Oct

ober

200

5

SMIT: on course and making progress 2

A new safety culture based on sharing best practice 5

SMIT Harbour Towage: a fresh look at operational efficiency 5

New investment in SMIT’s Rotterdam tug fleet 6

SMIT Salvage to the rescue after Katrina 8

Donjon-SMIT: providing OPA 90 response services nationwide 10

SMIT Transport & Heavy Lift: more mobility and stability 11

Busy schedule for SMIT’s giant barges 12

South American focus for SMIT sheerlegs 12

SMIT Transport celebrates 1000th supply run 14

New URS tugs enter service on the Scheldt 14

Berthing the Queen: ‘Queen Elizabeth 2’ visits Singapore 15

First of the Singapore-built AHTSV´s prepares for sea trials 15

World Port Days 2005 16

page 2Spectaculair opening SMIT’s

new headquarters

page 7SMIT Terminals’ clear strategy

for business development

page 4Christening ceremony

new Panama tugs

page 9An eventful 12 monthsfor SMIT Salvage teams

page 3Building SMIT’s future:new tugs join the fleet

page 13First North Sea

decommissioning project

More

www.smit.com

The Waalhaven centre brings together all SMIT

activities in Rotterdam on one site, including

the salvage warehouse. In addition, the gen-

erous quayside has sufficient waterdepth to

accommodate large vessels.

The opening was blessed with fine early

Summer weather - blue skies, plenty of sun

and a temperature of 30 deg. Present at the

event were representatives of many SMIT cli-

ents from across the world. Indeed, the open-

ing had a strong global theme. Against the

impressive backdrop of SMIT’s giant wreck-

grab, a globe appeared carrying the SMIT logo.

SMIT employees paraded the flags of the coun-

tries in which the Group is most active.

The Minister said that SMIT was “part of the

pride of Holland”. Karla Peijs referred to the

Group’s long history (extending back to 1842)

and made the point that SMIT today is very

much a product of its time - active at 30 loca-

tions beyond the Netherlands. The Minister

concluded: “I’m convinced that this company

has a great and successful future ahead of it.”

Replying for SMIT, Ben Vree thanked the

Minister and acknowledged pride in the new

headquarters. He added that this concen-

tration at one location was a policy already

applied successfully by SMIT elsewhere in the

world, as part of the Group’s strategic plan.

A SPECTACULAR OPENING FOR SMIT’S NEW HEADQUARTERS

Dutch Shipping Minister Karla Peijs and SMIT Chairman Ben Vree jointly opened SMIT’s new

headquarters in Rotterdam’s Waalhaven in late May. The spectacular ceremony took place

on a Friday, with the Saturday devoted to an Open Day for SMIT employees, families and

retirees.

ColophonFor any information about specific activities,

equipment and services, please apply to:

SMIT

Waalhaven Z.O. 85

P.O. Box 59052

3008 PB Rotterdam

Tel + 31 10 454 99 11

Fax + 31 10 454 97 77

E-mail company@smit.com

Editor

SMIT Public Relations

Texts

TRS Public Relations

SMIT Public Relations

Design & production

Studio Clarenburg, Schiedam

Photography

SMIT Public Relations

Roderik van Nispen

Hans de Jong

Harry Goedhart

and others

Printing

Schefferdrukkerij bv, Dordrecht

Copyright

Texts can be reproduced after

permission from the editor.

The Harbour Towage Division performed

extremely well in the first half of this year. The

Terminals Division achieved a considerably

higher result. The Salvage Division experienced

a normal volume of work, whilst the Division

Transport & Heavy Lift, as forecast, performed

below par.

The heartening first half result, together with

bright prospects for the future, provided the

right atmosphere for the late May celebrations

marking the opening of SMIT’s new headquar-

ters in Rotterdam.

Dutch Shipping Minister Karla Peijs opened

our new headquarters in the Waalhaven. We

were lucky to enjoy fine, sunny weather for the

opening. We had plenty to celebrate, as the

new site unites SMIT’s Rotterdam family for

the first time. Waalhaven is now the home for

activities previously based at no less than 13

sites around the city.

More good news followed in June, when the

Netherlands Competition Authority announced

that its investigation of possible anti-competi-

tive behaviour between salvage companies had

found no evidence of Competition Act viola-

tions. This brought to a close an investigation

which began in March 2004.

SMIT is now on the right course. The main

challenge is to stay on course and continue

to secure profitable growth. We focus on the

world’s dynamic regions and those activi-

ties with a stable profile and the potential

to deliver satisfactory returns on capital

employed. The main challenge in the short

term is to deliver higher yield. We must strike

the best balance between allocating our

resources for acquisitions and fleet renewal

and meeting shareholder expectations. In the

longer term, we must recognise the inevitable

consequences of continued consolidation in

our industry. Within 10 - 15 years there will

be two, possibly three, global players and we

intend to be one of them. As a fully independ-

ent major with a responsive and dynamic

worldwide network, we must continue to grow

in response to the stimuli of consolidation and

globalisation.

The Harbour Towage business continues to

advance and a major newbuilding programme

will continue. As to the future, we remain on

watch for attractive candidates for acquisition

around the world, especially in the major ship-

ping centres.

Fleet renewal will also benefit SMIT’s Transport

& Heavy Lift Division. Six new vessels are now

building in the Netherlands and Singapore.

Whatever the sector, from Harbour Towage and

Terminals to Salvage and Transport & Heavy

Lift, we share the same fundamental objective:

improved quality and more range and depth

to the services provided to SMIT clients. As we

continue to make progress, we will not forget

the lessons of the past. We are fully aware that

complacency is the enemy of progress.

Now we look for more progress! We will con-

tinue to strengthen our relationships with cli-

ents worldwide, grow the business and deliver

shareholder value.

Ben Vree

Chief Executive Officer

SMIT: ON COURSE AND MAKING PROGRESSThe trend of rapid progress evident over the past two years is continuing! Smit International’s net profit

in the first half rose to €18.8 million (€14.4 million in the same period of 2004). SMIT is on track to achieve

a net profit for the 12 months significantly higher than the €27.4 million reported for 2004. In short we

have achieved a 30 per cent increase in first half results and we are looking for a 12 - 20 per cent higher

net profit for the year as a whole. These outcomes demonstrate that SMIT’s new strategy, commercial

organisation and portfolio of services is producing results even faster than predicted.

SMIT is about to embark on a new phase of

its extensive tug newbuilding programme.

SMIT has ordered 18 new tugs over the past

year and a half. Preparations are now under

way to place further orders to enhance SMIT

Harbour Towage’s Rotterdam-based tug

fleet. Additional orders may also arise as a

result of SMIT’s vigorous prospecting for

new terminal contracts around the world.

Bram de Feyter, SMIT’s Newbuilding

Coordinator, says: “This major investment pro-

gramme underlines our determination to grow

the Harbour Towage and Terminal businesses,

which generate predictable income and bal-

ance the inherent uncertainties of other Group

activities such as Salvage.”

In February 2004 SMIT Harbour Towage

ordered four 2810 class tugs (28 m length; 10

m breadth) from Damen Shipyards. Two orders

went to Damen Shipyards in the Netherlands

and two to this builder’s Romanian yard at

Galatz. All four newbuildings were earmarked

for service with SMIT Panama. SMIT provides

harbour assistance at both Cristobal and

Balboa.

These ASD (Azimuth Stern Driven) tugs have a

57 tonnes bollard pull. The first, ‘Smit Panama’,

was delivered from Romania in mid-2004, fol-

lowed by the first of the Dutch-built units, ‘Smit

Cristobal’ , in December of last year. The third,

‘Smit Balboa’ , joined the fleet in the second

quarter of this year following completion

in Romania. The final tug in this series, ‘Smit

Curaçao’ , was handed over in April. It is now

operating in Panama.

In March of last year Keppel

Singmarine received orders from

SMIT for three anchorhandling/

tug/supply vessels - two units of

82 tonnes bollard pull and one

of 120 tonnes. The first of the

AHTSV´s, a 82 tonnes bollard pull

unit, will be delivered end of this

year, followed by the sister. The

third unit (of 120 tonnes bollard

pull) will be delivered in June

2006. One of the 82 tonnes bol-

lard pull vessels will operate in

North Sea waters.

Deliveries in late 2004 included the 3509

class unit ‘Smit Mandji’, a 57 tonnes bollard

pull tug/supply vessel now working offshore

Gabon. One feature of this design is generous

tank capacity. This vessel was constructed by

Damen Shipyards in the Netherlands. A second

vessel of this class - building at Galatz - will be

delivered in the third quarter of next year.

The series of orders continued in January this

year with the signing of a contract with IHC

Holland for three 28 tonnes bollard pull mul-

tipurpose tugs of an innovative design. The

first is scheduled for delivery in February 2006,

followed by the second and third in March and

April respectively. These pusher tugs have a

length of 25.4 m. Up to five further tugs of this

class may be ordered over the next five years.

The main role of these ice class tugs is to sup-

port large marine projects for the oil and gas

industry, together with dredging operations

and major infrastructural developments such

as wind farms. Bram de Feyter says: “This class

of tug is based on a modular design, for maxi-

mum flexibility across a wide range of roles.

