destination where severe accident records, and information substandard yards such as those
and fatal accidents happen most on what actually happened to those
frequently, 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 the
cash buyers to sell their ships to for industry in the media. However, by simply swapping flag
breaking.
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, ship
for end-of-life ships this quarter, hospital in Alang. Ships in Alang
with 69 ships sold for breaking. are taken apart in tidal waters owners can easily circumvent EU
The yards in Alang have recently using a method that is banned in
been portraying their practices as Europe, the US and China and law.
improved compared to Bangladesh that makes it impossible to ensure
and Pakistan, but the overall rapid access for emergency vehicles Indeed, scrap dealers, such as
unnecessarily risky conditions of and containment of pollutants such
breaking ships on tidal beaches cash buyers GMS and Wirana, will
remains. Serious accidents were The lack of
reported in Alang this quarter, transparency in assist them in doing just that. The
resulting in at least two fatalities. On Alang remains a
4 March a worker died when a crane serious concern, as re-flagging before scrapping is a
collapsed. There were rumours of does the fact that
another worker dying after falling there is no hospital common practice and the Platform
from 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 one
accident in a steel cutting workshop
called Sohil Oxygen Co, whose Madeira flagged ship, that changed
owner is also owner of the Lucky Steel
Industries, 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

NEWS

Singapore Named Top Maritime
Capital of The World for
3rd Consecutive Time
SINGAPORE - 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 Norwegian
consultancy firm Menon Economics, looked at 24 many believing that the country has strong capabilities
objective indicators and garnered survey responses from
more 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 and
2012 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 strategic
categories: shipping, ports and logistics, and attractiveness
and competitiveness. Menon Economics said Singapore geographic location, as well as its position as an
also scored impressive results in the remaining two
categories: second place in maritime technology and important centre for commercial management and the
fourth place in finance and law. Significantly, Singapore
jumped three places from fifth to second position in the world’s second largest port, said the report. Singapore
maritime technology category, underlining its efforts in
technology and research. In making predictions about the ranked top in overall attractiveness and competitiveness
world’s leading maritime capitals five years ahead, the
majority 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 NEWS

Maritime London appoints BIMCO: Tanker
new 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 earnings
Doug 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 from
was 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 very
services sector, which we have been proud to serve for over 16 years, but the large crude carriers (VLCCs) may
entire maritime offering of the UK.” not yet have bottomed out.
“This is a very exciting, if challenging, time for our industry,” commented
Standerwick, “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 trend
the 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 sold
global maritime business.” for demolition, while a total of
0.9 million had left the fleet for
Profits down at Qatar Navigation recycling at shipbreaking facilities
as tough conditions persist by the end of March 2017.
Qatar Navigation
(Milaha) has Although slightly busier than
2016, this has been a slow start
announced net profits to what BIMCO expects will be “a
busy year for tanker demolition.”
of QR 236mn for the first
As cargo volumes are not
quarter of 2017, compared expected to grow that much in
2017, the increase in demand
to QR 352mn for the same must come from longer sailing
distances, and changes to the
period in 2016. Earnings volumes from one country to the
next, BIMCO informs.
per share of QR 2.12 were
China rules the crude oil
recorded for the three months tanker market, as in many
other shipping markets, having
ended March 31, 2017, been solely responsible for the
incremental crude oil tonne mile
compared to QR 3.10 for the demand growth since 2010. The
country is set to do it again in
same 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.” As
result of continued rate pressure in its container shipping unit. supply cuts from OPEC dropped
from their highest supply level ever
Milaha 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 of
of 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 of

that related to impairments. H.E. Sheikh Ali bin Jassim Al Thani, chairman

of Milaha, said the business had continued to face the same challenges as it

saw in 2016, but that it remained confident in its ability to drive growth and

capitalise on new opportunities. Milaha’s president and ceo, Abdulrahman

Essa Al-Mannai said: “Given the difficult environment we are working in, we

posted solid operational results.

“We will continue moving ahead with our multi-year growth strategy to

build a stronger and more sustainable business.”

