Life boats are for saving not losing lives!

Lifeboats are designed to save lives, but over the years too many seafarers have lost their lives or been seriously injured during routine safety exercises in davit-suspended boats fitted with on-load release hooks. The ship that cannot sink is yet to be constructed, so vessels need to be fitted with life-saving appliances, for the safety of crew and passengers. In the early days of sailing vessels, such means would be the work boats of the ship or any floating object to hang on to. The risks a seaman faced were well known and in coastal communities it was not an unexpected fate to end one’s life at sea.

Passenger ships represented a particular challenge. The terrible I & B accident in 1912 is the one we remember, but it was not at all the first major one. In the 19th century emigrants on transatlantic passages lost their lives in the thousands. But the loss of over 1,500 lives out of 3500 on board the huge, modern and luxurious vessel “that could not sink” and the shock to realize that the vessel only had lifeboat capacity for half the people on board, put the safety of passengers  and crew on the agenda.

The Convention on Safety of Life at Sea (SOLAS) was adopted in 1914 as the first international regulations on the subject and regulated that there should be means of rescue for everyone on board. Due to the First World War, however, it took some time for these first international regulations to take effect. Further SOLAS revisions of 1929, 1948, 1960 and 1974 plus amendments thereafter have strengthened the regulations for life-saving means, requiring both lifeboats and life rafts on board.

For the safety of lives, the regulators have always considered the lifeboats to be the most important and the life rafts more as a supplement. Among seamen, however, for many years there has been a lack of confidence in lifeboats, which have been seen as rather difficult and dangerous to launch.

Actually, lifeboats did not evolve very fast from the types on board the TITANIC and for a long time remained as open, wooden boats suspended from davits. Glass fiber-reinforced polyester took over as a building material and one out of two boats also got an engine. It was not seen as necessary to have an expensive motor in both the port and starboard boat, as one could tow the other. Covered lifeboats were first required by the SOLAS amendments of 1983 and became mandatory for ships built after 1st July 1986. From then on, shipwrecked seamen leaving a tanker on fire and those to face the North Atlantic in winter or dehydration under a tropical sun stood a better chance to survive. As the vessels grew larger, so did the lifeboats and the distance from the boat deck to the sea level.

Easy to operate gravity davits had long been introduced, but one problem remained from the old days: the difficulty of releasing the lifeboat hooks in a sea swell, and preferably both hooks at the same time. Many seamen have suffered bruises to the head, and broken fingers were not uncommon, in a fight with the heavy blocks. Some release systems were therefore introduced by manufacturers, making it possible to let go of both davit falls simultaneously, by a wire or rod pull from one location of the boat. That made the seaman’s life easier during lifeboat exercises, but in heavy seas the release of both hooks at the same time was still very difficult.

No one knows how many lifeboats have accidentally fallen down, how many lives have been lost and how many people have been injured as a result. This is because many ships may not report all incidents. National authorities of traditional seafaring nations may require their ships to report accidents, but when viewing their annual reports, it is not always clear what happened in a lifeboat accident and whether on-load release gear was involved. In addition to accidents with lifeboats on board ships, it should not be forgotten that there have also been several accidents on board oil rigs, but there are no reliable figures available for them either.

Serious personal injury or death of a seaman will normally end up in the records of a P&I Club. However, even P&I Clubs are not able to provide exact figures, because the Clubs have different systems to register such accidents (for instance, they may be registered under “Lifeboat”, ”Lifesaving appliances”, “Injury”, “Death”, “Fall”, etc.) and Clubs do not report these accidents to any central agency for a total count.

The accidental release of a lifeboat usually happens during exercise or when maintenance work is being carried out. In most cases one hook releases first and the boat may swing like a pendulum. The second hook may release or be torn out of the deck. If there are people on board they will sometimes escape unharmed by just falling into the sea and then being rescued. Although very close to a fatal accident, such near-misses may not be reported at all. It is perhaps natural to try to avoid negative publicity in such cases.

In accordance with SOLAS & LSA Code, every crew member shall participate in at least one abandon ship drill and one fire drill every month. During the abandon ship drill, at least one lifeboat is lowered upto the embarkation deck.

Whilst lowering the life-boat upto the embarkation deck, risk assessment, weather conditions, safety precautions, supervision, due care and diligence should be exercised to prevent any untoward accident/incident occurring.

Further, lifeboats and rescue boat are required to be launched with their assigned crew aboard and maneuvered in the water at least once every three months. On account of the dangers involved, this should only be practiced in sheltered waters under the supervision of an experienced officer.

A more recent development on cargo ships is a free fall lifeboat, in lieu of davit launched lifeboats. On account of the dangers involved in launching such boats, its simulated launching is acceptable.

Lifeboats and rescue boats have been provided to save lives, but if the same lifesaving appliance is going to result in an accident during maintenance and drills, then this is not acceptable. Hence, greater care needs to be taken to prevent such accidents whilst undertaking maintenance and practicing drills.

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MAIB 2014 Report: No Crew Deaths on UK Vessels

-An excellent achievement.

The Marine Accident Investigation Branch (MAIB) U.K. established in 1989 following the Herald of Free Enterprise disaster, is an independent unit within the Department for Transport in U.K. The MAIB investigates marine accidents involving UK vessels worldwide and all vessels in UK territorial waters. Their job is to help prevent further avoidable accidents from occurring and not to establish blame or liability.

Empowered by the Merchant Shipping Act 1995, it is a government agency headed by the Chief Inspector of Marine Accidents. The MAIB is the marine equivalent of the much older Air Accidents Investigation Branch and the more recent Rail Accident Investigation Branch, all of them report directly to the Secretary of State for Transport.

Investigations are thorough but are strictly limited to establishing cause, promoting awareness of risks and preventing recurrence. Reporting of accidents to the MAIB is mandatory for all commercially operated vessels in UK waters and for all UK registered vessels worldwide. The MAIB receives between 1000 and 2000 incident reports annually of which 30 to 50 become full investigations with published reports. The choice of which accidents are investigated is made on the basis of the scope of the safety lessons which may be learned as a result of the investigation. The reports do not apportion blame and do not establish liability.