They can be rigged for salvage, firefighting,

oil spill response, diving support and

BUILDING SMIT’S FUTURE: NEW TUGS JOIN THE FLEET

Ben Vree said: “The past four years have been

great … and so are the prospects. We have a

firm foundation for growth, especially in the

Harbour Towage and Terminals sectors. We

are also concentrating on the world’s growth

regions, such as Asia and South America.”

Waalhaven provided a new venue for SMIT’s

Corporate Meeting, held after the opening

celebrations. This annual event is attended by

managers from all SMIT offices worldwide. The

Corporate Meeting this year was timed to allow

them to attend the headquarters opening.

Issues concerning the future development

of SMIT’s strategic position received special

attention during the Corporate Meeting. The

managers considered the impact of globalisa-

tion, the prospects for further consolidation in

the Harbour Towage market and the potential

for new acquisitions adding value to SMIT busi-

nesses - particularly in the growth markets of

South America, Eastern Europe and the Far East.

SMIT’s development strategy aims to improve

added value, increase transparency and rein-

force the organisation’s focus on cli-

ents. It is geared to enhancing qual-

ity and increasing profitability. This

requires an even greater emphasis

on businesses, such as Harbour

Towage and Terminals, with a stable

commercial profile and the advan-

tage of predictability.

The strategy was then considered in terms of

specific sectors:

Harbour Towage: a twin-track strategy

combining cost reduction with the high-

est achievable utilisation. Future expan-

sion will concentrate largely on the

world’s strategic shipping hubs, within a

framework offering clients global harbour

towage services of uniform quality.

Terminals: the strategy takes particular

account of growth forecasts for the LNG

sector worldwide. It also recognises the

importance of SMIT’s base markets, con-

nected with trade in crude oil, products

and other bulk liquids. Growth depends

on Terminals’ ability to win new contracts.

This requires strong representation in

expanding world regions such as South

America, Africa, the Middle East and Far

East.

Salvage: the main objective is to retain

the current market share (25-30 per cent).

Salvage will continue to concentrate on

complex salvage projects requiring SMIT’s

depth of expertise and resources. The

heavy emphasis on environmental protec-

tion will continue.

Transport & Heavy Lift: Transport targets

the higher market segment, within a strat-

egy providing for phased fleet renewal.

Expansion will result from organic growth,

strict cost control and improved rates.

Heavy Lift’s strategy is one of consolida-

tion, with the high quality maintenance of

existing equipment an on-going priority.

Margins will increase as a result of cost con-

trol and enhanced project management.

As the Corporate Meeting concluded, all

managers signed SMIT’s Corporate Code of

Conduct. This underlines SMIT’s commitment

to transparency and ethical behaviour.

SMIT employees paraded the flags of the

countries in which SMIT is most active.

A giant wreck grab and

globe were part of the show.

The ‘Smit Mandji’ before leaving for Gabon.One of the three 28 tonnes bollard pull multipurpose tugs of an

innovative design under construction at IHC Holland shipyard.

www.smit.com3

tug magazine

many other tasks. Options include four-point

mooring and water transfer. Lifting lugs are

integrated into this design’s shallow draft

hull, making for an easy lift onto a transport

vessel when fast mobilisation is a requirement.

Standard equipment includes a 140 tonnes/

mtr capacity crane and 100 tonnes capacity

stern rollers.”

Also ordered in January of this year were two

3110 class units for service in Nigeria. These 57

tonnes bollard pull harbour/terminal tugs will

assist vessels calling at the Bonny Island NLNG

terminal. They will join SMIT’s fleet in February

and April of next year. SMIT also ordered an

Alucat 1605 patrol vessel from Damen, for

service at Bonny Island. The Alucat was deliv-

ered this June.

Meanwhile, a 2208 tug (38 tonnes bollard

pull) is building Galatz, Romania, for service at

Dekastri, Russia. It is due for delivery in May of

next year.

Concepts are now being developed for new

tugs for service at Rotterdam - Europort, to

maintain and further enhance service levels,

productivity and competitiveness. Bram de

Feyter adds: “SMIT’s ability to secure long-term

contracts is key to decisions to place further

orders. A number of projects now under evalu-

ation would require more newbuildings. We

are actively exploring optimum tug concepts

for the LNG and FPSO sectors. There is a market

for operation in up to 4 m swells. This factor

will be taken into account.”

SMIT is an active partici-

pant in the joint industry

“SAFE Tug” project (Ship

Assistance in Fully Exposed

Conditions). The project’s

main objective is to con-

sider hull forms and other

design features which

reduce rolling whilst con-

nected, so as to widen the

weather envelope for safe

operation.

Three newbuild tugs - ‘Smit Cristobal’, ‘Smit

Balboa’ and ‘Smit Panama’ - joined the SMIT

Harbour Towage Panama Inc. fleet on June

20, following a christening ceremony at the

Flamingo Marina, Amador.

The christening ceremony was well attended

by representatives of the maritime commu-

nity in Panama. Guests at the Flamingo Marina

were joined by SMIT President Ben Vree and his

wife, Vera, who acted as christening lady to the

‘Smit Balboa’.

The three Damen-built vessels represent a new

generation of tugs for service in Panama. The

57 tonnes bollard pull tugs are able to handle

ships of post-Panamax size. The allocation of

these newbuildings to Panama recognises the

continued strategic importance

of the Panama Canal to world

shipping and the accelerating

development of associated port

facilities, including two new con-

tainer terminals.

‘Smit Balboa’ and ‘Smit Panama’

are now busy at Balboa, on the

Pacific side of the Canal, whilst

‘Smit Cristobal’, aptly, is working

on the Atlantic side at Cristobal.

Both ports feature in the series of

projects developing the Panama

Canal. The Miraflores Locks pro-

vide access to Balboa and the

Gatun Locks are the gateway to

Cristobal.

SMIT has been active in Panama since 1986.

The fleet now consists of eight tugs. The fore-

casts for increased traffic in the Canal ports are

likely to prompt further expansion of SMIT’s

operations in Panama.

CHRISTENING CEREMONy NEW PANAMA TUGS

Christening ladies Marcia Quijano, Simone Neomagus and Vera

Vree together with Ronald Neomagus, Joris Neven and Ben Vree.

Alucat 1605 patrol vessel ‘Smit Oloma’.

Effective communication is a vital compo-

nent of all successful safety campaigns. This

factor is not lost on Aart de Glopper, SMIT’s

General Manager, SHE-Q: “We need to get

our points across at all levels, from issuing

regular ‘Safety Flashes’ to bringing things

down to a personal level - even down to

printing the message on coffee mugs! We

have just had mugs over-printed with the

motto: ‘If I’m not working safely, stop me!

Then help me.’ This will be produced in four

languages - Russian, Spanish, English and

Dutch. Whatever the language, however,

this message says it all. Safety is the respon-

sibility of every individual. We all share an

obligation to intervene if we see an unsafe

act taking place.”

Aart de Glopper prepares SHE-Q best practice

procedures for implementation at both corpo-

rate and business unit level. He is committed

to achieving further positive change in the

organisation’s safety culture. SMIT companies

are well developed in terms of safety, health

and environmental issues, which are, in effect,

all hallmarks of a quality culture. Regulatory

compliance systems and procedures are in

place and, in that sense, the culture is mature.

A reduction of around 30 per cent in injury

numbers has been achieved. The point has

now been reached where further improvement

will depend almost entirely on influencing

aspects of human behaviour.

This will require more effective communica-

tion, not just from the corporate level but also

between operating units. There is a need to

recognise the essence of best practice. With

this in mind, the SHE-Q department is play-

ing an active role in a pilot project for a new

Document Management System. This will pro-

vide a new basis for sharing best practice in the

areas of safety, risk assessment and related mat-

ters. It will also recognise good performance.

Vessel inspections have been

increased, to verify compliance

with SHE-Q procedures. There

are also plans to further develop

the recently-introduced Online

Reporting System - which was

fully commissioned early last year.

Aart de Glopper says: “It is not a

good thing that incidents and

accidents happen, but it is a good

thing that they are reported and

the lessons absorbed. The aim

is to expand accident reporting

to the reporting of near misses.

This system is already much more

than pure recording. It is also a valuable tool

for communicating with managers and ensur-

ing that risks are fully appreciated and lessons

are taken on board. Our next step is to add the

Hazard Database, to make it easier to exchange

experience on matters such as risk assessment.”

The SHE-Q team will continue to produce the

widely-read publications in the “Safety Flash”

series. One recent issue focused on electric

welding hazards, setting out the principles of

safe practice and accident avoidance. This is

an area with the potential for a fatal accident if

safe procedures are not followed.

Guidance given in this “Safety Flash” included

crucial advice on the avoidance of fire and

explosion risks. Personnel are warned not to

weld on any form of closed container unless it

has been declared safe by a qualified individ-

ual. The publication also carried a vital caution-

ary message: “All normal arc welding and cut-

ting hazards are amplified in confined spaces.”

SMIT Harbour Towage has made further

progress over the past year in its drive for

global expansion. Rotterdam, however,

remains an important nucleus for the har-

bour assistance business, as Rotterdam-

Europort is the strategic shipping cross-

roads for North Sea, Atlantic and other

traffic. Singapore is a second strategic hub

featuring prominently in SMIT’s expansion

plans, alongside Panama, with its harbour

towage operations thriving at both ends of

the Canal.