30 | Littoral Wind | May 2017

CORPORATE NEWS

Oil and gas services firm Amec Major shipping
posts 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 Authority

Amec 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 on
in Abu Dhabi, Oman and Doha contractors’ delivery of reimbursable
and which is being bought by John engineering, procurement and Danish ships were no longer to set to
Wood Group, said its full-year pretax construction (EPC) scopes of work
loss 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 support
contracts. of the facilities. Today the Danish Maritime Authority

The company’s loss before tax The work is slated for completion only issues digital certificates, which
was £542 million (Dh2.55 billion), in December this year. It also won
compared 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) in
per 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 and
year ended December 31. Revenue Polypropylene plants, both in Oman. More countries will follow
slipped 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 concluded
resources end markets, our 2016 Ras Markaz Crude Oil Park Project in
trading performance was robust, as Oman. This project involves phased a Memorandum of Understanding
we benefited from the breadth of development of a terminal designed
our business – especially the record to hold about 200 million barrels of (MoU) with the maritime authorities
performance from solar – cost saving crude oil, making it one of the largest
actions and the fall in sterling in the oil storage facilities of its type. in Singapore and Norway. The MoU
second half of the year,” said the
chief 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 Singapore
year of decline in oil and gas activity range of services and technology to
in 2017 and for solar activity to all sectors of the process industry Maritime Week and establishes the
reduce significantly from the record in the Middle East including
levels 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 Maritime
extended to redevelop the Upper
Zakum field about 80km offshore Authority: ”It is an important step that
north-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 CGM
Adani 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 company

CMA 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 worl
Economic Zone (APSEZ), India’s Chief Executive Officer
leading port infrastructure developer Speaking on this momentous
and part of the Adani Group, today occasion, Mr Karan Adani, CEO,
signed a joint venture agreement, APSEZ, “This is a notable milestone
to operate a new container terminal for us, as with the commissioning
(CT4) at Mundra Port, for next 15 of this terminal, Mundra port will
years 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 brings
over three decades now and employ significant value to Mundra port. With
4,000 people. This joint-venture with this new development, Mundra port
Adani Ports reinforces our position is perfectly primed to set the bar even
in one of the world’s fastest growing higher on the crucial parameters of
economies and highlights our firm

32 | Littoral Wind | May 2017

efficiency, productivity and faster container gantry cranes which shipping and intermodal solutions
turnaround times for larger vessels, will accommodate seven rows of
which will directly translate into containers and one operational lane. covering accessibility to and from
competitive advantages for our
customers. Mundra port continues For CMA CGM, CT4 is its 51 inland locations, 6 gateway ports
to be conscious of its environmental first port investment in India, and
responsibilities 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 strategic
reduces 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 dedicated
the CT4 project three months ahead and 29 offices, it is calling 13 ports
of schedule making Mundra Port the in India, and offers to its Indian block trains and other intermodal
largest container-handling port in customers 11 direct weekly shipping
the country. The port was already the services connecting India to Europe, options.
country’s number one multi-purpose Africa, North America, South
port facility. CT4 will be the only America, Asia, Australia and the This new investment adds to the
container terminal on the west coast Middle East.
of India where the world’s largest 27 container terminals that CMA
container 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 opportunities
capacity of Rail Mounted Quay in India, where economic growth rate and is a key step in its strategy
Cranes capable of handling 18,000 is expected to be one of the fastest
TEU vessels and Super Post and Ultra among large economies in 2017 to further expand its position in
Large Container Vessels and an according to recent data from the
annual 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 rapidly
hectares, with a 650-meter long generate opportunities for exporters
quay and a draft of 16.5 meters. and importers. In India, CMA CGM expand its container terminals
The yard equipment will include Group offers a wide range of
twelve 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 EVENT

Singapore Maritime Lecture Provides Insight
into 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 expertise

The 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 of
into the key drivers of today’s Finance (Practice), Singapore The final factor that Dr Trefzger
logistics industry. Being a critical Management University.
element in the global shipping supply spoke was on consolidation. While
chain, developments in the logistics The first factor that Dr Trefzger
sector hold key lessons for maritime spoke about was on the end this has brought about fundamental
industry players. Additionally, consumer who has ever-changing
factors 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 delivery
today’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 through
Executive Officer of global freight in the design and execution of
forwarding and logistics giant supply chains – from production synchronisation among all players
Kuehne + Nagel International AG, to consumption. The growing
who spoke on the topic “Driving middle class in developing Asian in the logistics industry such as in
Forces of the Logistics Industry”. nations have also led to shifts in
Dr 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