In 2014 the Marine Accident Investigation Branch received 1270 reports of accidents of all types and severity which led to 31 separate investigations being launched.

Recently, MAIB has published their annual report for 2014. The highlights of the report are given below:

             For the fifth year in succession no UK merchant vessel of > 100gt was lost;

             The overall accident rate for UK merchant vessels > 100gt was unchanged from 2013 at 88                  per 1000 vessels;

             There were no crew deaths on UK merchant vessels >100gt in 2014 and a review of                              available records from the last 50 years shows that this has never happened before;

             The average number of deaths over the last 10 years is 4 per year

Several maritime countries, including India, have a marine accident investigation branch                 either as an independent unit or within their maritime administration and carry out marine accident investigations in a similar way.

Major IMO Conventions (SOLAS, MARPOL, LOAD LINES,  STCW, etc.), ISM Code/Safety  Management System, National and Classification requirements aim towards minimizing loss of life, personal injury, loss and damage to property (ship and cargo), accidents, pollution incidents and hazardous occurrences, and thereby build-up a good safety culture throughout the world fleet. The shipping industry is continually striving for achieving zero accidents and in spite of good efforts, this may not be possible as something, sometimes does go wrong.

Hence, the MAIB (UK) 2014 report stating that there were no crew deaths on UK merchant vessels > 100gt, and that this has never happened before for the last 50 years, is indeed laudable. Further, that for the fifth year in succession no UK merchant vessels of > 100gt were lost, is also a very good record.

The afore-said highlights of the MAIB (UK) 2014 report is good encouragement for the rest of the world’s shipping industry to strive even harder towards the goal of zero accidents.

Herald of Free Enterprise

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 IMO’s International Maritime Prize 2014 – awarded to Nippon Foundation’s Mr. Sasakawa.

The International Maritime Prize is awarded annually by the IMO Council to the individual or organization judged to have made the most significant contribution to the work and objectives of IMO.

The International Maritime prize consists of a sculpture in the form of a dolphin and also includes a financial award. In addition the awardee is invited to publish a scientific paper on a topic related to the work of the IMO which is published in the organization’s quarterly magazine.

The International Maritime Prize for 2014 was presented to Mr. Yohei Sasakawa, Chairman, The Nippon Foundation, during a ceremony held at IMO on the 23rd of November, 2015.

IMO Secretary – General highlighted Mr. Sasakawa’s long standing dedication to maritime education and training through the initiatives of the Nippon Foundation and its unstinting support to the World Maritime University (WMU), based in Malmo, Sweden and the International Maritime Law Institute (IMLI) in Malta.

Mr. Sasakawa was born in Tokyo, Japan, and joined the Nippon Foundation as a trustee in 1981. He served as President from 1989 and became Chairman on 1st July 2005. The Nippon Foundation is a private, non-profit foundation whose mission, through social innovation, is to achieve a society where all people support one another. Its overall objectives include assistance for humanitarian activities, both in Japan and overseas, and global maritime development.

Mr. Sasakawa’s leadership of Nippon Foundation’s effort to improve the quality of maritime experts around the world by supporting WMU is tremendous. Since 1987, the “WMU Sasakawa Fellowship”, sponsored by the Nippon Foundation, has offered fellowships to students for the two year Master’s degree program.

Mr. Sasakawa has also worked with other international institutions, including IMLI, the UN Division of Oceans and the International Tribunal for the Law of the Sea. Today, there is a network of over 1000 Sasakawa/Nippon Foundation Fellows from more than 131 countries, including India.

Further contributions have been made in the field of maritime safety, security and marine environment protection. To name a few:

•   Supporting the establishment of the co-operative mechanism in the straits of Malacca and Singapore,
•  Funding to establish the Memorandum of Understanding on Port State Control in the Asia- Pacific Region (Tokyo MOU);
• Support for coastguard activities and training in the Asian region;
• Support for research and technological development projects on maritime safety and marine environment protection, including emissions from ships, Northern Sea route; etc.

A number of WMU graduates from India have benefited from the Nippon Foundation fellowships offered to them, as this made it possible to provide the financial support for pursuing their studies at WMU.

We now extend our heartiest congratulations to Mr. Sasakawa for receiving the IMO International Maritime Prize for 2014. We are grateful to Nippon Foundation and Mr. Sasakawa for their yeoman’s service to the maritime sector and in particular for providing fellowships to a number of Indian students at WMU.

 

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Benefits of World Maritime Day…

The United Nations (UN), via the International Maritime Organization (IMO), created World Maritime Day (WMD) to celebrate the international maritime industry’s contribution towards the world’s economy, especially in shipping.

The event’s date varies by year and country but is generally in the last week of September. For example in 2015, it was celebrated on Thursday the 24^th of September, and next year (2016) it will be celebrated on Thursday, 22^nd September.

World Maritime Day focuses attention on the importance of shipping safety, maritime security and the marine environment and to emphasize a particular aspect of IMO's work.  The day also features a special message from the IMO’s secretary-general, which is backed up by a discussion paper on the selected subject in more detail. The theme for 2015 was "Maritime education and training", focusing attention on the importance of adequate education and training to ensure a safe, secure and sustainable shipping industry.

World Maritime Day is celebrated in many countries worldwide, including India. Special events and activities are held to celebrate the day, including a symposium/seminar on the theme of the event as conveyed by IMO.

Since 2005, in addition to the official IMO celebrations held at IMO Headquarters in London, there has been a parallel event hosted by a Member State. This year’s parallel event was held in Japan on the 20^th and 21^st July 2015.

The WMD theme for this year was “Maritime Education and Training”. The Theme was adopted to focus attention on the wider spectrum of maritime education and training, in particular its adequacy and quality, as the bedrock of a safe and secure shipping industry, which needs to preserve the quality, practical skills and competence of qualified human resources, in order to ensure its sustainability.

The 1978 STCW Convention and Code, as amended (STCW 2010), set the international benchmark for the training and education of seafarers. While compliance with its standards is essential for serving on board ships, the skills and competence of seafarers, and indeed the human element ashore can only be adequately underpinned, updated and maintained through effective maritime education and training.