SMIT Harbour Towage & Terminals Managing

Director Loek Kullberg says: “Harbour Towage

plays a central role in growing SMIT’s return on

capital employed. It is distinct from the cyclical

character of many other SMIT activities, such as

Transport, Heavy Lift, and Salvage.

“There are three main pillars to our strategy

for Harbour Towage: cost leadership, key

account management and regional expan-

sion. At present we are focusing on the promis-

ing regions of Central and South America, the

Indian Subcontinent and the Far East in general.

“We also want to be recognised as the preferred

harbour towage provider for greenfield opera-

tions. The construction of new container infra-

structure around the world is gathering pace.

In the competitive world of Harbour Towage

assistance, a system based on two-man crews

and 12-hour shifts has already gained wide-

spread acceptance in many parts of the world.

These issues are now being considered in the

context of Rotterdam-Europort. SMIT Harbour

Towage’s position is that Rotterdam’s future

competitiveness depends on addressing these

matters. It also points to the successful intro-

duction of two-man working in Canada and

Australia.

A decision in favour of two-man working for

Rotterdam tugs would have a major impact

on SMIT design concepts for newbuildings

to join the fleet serving Rotterdam-Europort.

Circumstances applying elsewhere in the

world may differ from Rotterdam’s situation,

but SMIT Harbour Towage aims to deliver con-

sistent service, based on power, reliability and

competitiveness.

Loek Kullberg adds: “We have crews with the

skill levels needed to operate safely and effi-

ciently in this way. Two-man working and 12-

hour shifts would have a dramatic impact on

Rotterdam’s competitiveness.

“As for the broader picture, we intend to make

further progress in managing assets more

efficiently. The global Harbour Towage fleet

now totals 70 tugs. The Terminals fleet includes

around 100 tugs. Additional units are operated

by URS, KST and other joint ventures. We still

have a great deal of untapped potential for

more flexible deployment.”

SMIT HARBOUR TOWAGE: A FRESH LOOK AT OPERATIONAL EFFICIENCy

A NEW SAFETy CULTURE BASED ON SHARING BEST PRACTICE

The ‘Smit Panama’ assisting a container vessel in Panama.

The ‘KST Space’, a 48 tonnes bp tractor tug, is one of

the tugs which reinforced Keppel SMIT Towage’s fleet.

www.smit.com�

tug magazine

Rotterdam remains the world’s busiest port.

Commercial conditions for SMIT Harbour

Towage - the leading towage assistance

provider in Rotterdam-Europort - have

improved after several difficult years.

Joost Lameijer, SMIT Harbour Towage General

Manager for Rotterdam, says: “The number of

vessel assistances has increased this year. This

reflects the growth in Rotterdam-Europort’s

container and bulk traffic. The upturn is creat-

ing the conditions which allow us to contem-

plate new investment. Our main objective is

fleet renewal, with the focus on more flexible

and powerful tugs.”

The main incentive for new investment cen-

tres on Maasvlakte 2, a major new complex of

container terminals and chemical berths. This

development on reclaimed land is due to open

in 2012. SMIT Harbour Towage Rotterdam has

this project very much in mind when consid-

ering the initial concepts for new tugs in the

70-80 tonnes bollard pull range.

Initial studies for a new Rotterdam standard

tug are still in progress. The key issues are

manning levels and the optimisation of critical

operations. The potential for operating with

two-man crews is being explored. This would

have a significant influence on tug design.

There would need to be a perfect view from

the wheelhouse, to ensure constant visual con-

tact. As for the critical operations - hooking up

and letting go - new systems and procedures

are being considered for more efficient opera-

tion.

In the areas of propulsion/manoeuvrabil-

ity, the new Rotterdam tug specification will

take account of confined space at the new

Maasvlakte 2 terminals. The solution is likely

to favour a “short tug”, say 24 m, with extreme

manoeuvrability. A tractor design offers several

advantages, but an ASD solution has many

benefits when working in strong currents with

vessels having a high speed over water.

Joost Lameijer adds: “We are some way from a

final decision on these design fundamentals,

but we expect to have a specification ready

for tender by the end of this year. We hope

that new tugs will join the Rotterdam fleet as

from late 2006. This means new units must be

ordered by the end of this year or very early

in the New Year. Meanwhile, we continue to

improve our business systems in Rotterdam.

One recent initiative - the introduction of elec-

tronic invoicing - has been widely welcomed

by clients.”

SMIT’s Rotterdam-Europort tugs are salvage

capable. Four salvage tasks were performed

in the first seven months of this year. They

included the Ro-ro vessel ´Tor Dania´, which

reported engine problems off the Hook

of Holland in mid-February. This incident

occurred in hostile weather. The wind was

blowing from the north at BF 9 and there was

a 4-5 m swell. The casualty anchored two miles

north of the northern breakwater but her

anchor dragged. ‘Smit Humber’ was the first

tug to reach the casualty, closely followed by

‘Smit Loire’ and ‘Fairplay 21’. The tugs towed

‘Tor Dania’ to a safe berth in Europort.

During March three tugs also responded when

the ‘Polska Walczaca’ grounded in the river fol-

lowing machinery problems and a blackout.

‘Smit Polen’ was the first to connect and com-

mence this Lloyd’s Form assistance. ‘Fairplay 21’

and ‘RT Magic’ also attended. This casualty was

refloated within a few hours of the grounding.

An inspection revealed no significant damage

and the vessel was able to proceed.

Rotterdam tugs were also involved in two sal-

vage operations during July. The first occurred

on July 5, when the barge ‘Luma’ suffered an

engine failure whilst proceeding to Schiedam.

‘Smit Rusland’ provided assistance and ‘Luma’

was taken to Pier No. 3 in the Waalhaven.

Later that month the laden bulk carrier

‘Sibonina’ was proceeding inbound, just out-

side Maas No. 1 Buoy, when she grounded.

Eight tugs responded to this casualty. The

‘Sibonina’ suffered no damage. She was

refloated within several hours and taken to

moorings at Mississippi Harbour, Europort.

NEW INVESTMENT IN SMIT’S ROTTERDAM TUG FLEET

In Panama, four new 2810 units represent a

standard class of 57 tonnes bollard pull tugs

which may also be suited to two-man opera-

tion. This factor will be taken into account

when developing SMIT’s operations at both

ends of the Panama Canal. A standard tug

suitable for operating conventionally as well

as two-man operation will increase the flex-

ibility of employment of these tugs worldwide.

There are already plans to expand the Panama

fleet from four to six 2810 tugs. Eventually, the

Panama fleet of eight could be fully renewed

by 2810 tugs, given that traffic through the

Canal is increasing and the project to increase

the Canal’s capacity is gaining momentum.

In Singapore, meanwhile, the successful

Keppel SMIT Towage joint venture - with a fleet

of 17 tugs - continues to develop. Singapore is

an important source of newbuildings to service

expanding harbour assistance requirements.

KST’s progress is underlined by the recent

award of a harbour assistance contract for the

major Malaysian container port of Tanjung

Pelepas, opposite Singapore. In this port KST

currently operates four tugs. The project calls

for the construction of 2.5 km of new quay. As

a result of this development two additional

KST tugs will join the fleet in the near future.

The future development of KST’s operations

will be shaped largely by investment decisions

taken by key clients. New units have already

reinforced KST’s fleet. They include the 3,600

hp, 46 tonnes bollard pull pusher tug ‘KST

Saturn’ and the 3,600 hp, 48 tonnes bollard pull

tractor tugs ‘KST Sky’ and ‘KST Space’.

Strong cost leadership is central to the

achievement of SMIT Harbour Towage’s world-

wide goals. Loek Kullberg says: “This is a ques-

tion of balance - the ability to deliver a quality

service at a competitive price. We have scope

to operate more efficiently and we need to

make the most of this potential. In this way we

can also make the most of our options for fur-

ther growth, through acquisitions, new conces-

sions and involvement in greenfield ventures.”

Ro-ro vessel ‘Tor Dania’ needed

assistance after engine problems.

The ‘Smit Loire’ assisting a container

vessel in the port of Rotterdam.

A concerted drive for new contracts in

key world regions including Africa, Latin

America, the Middle East and Far East - is

designed to transform SMIT Terminals’ posi-

tion in the competitive global market for

marine support services.

The recent major reorganisation of the

Terminals business has included the appoint-

ment of a new commercial team. SMIT

Terminals is now well-positioned to prosper in

the expanding market for crude oil, products

and LNG-related marine services. The LNG

sector is regarded especially attractive. The

global LNG market is forecast to double over

the 2000-2010 period. A four-fold increase is

expected by 2020.

SMIT Harbour Towage & Terminals Managing

Director Loek Kullberg says: “An important

factor in our favour is the ability to integrate

our Terminals and Harbour Towage resources.

This is in line with our goal of being the pre-

ferred marine partner, capable of fully opti-

mising asset and knowledge management.

Growing standardisation of our vessel types,

with the emphasis on multipurpose capability,

is another important leadership factor in the

terminals support market.