EVENT

Green Shipping India 2017

The most Environmental GUEST OF HONOUR
International Shipping
Event 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 Regional
Communications Pvt.Ltd “, was inaugurated by Dr. Malini
Shankar, I.A.S, Director General of Shipping, Mr.Raja Vaiz, Manager,
Chairman & Managing Director, Littoral Communications Pvt. Ltd., South Asia, ClassNK
Mr. Sabyasachi Hajara, Former CMD of Shipping Corporation of
India.This seminar captures a one day programme of presentations, Mr. Arun Kumar Gupta
panel discussions and Q & A session at the event, which took place Managing Director
on 7th April ,2017 in The Orchid , Mumbai. This event brought
together 50 leading shipping industry people all over the world Indian Ports Global Ltd (IPGL)
and was well attended by the eminent personalities and experts
from Shipping Industry. Mr. Sandith Thandasherry
CEO
Dr.Malini Shankar, I.A.S, Director General of Shipping graced
the inaugural ceremony and gave us a very gracious & immensely Navgathi Marine Designs &
benefited inspiring speech A Key Note Address was given by Construction
Mr.Sabyasachi Hazara, Former CMD of Shipping Corporation of
India 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 great
words were “Dr Abdul Rahim Regional Manager – South Asia,
Class NK”, “Mr. Arun Kumar Gupta -Managing Director of
Indian Ports Global Private Limited”, “Mr. Sandith Thandasherry
- CEO, Navgathi Marine Designs & Construction”, “Dr. Anand
Hiremath - 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.Rahul
Varma-General Manager- Sustainable Shiprecycling consultant,
Lilly Maritime Pvt. Ltd”.

In this seminar the speakers were mainly briefing about the
Innovative Green Technologies, Future Green Ports and Terminals,
Ship Designs and Ship Building, Ship Recycling, Ballast Water and
Waste water Management, Impact on IMO emission regulation.

The seminar was sponsored by Max Container Services,
National Insurance, Leela Shipping and was supported by Indian
Private Ports and Terminals associations-IPPTA, Indian National
Ship Owners Association, Mumbai and Nav Seva Ship agents
association- MANSA, Indian Coastal Conference Shipping
Association, Shipyard Association of India were the important
organizations supported this seminar.

Ms.Lijiya Jose, General Manager, Littoral Communications Pvt.
Ltd., conveyed her gratitude to all participants, particularly session
moderators, panelists and presenters in her capacity as conference
chairperson. She extended her thanks to the local organizing
committee for their efforts, and expressed her satisfaction with
the interactive nature of the discussions while congratulating
participants on the extensive networking that had taken place.

EVENTGREEN SHIPPING SPEAKERS

INDIA 2017 Dr. Anand Hiremath
Lead Coordinator
38 | 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 Candito

40 | 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 exchange

As 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 trading
California delayed to California were over. North America east of 154 degrees

the implementation On April 19, 2017, the W longitude and north of 25 degrees
California State Lands Commission
of its interim ballast (CSLC) announced new regulations N latitude, exclusive of the Gulf
regarding civil penalties for
water 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 the
to January 1, 2020, because of CSLC will adjudicate any violations. conduct ballast water exchanges
These new regulations take effect in
the 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 water
ten years, to January 1, 2030, These requirements also apply to