The IMO symposium held on the 24^th of September on the topic: Shipping’s future needs people: Is global maritime education and training on course?” The IMO symposium provided an opportunity for a discussion on the future of maritime education and training.

All speakers at the symposium stressed the need to raise the profile and the image of shipping in general, in order to attract young people into the maritime professions. Other speakers brought in the paucity of training berths and some speakers raised the important issue of ongoing quality assessment of seafarer training courses as required by STCW 2010.

This year the parallel event was held in Japan on the 20^th and 21^st of July, 2015. Maritime education and training needs- now and in the future – were the focus of a high-level international symposium. Delegates also visited maritime heritage sites in Yokohama and witnessed seafarer training demonstrations on the sail training ships Kaiwo Maru and the training ship Taisei Maru. This was followed by a special session addressing the future needs of the industry, which aimed to discuss how educational organizations could go about educating and training high quality maritime human resources, which are necessary for quality shipping and how they could attract the interest of future generations towards the seas and the oceans.

IMO has recently decided on the theme for World Maritime Day 2016, namely, “Shipping indispensable to the world”. Next year the Parallel Event will be held in Turkey.

“Today, around 90 percent of world trade is carried by the international shipping industry. Without shipping the import and export of goods on the scale necessary to sustain the modern world would not be possible. And seaborne trade continuous to expand, bringing benefits for consumers across the world through competitive freight costs. Yet the fact remains that most of the world’s population is not aware of the vital role shipping plays in their everyday lives”, said IMO Secretary General.

There are more than 50,000 merchant ships trading internationally, transporting every kind of cargo. The world fleet is registered in over 150 nations and manned by more than a million seafarers of virtually every nationality.

In India, we benefit from the symposium/seminar, the theme and message from IMO which keeps us abreast of international developments.

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Liquefaction – A major hazard on BULK CARRIERS

Liquefaction is a chemical process that turns a previously safe commodity into a cargo with a dangerously high moisture content that can destabilize a vessel. Liquefaction means that a cargo becomes fluid (liquefies). On ships, this happens when the cargo is compacted by the ship’s motion. Cargoes which are prone to liquefaction contain a certain quantity of moisture and small particles, although they may look relatively dry and granular when loaded. Liquefaction can lead to cargo shift and even to capsize and total loss of the ship.

Certain cargoes, particularly nickel ore and iron ore fines, initially look dry and their characteristics are solid during loading on the ship. But during the voyage, concentrate cargoes as afore-mentioned are exposed to agitation under certain conditions including ship’s rolling, wave impact and engine vibration which results in compaction of the cargo.

IMO’s International Maritime Solid Bulk Cargoes (IMSBC) code which is mandatory under the provisions of SOLAS has placed cargoes with a liquefaction hazard in Group ‘A’. Liquefaction can result in cargo shift. This phenomenon may be described as follows:

1)  The volume of the spaces between the particles reduces as the cargo is compacted due to the ship’s motion, etc.;

2)  The reduction in space between cargo particles causes an increase in water pressure in the space;

3)  The increase in water pressure reduces the friction between cargo particles, resulting in a reduction in the shear strength of the cargo; and

4)  Then the cargo begins to flow as a viscous liquid

Liquefaction does not occur when one of the following conditions is satisfied:

a) The cargo consists of large particles or lumps. Water passes through the spaces between the particles and there is no increase in the water pressure. Cargoes which consist entirely of large particles will not liquefy; and

b) The cargo contains a high percentage of air and low moisture content.  Any increase in water pressure is inhibited. Dry cargoes do not liquefy.

Group ‘A’ cargoes with high moisture content (above TML) are prone to sliding, particularly if the cargo is shallow and subject to large heel angles. In the resulting viscous fluid state cargo may flow to one side of the ship with a roll but not completely return with a roll the other way. Consequently, the ship may progressively reach a dangerous heel and capsize quite suddenly.

A number of major liquefaction incidents resulting in capsizing and sinking have taken place over the years. Some of them are given below:

-  On the 27th of October, 2010, ‘Jian Fu Star’ laden with nickel ore from Indonesia sank in South China Sea with loss of 12 lives.

-  On the 10th of November, 2010, ‘Nasco Diamond’ laden with nickel ore from Indonesia sank in the Pacific Ocean with a loss of 20 lives.

-   On the 3rd December, 2010, ‘Hong Wei’ laden with nickel ore sank in the south China Sea with a loss of 10 lives.

-   On the 25th of December, 2011, ‘Vinalines Queen’ laden with nickel ore from Sulawesi sank in the Philippine Sea with the loss of 22 lives.

The ‘Asian Forest’ and the ‘Black Rose’ sank in July 2009 (off Mangalore) and September 2009 (Off Paradip) respectively, while carrying a cargo of iron ore fines during the monsoon season. The Directorate General of Shipping investigated the sinking and concluded that the reason was liquefaction as a consequence of excessive moisture in the cargo. Thereafter, as a preventive measure, DG Shipping issued an MS Notice banning the loading of Iron Ore fines during monsoon months on the Indian coast.

More recently, on the 30th of December, 2014, ‘Bulk Jupiter’ laden with bauxite from Malaysia sank off Vietnam with a loss of 18 lives.

The IMSBC Code requires that concentrates or other cargoes which may liquefy shall only be accepted for loading when the actual moisture content of the cargo is less than its Transportable Moisture Limit (TML).  Considering that if Liquefaction takes place whilst the vessel is rolling in rough weather, it would be very difficult to control the vessel; hence, the major precaution that actual moisture content should be less than its TML should never be compromised.

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How to cut Paperwork? - IMO study underway…

The development of a number of IMO and other Conventions, Codes, Resolutions and Circulars and more particularly the development of the ISM code, has led to an increasing burden of paperwork for ship’s officers. Further, with the voluntary implementation of an integrated ship management system in many companies together with commercial, trade and industry requirements, the burden of paper work has increased exponentially.

