A9RD184

Information from DNV to the bulk carrier industry No. 2 September 2007

Cargo gearAlso inside:n MacGREGORn TTSn Cargo Safetyn Oshima Shipyardn Tsuji Heavy Industriesn Fednavn Gearbulk

DNV Bulk Carrier Update

2 BULK CARRIER UPDATE 2 2007

Cargo gear,hatches andcranesDear Readers

The equipment suppliersare extremely important to

the bulk carrier industry. In this issue of Bulk Car-rier Update we have visited quite a few. We havealso included an article about the worlds mostefficient bulk carrier yard, as well as the strongestbulk carrier for its size in a global context. Finally,

2 Editorial

4 MacGREGOR,selfunloading

8 MacGREGOR, hatch covers

12 TTS

16 Cargo Safety

22 Oshima Shipyard

28 Tsuji Heavy Industries

32 Fednav

36 Gearbulk

40 Bulk market

Front cover: Brand new Tsuji cranes atthe factory in Sasebo, Japan.

All text and photographs: Magne A. Re,except where otherwise stated.

page 4

MacGREGOR/Nordstrms

selfunloader from 1956

page 12

TTS hatch covers

page 36

Gearbulk

The Oshima Shipyard is one of the worldsmost productive yards.

Contents Editorial

BULK CARRIER UPDATE 2 2007 3

we have visited a shipowner that uses theterm geared bulk carriers in the companyname without having any vessels that canbe called bulk carriers in the traditionaldefinition of the term.

DNV has been in shipping for close to150 years, and we have never before hadthe chance of visiting so many highly spe-cialised manufacturing environments at thesame time. Quite frankly, we are veryimpressed. The cargo gear industry is, ofcourse, highly specialised, as specialisedcargo requires specialised solutions in closeco-operation between owner, yard, equip-ment manufacturers and class.

A hatch cover is just a hatch cover, manymay claim. Yes, the cover will have to bestrong and the tightness is imperative tothe seaworthiness of vessel. But that is notthe whole story. The design and technicalsolutions will vary according to use andtrade. For the future, more environmental-ly friendly hatch covers are being intro-duced electrically operated with no needfor hydraulic piping and fluids that can bespilled or even freeze up under extremeconditions.

We hope you will enjoy the industryoverview you will get in this issue of BulkCarrier Update. It will take you from Fin-

land, Sweden and Canada to Japan. Thereare considerable investments in yards andmanufacturing equipment, in addition tohighly competent and skilled people. We would like to thank MacGREGOR,TTS, Oshima, Tsuji, Fednav and Gearbulkfor the assistance in making this issue ofBulk Carrier Update an interesting edition.

Ulf FreudendahlDNV Business Director, Bulk Carriers

From cables to belts and cement

Cement carriers are very special shipswhere we can offer a unique and very well-documented competence base on what isproven technology, but not a technologywhich can be easily utilised unless youhave the competence and experience,says Jan Karlsson, Selfunloading SystemsDirector of MacGREGOR Bulk.

Cement, he continues, is oftenloaded by blow pumps that actually blowthe cement into the cargo holds. Thereare also fluidised tank bottoms to ensureair flow for the process. Cement behavesas a fluid when mixed with air. After load-ing a vessel the ship will have to wait forthe cement to settle before leaving port toavoid stability problems.

The average age of a cement ship isactually some 25 years and the total fleet

consists of some 350 to 400 vessels, bothconverted bulkers and newbuildings. Withglobal construction of newbuildings onshore running high, the demand forcement is consequently high. The globalconstruction boom is not going to slowmuch over the next years, so we see thedemand for cement carriers to be ratherstable at a steady increase also in thefuture, says Karlsson.

The fleet is rather old and we areexpecting that a replacement boom willcome soon. We deliver all the necessaryequipment from the fluidised bottomsfor reclaiming cement in holds, the verti-cal and horizontal screw conveyors fordistributing cement to and from theholds, the blow pumps for pneumaticconveying from ship to silo, the bulk dis-

MacGREGOR I


Jan Karlsson, Selfunloading Systems Director, MacGREGOR Bulk, with drawings of a cement carrier.

Enkping is a small Swedish town 60 kilometres west ofStockholm where a company called Nordstrms starteddelivering elevated cable transport systems for industrialpurposes back in the 1880s. The systems were designedfor long distance operations. This materials-handlingbackground made the step into shipping and the handlingof bulk materials natural. Nordstrms is a well-knownname of MacGREGOR Bulk (formerly BMH Marine), adivision within the MacGREGOR Group, specialising in drybulk handling solutions. This is now MacGREGOR Bulk,specialising in various types of selfunloaders. In 1947 theydelivered the first totally enclosed selfloading/unloadingcement carrier with highly automated cargo handlinggear. Over the past 60 years, Nordstrms systems havebeen installed into more than 90 cement carriers sizedbetween 500 and 40,000 dwt. In addition, nine floatingcement terminals have a Nordstrms system installed.


Melvin H Baker, a 17,200 dwt selfunloader with Nordstrms gravitysystem, at delivery in 1956.

Melvin H Baker unloading in Philadelphia, US, in 1994.

charge boom for mechanical dischargefrom ship to shore as well as the electri-cal control system for automatic controlof the process and systems, continuesKarlsson.

Another product from MacGREGORBulk in Enkping is the gravity type self-unloading system. It works as follows: Dis-charge is done through hydraulically oper-ated gates, either basket gates or MovingHole feeders, fitted to the outlet hoppersin the bottom of the cargo hold, onto thelongitudinal hold conveyors located onthe tank top level.

The hold conveyors incline in aft partof the cargo holds and discharge thematerial onto the cross conveyors. Fromthe cross conveyors the material is trans-ferred to the C-conveyor located on the

ships centre line, just forward of theengine room bulkhead or in front of theforward hold at the bow of the vessel. TheC-conveyor elevates the material to maindeck and discharges onto a slewable andhoistable boom conveyor.