the implementation date for its vessels on voyages beginning within

final performance standard (zero the PCR that take on ballast water

detectable living organisms). The outside the PCR. Vessels whose

delay applies to newly constructed voyages begin within the PCR must

vessels on or after January 1, 2020 conduct ballast water exchanges

from their first arrival in California 50NM off the California coast, and

after 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 alleged
for penalties of $5,000 to $27,500 for every 30 days that pass and
per tank depending on the severity forms have not been submitted. The violation short of an administrative
of the violation (Minor, Moderate regulations also make falsification
or 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 announcement
always required vessels to maintain year. Somewhat beneficially, the
onboard ballast water management new regulations now at least require of new civil penalty enforcement
plans, logs, and copies of Ballast the CSLC to engage in “Preliminary
Water Management Reports. They provisions confirms its commitment
also required the submission As you may recall,
of Ballast Water Management the regulations to regulating ballast water, even
Reports, Annual and Supplemental always required
Technology Reports (relating to though they delayed the main
ballast water treatment system vessels to maintain
usage) and Hull Husbandry Reports onboard ballast water discharge requirements because
(relating to anti-biofouling). The
new regulations provide for Class management plans, technology that meets the
2 Recordkeeping violations and logs, and copies
Class 3 Reporting violations. The of Ballast Water performance standards does not
first Class 2 or Class 3 violation only
requires a Letter of Noncompliance, Management Reports. currently exist, and even though
but subsequent Class 2 violations
call 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



UPDATES

1,000 vessels with
Sustainable Coatings
AkzoNobel’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,” said
the 1,000th application of Intersleek Oscar Wezenbeek, Managing uptake by LNG owners means the
Director of AkzoNobel’s Marine
1100SR, 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 long
was achieved with the Al Gattara stationary periods – means it is fleet. Supplied by the AkzoNobel’s
not only a sustainable solution in
LNG (liquefied natural gas) tanker terms of decarbonisation, but also Marine Coatings business as part
a solid financial investment. We’re
operated by Nakilat Shipping Qatar delighted to see so much support of its International® range of
for, a technology which is playing
Ltd. products, Intersleek 1100SR was

Delivering outstanding macro launched in February 2013 as the

and micro fouling control with shipping industry’s first patented

improved static resistance, even in slime release biocide-free fouling

warm waters, the product enables control coating.

vessels to reduce drag and achieve The 1,000th application of

fuel efficiency and emissions savings Intersleek 1100SR comes as the

of 9% on average. Intersleek range celebrates its 21st

Moreover, ship owners and anniversary this year, having saved

operators that upgrade from a $3 billion of fuel and 32 million tons

biocidal coating to a biocide-free of CO2 to date. ■

44 | Littoral Wind | May 2017

ADVERTORIAL

Moxa Future Projection

- Mr.Kasim
General Manager- Moxa

Can you tell us more about Moxa maritime instruments the offshore communication
Moxa services to the marine have environmental certificate networks & what makes you
and oil & Gas industries? from international bodies. How stand different in this global
a. 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 redundancy
b. 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 recent
C. 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 Singh

46 | Littoral Wind | May 2017

Mr van der Stoel, please tell expensive way of doing it, because objective now is to bring the various
me 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 political
long has it taken you to get to cent sustainable as there are spills arena, harbour authorities, pressure
where 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 ship
problem in the world which was well beaching. But we thought we could dismantling business that works in
discussed but had no viable solution: offer another, more attractive an environmentally friendly manner
how to recycle large commercial alternative. We have developed a with humane working conditions.
vessels. Up until six or seven years concept which was both sustainable
ago it was basically done on far and economical – the Foil Dock. Our Could you walk me through
away beaches in India, Bangladesh this concept?
and Pakistan before it was banned A lot of casualties occur
by the EU. It was a terrible practice when they dismantle First of all, this new concept
because of the damage it did to a vessel – deaths are makes it possible to build a dry
the local environment, and also dock at ten per cent of the cost
because of how unsafe it was. A very common – and this price compared with a traditional
lot of casualties occur when they is before you consider dry dock. Specially designed for
dismantle 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 working
consider the longer term effects of methods, we believe a vessel can
dealing with harmful substances substances such as be scrapped in two weeks resulting
such as asbestos without any of the asbestos without any in very competitive scrapping prices
necessary protection. So the main for sustainable ship dismantling
alternative at the moment is to send of the necessary to be offered to the relevant ship
vessels to China or Turkey where protection. owners. It is not the conventional
they are demolished or dismantled shape of a traditional dry dock; the
alongside a quay. This is a very whole dock has been designed solely