Documentary evidence for most of the requirements, hard copies and originals have become pre-requisites for surveys, inspections and audits which have also increased substantially. In the earlier years a dedicated officer (Purser) was available to assist with the paper work. Later, to reduce manning cost, the Purser was withdrawn and then the Radio Officer shared this burden.

Further, with the advent of GMDSS and satellite communications, the radio officer has also been withdrawn, so now the full burden and that too an increased burden is fully on the ship’s officers.

On account of the foregoing, ship’s officers are spending far too much time on paper work. This is having a negative impact on ship operations and maintenance, increasing work load, fatigue, tension and stress. One would have imagined that with the advent of automation, computerization and technological advancements, life on board would have enhanced self- satisfaction for ship’s officers; but it seems that earlier times were better with less paper work.

The increased paper work load has already reached alarming proportions and time is not far when an incident may happen as the ship’s officer was busy with paper work!

It is heartening to know that an IMO study is underway and that some data has already been collated to consider the possibility of reducing paper work. Further, in order to take a holistic view, it would be necessary to also consider reducing paper work in commercial, trade, industry, company and non-mandatory areas.

We are looking forward to a positive outcome and hope that paperwork reduces substantially for the overall benefit of the shipping industry and in particular for the benefit of ship’s officers.

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Make in India- A fine example from the Indian Automobile Industry

The Leading global automobile manufacturers; Suzuki- Maruti, Hyundai, Honda, Toyota, Volkswagen, Ford, General Motors, Nissan etc. have set up production facilities in India and are catering to both the Indian market and the export markets. Cars are now being exported to diverse markets in Africa, South- East Asia and Europe.

Leading Indian manufacturers; Tata Motors, Mahindra & Mahindra etc. are similarly catering to both the Indian market and the export markets.

The Indian automobile industry is thus amongst the top manufacturers in the world catering to the growing Indian and export markets.

Automobile exports (passenger vehicles) from India have grown from 4.5lakhs in 2009/2010 to 6.2lakhs in 2014/2015 an average annual growth rate of about 8% and the trend is continuing.

Transportation of automobiles for the export market is done by Pure Car and Truck Carriers (PCTC’s) of over 5000 cars (CEUs) capacity. This is the most economic and efficient way for sea transportation of automobiles.

Large PCTC’s of various leading international shipping lines, such as, Hoegh Autoliners, NYK, MOL, Wallenius Wilhelmsen, etc. make regular calls at Indian ports to load and transport automobiles by Ro-Ro concept.

It would be observed from the foregoing that the manufacture of automobiles in India by leading international and Indian manufacturers is one of the best examples of the “Make in India”, concept. Taking a lead from here, perhaps it can be replicated in a number of other industries too.

Then, what about the shipbuilding industry, will it be possible? Perhaps yes, at a later date, when we are able to overcome the constraints and numerous problems. The demand for RoRo PCTC’s is likely to increase with the increase in exports and this would provide a good opportunity to Indian shipping lines to consider diversifying and acquiring a few PCTC’s.

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US Ethane Exports – a welcome development

Ethane is a chemical compound with chemical formula C2H6. At standard temperature and pressure, ethane is a colourless, odourless gas. It is an alkane (single-bond hydrocarbon), second in the series with two carbon atoms, after methane and before propane and butane. Ethane is produced on an industrial scale from natural gas, and as a by-product of petroleum refining.

Ethane is typically transported in gaseous form by pipeline, but can be liquefied by cooling to minus 89°C (boiling point temperature at atmospheric pressure).

The primary use of ethane is in the chemical industry in the production of ethylene by steam cracking; alternative feed stocks are naphtha and liquefied petroleum gases (propane and butane). Ethylene is arguably the most important organic chemical. It is converted to polyethylene; to PVC (via ethylene dichloride and vinyl chloride monomer); to ethylene glycol (via ethylene oxide); and styrene (via ethyl benzene). Ethane is also used as an energy fuel.

The recent rise in US shale gas and oil output has been one of the most significant developments in the oil and gas sectors, transforming the global landscape in terms of production economics and trade.

Shale gas includes methane and higher hydrocarbons collectively known as natural gas liquids (or NGLs). The US Energy Information Administration (EIA), a widely recognized source of data on US energy production, defines NGLs as pentanes and LPG (ethane, propane and butane). According to the American Chemistry Council, “Growth in domestic shale gas production is helping to reduce US natural gas prices and create a more stable supply of natural gas for fuel and power. In addition, it is also leading to more affordable supplies of ethane”

Difficulties in storing ethane have created a glut, resulting in a ‘use it or lose it’ situation. Currently, 200,000 barrels per day are being ‘rejected’ – that is, left in the natural gas stream. Rejected ethane represents a potential surplus to drive increased domestic demand or exports. When domestic demand is insufficient there currently is no mechanism to export the surplus to balance the market. Ethane has historically accounted for more than 40% of the raw unfractionated NGL mix.

The prospects for US ethane exports reflect three key factors: infrastructure, price dynamics and timing

Over all, US ethane production capability is under-used, with approximately 0.2 Mn barrels per day (or 4 MnT per year) rejected in 2013. This under-used capacity to produce ethane will grow in the short term as potential production will rise faster than near-term domestic US demand.

The ‘surplus’ could rise to as much as 6 MnT per year in 2017 and perhaps 12 MnT by 2020.

Annual shipments of 1 MnT of ethane could provide employment for 0.18 Mn CuM of shipping capacity, assuming it is shipped to North Europe, 0.32 Mn CuM if shipped to South Asia and a similar amount to China if the Panama Canal is used.

The window of opportunity to tie up ethane exports and secure tonnage to serve this trade is now open to feed potential markets in Europe and Asia.

The Sheer volumes of US Ethane becoming available and economy of scale considerations have prompted a number of new liquefied gas carrier ship building designs. Contracts have been placed for semi- pressurized refrigerated ethane carriers of 27,500 – 36000 m3 capacity and fully refrigerated large ethane carriers of 80000 m3. The former are for transatlantic service and the latter for shipments to East and South West Asia.