The boom conveyor is equipped withone continuous belt with a telescopic endfor easy positioning and transferring ofthe material to the receiving arrangementashore. The discharge capacity can be upto 6,000 metric tonnes per hour. Theboom conveyor has a maximum reach ofsome 76 metres.

For safety of the vessels and crew, Mac-GREGOR has also developed the Water-tight Bulkhead Door designed to minimisewater leakage though the conveyor tun-nels between the cargo holds in case of

emergency. All doors are to be closed andsecured when the ship is at sea.

Jan Karlsson has a great amount oftechnology to describe, including new off-shore barge based terminals for vessel dis-charge to Cape size vessels, to the bulkhandling system for cement consisting ofthe cement tanks, compressors for trans-port air, control systems, valves and dusthandling systems.

The story of M/S Melvin H Baker isunique: On 12 January 1997, the MelvinH Baker completed her 1,797th voyage, aremarkable achievement for a 17,939 dwtbulk carrier in international blue watertrade. The Baker, now approaching 50years of age, looks as good as new, espe-cially her engine room and selfunloadingequipment, says Skaarup Shipping.

The Melvin H Baker was built by theGerman yard AG Weser and delivered toher owners in 1957. Named after the

founder of the National Gypsum Compa-ny, she was designed by Ole Skaarupwhose company, Ocean Wave ShippingCorporation, now owns her. Incorporatedwithin her hull is a Nordstrms selfunload-ing system which provides significant effi-ciencies and cost savings by rapidlyunloading her cargo through a stern dis-charge shuttle conveyor.

Through more than 40 years serviceand 1,797 voyages, she has carried inexcess of 28,620,893 million tonnes ofcargo from Nova Scotia to various US EastCoast ports. She has travelled a total dis-tance of 2,869,236 nautical miles. The fig-ures are now ten years old and she is stillin the same trade.

MacGREGOR I


Stones, a 28,400 dwt bulk carrier with Nordstrms selfunloading gravity system.


C-conveyor elevating system for Stones.

Typical layout of Nordstrms cement handling system.

MacGREGOR II


A long history of engineeringinnovationThe cold winter winds sweep through the streets of bo (Turku) in Finland, and it feels much colder than theminus 12C that the thermometer reads. We take a taxiout to a pine-covered area called Kaarina where MacGREGOR is located. Bulk carrier specialist TorbjrnDahl, Senior Naval Architect, Bulk Ships, Dry CargoDivision, has worked on the topic of hatch covers for thepast 15 years.

The story of MacGREGOR does not startin bo, but in England. During the1920s, concerned over unnecessary lossesof North Sea colliers, the engineer RobertMacGregor developed the first steel hatchcover. The simple design consisted of fivearticulated covers that stowed neatly at theend of each hatch. Patented in 1929, thisground-breaking concept improved ship

and cargo safety and changed the face ofcargo care forever. In 1937, to promoteand sell his steel hatch covers, RobertMacGregor and his brother Josephformed MacGREGOR & Company inWhitley Bay on the north-east coast ofEngland. (www.macgregor-group.com)

MacGREGOR delivers standard foldinghatch covers for geared mini bulkers,

whereas for the Handysize and Handymaxthey normally specify folding hatch covers.Very wide hatches are increasingly speci-fied to allow for loading of non-bulk car-goes such as steel coils and forest prod-ucts. For the Panamax and CapesizeMacGREGOR normally delivers siderolling hatches. The company also worksclosely with IACS and IMO to develop new

Typical chain driven side rolling hatch covers.


Torbjrn Dahl, Senior Naval Architect, Bulk Ships, Dry Cargo Division, MacGREGOR.

A chain drive arrangement.A rack and pinion drive for side rolling hatch covers.

industry standards. For the VLOCs (verylarge ore carriers) they provide siderolling hatch covers with one or two pan-els.

What I would really like to see, saysDahl when discussing IMO and IACS stan-dards, is even more coordinated andcommon rules for bulk carriers and hatchcover solutions. We gave some 100 com-ments to the Common Structural Rulesproposals. As we all know, the IACS com-mon structural rules for bulk carriers werenot approved but here I would urge theclass societies to try to make someimprovements when it comes to clarifybetter the interpretation of the rules. Top-ics to be addressed can be the height ofhatch covers. The list of topics is long,says Dahl who welcomed a good discussionwith DNVs Ulf Freudendahl, director ofBulk Carriers.

We have a very good competence cen-tre here in bo, continues Dahl. We usethe DNV rules for bulk carriers actively incalculating hull stress and loads when wedesign our hatch covers. How the vesselsbehave at sea, including any sloshing, arevery important factors for us. As we arehatch cover specialists, we are verydependent on correct calculations fromclass, as well as class experience onfatigue.

Today we produce most of our hatchesin China, just a little outside of Shanghai.Currently we are engaged in some 150bulk carrier projects, says Dahl.

Dahl is also featured in MacGREGORscompany magazine under the headline:Innovating to protect the environment.This clearly focuses on the advantages ofreplacing hydraulics with environmentallyfriendly electrical drives. MacGREGOR

MacGREGOR II


MacGREGOR side rolling hatch covers.

now introduces a range of cargo systemsbased on electrical drives instead ofhydraulics.

Environmentally friendly solutions forthe shipping industry have become moreand more important, says Dahl. Electricdrivers offer many advantages to shipown-ers and shipbuilders compared withhydraulic versions. The main advantagesare that hydraulic oil leakages are elimi-nated, there is no need to fit hydraulicpipework on board, electric drives are easy

to monitor and maintain and they offerenergy savings. According to the Mac-GREGOR article, the advantages for own-ers are many, including: No pollution ordamage to goods by hydraulic oil, nohydraulic oil required, maintenancefriendly, operation place is not limited,energy saving as no continuous running,all equipment can be operated easily, noproblems with cold weather and easy tomonitor. To the shipbuilder the advan-tages include: Cable wiring is easier than

piping, no flushing work required, nocontrol stand installation is required, flexi-ble building schedule can be expected, noneed for high pressure hydraulics skillsand finally no pump unit needed.


Left: Two-panel folding hatch cover. Right: The patented/innovative self-locking Roll-up-Roll lifting mechanism for Autocleating.