May 2017 | Littoral Wind | 47

INTERVIEW

for dismantling and recycling ships, – from government authorities to and also Hapag-Lloyd in Hamburg
creating the optimal environment technicians and consultants – the who said they were very interested
for this process. When we finalised response I get is ‘Please continue to see Greendock’s concept brought
this development, we conducted a because you have a very good idea!’ to life. In 2014, Hapag-Lloyd
comprehensive feasibility study and dismantled, I believe, over a dozen
business plan which was presented The enthusiasm I have received vessels in China or Turkey. We
to the German development bank, during this process gives me the calculated the price per tonnage of
DEG. That was very well received power and motivation to go forward. what it currently costs to clean it up
and DEG is in principal, prepared and to make scrap out of it and when
to 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 number
ourselves in today – seeking further enthusiastic people and we have of companies have expressed an
investment so we can finally solve visited several shipping companies, interested to cooperate once we are
the problem of sustainable solutions the Norwegian Shipping Association up and running.
for ship recycling. We are in talks
with several interested parties, but The feasibility study Who else works on these
we are still in the development we have produced matters with you at
phase. The feasibility study we have includes a business Greendock?
produced includes a business plan, plan, organisational
organisational structure and financial structure and financial We have a small team, including
requirements where we have worked requirements where engineers, financial consultants,
out a sensibility scenario based on we have worked out organisational consultants; we
various financial models, so it is very a sensibility scenario teamed up with a small team of ten
detailed. based on various people which we can adapt and be
financial models, so it is flexible with for the solution we are
What has the feedback been looking at. With that team, we also
like 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 Greendock
I introduce my plans to everyone facility. We already have a blueprint

48 | Littoral Wind | May 2017

to start with a Greendock: We know We are looking at the for that; the dry dock creates the
the financial items, and we know size of the Panamax environment for far more efficiency
the operational items, and we have vessel. If you look at the in the whole process. A quayside is
a team to implement them. We are widening of the Panama not the right environment in which to
aiming at a delivery on a turnkey Canal, these existing demolish a vessel.
basis. Panamax vessels will
Have you visited any of
Are there particular vessel basically become these beaches in India or
types 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 our
the Panamax vessel. If you look at more expensive it becomes. The old ideas and concepts, because they
the widening of the Panama Canal, beaching method of cutting was with have no alternatives. It is the broker
these existing Panamax vessels will gas. Whilst the people are paid very who rules the business. He buys the
basically become too small. They poorly, gas is still very expensive. vessels, and he sells the scrap. He
will not be competitive in modern But rather than use gas, our method goes to Bangladesh and offers the
shipping, 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 on
examined this market intensively. acceptable size at a reasonable cost. the process - they do the dirty work
We have used mathematical models for practically nothing - just a couple
from the University of Groningen Can you put a timescale on of dollars a day.
to predict the number of vessels your first Foil Dock becoming
which will be offered for recycling operational? So will you have an emphasis
in the near future, and we see an on training and educating the
increasing number of hundreds of Once a leading investor steps in, local workforces who used to
ships 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 commence
at just ten or 20 vessels per year: operations. You have invested an Absolutely. We will change the
in the near future, you will see 100 enormous amount of time into this dirty and dangerous work into proper
or 200 of these vessels offered for concept. qualified and safe work. We would
recycling. We think we can demolish introduce lean and zero accident
one Panamax vessel in two weeks. How optimistic are you of principles. This would enable us to
So with 100 per centutilisation, a seeing it realised? implement management systems
Foil Dock could work on 24 vessels like ISO 31000 risk management
a 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 and
which are significantly lower. These exactly the price of demolishing environmentally sound ship recycling
docks could also dismantle two by existing practices, and we have facilities. No ship recycling yard
handy-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 create
Where in the world do you we have an internal rate of return an environment like you have in, for
envisage 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, which
implemented? 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 also
you have to locate your ship recycling there and we have several letters of in the labour process, or working
facility 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 yearly
certified steel of a very high quality production. Our concept is not only Moving forward, what is the
which 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 who
mills and electric arc furnaces. In process. We have the environment wants to start the first Greendock
the past these electric arc furnaces facility in the world; it’s as simple as
couldn’t accept shipping plates that. Once the first dry dock is up and
from the beaching industry because running, we will be very successful. ■

May 2017 | Littoral Wind | 49

NEWS

Huge Maritime Training Centre
To Open in Rotterdam

Before 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