Reliance Industries has signed a long-term agreement with Japan's biggest shipping company Mitsui OSK Lines for transportation of liquefied ethane from North America to India.

Mitsui will manage six very large ethane carriers (ships) that the Indian conglomerate is building at Samsung Heavy Industries. It will supervise the construction of 87,000 cubic meter ships and upon vessel delivery, manage the ships. The vessels are expected to be delivered in the last quarter of 2016. Each ship is priced at around $120 Million.

RIL plans to ship 1.5 million tonnes a year of ethane from its US shale joint ventures to its chemical complex in Gujarat.

India is also geared up for import of Ethane from US. This would benefit the energy and shipping sectors and provide one more source of energy import in the much needed oil and gas sectors.

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Development of Chabahar Port

The Port of Chabahar (or Chah Bahar) is a seaport in Chah Bahar in southeastern Iran. Its location lies in the Gulf of Oman. It is the only Iranian port with direct access to the ocean. The port was partially built by India in the 1990s to provide access to Afghanistan and Central Asia.

It is located in the south of Sistan and Baluchistan Province. Because of its establishments and ease of access to Oman Sea and Persian Gulf, long ago it was the center of business, trade and navigation.

The Iranian government has signed a MOU with the government of India to develop Chabahar port. India will get direct access to Afghanistan through this sea route after the completion of the project.  In Sept 2015, India announced development of an Urea production plant and Iran's associated infrastructure. Indian minister of transport pledged to invest around $1 billion for the development.  The port will be used to ship crude oil and urea.

India intends to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle (SPV) which will invest USD 85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal.

The cargo terminals at Chabahar Port would provide Afghanistan’s garland road network system alternate access to a sea port, significantly enhancing Afghanistan’s overall connectivity to regional and global markets.

Touching upon Iran and India's ancient and historical relations, Iranian President in his meeting with Indian minister of transport, underscored that undoubtedly the level of mutual cooperation could be expanded day by day.

Pointing to Iran's transit position for connecting east to west and north to south, he stressed that the Islamic Republic could play a pivotal role in connecting India to Central Asia, the Caucasus and Eastern Europe via railway.

Noting the importance of North-South Transport Corridor and development of Iranian ports, the Iranian president stressed that Iran fully welcomes the Indian investors to make investment in construction of roads, railways and development of Chabahar port and other southern ports in Iran. Referring to the cordial relations between the two countries, the Indian minister of transport said New Delhi is fully ready to cooperate with Tehran on development of Chabahar port.

From Chahbahar port using the existing Iranian road network, a link up to Zaranj in Afghanistan and then using the Zaranj-Delaram road constructed by India in 2009, access to Afghanistan's Garland Highway can be made. This would establish road access to four of the major cities of Afghanistan - Herat, Kandahar, Kabul and Mazar-e-Sharif.

The port would open up new routes to Central Asia and the Gulf.

We are looking forward to the development of Chabahar port as it would provide an interface between sea and land routes between Iran, Afghanistan and India, and further north to the central Asian countries for trade and commerce, and mutual benefits.

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SEAFARERS - Providing a yeoman’s service

The shipping industry handles over 90% of world trade. This has led to a high growth in demand for the world fleet which currently stands at over 85,000 ships of nearly 1.2billion gross tonnage. Seafarers play the most important role in the manning and operations of the world fleet. They brave the seas, encounter the harsh elements, rough weather, long durations away from home and family, put in long hours of hard work and thus provide a yeoman’s service.

A key highlight of the STCW Conference 2010 was the IMO designated, “Year of the Seafarer,” which aimed at providing the maritime community with an opportunity to pay tribute to seafarers from all over the world for their unique contribution to society and in recognition of the facilitation of global trade in a hazardous environment.

The conference further designated 25th June as the “Day of the Seafarer” Thereafter, this day is being observed every year. This year whilst observing the day of the seafarer, IMO has also encouraged young people to consider a career at sea as a viable, attractive and enticing career option. A central plank of the campaign message was that seafaring offers unique opportunities to navigate the seas of the globe and encounter the wonders of the ocean, as well as the opportunity to experience a world of real adventure and interact with people from all over the world.

IMO Secretary General Sekimizu called on active and past seafarers to inspire the next generation by sharing their experience on social media. He encouraged officials who are already engaged in this vital professional world to reach out to the new generation; share their life and work experiences; inspire and encourage them to explore for themselves a career at sea or elsewhere in the maritime industries.

Seafaring opens the door to decent work and unique and enriching experiences.  Moreover, in running today’s modern, high-tech vessels, seafarers acquire skills and technical expertise that make them very well qualified for work in many shore based industries once their sea-going days are over.

The BIMCO/ISF Manpower Update provides the most comprehensive assessment of the global supply and demand for seafarers that are currently available. In accordance with their study of 2010, they have estimated a total global supply of 1371 thousand seafarers (624,000 officers and 747,000 ratings).

The 2010 Manpower Update suggested that while the supply and demand for ratings are more or less balanced there are still some shortages for officers, particularly for certain grades and for ship types such as tankers and offshore support vessels. We are now waiting for the 2015 Manpower Update.

The current situation in India is that there is enough encouragement and a large number of educated youth are eager to take up seafaring as a career. Unfortunately, although there are enough training berths in pre-sea institutions, but not enough berths are available for on-board training thus leading to a mismatch between training and placements. We can draw a parallel with medical professionals as a candidate training to become a doctor needs to complete an internship program in a hospital in order to attain an MBBS degree. Similarly, a cadet training to become a sea going officer has to complete the requisite on board training prior to certificate of competency course and examination.

Further, there is a surplus of ratings and junior officers, and a shortage of senior officers. Thus, some mechanism needs to be developed to balance the situation.

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“Complimenting DNV GL on their development of an Unmanned FLNG Concept”

Natural gas is a major source of energy. In recent years its demand is increasing because it is less polluting to the environment as compared to oil. Its transportation by sea is done by cooling it down to  -162 degrees C (Boiling point temperature at atmospheric pressure), when it becomes a liquefied gas and occupies 600 times less volume, thus making it economically viable for sea transportation.