“We have been set tough financial targets but I

believe these goals can be met, given the new

spirit of determination that now permeates

our organisation. We need consistent success

- gaining two or three significant terminal

contracts every year. Typically, these contracts

each require around four vessels. Consistency

is essential if we are to achieve the target of a

15 per cent return on capital employed.

“Fortunately, we can now draw on a fresh

and highly entrepreneurial spirit within the

business. We have learnt to focus heavily

on those possibilities offering the strongest

potential, rather than dissipate our energies.

Furthermore, our new contracts centre on the

core business. We are tug operators, in the

business of pushing and pulling. That’s what

we do best.”

It can take 18 months or more to reach the

point where a contract award is made, plus

another 18 months to build new vessels. In all,

it may take five years to discover if any error

was made during contract negotiations. Loek

Kullberg says: “It is important to get it right. We

tend to look very hard at contract provisions.

The harder we look, the less chance we have of

being unpleasantly surprised later on.”

Costs are always critical, as the international

terminals support market is so competitive.

SMIT Terminals is eager to compete, but not

at the expense of an acceptable return on

capital employed. At the same time, it will

go to great lengths to secure business with

a major new client. Commercial attitudes

are forged by the aggressive market atmos-

phere. Contract extensions tend to involve

tough negotiations and frequent bench-

marking.

SMIT Terminals’ major reorganisation has

put in place a vigorous commercial team.

The tender team, relocated from Dubai to

Rotterdam, has been reinforced by addi-

tional experienced personnel. The new

commercial organisation began to operate

in September of last year. SMIT Terminals

Commercial Manager Wilbert Versteeg says:

“We have some challenging commercial

targets to meet. Our new organisation is

designed to meet a strategic objective: 50

per cent growth in profits over the five years

to 2008. This requires more cost-efficient

working and, secondly, the addition of at least

two significant contracts every year.”

“These goals mean we must target business

in a very structured way. Our focus is on sec-

tors and world regions offering the greatest

opportunities. This includes the fast-expand-

ing LNG sector. We have already had success in

this area, supporting Shell’s LNG operations in

Nigeria and Brunei.”

FPSOs represent another promising growth

market. Here, SMIT Terminals is concentrating

on support for relatively shallow water appli-

cations. The SPM support sector, meanwhile,

continues to provide a base market for SMIT

Terminals’ activities at the international level.

During the first 12 months of operation with

the new commercial team, a series of new

contracts, contract extensions and renewals

were secured. These include an extension to

the existing NLNG contract which commenced

in 1999. Two additional tugs (Damen 3111 ves-

sels) are to join the four units already operat-

ing at this location. The two additional tugs are

newbuildings due for delivery in mid-2006. A

dedicated patrol vessel is also required to serv-

ice this contract extension.

Another immediate success for the new team

was the award of a contract from ExxonMobil

concerning the oil port of Dekastri, near

Sakhalin, Russia. This involves SPM support.

The contract will be serviced by a newbuild

Damen 2208 ice class tug, also scheduled for

delivery in mid-2006.

Nigeria featured again in another contract win,

this time from Melbourne Marine. Under this

contract ‘Smit Siberia’ is to support the FSO

Jamestown, offshore Warri, an arrangement

which started in the first quarter of this year.

Contract renewals and extensions in recent

months also include:

Borco, Bahamas: involving tanker assist-

ance and a barge-based bunkering opera-

tion. The Bahamas contract, awarded in

1997, is currently serviced by three tugs

built in Japan during the early 1990s.

One of the tugs will be succeeded by a

46 tonnes bollard pull newbuild.

SMIT TERMINALS’ CLEAR STRATEGy FOR BUSINESS DEVELOPMENT

Two tugs assisting a LNG vessel in Nigeria.

The ‘Smit Abaco’ was built in Japan

and will be deployed in the Bahamas.

The ‘Pegasus 51’ and ‘Phoenix 52’ provide SBM and offshore services in Brunei.

www.smit.com7

tug magazine

SMIT TerminalsA new commercial team

Demanding new targets

Focus on major opportunities

Concentration on core business

LNG and FPSOs: key markets

One of the two class 30/30 firefighting

tugs which were purchased and

currently under construction in Turkey.

The ‘Smit Damietta’ and ‘Smit Port Said’

will be delivered in October 2005

SMIT SALVAGE TO THE RESCUE AFTER KATRINAGenerating wind speeds of 280 km/hour

in the Gulf of Mexico, Katrina was ranked

among the strongest hurricanes. As Katrina

moved along the US Gulf Coast, its ravag-

ing winds left behind a trail of death and

destruction on both land and water.

Being a salvage expert, SMIT Salvage was

enlisted to assist in rescuing distressed ships

and platforms.

Several salvage teams were flown from

Rotterdam to the disaster area, where they are

carrying out various assignments.

SMIT Salvage provided aid to two bulk carriers

stranded on the Mississippi and three oil plat-

forms that had sustained hurricane damage.

One of these bulk carriers, the ‘Chios Beauty’,

was the first contract executed under OPA 90

Act by joint venture Donjon-SMIT.

The bulk carriers ‘Patrizia D’Amato’ and ‘Chios

Beauty’ were in ballast when the hurricane

struck and had run aground on the Mississippi

River. To make matters worse, a chain had

become entangled in the propeller of the

‘Patrizia D’Amato’ that had to be removed. With

the aid of locally hired ships (the ‘Dolphin

1’ and ‘Dolphin 3’), the bulk carriers were set

afloat again and towed to a safe location.

As the rescue operations were underway on

the Mississippi, SMIT Salvage teams were also

assisting at the ‘DD1’ and ‘Artic 1’ semi-sub-

mersible platforms and at the ‘Ocean Warwick’

drilling/jack-up platform.

As a result of the hurricane, the ‘DD1’ was

heeled over 15 degrees off upright and had

also sprung a leak. The ‘Artic 1’ platform had

broken away from its moorings during the hur-

ricane and proceeded to run aground.

'Ocean Warwick' had broken away from its legs

on its drilling location, sending the hull section

ashore and finally ran aground.

Bulk carrier ‘Chios Beauty’ had run aground on the Mississippi river.Platform deck of the ‘Ocean Warwick’ adrift.

Platform ‘DDI’ in the aftermath of Katrina.

Close-up of devastation on platform

deck of the ‘Ocean Warwick’.

‘Smit Abaco’ is scheduled to arrive in the

Bahamas in October 2005. The Japanese-

built tugs then available are to be rede-

ployed to service another contract.

GNPOC, Sudan: this contract renewal is for

SPM support. The original contract, which

commenced in 1999, also provides for IRM

(inspection, repair, maintenance) services.

It is serviced by a multipurpose vessel and

a line-runner.

Total Gabon: the original contract, sup-

porting tankers calling at this oil export

terminal, commenced in 1992. The exist-

ing chartered tug on station will be suc-

ceeded by a newbuild SMIT tug, a Damen

3509 unit due for delivery in June of next

year. Priorities for the months ahead centre on the

drive to win more contracts. Wilbert Versteeg

adds: “We are operating in a very competi-

tive market, yet there is a growing shortage

of tug capacity. This capacity shortfall is likely

to increase as the LNG sector really begins to

expand. SMIT’s main advantage is its exten-

sive fleet, with the flexibility afforded by the

growing number of multipurpose vessels. This

enhances our ability to put together vessel

packages which exactly match the client’s

requirements.”

SMIT Terminals is supporting Shell’s LNG operations in Nigeria.

It has been an eventful year for SMIT

Salvage. A series of refloatings and wreck

removal operations were also performed at

various locations around the world.

One of the recent salvage cases included the

August operation to refloat the grounded gen-

eral cargo vessel ‘Eugenio’. This casualty was

hard aground at a position near Fort Dauphin,

Madagascar. The cargo included containers.

SMIT Salvage Director Hans van Rooij says:

“This was a Lloyd’s Form operation with

SCOPIC invoked. There were many difficulties

at the grounding site, including strong cur-

rents and low visibility due to the high sand

content. The ‘Eugenio’ ran aground on August

7. SMIT Salvage was contracted on August

11 and refloated the ‘Eugenio’ on August 18.

As tug availability was poor SMIT planned

to mobilise a tug from the Middle East but

eventually located a suitable 80 tonnes bol-

lard pull tug on the west coast of Madagascar.

The refloating of the ‘Eugenio’ was carried out

jointly with Subtech, a South African diving

company which provided divers and portable

equipment.”

August also saw the demolition of sections

recovered from the wreck of the ‘Vicuna’. This

17,500 DWT chemical tanker exploded and

sank at Paranagua, Brazil, in November of

last year, killing several crew members. SMIT

Salvage was awarded the wreck removal

contract, which was completed in April. The

wreck was chain-cut into sections by the 1,200

tonnes floating sheerlegs ‘Taklift 6’.

As always, the salvage workload displayed

great variety. During August SMIT Salvage

in Singapore refloated the grounded tanker

‘Seastar’. A tug and salvage team were mobi-

lised to the grounding area and refloated

the vessel at the second attempt. Whilst the

refloating of the ‘Seastar’. was performed,

another salvage team from SMIT Salvage

Singapore refloated the 48,000 DWT bulk car-

rier ‘New Auspicious’. Meanwhile, two wreck

removals were in progress at the time of writ-

ing. In Singapore, sheerlegs from the Asian Lift

joint venture were mobilised to remove the

wreck of the 23,000 DWT bulk carrier ‘Everise

Glory’. Meanwhile, a salvage team in Taiwan,

working in the port of Kaohsiung, began

removing the wreck of the ferry ‘Royal Pacific’,

which capsized in July (fortunately without

loss of life). The 1,000 tonnes sheerlegs ‘Smit

Cyclone’ will cut this wreck into nine sections

and clear the site, landing the wreck sections

at a local scrap yard.