GLB electro-hydraulic deck crane. GLE electric cranes.

First and last call

First and last call is a quote from thecompany 2006 annual report:

Another way of expressing our visionis that TTS wants to be the supplier whichreceives The first and last call: Thismeans that TTS Marine aims to be thecompany that the customers call firstwhen they are considering new solutionsand new projects. TTS shall possess theexpertise and capacity to advise customersduring this phase. The last call we wantfrom the shipyards at the end of theirdecision process, to get the chance tomeet the lowest price. This means thatTTS must have a globally competitive coststructure in order to compete with thelowest bidder.

This is a bold statement from the 1.6billion NOK turnover company, boastingearnings just short of 100 million NOK for2006.

The TTS operations are divided intothe divisions Marine Cranes, Dry CargoHandling, Port and Material Handling,Deck Machinery and Drilling Equipment.TTS has 1,100 employees and the head-quarters are in Bergen, Norway. We, how-ever, visited TTS in Gothenburg, Sweden,talking to Gran Johansson, Head of Portand Material Handling division and SalesDirector Nils O. Ericsson of TTS ShipsEquipment AB.

We are also very pleased with thedevelopments of our company as a conse-quence of the high activity level in generalterms for the maritime industry, but alsofrom the efforts of the TTS team. Ourorder volume right now includes a total of

TTS


TTS is a global provider of hatch covers.

Handling systems for the maritime industry constitutethe product and service lines from TTS, based in Bergen,Norway. The company resources are focused on designand engineering in addition to assembly and testing ofcargo handling systems and for the bulk carrierindustry this means mostly cranes and hatch covers.


Nils O Ericsson (left), Sales Director, and Gran K Johansson, Head of Port and Materials Division, TTS in Gothenburg.

TTS side rolling hatch covers for OBO vessels.

equipment for about 600 vessels and ofthose 250 are bulk carriers. 150 areHandy, 50 are Cape and 75 Panmax. Forthe bulk carriers our deliveries compriseside rolling hatch covers for the Cape andPanamax vessels, folding for the Handysize vessels, says Johansson.

The bulk market has surpassed ourexpectations and we now manufacture thehatch covers mostly in China, where wehave more than 50 employees. Thehydraulics and electrical equipments aremanufactured in Germany. We have amarket share of some 65 per cent inChina which we are very proud of,through our partnership with CSCC, saysJohansson.

The product portfolio for bulk carriersincludes weatherdeck hatch covers, tween-deck hatch covers, side loading systems,external doors, cargo cranes, gantrycranes, service and provision cranes, res-cue boat davits and winches. For the com-plete range of TTS services, please visitwww.tts-marine.com.

TTS


TTS has solutions for most ship types, including folding hatch covers.

TTS equipment meets the needs for heavyduty performance.


TTS has solutions for shipowners handling requirements in the diverse dry cargo ship sector.

Cargo SafetyThe overall objective of the Classification Societies is toensure the safe operation of the ship in all sea andweather conditions. As long as the seaworthiness of theship is ensured, limited attention has been given to thecargo by class. However, DNV has introduced anadditional service, the Fitness for Cargo Programme, an inspection and follow-up programme focusing oncargo safety.

Hatch covers on bulk carriers have twobasic functions: In open position hatchcovers provide access to the holds forloading and discharge of cargo. In closedposition hatch covers seal the hatchway ina weather-tight condition when at sea,meaning that in any condition, thereshould be no leakage into the cargo hold.This is in compliance with the Load LineConvention.

Approximately a third of all P&I claimsare cargo-related. Numerous of thesecases are related to ingress of seawater viathe hatch covers of dry cargo vessels.Ingress of a small amount of seawater intothe cargo hold does not usually representany risk to the safety of the ship, but evensmall amounts of water may do extensivedamage to cargoes sensitive to seawater,e.g. steel and paper cargoes. According toP&I clubs, reports of leaking hatch coversare the most frequent cause for selecting avessel for an unscheduled condition sur-vey.

For endorsement of Load Line Certifi-cate and Classification Certificate covering

vessels hull, hatch covers on bulk carriersare subject to annual inspection by theClassification Societies surveyors. Thescope of the annual inspection is coveringthe structural parts of the coamings andthe hatch covers, in addition to examina-tion of closing, sealing and securingdevices.

Extended requirements for examina-tion of hatch covers, including coamings,are given in the Guidelines on theEnhanced Programme of Inspection dur-ing Surveys (ref. IMO Res. A744(18) asamended, applicable from 1 January2007). The Resolution states that at leastthe hatch cover sets wholly or partly with-in the forward 25 per cent of the shipslength, and at least one additional set,such that all sets on the ship are assessedat least once in every five-year period,shall be surveyed open, closed, and inoperation to the full extent in each direc-tion at each annual survey, including:n stowage and securing in open position;n proper fit and efficiency of sealing in

closed condition, and;

Fitness for Cargo Programme


Typical cargoes sensitive to water; steel coils and paper.

n operational testing of hydraulic andpower components, wires, chains andlink drives.

In addition to surveys performed by theClassification Societies surveyors, SOLASCh. XII states that all bulk carriers shallcomply with the maintenance require-ments provided in the Standards forowner inspection and maintenance ofbulk carrier hatch covers (ref SOLAS XII,Regulation 7 amended by MSC Res.170(79) on December 2004, replacing the1997 version, entering into force on 1 July2006). The hatch cover maintenance planshall also form a part of the ships safetymanagement system as referred to in theISM Code.

In order to ensure that the cargo car-ried is safe from the ingress of waterthrough the hatch covers, tightness testinghas to be performed. Tightness testing isperformed by class at renewal surveys, andthe three most common tightness tests arewater hose testing, ultrasonic testing andchalk testing. However, chalk testing is not

considered to be a leak detection test, as itwill only give an indication of poor com-pression and potential leaks. If hatchesare found to be leaking during the test,necessary repairs shall be made, and thehatches shall be tested again.