It is transported by specially designed and constructed vessels called Liquefied Natural Gas (LNG) carriers. Presently there are about 440 LNG carriers in the world fleet and this number is growing to keep pace with demand.

 Energy is vital to daily life – it keeps our world moving and provides access to essentials like clean water, food and health care. Over the coming decades, populations and living standards for many will rise – and so will the need for energy, whereas demand for oil has leveled off, demand for natural gas is growing as it is next best after renewable sources of energy (solar, wind, tidal, waves, geothermal, etc.)

Bulk transportation of LNG is generally done using ocean-going LNG Carriers. This allows transport from the LNG loading terminal to the LNG receiving terminal. The receiving terminals have storage and regasification systems to allow Natural Gas to be fed into the local gas pipeline distribution system as required, according to consumption

As natural gas liquefies at cryogenic temperatures, i.e. temperatures well below -100°C, there is continuous boil-off of a small portion of the liquefied natural gas during transportation and storage. This is termed natural boil-off gas (NBOG). Specialized equipment is required in order to handle this boil-off which limits the pressure increase in the tanks. On ocean-going LNG carriers, this NBOG is frequently used to provide a source of fuel for the vessel propulsion, using boilers feeding steam turbines, or feeding directly to dual fuel diesel engines coupled to electric propulsion units. In case additional fuel is required, additional cargo is vaporized to make up the shortfall.

Floating LNG technology is developing rapidly as part of the industry’s quest for resources in more remote waters and also because of safety and environmental considerations to keep them away from highly populated areas.

Foreseeing the need for more remote projects to be able to overcome even more challenging cost barriers, whilst still meeting increasingly stringent safety and environmental standards, DNV GL embarked on an Extraordinary Innovation Project to explore the future of LNG technology.

The unique feature of the DNV GL FLNG concept is that it would be unmanned.

 As there will be no one living on board or working on the FLNG terminal during normal operation, the associated personal safety risks are eliminated. When personnel do enter for maintenance requirements, it would be prepared for a safe working environment. A new support and accommodation vessel concept and its associated docking system to the FLNG terminal would further boost safety considerations.

Existing frontier oil and gas projects have already resulted in tremendous technological developments, particularly in the subsea area. Operators are already controlling subsea installations and simple, fixed offshore installations remotely from shore. Given the on-going advances in autonomous systems and remote operations, unmanned offshore installations are a natural development over the next decade.

We look forward to the development and implementation of an ‘Unmanned FLNG’ terminal for its benefits, particularly in remote areas and compliment DNV GL for their contribution in this new innovation.

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The Cruise World’s First American female Captain, Celebrity’s Kate McCue

McCue has taken over as Captain on September 2013 of the cruise line’s “Celebrity Summit” which sails to Bermuda from the East Coast. The 91,000-ton vessel carries 2,158 passengers and 952 crew.  At just 37 years, McCue comes from Celebrity's sister brand Royal Caribbean, where she rose through the ranks to the position of Master Mariner. When asked on her views with regards to her attaining such a remarkable rank, she says, "When shipping was blooming, it was hard, muscular work, and therefore it was very male-dominated, these days it's all about brains and knowledge”.

The modern luxury cruise brand, which operates a fleet of 10 ships, has elevated McCue to the position of Captain based on her 15 years of successful experience and leadership in the maritime industry. During her tenure, McCue has managed ship logistics while sailing worldwide itineraries, including Europe, Asia, Australia, the Caribbean, the Pacific Northwest and Alaska, and along the Panama Canal. Captain McCue has also served as a maritime leader while sailing several transatlantic and repositioning cruises, and played a notable role in the revitalization of ships in Singapore.

She aims to be a visible captain. With all the publicity surrounding it, wants to make sure, she is out there meeting and exceeding expectations, not only for guests but also for the crew on board.

McCue states that becoming the first female American captain of a cruise ship has been a goal of hers for as long as she can remember, also she looks forward to working with an amazing team and the exceptional leadership who bring the Celebrity Cruises vision to life every day.

IMO encourages the participation of women in the maritime industry and has invited Governments to give special consideration to securing equal access for men and women to maritime training and to employment on board ships.

It’s been two decades since Indian girl cadets (deck & engine) have taken up seafaring as a career. Although a larger number of women are working ashore in the Indian maritime industry, but due to various reasons just less that 2% of the annual intake are girl cadets, and a few of them have reached ranks on board ships.

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Micro Plastics- “A recent development in marine environment pollution”

Micro plastics refer to small plastic particles, less than 5 mm in diameter, but some are as small as 10 nanometers. Micro plastics may be purposefully manufactured for particular industrial or domestic applications such as facial cleansers, or result from the fragmentation of larger items, especially when exposed to sunlight. Micro plastics have been found distributed throughout the world’s oceans, on shorelines, in surface waters and seabed sediments, from the Arctic to Antarctic. They may accumulate at remote locations such as mid-ocean gyres, as well as close to population centers, shipping routes and other major sources. Plastics often contain chemicals added during manufacture and can absorb and concentrate contaminants such as pesticides from the surrounding seawater and there is emerging evidence of transfer of chemicals from ingested plastics into tissues.

It is widely recognized that marine debris can have significant ecological, social and economic impacts. Plastics form a large proportion of marine litter, and the widespread occurrence of macroscopic plastic debris and the direct impact this can have both on marine fauna and legitimate uses of the environment, sometimes remote from industrial or urban sources, has been well documented. In general, plastic debris comes in a wide variety of sizes and compositions and has been found throughout the world ocean, carried by ocean currents and biological vectors (e.g. stomach contents of fish, mammals and birds). Plastics degrade extremely slowly in the open ocean, partly due to UV absorption by seawater and relatively low temperatures. In recent years the existence of micro-plastics and their potential impact has received increasing attention.

Micro-plastics have a range of compositions and can be demarcated by usage and source as:

i)             micro-plastic resin pellets used in the plastics industry, and in certain applications such as industrial abrasives; skin-care products; and,

ii)            micro-plastics resulting from the degradation and breakdown of larger items, including so-called biodegradable plastics.