The third quarter cases for SMIT’s salvage

teams included the 2001-built, 42,300 DWT

container vessel ‘Norasia Taurus’. Fire broke out

in the holds during mid-July. The vessel was

off Damietta, Egypt, and laden with 1,600 con-

tainers, when the emergency occurred. Lloyd’s

Form was agreed and a salvage team was

mobilised from the Netherlands. Specialised

firefighting equipment was also flown out, to

reinforce local resources.

The chartered Class I firefighting tug ‘Boa King’

reached ‘Norasia Taurus’ and began fighting

the fires. It took five days to extinguish all

fires on the part-laden vessel, which had been

scheduled to discharge at Istanbul and at a

number of Romanian ports. With the fires out

and hot-spots dealt with, a detailed inspection

revealed that over 70 containers were either

directly involved in the fire or had been dam-

aged.

Temporary repairs were completed and

‘Norasia Taurus’ was stabilised and dewatered

prior to towage to Cyprus, for redelivery.

SMIT’s recent salvage workload also included

the NATO research vessel ‘Alliance’, which

grounded on July 23 at a position south-west

of Elba, having struck rocks. This incident

resulted in severe bottom damage and water

ingress. The Master responded correctly; he

beached the ship off Pianosa, to prevent it

sinking.

Hans van Rooij says: “Our team reported a suc-

cessful refloating on July 27, a few days after

the grounding. We performed this salvage,

under Lloyd’s Form, together with our Italian

partners Neri. As co-salvors, they responded

from Livorno. Neri contributed one of the two

tugs involved in this operation.”

Divers reported that the first 15 m of the

‘Alliance’ bow was buried in sand. Four hull

cracks were also recorded. These were patched

prior to the refloating. The research vessel was

then towed to Genoa for dry-docking and

repairs, arriving on July 29.

Casualties in MayCases in May of this year included

a Lloyd’s Form salvage involving

the Greek-owned 30,000 DWT

bulk carrier ‘Starluck’. This vessel

grounded at Necochea, south of

the River Plate, whilst laden with

25,000 tonnes of grain.

‘Starluck’ grounded on a hard

bottom but no pollution resulted.

The salvage team completed a

part-discharge of her wheat cargo

prior to the successful refloating

attempt by two tugs, including

the ‘Smit Buni’.

SMIT also had a busy first quarter, with salvage

responses involving the bulk carrier ‘Polska

Walczaca’ and the ro-ro ‘Tor Dania’. Hans van

Rooij says: “The ‘Polska Walczaca’ was a ‘same

day salvage’, performed under Lloyd’s Form on

March 24. This bulk carrier had discharged at

Rotterdam and was outbound in ballast when

she grounded on a rocky bottom just off the

northern breakwater at the Hook of Holland.

We found no serious damage and four tugs

refloated the vessel within a few hours of the

grounding. We had to move very quickly, in

order to avoid any disruption to shipping traf-

fic in the busy channel.”

The ‘Polska Walczaca’ was towed to the Maas

Anchorage for an underwater inspection. The

initial assessment was confirmed: there was

no significant damage and the bulk carrier was

cleared to continue her voyage.

First quarter cases also included the ro-ro

‘Tor Dania’ - another casualty off the Hook of

Holland. This incident occurred on February

15. Due to a quick mobilisation of tugs, the

salvors prevented the vessel running aground.

‘Tor Dania’ was only a few hundred metres from

the shore when the SMIT tugs ‘Texelbank’, ‘Smit

Humber’, ‘Smit Loire’ and ‘Fairplay 21’ succeeded

in connecting up. The involvement of these

Hook of Holland-based tugs was significant.

These 60 tonnes bollard pull vessels, once again,

proved their excellent salvage capabilities.

The chemical/ore carrier ‘Red Point’ also

became a casualty on January 30. This 1984-

built, 47,000 DWT vessel grounded at Macapa,

on the Amazon estuary, whilst laden with

35,000 tonnes of gasoline and benzene. After

inspection by the salvage team, it was reported

that there was no ingress of water. The estu-

ary has a soft mud bottom and the Italian-flag

vessel suffered no serious harm. SMIT Salvage

obtained a Lloyd’s Form. A salvage team from

Rio responded, reinforced by personnel flown

in from Houston and the Netherlands.

Two local tugs (each of 55 tonnes bollard pull)

were employed to refloat the casualty. This was

achieved on February 7, following the success-

ful implementation of a salvage plan which

avoided the need for a part-discharge. ‘Red

Point’ was redelivered at Macapa following a

diving inspection.

Pollution preventionIn December of last year the 72,937 DWT bulk

carrier ‘Selendang Ayu’ broke up in Alaskan

waters. The vessel’s tanks held 1,400 tonnes

of HFO and 150 tonnes of marine diesel. Her

forward section sank and the hostile weather

ruled out any attempt at recovering pollutants

from this section.

By mid-February, however, a SMIT salvage

team had successfully completed a pollution

prevention operation off Western Unalaska

Island. This involved the stern section,

AN EVENTFUL 12 MONTHSFOR SMIT SALVAGE TEAMS

The ‘Genmar Kestrel’ was involved in

a collision with a tanker off Port Said.

‘MSC Al Amine’ grounded on the rocky coast near Tunis

Container vessel ‘Norasia Taurus’ off Damietta, Egypt.

www.smit.com9

tug magazine

New US rules concerning marine emergency

response will take effect shortly. The regu-

lations widen the scope of application of

OPA 90, which was originally enacted fol-

lowing the Exxon Valdez grounding in 1989.

In response to this extension of the US

regulatory regime, SMIT Salvage B.V. joined

forces with New Jersey-based salvor Donjon

Marine Co. Inc. earlier this year, to establish

the OPA 90 salvage alliance Donjon-SMIT

LLC. This compliance service is managed

from Houston.

The original focus of OPA 90 was on oil spill

combat. Tanker owners and operators were

required to introduce Vessel Response Plans

and appoint Qualified Individuals and Oil Spill

Response Organisations, in order to comply

with OPA 90’s provisions.

The new OPA 90 rules address salvage, fire-

fighting and emergency lightering in much

greater detail. Proposed regulations, first pub-

lished in 2002, also set out a 13-point defini-

tion of a “recognised salvor”. SMIT Salvage

Director Hans van Rooij says: “Donjon-SMIT is

one of the few salvage organisations meeting

the new and stricter requirements for marine

casualty response in US waters. An important

factor here is the ability to meet the tougher

response timelines.”

Meanwhile, the OPA 90 regulatory umbrella

has widened, with the US Coast Guard

Authorisation Act 2004 applying the new

requirements to non-tankers as well as tankers.

This move recognises the polluting potential

of bunkers. This problem came to the fore fol-

lowing a series of bunker spills in US waters,

involving the ‘New Carissa’ and, more recently,

the ‘Selendang Ayu’ in Alaska and the ‘Athos I’

at Philadelphia.

Donjon-SMIT now provides swift, cost-effective

OPA 90-related salvage, lightering and fire-

fighting services for tankers and non-tankers in

US waters. The joint venture’s aim is to protect

both shipowner and environmental interests.

Donjon-SMIT is headed by Hans van Rooij

and John Witte Jr., Executive Vice President of

Donjon Marine. The OPA 90 response service

offered by the salvors has the additional depth

provided by two further partners: Moran (on

the East Coast and Gulf ) and Foss Maritime (on

the West Coast, Alaska and Hawaii).

OPA 90 sets out requirements for “pre-event”

arrangements with recognised salvors.

Donjon-SMIT provides OPA 90 salvage serv-

ice agreements in a spirit of partnership with

vessel owners and operators. Under these

arrangements, Donjon-SMIT is named in the

VRP as the recognised salvor. This requirement

is not restrictive. The named salvor retains the

freedom to mobilise local assets, to ensure an

early and decisive intervention whenever an

emergency arises.

DONJON-SMIT: PROVIDING OPA 90RESPONSE SERVICES NATIONWIDE

which had settled on the bottom, with the

superstructure remaining above water. The

team recovered 540 tonnes of fuel. The recov-

ered oil, held in five-tonne containers, was

flown by helicopters to a reception facility at

Dutch Harbour. The casualty’s pumps were

used during the oil recovery - which was pro-

gressed during daylight only, for safety rea-

sons.

Other SMIT Salvage cases this year included

the 17,000 DWT container vessel ‘MSC Al

Amine’, the 150,000 DWT fully laden tanker

‘Genmar Kestrel’ and the 12,300 DWT car car-

rier ‘Aniara’.

‘MSC Al Amine’ grounded on the rocky coast

near Tunis on February 15 and SMIT Salvage

obtained a Lloyd’s Form. A salvage team and

equipment was flown in from the Netherlands,

whilst tugs were chartered from Italian part-

ners Augustea. This casualty was refloated and

redelivered following 10 days of preparatory

work.