The latest and most accurate way oftesting hatch covers is by ultrasonic test-ing. Ultrasonic testing is also an easy testto perform, using a transmitter box and adetector. The transmitter box, emittingultrasound, is placed inside the cargohold and the inspector can register leak-ages of ultrasound by leading a portabledetector alongside the hatch cover edgesand in way of the connection of the pan-els. Another advantage of the ultrasonicmethod is that the tightness testing canalso be performed when the ship isloaded, as long as it is possible to get intothe cargo hold placing the transmitterbox.

The Fitness for Cargo Programme isdesigned for Bulk Carriers and GeneralCargo Carriers. In the programme, theship is assessed relative to a set of mini-

mum requirements for cargo fitness andsafety by review of documents, visualinspection, function testing, and tightnesstesting. The tightness testing performedin the Fitness for Cargo Programme isdone by the ultrasonic method, and if thevessel is free of non-compliances, a Fit-ness for Cargo Statement will be issued.The Condition Assessment & EmergencyResponse department is responsible forthe Fitness for Cargo Programme. Formore information, MTPNO868 may becontacted directly.

In order to maintain weather tightnessof hatch covers over the life of the ship,regular maintenance and repair of gas-kets, seals, retaining channels, restingpads, etc. should be expected due to wearand tear.

When leakages occur, the rubber gas-kets of the hatch covers are usually hard-ened, compressed, chafed, or loose. Thegasket manufacturers rule of thumb is toreplace the packing when a permanentimpression reaches half the design value.The design value is usually in the range of


A DNV surveyor performing ultrasonic testing.

Fitness for Cargo Programme


1015 mm. When replacing rubber gas-kets it is highly recommended to use origi-nal gaskets and to seek the hatch covermanufacturers advice. Cheap rubber gas-kets will rapidly become permanently com-pressed, and the loss of resilience maycause lack of tightness after a few monthsof service. To ensure a well functioningand effective rubber gasket, the mainte-nance of the retaining channel and thecompression bar is of importance. Thegasket retaining channels are among theweakest parts of the hatch cover structure,and maintenance may be cumbersomeand often neglected. If highly corroded,the retaining channels are often not ableto provide sufficient support of the gas-kets.

Insufficient maintenance of the steel-to-steel contact between cover and coamingmay result in over-compression of rubber

gaskets impairing the weather tightness ofthe hatch cover. If this steel-to-steel con-tact is not achieved, good and original gas-kets may be rapidly damaged by over-com-pression. To achieve a correct designpressure of the gaskets, renewal of padsmay be required. In addition, wear andtear of resting pads may restrict the freesliding of the hatch cover related to theship. Subsequently the imposed stressesmay result in hatch cover cracking asshown on the picture.

Securing devices, e.g. quick-actingcleats, heavy duty automatic hook cleats,auto cleats etc., are often damaged and notfunctional, or simply not engaged by thecrew. The most common problems are seri-ously weakening of the cleat by corrosion,or hardened and loss of elasticity of therubber disc. All securing devices shouldalways be well maintained and engaged.

Folding hatch covers. Side rolling hatch covers.

Bulk carrier in heavy weather.


The responsibility for maintaining theships hatch covers and locking deviceslies with the owners and operators, notwith the Classification Societies. Increasedinvestment and attention to hatch covermaintenance and repairs may save theshipowners money from cargo claims. As an easy guide to inspection and main-tenance of hatch covers the following canbe considered best practice:

n Rectify any steel-to-steel contact beforerenewal of rubber gaskets

n Replace missing or damaged rubber gaskets immediately (minimum length of replaced gasket should be one metre)

n Keep retaining channels and compres-sion bars in good condition

n Keep hatch coaming tops clean, and thedrainage channels free for any obstruc-tions

n Keep cleats and wedges in serviceableconditions and correctly adjusted

n Keep hauling wires and chains adjustedcorrectly

n Attach locking pins and chains to opendoors and hatches

n Keep wheels, cleats, hinge pins, haulwires and chain tension equipment wellgreased

n Test hydraulic oil regularly for contami-nation and deterioration

n Keep hydraulic systems oil-tight

n Ensure the oil tank of the hydraulic sys-tem is kept filled to the operating leveland with the correct oil

n Clean up oil spills

n Engage tween deck hatch cover cleatswhen the panels are closed

n Give notice that maintenance is beingperformed so that no one tries to oper-ate the hatch

n Remember that continuing and regularmaintenance of hatches is more effec-tive and less expensive than sporadicinspection and major repair.

For more information [email protected]

Broken rubber gasket/rubber seal. Damaged resting pad, resulting in crackingof hatch cover.

Typical quick-acting cleat.

A DNV surveyor performing ultrasonic testing.

The skill of shipyard workers must never be underestimated. The sparks are flying in a Chinese shipyard.

Shipbuilding in China


Four superstructures lined up for assembly.

Innovation in bulkcarrier design andproductionSince the beginning in 1973, Oshima Shipyard, located inthe very southwest corner of Japan, has produced closeto 500 bulk carriers. In 1989 the yard decided toconcentrate on bulk carriers only. This has paid off interms of efficient production and innovation.

Oshima


Oshima


The yard produces some 30 vessels peryear with a total workforce of only 1,000permanent employees and some 700 sub-contractors making Oshima the mostefficient yard in Japan in terms of tonnageproduced annually per employee. Theorder book is comprised of 150 vessels,and contracts are now negotiated for 2012and beyond. DNV has a long-standingexcellent relation to Oshima, and 77 ofthe delivered vessels are to DNV class with21 on order by the end of September2007. We are very well received and takencare of by Mr Tatsuaki Hori, Senior Execu-tive Managing Director, Dr Shinji Nonaka,Director, Vice Yard General Manager,General Manager of Design Department,as well as Mr Shigehiro Mori, Acting Gen-eral Manager of Design Department.

Innovation in bulk carrier design is akey element to Oshima operations. Thenumber of repeat customers among inter-national shipowners and operators isproof that the specialisation of the yardon bulk is most successful. As we arrivedby passenger high-speed ferry to the yardfrom the nearby town of Sasebo in pour-

ing rain, we could see the close-to-deliverybulk carriers with an innovative bowdesign. Oshima has no less than threemajor bulk carrier design elements thatwere described to improve performance,reduce fuel consumption and consequent-ly have an overall positive environmentalimpact. The three design elements Sea-worthy Bow, High-Lift Rudder, and Flip-per Fins are described in the following.