Pollution of the marine environment by micro plastics may be regarded as a relatively “new” environment problem. GESAMP report recommends better control of the sources of plastic waste, through applying the principles of the “3 R’s” (Reduce, Re-Use, Re-cycle) and improving the overall management of plastics as the most efficient and cost effective way of reducing the quantity of plastic objects and micro plastics particles accumulating in the ocean.

The report warns that even if all releases of plastic to the environment were to cease immediately, the number of micro plastics in the ocean would be expected to continue to increase as a result of continuing fragmentation.

Although MARPOL Annex V, which entered into force in December 1988, has prohibited the discharge from ships of all plastics into the sea, but the warning in the above report is alarming!! We would now have to wait and see what would be the further international measures that would be taken by UNEP and IMO.

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GST to cut logistics costs upto 20% by April 2016

Goods and Services Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. One of the biggest taxation reforms in India, GST is all set to integrate Centre state economies and boost overall growth.

The Govt. of India first proposed that a number of indirect taxes levied by the Centre and states be replaced by the GST, several years ago. The GST project now seems underway and it is hoped that the GST bill will be cleared soon to enable it to be implemented from April 2016.

Complex and Cascading indirect taxes have been one of the key reasons impacting the competitiveness of Indian manufactures over the years. Alongside operational efficiency, tax avoidance has influenced the supply chain decisions of corporates, resulting in small and in-efficient warehouses and high logistics costs.

Once, the GST is introduced, ‘tax avoidance’ will no longer influence decisions concerning distribution network and total warehouse space can be reduced practically. Savings will accrue in three forms:

a)  Tax savings  b) Logistic cost savings  c) Elimination of check posts offers additional costs savings.

GST in India is expected to be implemented from April 2016 with proposed revenue neutral rate of 18 – 22 per cent (exact rate not yet finalized). The structure of GST comprises of State Level GST (SGST) and Central Level GST (CGST). SGST will absorb VAT/sales tax, Entertainment Tax, Luxury Tax, and Tax on Lottery, State Cess and Surcharge. CGST will absorb Central Excise Duty, Additional Excise Duty, Service Tax, Additional Custom Duty, surcharge, Education cess. Thus, integrated GST will total both of these - SGST and CGST.

The GST will have an impact on industries viz FMCG, Consumer durables, Pharmaceutical, Automobiles etc. Industry wise current logistics cost 8 to 9 per cent for FMCG, 7-8 per cent for Consumer durables, 5.5-6.5 per cent for Pharma, 5 to 6 per cent for Automobiles in terms of percentage of sales. There will be savings in logistics costs to the tune of 1.5 to 2.0 per cent as a percentage of sales on and average for all these sectors. This may amount to reduction upto 20 per cent in the logistics bill. Most of the companies have set up warehouses to save Central Service Tax and to be closer to retailers for logistical reasons. After GST implementation, companies will consolidate their warehouses and minimize the numbers to around 25 to 30 per cent from existing warehouses in turn saving cost for setting it up and running repairs and maintenance.

Some of the benefits of GST include tax savings, savings from consolidation, and lower transportation time due to dismantling of border check posts. Besides companies directly impacted from GST there are others that have to maintain warehouses for geographical penetration. There are around 650 odd check posts across pan-India. Truck drivers in India spend 60 per cent of their time negotiating check posts and toll plazas. This leads to increase in freight traffic and productivity loss. Thereafter, higher productivity would cut the need for buffer stocks, reduce the loss of perishable goods and cut down the need for many warehouses.

The GST formation will be the most admirable change since last decade and is expected to change the face of the Indian economy. The tax revenue of the Government will increase about 0.2 per cent according to National Council of Applied Economic Research because of GST implementation. While GDP growth could go up by 0.9 to 1.7 per cent over the years.

On the whole, supply chain inefficiency is a major obstacle to manufacturing growth and competitiveness, and the goods and service tax (GST) offers a unique opportunity for the Indian government to reform logistics networks in the country. Overall, an estimate has been made that Indian companies pay up to 10-14% of their net sales for logistics, compared to international standards of around 3-4%. Implementation of the GST and reducing checks at state borders can change all this. This would also benefit the maritime trade and shipping industry on account of reduction in logistics costs.

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An International Code of Safety for ships operating in Polar Waters (Polar Code)

In recent years, due to the effect of global warming, polar ice caps are receding and during summer the number of voyages across the north pole(the northern sea route) are increasing year by year as there is a considerable saving in distance between US East Coast/Canada/ Europe & Asia/ Pacific. Further, there is an increase in maritime activity in the Polar Regions.

Considering the above, IMO has adopted the International Code for Ships Operating in Polar Waters (Polar Code) and related amendments to make it mandatory under both the  International Convention for the Safety of Life at Sea (SOLAS) and the International Convention for the Prevention of Pollution from Ships (MARPOL).

The Polar Code is expected to enter into force on 1 January 2017. This marks a historic milestone in the Organization’s work to protect ships and people aboard them, both seafarers and passengers, in the harsh environment of the waters surrounding the two poles.

The Polar Code covers the full range of design, construction, equipment, operational, training, search and rescue and environmental protection matters relevant to ships operating in the inhospitable waters surrounding the two poles.

The Code will require ships intending to operate in the defined waters of the Antarctic and Arctic to apply for a Polar Ship Certificate, which would classify the vessel as Category A ship  -  ships designed for operation in polar waters at least in medium first-year ice, which may include old ice inclusions; Category B ship  - a ship not included in category A, designed for operation in polar waters in at least thin first-year ice, which may include old ice inclusions; or  Category C ship  -  a ship designed to operate in open water or in ice conditions less severe than those included in Categories A and B.

The issuance of a certificate would require an assessment, taking into account the anticipated range of operating conditions and hazards the ship may encounter in the polar waters. The assessment would include information on identified operational limitations, and plans or procedures or additional safety equipment necessary to mitigate incidents with potential safety or environmental consequences.

Ships will need to carry a Polar Water Operational Manual, to provide the Owner, Operator, Master and crew with sufficient information regarding the ship's operational capabilities and limitations in order to support their decision-making process.