There was also the ‘Genmar Kestrel’, fully laden

when she was involved in a collision with

another Suezmax tanker, the ‘Trijata’, off Port

Said on February 4. ‘Genmar Kestrel’ was holed,

with the damage extending over an area 20

m by 20 m. There was also some leakage of

the cargo of crude oil. The Greek owners con-

tracted SMIT to perform a ship-to-ship trans-

fer. Two local anchorhandlers were mobilised,

together with a salvage team and equipment

flown in from the Netherlands. The comple-

tion of the transhipment brought this 14-day

operation to a successful conclusion.

As for the car carrier ‘Aniara’, she ran into trouble

near Piraeus during March 31. The car carrier,

laden with 4,300 cars, suffered an outbreak of

fire. SMIT Salvage was awarded a Lloyd’s Form.

Local tugs and a team of specialised fire-fight-

ers from the Netherlands gained control of the

situation. The vessel was

redelivered after a seven-

day operation.

YOUR FIRST CALLFOR SALVAGE, FIRE-FIGHTING

AND LIGHTERING

DONJON-SMITAN OPA ALLIANCE

With nearly 200 years of experience combined,

we are the leaders in OPA 90 salvage and response.

Contact us:15402 Vantage Parkway East, Suite 316

Houston, TX 77032-1966

Ph: 281.442.6800 • Fax: 281.442.6902www.donjon-smit.com

A bulk carrier broke up in Alaskan waters.

SMIT Salvage was contracted to

refloat the ‘Eugenio’ which ran

aground on the west coast of

Madagascar.

Future development of SMIT’s Transport &

Heavy Lift activities will reflect the strategy

for SMIT as a whole. The emphasis, over-

all, is on the expansion of activities with

a stable business profile, particularly for

Harbour Towage and Terminals, but there

is also scope for such expansion in the

Transport sector.

Abel Dutilh, Managing Director of SMIT

Transport & Heavy Lift, says: “Whilst work in our

sectors is essentially cyclical, there are markets

within Transport which have the potential to

provide stable, long-term income. The main

area of interest here is in the oil and gas sector,

where there are some attractive new opportu-

nities. It is here that our newbuildings, ordered

in the Far East, will find a role.”

Abel Dutilh says: “We are looking for organic

growth and that requires more long-term

work. Here, we are positive about the pros-

pects for new vessels. Every time we place a

vessel long term, we create a case for allocat-

ing further newbuildings for specialised trans-

port duties offshore.”

There are also encouraging prospects in Russia.

SMIT has already secured a long-term contract

for an icebreaking tug now being completed

in Japan. The 196 tonnes bollard pull ‘Talagy’

is required to support ExxonMobil’s Sakhalin 1

project. This is a one-year contract with pro-

vision for annual extensions up to five years.

Abel Dutilh comments: “We expect to see

strong demand for marine support services in

the Sakhalin region over the next two to three

years.”

“There are also interesting prospects in

Kazakhstan. In addition, we are enjoying

high rates of utilisation for the Giant barges.

The market in this sector is rather buoyant at

present. There has been very little movement

in terms of additional capacity in this market.

Therefore, the outlook is stable to good for

the non-self propelled barges. One issue here

is whether the balance between supply and

demand will be eroded to the point where new

investment in this sector can be contemplated.

We may reach a conclusion on this front over

the next year.”

In the Transport and Heavy Lift businesses,

SMIT recently introduced a new organisation

which integrates administrative support but

retains separate commercial organisations

for these activities. This recognises the fact

that these markets and their client bases have

entirely distinct characteristics.

The strategy for Heavy Lift is built around

consolidation of the business, following

restructuring of the fleet of floating sheer-

legs. The smaller units were traditionally com-

mitted to spot and short-term assignments

in Rotterdam-Europort, together with work

at nearby ports in the North West European

region. These sheerlegs have now left the

fleet. This strategic decision leaves the four

larger sheerlegs - ’Taklifts 1, 4, 6 and 7’ -

although a decision has now been taken to

dispose of the 800 tonnes lift capacity ‘Taklift 1’.

This will leave ‘Taklift 6’ on long-term deploy-

ment in Brazil and ‘Taklift 7’ operating largely

in the Mediterranean area (although this unit

recently mobilised to the Red Sea). ‘Taklift 4’

- the largest of the sheerlegs, with a lifting

capacity of 1,600 tonnes - will be far more

mobile in the future. ‘Takllift 4’ will soon join

‘Taklift 6’ in Brazil, to lift a series of modules for

FPSOs.

Abel Dutilh adds: “The idea generally is to

have a more mobile fleet, following the flow of

work around the world. This strategy makes

good sense for units such as ‘Takllift 4’, as the

sheerlegs workload in North West Europe has

decreased in recent years. Having said that,

we recently won a very useful bridge-building

assignment in Germany.”

“Overall, however, we do not anticipate fur-

ther major changes in the Heavy Lift business,

beyond the decisions already taken about

the smaller sheerlegs. Certainly, however, the

remaining sheerlegs will be on the move a lot

more than in the past. Our objective is maxi-

mum utilisation of equipment.”

SMIT TRANSPORT & HEAVy LIFT: MORE MOBILITy AND STABILITy

Unloading the hulls - joint action of the ‘Taklift 1’ and ‘Taklift 4’.

www.smit.com11

tug magazine

New commitments now require the ‘Taklift 4’

to return to Brazil, where it will assist in the

construction and outfitting of the P-52 and

P-51 FPSOs. ‘Taklift 4’ is mobilising from North

West Europe and is expected to arrive in Brazil

by the end of this year or early in 2006. Keppel

Fels Brazil awarded this installation contract to

SMIT Heavy Lift in April 2005.

In Europe, ‘Taklift 4’ recently performed the

main lifts for the K10 platform decommission-

ing in the Dutch Sector of the North Sea.

‘Taklift 1’, a sheerlegs with 800 tonnes lifting

capacity, is also deploying to South America.

This follows the completion of a busy work

programme, including lifts required for the

preparation of the K10-V platform for decom-

missioning. This sheerlegs departed Rotterdam

in late August, bound for Venezuela. ‘Taklift 1’ is

required by offshore fabricators Jantesa to lift

topsides modules, which will be transported in

the hooks to new foundations close to existing

platforms in the Maracaibo area.

Another SMIT sheerlegs, the 1,200 tonnes

lifting capacity ‘Taklift 7’, has been based in

the Mediterranean since it completed work

on the Rion - Antirion Bridge in Greece (con-

necting the mainland to the Peleponnese).

Recent assignments included the installation

of a jacket and topsides for the IKA-A Project,

offshore Croatia. The platform installation lifts

were performed on behalf of Saipem.

Having completed this assignment, the sheer-

legs then deployed for an unusual task involv-

ing Global Santa Fe’s Global Explorer. The latter

was due to enter the Black Sea but its drilling

tower was too high for safe passage under the

Bosporus Bridge. In June ‘Taklift 7’ removed the

drilling tower at Malta, then replaced the tower

in Turkish waters, following Global Explorer’s

safe passage through the strait.

‘Taklift 7’ is now preparing to return to North

Europe. During mid-October this sheerlegs

will commence a four-month assignment lift-

ing bridge sections on the Stralsund Brücke in

Germany on the Baltic coast. The new suspen-

sion bridge will connect the mainland and the

island of Rügen.

This year has seen the completion of a

series of long-haul assignments by SMIT

Transport’s three 24,000 DWT semi-sub-

mersible Giant barges. The year opened

with ‘Giant 2’ departing Sharjah for Port

Gentil, West Africa, with the Saibos 355.

This voyage was completed in early March.

The big barge then repositioned to the Far East

and a drydocking at Batam prior to the com-

mencement of a charter for Alcan’s Australian

operation, headquartered at Gove, east of

Darwin. Alcan is embarking on a huge expan-

sion of the Gove aluminium refinery. ‘Giant 2’ is

currently bringing in project cargo from load

ports throughout the Far East region.

Sister barge ‘Giant 3’ loaded dredging equip-

ment for van Oord at Batam during April,

bound for Sakhalin. This vessel then performed

a series of stone transportation assignments

at Sakhalin prior to backloading the dredg-

ing equipment for the return voyage to Batam

(where she is expected to arrive by the end of

year). The ‘Giant 3’ was accompanied by the tug

‘Smit Luzon’ throughout the duration of the

contract.

‘Giant 4’ finished a charter with Saipem during

the third quarter, having undertaken the trans-

port of a deck from Edinburgh to location in

the North Sea’s Buzzard Field. This assignment,

completed in July, was undertaken on behalf

of Saipem UK.

This barge is about to be towed by the URS

tug ‘Alfons Letzer’ from Rotterdam to Arbatax,

Sardinia, to load a large jacket. This structure

has a length of 120 m and a weight of 9,000

tonnes. Its destination is offshore Ivory Coast.

The voyage will take around 35 days. Upon

arrival, during October, this jacket will be dis-

charged by the large crane vessel S7000.

Forward work for the Giant barges includes

a voyage for Heerema. This will involve the

transportation of the De Ruyter topsides from

the client’s Zwijndrecht yard to location in the

Dutch sector of the North Sea.