Tatsuaki Hori, Senior Executive Managing Director.


Seaworthy BowThe new bow design gives the vessel onthe average five per cent less fuel con-sumption in North Atlantic trade. Thespeed loss when heading into the waves isreduced. I believe this bow will soon bethe standard on all Oshima built vessels,says Hori.

Seaworthy Bow (Saga Adventure) and Conventional Bow (Dubai Crown).

Yo Hirokawa, Principal Surveyor and DNV District Manager, West Japan.

Oshima


High-Lift RudderThe new rudder design (see illustrationbelow) improves bulk carrier manoeuvra-bility compared to a conventional rudder.There is higher lift coefficient and higherdrag coefficient when steering. The maxi-mum helm angle can be taken up to 45degrees.

Flipper FinsThe bilge fin (see illustrations below)deflects bilge vortex to get wake gain andaccelerate the flow near the top of pro-peller to reduce propeller-hull interaction.

The aft-end fin is added for rectifying theflow around the centre of propeller toreduce resistance. The effect of the flipperfins is some four per cent less fuel con-sumed.

Aft end fin.

Bilge fin.

Oshima High-Lift Rudder.


When discussing the overall future trendsin bulk carrier demand, Hori says, I thinkhandymaxes will split into the segmentsbetween length overall less than 190metres and those between 190 and 200metres. The overall ship economy and life-cycle-costs together with the upsizing ofships would be key factors of optimumchoice to maintain a competitive edge.One of our best solutions for that trend isOS Max 60 with 200m L over all. Its dwtexceeds 60,000 mt at shallow draft of12.8m complying with Common StructuralRule. Its fuel oil consumption is lowerthan that of current 55,000 dwt typedesign.

Currently new building business aretalked for delivery four or five years aheadand shipowners are beginning to show aninterest in new ship designs with the com-pletion of the new Panama Canal someeight years from now. In addition, when itcomes to coal carriers, I am confident thatOshima is the most experienced shipyardin this field through the construction ofmany carriers ranging from 80,000 dwt to105,000 dwt with shallow draft. In the caseof bulk carriers, because of a gap betweenthe dwt with maximum canal dimensionsand the freight lots to pass the PanamaCanal, the ship type is not likely to be inte-grated into one type just like the currentPanamax bulk carrier. I think we will beable to come up with solutions consider-ing all factors, including port constraintssuch as ship length, width, draft, cargohandling shore equipment and operationfor non-Panama Canal routes, says Hori.

We have prepared the line-up not onlyfor coal carriers but also Post Panamaxstandard bulk carriers (so called BabyCape BC) designed with Ore Alternatehold Loading modified from above men-tioned coal carriers and a new design of120,000 dwt type OS Max-120. We willmake flexible response considering mar-ket needs.

Increasing demand for half productstrade such as the forest products besidesbulk cargoes is our primary concern. Thiswill lead to increased demand for boxtype hold bulk carriers with widenedhatches and gantry or jib cranes as well asbulk carriers with TST and Hoppers. Oshi-ma has come out ahead in the world inthis field in terms of performance, experi-ence and technology, and we have devel-oped the design for the worlds largest71k-dwt open-hatch bulk carrier, saysHori.

We ask him about challenges andtrends in cargo handling gear and equip-ment. Our most concern is paid to manu-facturers to keep stable and sufficient sup-ply to meet with recent rapidly increaseddemand of bulk carriers. From this stand-point, I think we need to strengthen ourties with manufacturers, he says.

Oshima is now enhancing to operatefactories at higher speed than ever, saysHori, noting that Oshima is making a49,000 square metres landfill at the centreof the shipyard using soil from an adja-cent mountain. The landfill will become anew site for block storage and a newgrand assembly and the third mooring

berth will be constructed here. A 1200tGoliath crane will be installed by nextJune, in addition to the existing two setsof 300t cranes, to enlarge the extent ofgrand assemble blocks and to improvedock performance. We will strive to focuson our challenges, to prepare for ship-building demand increase and attain theultimate possibility of shipbuilding capaci-ty in Oshima, says Hori.

At the DNV Oshima site office: Katsunori Takahashi (left), Senior Surveyor, and Toru Nakashima, Surveyor.

Oshima Shipyard Layout.

Welding at Tsuji. Gantry crane manufacturing.

Tsuji


The Road is InfiniteTsuji Heavy Industries has become the worlds largestmanufacturer of hatch covers and has an impressive listof products for the maritime industry. The company alsospecialises in design and manufacture of marine cargohandling equipment. Tsuji manufactures its own designs,putting 50 years of experience in all products.

The company is owned and operated bythe Tsuji family now second and thirdgeneration. Masahiro Tsuji, Chairman ofthe Group, writes in a foreword: A whileago I came across an old calligraphy, writ-ten by my father in his typical powerfulstyle. It read in Chinese characters: TheRoad is Infinite. I often wonder what myfather was thinking when he jotted downthose words, which has become our credosince. Today Tsuji has 800 employeeslocated mostly in Sasebo, Japan, andanother 2,000 in Shanghai, where com-plete bulk carriers are being built.

We have three news items at Tsuji,says Fulco Vrooland, Vice President andmember of the executive board. That isabout electric driven hatch covers, electricdriven deck crane and shipbuilding inZhangjiagang City some 150 kilometres upthe Yangtze River from Shanghai.

Vrooland, a Dutch national, is joinedby Izumi Ohsugi, managing director,

hatch cover/ro-ro division, and KosakuKawasaki, manager business department.The market is for the time being verygood and we have full order books, saysVrooland. We have concentrated on bulkcarriers as well as cranes and hatch coversfor this segment. We are number oneglobally in terms of market share on deckcranes, number two on hatch covers. I amquite proud to say that whatever we puton paper we build here, and the com-ments from our customers are very posi-tive about this. We provide simple andeasy-to-use equipment and have alreadyintroduced products to the market thatothers may still be working on, saysVrooland.