The Polar Code highlights the potential hazards of operating in polar regions, including ice, remoteness and rapidly changing and severe weather conditions, and provides goals and functional requirements in relation to ship design, construction, equipment, operations, training, and search and rescue, relevant to ships operating in Arctic and Antarctic waters.

Thus, it would be observed that these voyages to the Polar Regions are increasing and so this is going to pose as a new challenge for the shipping industry, companies, ships and seafarers. Further, as India is major manpower provider to the world fleet our seafarers, who are, or likely to serve on such vessels making voyages to the Polar Regions would need to be adequately trained in compliance with the Polar Code.

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IMO mandatory container weighing rule to take effect in 2016

Containerization is a system of inter-modal freight transport using inter-modal containers (also called shipping containers and ISO containers) made of weathering steel. The containers have standardized dimensions. Container ships have been getting bigger since they began operating in liner services over 60 years ago because the increased size gives increased operating efficiency and improved environmental performance.

Some of the world's biggest container ships are about 1,300 feet long - that's nearly 400 meters or the distance around an Olympic running track - with a maximum width of 194 feet (59 meters). Their engines weigh 2,300 tons, their propellers 130 tons, and there are twenty-one story’s between their bridge and their engine room. They can be operated by teams of just thirteen people and a sophisticated computer system and carry an astonishing 19,000 20-foot containers.

Consequent to several accident/incidents of overloading and excessive hull stresses of container ships, IMO adopted an amendment to SOLAS (Safety of Life at Sea )chapter VI Regulation 2 to avoid such accidents/incidents in the future ie. ‘Mandatory Container Weighment’. This amendment will come into force as of 1st July 2016.

Under the revised rule, the weight of the container must be verified either by weighing the unit or weighing all the cargo it contains via a method approved by each respective country. Container lines, port labor and terminal operators have pointed to recent accidents, including the breaking up of the MSC Napoli on the southern U.K. coast in January 2007, as proof of the need for mandatory container weighing.

Proponents of mandatory weighing counter that critics have inflated the extra costs and point to how the longstanding U.S. rule has improved safety without reducing supply chain efficiency. The IMO’s Maritime Safety Committee in May approved changes to SOLAS chapter VI and has formally set the rule to take effect.

Detractor’s feel that this is not a cost and time effective measure and it may result in delay to vessels so is not an optimal solution in the light of cost/benefit analysis. However, in the interest of safety we need to accept the practical difficulty and delays if any.

Weighing the loaded containers is the "gold standard" but the compromise is to allow verified weighing of all the individual items loaded into the container, including pallets and packing materials, and adding it to the weight of the shipping container itself.

In other words, if the loaded shipping container cannot be weighed, shippers are allowed to get the weight with the formula of Goods + Dunnage + Tare = Container Weight.

On the whole, weighing of containers is proven beneficial for the shipping industry as it minimizes the chances of over loading, damaging the structure and affecting the stability of the vessel.

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A Bigger, Better Suez Canal

On November 17, 1869, the Suez Canal connecting the Mediterranean and Red Seas was officially opened in a lavish ceremony at Egypt’s Port Said. The canal took more than 15 years to plan and build, and its construction was repeatedly hindered by political disputes, labor shortages and even a deadly cholera outbreak. When finally completed, the 101-mile-long waterway permanently transformed international shipping by allowing vessels to skip the long and treacherous transit around the southern tip of Africa.

The Suez Canal (In Arabic: Qanat as-Suways), is an artificial sea-level waterway running north to south across the Isthmus of Suez in Egypt to connect the Mediterranean Sea and the Red Sea. It is one of the world's most heavily used shipping lanes. The Suez Canal is one of the most important waterways in the world.

Since the inception of The Suez Canal, it has been progressively widened and deepened so that larger vessels could use it. It is extensively used by modern ships , as it is the fastest crossing from the Atlantic Ocean to the Indian Ocean . Tolls paid by the vessels represent an important source of income for the Egyptian government. The Canal runs between Port Said harbor and the Gulf of Suez. The Suez Canal is a sea level Canal. 

The New Suez Canal is a feat of brawn, it is impressive. In just one year, a third of the time engineers wanted, Egypt has shifted enough sand to allow more and bigger ships to pass more swiftly through a crucial artery of global trade. As a political stunt it is big, too. Since coming to power in July 2013 President Abdel-Fattah al-Sisi has offered an unspoken bargain: in exchange for shrinking political freedoms he would bring stability and progress. Small wonder his government declared a holiday for the lavish opening on August 6th of the New Suez Canal, as it dubs its project; to bolster pride in the achievement, its religious-affairs ministry instructed mosque sermons to cite the Prophet Muhammad’s digging of a trench to defend Medina from attackers.

Egyptian officials claim that the $8.2 billion project, which expands capacity to 97 ships per day against the present 49 will more than double annual revenues to some $13.5 billion by 2023. A recent forecast from the IMF suggests that in the decade up to 2016 the annual rate of growth for global merchandise trade will have averaged 3.4%.

Until recently, it was one way traffic therefore, it would take much longer to pass through the canal but more ships will flock to the canal because new bypasses permit faster two-way traffic.

However on the other hand, there are strong critics of the project who foresee the growth respective to the current scenario of world economy  that investors, being citizens of Egypt, have been taken for a ride as no way  the traffic can go up as predicted given the projected dismal growth of world GDP and seaborne traffic. The traffic through Suez has increased only marginally in last decade and while curtailing of transit time is most welcome by shipping community that can't guarantee doubling the traffic in just a few years. To have any decent return on the huge investments made traffic must grow at least by 10% year on year which appears very doubtful given the state of world economy.

The Suez Canal's role is not confined to servicing the world trade.  It goes beyond that to serve the Canal Zone community (Port said, Ismailia, and Suez) as well as other governorates of Egypt.

The Shipping Industry welcomes the development of the new Suez Canal due to its shorter waiting period and transit time and particularly for Indian trade to the west which is a major user of the canal.

A Bigger, Better Suez Canal

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