Meanwhile, SMIT Transport is benefiting from a

new emphasis on multipurpose tonnage. One

of the 80 tonnes bollard pull anchorhandlers

ordered in Singapore, ‘Smit Kamara’, has a role

including transportation and accommodation

for project teams visiting unmanned platforms.

SMIT has won a five-year contract, commenc-

ing January 2006, for transportation services

utilising this new vessel. SMIT Kamara’s fea-

tures include a helicopter winching area and

Fast Rescue Craft capability.

This concept for unmanned platform servic-

ing was developed in association with Shell

UK and NAM (operating together as “OneGas”).

Special feature of the ‘Smit Kamara’ is an “OAS”,

or Offshore Access System. This heave-com-

pensated access gangway was developed by

OneGas, in cooperation with its subcontrac-

tors, Fabricom and Amec. The vessel’s DP

system will ensure safe access for personnel

using the gangway. OneGas regards ‘Smit

Kamara’ as a cost-effective personnel transport

solution which avoids the weather sensitiv-

ity and high costs associated with helicopter

operations.

BUSy SCHEDULE FOR SMIT’S GIANT BARGES

SOUTH AMERICAN FOCUS FOR SMIT SHEERLEGS

SMIT Heavy Lift’s floating sheerlegs have found ready markets in South America. ‘Taklift 6’,

1,200 tonnes lifting capacity, has been based in Brazil for several years. Its assignments

have included the major Barracuda/Caratinga FPSO heavy lift programmes. These required

a number of tandem lifts and ‘Taklift 6’ was joined by ‘Taklift 4’ (1,600 tonnes) for these

assignments. Since this project, ‘Taklift 6’ has worked on the P-47 FPSO for Ultratec and has

been a regular visitor to the Maua Jurong yard, near Rio, during July and August of this year

to work on the P-50 FPSO.

The ‘Taklift 4’ in Rotterdam lifting a container crane.

The ‘Smit Komodo’, one of the 82 tonnes bp

anchorhandlers, under construction in Singapore.

BASF subsidiary Wintershall Noordzee B.V.

awarded this contract last December. The use

of ‘Taklift 4’ avoided the need for a heavy trans-

portation barge.

SMIT has decommissioned offshore structures

in many parts of the world, including the Gulf

of Mexico, but K10-V was a first in North West

Europe. It was also SMIT’s first heavy lift project

for Wintershall.

Mark Jan van den Akker, SMIT’s Project

Manager, says: “K10-V was in a clean condi-

tion when the project began. All potential

pollutants had been removed. The topsides

weighed in at 875 tonnes, with the jacket

at 775 tonnes. Our accommodation/crane

barge ‘Taklift 1’ was mobilised for the prepara-

tory works. We secured all loose equipment,

erected scaffolding at the cutting positions on

the legs, inspected all lifting points and rigged

the sheerlegs. ‘Taklift 4’ then connected up

and transported the topsides in the slings to

IJmuiden. This 80 NM voyage took just over 10

hours. Weather conditions were excellent, with

significant wave heights of less than 0.5 m. On

arrival, the topsides was then placed on the

quayside and the main deck was separated

from the drilling deck.”

‘Taklift 4’ then returned to complete the

second phase, following the preparation of the

jacket. The scaffolding was removed and holes

drilled for the lifting pins, which were then

installed. These pins were located at positions

that distributed stresses throughout the struc-

ture during the lift and transport phases.

All subsea work has been performed

diverless. The underwater tasks

included cutting the four piles at posi-

tions 6 m below the seabed. A special

in-house designed airlift was used. The

mud plugs in each pile were removed

and the cutting tool inserted. This rotat-

ing, abrasive tool cut through each leg

and the sheerlegs was then connected

up to the lifting pins. The jacket (25 m

x 25 m x 48 m high) was then raised to

a point 17 m below the waterline and

transported in the slings, in this part-

submerged condition, to Rotterdam.

In basing its turnkey removal methods around

a sheerlegs, SMIT is able to offer a cost-effec-

tive alternative to the deployment of large

crane vessels and transport barges, in the

shallow water context. Whilst the sheerlegs

solution is more weather-sensitive than other

options, its cost-efficiency weighs heavily in its

favour.

SMIT Marine Projects has also just completed a

platform installation project in the North Sea,

this time in the UK Sector. The client was UK

oil and gas group Perenco and the contract

concerned the Trent Field gas compression

project.

The Trent Annexe Platform - known as a

“MOAB”, or Mobile Offshore Application

Barge - was constructed at Keppel Verolme,

Rotterdam, and towed to location by the two

95 tonnes bollard pull tugs ‘Zeus’ and ‘Primus’

in late August.

The convoy departed Rotterdam on August 31

and proceeded at a maximum speed of 3 kts,

arriving at location three days later. The MOAB

was installed in a waterdepth of 50 m, along-

side the existing Trent Platform. The two instal-

lations are now connected by an access bridge.

The MOAB’s four legs were raised for the tow-

out to UK Block 43/24, 210 miles off Rotterdam.

When on location two additional tugs, ‘Anglian

Earl’ and ‘Granit’, joined ‘Zeus’, and ‘Primus’ and

the DSV ‘Kingfisher’ for the final positioning

phase. The DSV provided accommodation for

the project team and also acted as the com-

mand centre.

The tugs hooked up the MOAB to a pre-laid

four-point mooring system and the legs were

then lowered by strand jacks. Sander Korte,

SMIT’s General Manager Marine Projects, says:

“This MOAB design avoided the need for piling.

Each leg was equipped with a large, 5 m high,

9 m diameter suction can. When we achieved

touchdown, we began to apply suction and

the cans penetrated into the seabed. After

installation the anchorhandlers demobilised

but the DSV remained on location to de-rig

the MOAB and connect up the access bridge,

which was soon lowered into place.”

New contracts for SMIT Marine Projects include

the removal of the remains of a former oil

export terminal in Angola. A project team is

preparing to carry out the Cabeça Da Cobra

and Soyo terminals work programme during

the first quarter of next year, on behalf of client

Total E&P Angola and SMIT’s Angolan subsidi-

ary OCTOMAR. The DSV ‘Smit Orca’ will remove

two offshore steel towers. The team will also

assist in the task of flushing out lines.

Work in the third quarter of this year included

a range of project and engineering manage-

ment services for the tow-out and installation

of the new FPSO Sea Rose in the White Rose

Field, off Newfoundland. This assignment was

on behalf of Husky Energy.

The new FPSO was towed from Marystown,

near Halifax, to location. It was then connected

up to a subsea buoy, in a waterdepth of 120 m.

The lines were connected up to a quick release

riser buoy. Seabed installations are set in three

glory holes. These features take account of

hostile ice conditions in the region. The instal-

lation of Sea Rose was completed in August.

SMIT Marine Projects has also completed the

installation of a large fender and boat landing

platform for an installation in the Balal Field,

offshore Iran. This project was carried out in

two phases. The first, performed for the Iranian

Offshore Energy Company (IOEC), involved the

recovery of the structure from the seabed. This

was achieved in October of last year, using the

crane barge ‘Smit Borneo’. The structure was

then taken ashore for repair and refurbishment

at a facility near Dubai.

The second phase, undertaken for Elf

Petroleum Iran, involved a return to loca-

tion and the connection of the refurbished

structure to the Balal Platform. This was com-

pleted during August. ‘Smit Borneo’ and two

anchorhandlers participated in the operation.

FIRST NORTH SEA DECOMMISSIONINGPROJECT FOR SMIT

During September SMIT Marine Projects completed the main, marine phase of its first

platform decommissioning assignment in the North Sea. The 1,600 tonnes lifting capacity

sheerlegs ‘Taklift 4’ was mobilised to remove the K10-V platform from the Dutch sector. The

topsides and jacket of this steel platform, located some 80 miles off the Dutch coast, were

taken in the big sheerlegs’ slings to IJmuiden and Rotterdam respectively. The deck is to be

reused for a new development. The jacket is now undergoing demolition.

www.smit.com13

tug magazine

SMIT TRANSPORT CELEBRATES 1000TH SUPPLy RUN

SMIT Transport South Africa recently

celebrated its 1,000th supply run for

De Beers Marine. De Beers is a name

famous worldwide and SMIT has

been supporting the company’s dia-

mond mining vessels operating off

the Namibian/South African coast.

This contract commenced in early 1999, when

the supply vessel ‘Sea Express’ began to make

regular runs to the De Beers vessels work-

ing offshore. The service expanded in late

September 2003, when a second vessel, ‘Sea

Carrier’, joined the ‘Sea Express’.

The two supply vessels operate out of the

small and remote coastal town of Port Nolloth,

on South Africa’s west coast and close to the

Namibian border. Cargo shipped from Port

Nolloth since record-keeping commenced in

December 2000, totals over 18,700 tonnes,

with cargo back-loaded for Port Nolloth

amounting to more than 11,200 tonnes.

SMIT Transport’s Commercial Manager in South

Africa, Dave Murray, says: “We have an excel-

lent service and safety record in this partner-

ship with De Beers. I would like to pay tribute

to the many sea-going employees who have

given such commitment to the De Beers con-

tract over the years.”

The 1,000th supply run was celebrated at a

reception at Port Nolloth in early September.