Electric driven hatch coversTsuji has developed a fully electric-drivenside-rolling type hatch cover with a patentpending. A full-scale model has been builtand was extensively tested at Sasebo dur-


ing the spring of 2006. This new type ofhatch covers is to be used on Panamaxand Capesize bulk carriers, offering somevery distinct advantages to shipowners:Less maintenance compared to hydraulic-driven hatch covers with less energy con-sumption and no risk of pollution due toleakage from hydraulic systems, ensuringthat it is environmentally friendly. For theyards the advantages can be summarisedas follows: No heavy and long piping andflushing works for hydraulic systems andless outfitting due to simple design with-out hydraulic jacks or cylinders.

The main features of the systeminclude jacking up/down and opening/closing done by only one electric motorper hold, running wheel is attached to aturntable lever, hinged on the hatch coverside. By pushing the hinged lever with acam fixed on the hatch cover side as well,the hatch cover is lifted up. The cam isoperated by a pulling arm connected to

the towing chain of the hatch cover.Selecting adequate arm length, a heavyhatch cover can be lifted up by the rela-tively small driving winch. The locator,which keeps the hatch cover in properposition during the voyage, also preventsthe hatch cover from running before com-pletion of jacking-up. Once jacking up iscompleted, the hatch cover is operatedthrough the pulling force of the towingchain.

Electric driven deck crane CRANE-eTsuji has introduced the electric drivendeck, CRANE-e. The company developedthe new inverter-controlled electric drivenstandard 36-ton lifting capacity deck cranebased on long experience with electricgantry cranes and four-rope heavy dutycranes. The CRANE-e reduces energy con-sumption by about 40 per cent. Further-more, by eliminating hydraulics, the sys-tem is simplified and the new crane is

Izumi Ohsugi, Managing Director, Hatch Cover/Ro-Ro Division and Fulco Vrooland, Vice President.

Tsuji


virtually maintenance-free, offering 98 percent less maintenance costs.

The need to address environmentalissues in the shipbuilding and shippingindustry has become obvious, and thuslower emissions of harmful CO2, NOx andSOx are welcome improvements to envi-ronmentally conscious shipowners andcharterers. Acceleration and decelerationis very smooth and precise. Other advan-tages include less sound pollution and

vibration. The electric system is alsopreferable when working in very cold orvery hot environments. Compared to tra-ditional electro-hydraulic cranes, initialpurchasing costs are higher, but reducedlong-time running costs make this techni-cally superior electric crane a good invest-ment. Based on 1,500 running hours peryear, total running cost reduction of 20per cent can be achieved over a ten-yearperiod.

ShipbuildingIn 2002 Tsuji opened a wholly-ownedlarge-scale facility in China, Tsuji HeavyIndustries (Jiangsu) Co. Ltd. The Zhangji-agang factory covers 330,000 squaremetres of land located on the YangtzeRiver close to Shanghai. The yard employs2,000 Chinese workers with a Japanesemanagement team.

In addition to having the worldslargest single-line hatch cover output, thecompany started producing megablockhull sections such as engine rooms, super-structures and funnel casing as a subcon-tractor for major Japanese shipbuilders.

With the average capacity having reachedup to 8,000 tons of steel monthly, thecompany was looking for further expan-sion opportunities. The chance came in2006 when the Chinese government grant-ed Tsuji the permission to build commer-cial vessels. There are currently 30 bulkcarriers of 30,000 dwt on order for deliv-ery 20082010. The ships will be built onland without a dry dock or slipway, usingthe Air Pad System (APS) with skid rail,now widely used in Korean and Chineseshipyards. Tsuji will continue to expandthe yard to meet the increasing demand.

Tsuji chairman Masahiro Tsuji and thecompany management have proven thatthe road is indeed infinite.

We have worked hard and passionatelyto achieve our goals, says Tsuji, and willcontinue to do so. Our vision is to be anever-dynamic enterprise filled with brightand creative minds, to meet the chal-lenges and limitless possibilities of thiscentury. Over the years, being innovativehas become our tradition, and it isthrough these roots that we stand strongand ready for a bold future.

Ram press.


30 ton bulk carrier cranes after shoptest.

CRANE-e. Electro-hydraulic crane system. New CRANE-e system.

Electric driven hatch cover. Lifting device for electric driven hatch cover.

The worlds strongest: Umiak IUmiak I is a 31,992 tonne icebreaking bulk carrier, themost powerful ever of its kind. The vessel moves 360,000tonnes of nickel concentrates a year in 12 voyages fromCVRD/Inco Ltd.s Voiseys Bay mine in the northernLabrador to its smelters in Sudbury, Ontario andThompson, Manitoba, Canada.

The DNV-classed vessel has ICE-15 classnotation, one of the highest ICE notationsany vessel can have. Basically, this meansthe hull is reinforced to navigate un-assist-ed through ice that is 1.5 metres thick.This very powerful and unique bulk carri-er only uses 35 per cent of the availableengine power on the open, ice-free sea.

Umiak I is a very specialised vessel car-rying an expensive cargo. Just the fourcargoes we move during the winter seasonhave a value of more than one billion dol-lars just look at the London Exchangefor global nickel prices, says Thomas H.Paterson, vice president of the owned fleetand business development at Fednav. Heis joined by John Weale, vice president,risk management and John T. Stubbs,manager, technical services, projects andbusiness development.

Nickel carrier Umiak I beats the bigfreeze is the headline in a Fednav pressrelease:

Built to serve a long-term contract cover-ing the transportation of nickel concen-trates from northern Labrador to StLawrence river, the vessel is testament toFednav groups long standing expertise onproviding solutions to challenging bulkcargo logistics. The concentrates shippedby Umiak I derive from CVRD/Incos newCanadian $ 3 billion Voiseys Bay NickelCompany mining, processing and produc-tion facilities. Cargoes are shipped out ofEdwards Cove for the 1,100 nautical milepassage to Quebec City from where trans-shipment is made to rail for deliveries tosmelters in Ontario and Manitoba.