De Beers Supply Chain Manager Wim van Vliet

was present at this event. He commented posi-

tively on SMIT’s input and thanked the sea-

going personnel who ensure that the De Beers

offshore mining fleet is supplied regardless of

weather and other challenges. This motivated

SMIT team has its own motto, in Afrikaans: “Dis

‘n doen ding en ons sal hoog spring.” Roughly

translated into English this means: “The job

is there to be done and we will jump high to

keep the client happy.”

URS harbour assistance operations on the Scheldt have been reinforced with the arrival of

four newbuildings over the past 12 months. The new ASD (Azimuth Stern Driven) tugs are

now at work at Zeebrugge and Antwerp. In addition, two further newbuildings have been

ordered to meet growing traffic needs at Zeebrugge.

NEW URS TUGS ENTER SERVICEON THE SCHELDT

The URS fleet now consists of 40 tugs and the

salvage vessel ‘Union Beaver’. The SMIT/Fairplay

joint venture’s activities on the Scheldt focus

on Antwerp, Zeebrugge, Gent, Terneuzen and

Flushing. URS is also engaged in anchorhandling

and ocean towage.

The four recently delivered tugs are 33 m units

rated at 3,700 hp and with a bollard pull of 66

tonnes. The first to join the fleet was ‘Union

Coral’, delivered in late September 2004. ‘Union

Pearl’ joined ‘Union Coral’ at Zeebrugge in late

January. The two remaining newbuildings in

this class, ‘Union Ruby’ and ‘Union Emerald’,

arrived in Antwerp in May and September of

this year.

The four tugs were ordered as part of the URS

fleet renewal programme. The tugs were built

by Astilleros Armon, Spain. In July of this year,

URS placed a further order with this yard for

two ASD sister tugs with a length of 25 m.

These units are also rated at 3,700 hp and will

have a bollard pull in excess of 60 tonnes.

The two latest newbuildings were ordered to

meet increased demand for harbour assist-

ance at Zeebrugge. Three major factors are

expected to contribute to an increase in har-

bour towage requirements. Zeebrugge’s exist-

ing LNG capacity is set to double by 2007.

Container facilities are also undergoing expan-

sion. In addition, car carrier movements are

forecast to increase. Zeebrugge now claims to

be the leading European transhipment port for

cars. In 2003 the port handled 1.5 million units

and the annual total has continued to rise.

The harbour assistance workload on the

Scheldt is buoyant overall, with growth at

Zeebrugge matched by expectations of

increases in container-related traffic levels

and movements of other vessel types at

Antwerp. Demand for harbour towage at Gent,

Terneuzen and Flushing is stable.

In the salvage sector, URS was very active

in the three years to end-2004, with nota-

ble operations including participation in the

‘Pelican I’ salvage and the ‘Tricolor’ wreck

removal.

Supply vessels ‘Sea Carrier’ and ‘Sea Express’ support diamant

mining vessels operating off the Namibian/South African coast.

The ‘Union Coral’ is one of the four recently delivered 66 tonnes bp tugs.

In the first half of last year SMIT newbuild-

ing ‘Smit Kamara’ and ‘Smit Komodo’ began

life as several steel sheets astride a cut-

ting machine at Keppel Singmarine’s yard

in Singapore. In May of this year, just 14

months after the orders were placed, ‘Smit

Kamara’ was launched, followed in early

August by ‘Smit Komodo’.

Representatives from SMIT’s newbuilding team

were present on both occasions as the vessels

moved from the slipway into the water. A third

newbuilding, the more powerful ‘Smit Nicobar’,

will be launched in later in the year.

These newbuildings are part of SMIT’s overall

fleet renewal and standardisation programme.

The new Anchorhandling/Tug/Supply Vessels

(AHTSV’s) are designed and built to a specifica-

tion reflecting the operational requirements of

the oil and gas majors and major offshore and

civil construction groups.

The features of the new standard AHTSV’s

include: Class 2 dynamic positioning, Class I

firefighting, an additional “project deck” at the

forecastle deck level, a 450 sq m main deck

space, A-frame foundations and a 250 tonnes/

metre knuckle boom crane on the main deck

(portside aft and starboard midships).

This vessel configuration has inherent flexibil-

ity. The AHTSV’s are ideal for a wide range of

marine tasks, including ROV support, subsea

project work and trenching support, as well as

anchorhandling, offshore supply and towage

duties.

The Keppel Singmarine newbuildings are

classed by the American Bureau of Shipping.

All three have a UWILD notation providing for

five years’ continuous service without drydock-

ing, in contrast to the usual two years. This

notation required six layers of antifouling coat-

ing, together with Impressed Current Cathodic

Protection and anodal protection for sea

chests, rudders and nozzles.

These vessels are designed in compliance with

the requirements of the International Maritime

Dangerous Goods Code. Accordingly, they can

carry dangerous cargo on a designated deck

area, together with noxious substances in bulk

in the liquid mud tanks.

The testing of tanks has been completed and

piping and outfitting works are now nearing

completion. The testing of main engines and

machinery was under way at the time of writ-

ing. The first new vessel will shortly commence

sea trials. It has already been placed for a long-

term contract in the North Sea. In order to

service this contract, this vessel has been sub-

ject to additional works, including the instal-

lation of a purpose-designed Offshore Access

System (for easy access to unmanned plat-

forms), two Fast Rescue Craft on the project

deck and provision for a helicopter winching

area on the aft deck.

During the early morning of March 14 this

year the ‘Queen Elizabeth 2’ sailed majesti-

cally into Singapore harbour. This world-

renowned cruise vessel was on a world tour

and Keppel SMIT Towage had the honour

of berthing and unberthing a grand lady of

the seas.

The ‘QE2’, flagship of Cunard Line, was

launched by Her Majesty Queen Elizabeth II on

September 20 1967. Her maiden voyage took

place two years later. ‘QE2’’s vital statistics are:

70,327 tonnes, a length of 963 ft and a speed

of 32.5 kts. In short, ‘QE2’ remains one of the

largest and fastest passenger vessels afloat.

Due to her sheer size ‘QE2’ was berthed at

Pasir Panjang Terminal, rather than the usual

Singapore Cruise Centre. This berthing opera-

tion required two of Keppel SMIT Towage’s

brand new tugs, ‘KST Sky’ and ‘KST Saturn’.

Whilst the tugs were dwarfed by ‘QE2’, they

were powerful enough to assist her effortlessly

and smoothly.

‘KST Sky’ is a newly-delivered tractor tug. ‘KST

Saturn’ is a pusher tug delivered last year. Built

by Keppel Singmarine, these tugs have steer-

able propellers and are highly manoeuvrable.

This attribute is especially significant for the

safe handling of large vessels such as VLCCs

and ULCCs. Each tug has a combined engine

rating of 3,600 hp, with a bollard pull exceed-

ing 45 tonnes. ‘KST Sky’ and ‘KST Saturn’ are

fully equipped for firefighting and pollution

control and are capable of intervening effec-

tively in any marine accident or emergency.

For the ‘QE2’ operation ‘KST Saturn’ and ‘KST

Sky’ were assigned to assist from bow and

stern respectively. Although ‘QE2’ is a large

vessel, berthing her took less than an hour.

This was a special experience for Keppel SMIT

Towage and the company looks forward to the

next visit of the ‘QE2’.

FIRST OF THE SINGAPORE-BUILT AHTSV’SPREPARES FOR SEA TRIALS

BERTHING THE QUEEN: ‘QUEEN ELIzABETH 2’ VISITS SINGAPORE

‘KST Sky’ and ‘KST Saturn’ assisting the ‘Queen Elizabeth 2’.

www.smit.com1�

tug magazine

After a one-year hiatus, SMIT again graced

the World Port Days with its presence - and

it made its presence felt, all right!

This year the theme of the World Port

Days in Rotterdam was ‘An expe-

dition through a world port’.

In keeping with this theme,

thousands of visitors

were given a map with

explanatory notes and

led on an expedition

through ‘SMIT’s world’.

An impressive presen-

tation was given on the

‘E3505’ pontoon and visitors

were treated to an interesting

exhibition of SMIT’s diving, hoisting,

towage and salvage equipment, including a

large salvage wreck grab, the saw and gripper

used in the ‘Kursk’ salvage operation, various

anchors, pumps, hoisting hooks and shackles.

Another popular attraction was the diving

tank, where visitors could take a dip under

the professional supervision of some of SMIT’s

divers - that is, a few of the handful that was

not away assisting hurricane Katrina aid opera-

tions in the Gulf of Mexico.

The pontoon also featured an exhibition tent

with photo panels and a film tent where vari-

ous SMIT films could be seen. Visitors could

also look round the ‘Hudson’ museum ship,

which was moored alongside the

pontoon.

SMIT’s tugs participated in

the various demonstra-

tions on the River Maas.

Pushed by the ‘Maas’, the

E3505 joined the pro-

cession of beautifully lit

ships in the Light Parade

on Saturday evening. The

large salvage wreck grab was

a dazzling display of lights, as

was the SMIT globe. To top it all off,

SMIT also won first prize! The prize was a flag,

which SMIT accepted on Sunday afternoon

and was instantly lifted in the mast in front of

our headquarters.

WORLD PORT DAyS 200