Managed and operated by CanshipUgland of St Johns, the ship is designednot only to carry bulk concentrates, butalso re-supply cargoes for the productionoperations, including fuel oil. AlthoughVoiseys Bay is located just south of the60th N parallel, outside the Arctic Circle,winter ice conditions are more demand-ing than those in many high Arctic areas.

On her regular run down the Labradorcoast, Umiak I contends with some of theworlds most rugged ice conditions,including icebergs, from November to Julyeach year.

The 90-kilometre channel to theEdwards Cove loading terminal passesthrough a maze of islands, and has a five-month open season. In addition to thesubsequent ice build-up seawards, ice orig-inating further north is driven southwardby the Labrador current, creating particu-lar challenges in navigating though hard-packed shear ice.

Fednav


When the vessel encounters ice condi-tions and eventually stops in the thick ice,says Paterson, it backs up before ram-ming the ice. The only way to get throughis by using brute force. In order to do thisthe vessel has provided a milestone refer-ence, an electronically controlled MAN7S70ME-C engine producing 21,770 kWon a driving controllable pitch propeller,he says.

Fednav adopted the vessel to thedemanding and mixed operating profile.This calls for a broad range of operatingmodes, including ice ramming, slow

steaming and open-water service entailingboth high and low load scenarios. Theelectronically controlled engine offers therequisite degree of flexibility with goodoperating economy, and reduced emis-sions in an ecologically sensitive area.

Capability for effective ice ramminggoes hand-in-hand with the ICE-15 classifi-cation. The ramming procedure entailssailing at a specified speed through the iceuntil the vessel is brought to a stop by theresistance of the ice. The vessel is then putastern so as to come free of the packedice, and is then sailed full ahead, to break


Built in accordance with Canadian Flag requirements, the Umiak I has completed her first winter of operation in ice successfully.

Fednav


through the ice until brought up again bythe force of resistance. The procedure isused for thick ice and ice ridges, andimposes exceptional demands on themain engine. In order to enable repeatedahead and astern working within a shorttime-cycle, Umiak I has been equippedwith a controllable pitch propeller, obviat-ing the need for the time-consuming taskof reversing the engine. The screw isenclosed in a nozzle to protect the pro-peller against blocks of ice and to conferextra trust.

While the open-water speed in a ladencondition is some 13.5 knots, the bulk car-rier is said to be capable of making threeknots in level first-year ice of 1.5 metrethickness, the company states in a pressrelease. The vessel has an ice breakingbow, a wash system to help reduce frictionin ice, a V-shaped stern and an ice knife toprotect the rudder. The vessel was con-structed at Universal ShipbuildingsMaizuru yard, Japan.

Enfotec IceNavNavigation in the waters north of the60th parallel is a challenge with ever-changing ice conditions. Umiak I uses theEnfotec IceNav system Fednav has pro-vided the developmental platform. Ice-Nav is a shipboard navigational softwarepackage.

The main constituents of the system as demonstrated to us by Robert Gorman,Manager Environmental Services, Enfotec are the IceNav Navigation Module andthe marine Radar Module, operating on asingle PC with displays on two screens.The two modules are completely integrat-ed with route plans created on one mod-ule and displayed on the other. In addi-tion, the more recently developedcomponent of the Marine Radar Moduleis the IceNav Hazard Detection Module,designed for ships that routinely navigatein high concentrations of first-year icewhere old ice and embedded icebergs andbergy bits are a hazard. Fednavs newaddition has been designed with the flexi-bility to offer competitive use in generalinternational bulk trade, notwithstandingspecial ice-going capabilities.

Thomas H. Paterson, Vice President of the Owned Fleet and Business Development, receives a drawing from the DNV Ships Calendar at Umiak Ifrom Martin Crawford-Brunt, DNV District Manager.


Robert Gorman, Manager Environmental Services, Enfotec.

Versatile vessels and travellinggantry cranesGearbulk provides transportation and logistics servicesfor various industrial sectors and is a leading carrier ofunitised forest products and non-ferrous metals. Itoperates the worlds largest fleet of open hatch gantrycraned (OHGC) vessels, controlling approximately 35 percent of the worlds OHGC vessel capacity. The fleetconsists of some 70 vessels with a number ofnewbuildings on order.

With two travelling gantry cranes servingperfectly box-shaped holds, these vesselsare specifically designed and equipped totransport unitised cargoes. Gearbulk con-ducts operations worldwide through a net-work of offices in 16 countries. The fleet isprimarily operated under contracts ofaffreightment covering periods of betweenone and ten years. Gearbulk is alsoinvolved in transportation of conventionalbulk cargoes, using both own and char-tered handymax size vessels. In addition,the company is operating a number of ter-minals worldwide.

We are at the top modern operationsheadquarters of Gearbulk in Weybridge, a

half hours drive from Heathrow airport.Last year we did 18 million tons ofcargo, says Mats Folkesson, senior vicepresident of operations. He has workedfor Gearbulk in Chile, China, South EastAsia and Vancouver, Canada beforerecently moving to London to head upoperations.

The key feature of our fleet is that thevessels have box-shaped holds, he says.This allows full access to all parts of thehold with no deck overhang. Smooth sur-faces ensure that the risk of cargo damageis reduced, and double hulls provide thesafest way of transportation in addition tothe minimised risk to the environment.

Gearbulk


Aluminium T bars.


Weaver Arrow.

Gearbulk


The travelling gantry cranes, with thecrane driver located on top of the gantrycranes, allow an unrestricted view of thebox-shaped hold below. This allows load-ing and unloading of the sensitive com-modities in a safe and efficient manner.Finally, the vessels are equipped withdehumidification plants, allowing temper-ature control and humidity levels in thecargo holds. This reduces the risk of cargodamage, says Folkesson.

The main commodities for us areforest products such as pulp, paper,newsprint and paper products, contin-ues Folkesson. But we are also big onlumber, plywood and specialised woodproducts, aluminium, steel cargoes, gran-ite and traditional bulk cargoes. Ourname indicates that we are in the bulkbusiness, but most of our fleet are actual-

ly not defined as bulk carriers, saysFolkesson who is joined by NicholasKverndal, vice president operations,Nigel Bradshaw, vice president opera-tions, and captain Egil Oldeide, vicepresident of projects & business develop-ment.

Gearbulk is owned 60 per cent by theNorwegian Kristian Gerhard Jebsen familyand 40 per cent by Mitsui O.S.K. Lines.The Kristian Gerhard Jebsen family has along history in shipowning and maritimeoperations, both in the dry and liquidshipping business. The family owns Krist-ian Gerhard Jebsen Skipsrederi A/S(KGJS), the technical manager and crew-ing agent for Gearbulk vessels. MitsuiO.S.K. Lines is one of the worlds largestshipping groups with around 800 vesselsand 8,500 employees.

Vacuum lift.

From left: Nicholas Kverndal, Vice President Operations, Mats Folkesson, Senior Vice President of Operations, and Nigel Bradshaw, Vice PresidentOperations.


Toucan Arrow.

At least, this was the heading of the dry bulkmarket section in Fearnleys latest monthlymarket report. In the short term, this seemsto be the case. We have now experienced con-tinuous upward surprises in the dry bulk mar-ket, with extremely strong rate improvementsfor quite some time and also solid forwardexpectations, reflected in future quotations.At the same time, however, we have also seena dramatic surge in new bulk carrier orders,and almost 30 VLCCs will reportedly be con-verted to dry bulk carriers. Somewhere downthe road this will be felt in the marketplaceand it will definitely be hard to absorb all thatnew tonnage in two to three years time.

The strong freight market is primarily sup-ported by continued high activity in the Chi-nese steel industry, with record high steelexport volumes. In addition, several otherindustries are doing well and congestion istying up substantial tonnage volumes, as portsare often not able to develop their infrastruc-ture in pace with the rising trade volumes.

China is now producing much more steelthan what is needed to cover its own demand.Chinas steel exports almost doubled fromabout 20 million tonnes in first half last yearto about 38 million tonnes in first half thisyear. In July, world pig iron production,requiring iron ore and coal, was 7.2 per centhigher than in the same month last year. Overthe first seven months of 2007, world pig ironproduction was 8.6 per cent higher than inthe corresponding period last year. Chinaspig iron production was 13.5 per cent higherin July than one year ago, whereas the rest ofthe world saw an increase of 3.2 per cent. Forthe first seven months of this year, Chinas pigiron production was up 16.5 per cent, where-

as the rest of the world experienced a modestincrease of 1.9 per cent.

Looking at rate developments, it appearsthat average Capesize spot rates droppedstrongly from a peak of almost USD 115,000per day in mid-May to just USD 72,000 inmid-June. At end-August, they had reachedUSD 127,000, with Imarex forward quotationsas high as USD 103,300 for calendar 2008 andUSD 74,500 for calendar 2009. At the end ofAugust, average Panamax spot rates stood atUSD 61,500, with calendar 2008 at USD54,400 and calendar 2009 at USD 39,200.Supramax spot rates averaged USD 52,200,with 2008 quotations at USD 45,000 and 2009quotations at USD 32,500. Handymax spotrates at end-August averaged USD 36,200,with 2008 quotations at USD 29,800 and 2009quotations at USD 21,700 per day.

With such high rates, often two to threetimes higher than break-even rates for vesselsacquired in the present heated market, itwould not be surprising to see cargo ownersbecome shipowners to a larger extent, at leasttemporarily.

Ordering of bulk carrier newbuildingsreached almost 74 million dwt over the firsteight months of this year, against less than 16million dwt in the corresponding period lastyear. For comparison, tanker newbuildingorders dropped from about 48 million dwt toabout 20 million dwt. Bulk carrier newbuild-ing prices have increased much more thantanker newbuilding prices. So far this yearbulk carrier demolition sales total less than0.2 million dwt, with no sales reported overthe past four months.

The bulk carrier fleet at the beginning ofSeptember 2007 stood at 382.3 million dwt,

up 6.4 per cent from 359.2 million dwt oneyear before. At the same time, the bulk carri-er order book increased about 91 per centfrom 74.4 million dwt to 141.9 million dwt.This means that the order book share com-pared to the existing fleet rose from about 21 per cent to 37 per cent over the past twelvemonths.

A closer look at size ranges shows verylarge differences with regard to order bookshares.

Thus, the order book for 1050,000 dwtcorresponded to just about 10 per cent com-pared to the existing fleet (with three percent for 1025,000 dwt, 17 per cent for2540,000 dwt, and four per cent for4050,000 dwt).

Whereas very few orders are placed for thesmallest size range of bulk carriers, it is amaz-ing to observe the revival of multi-purposevessels. At the beginning of this year, only twoper cent were below five years old. Now, theorder book stands at 24 per cent compared tothe existing fleet. This vessel type is very flexi-ble in combining voyages with minor bulkcargo lots with various types of project cargoand top end containers in opposite direc-tions.

Going up in sizes, it appears that the orderbook for supramaxes of 5060,000 dwt was ashigh as 82 per cent, whereas the share forpanamax/kamsarmax of 60100,000 dwt wasrelatively modest at 26 per cent. Among larg-er vessels, small Capesize of 100150,000 dwthad an order book share of 21 per cent,whereas large Capesize of 150200,000 dwtsaw a strongly increased share of 59 per cent,and for Very Large Bulk Carriers over 200,000dwt, the order book had jumped to as muchas 109 per cent, primarily signalling a verystrong belief in the Chinese steel industrysneed for raw materials. In this context, it is ofsignificant importance that India will gradual-ly need more of its iron ore for domestic steelproduction.

Jarle Hammer

4 September 2007

The sky is no longer the limit

www.dnv.com/maritime

Hammer Maritime Strategies prepared for DNV

DNV Bulk Carrier Update

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Dry bulk market, orders & demolition Bulk carriers 10,000 dwt +Existing and on order September 2007

Bulk carrier fleet and orders by sizeSeptember 2007

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