WRECK REMOVAL OF M.V. “SMART”

I S U As s o c i a t e M e m be r s ' D a y/ 1 6 M a r c h 2 0 1 6

Agenda

THE OPERATION INTRODUCTION TO ARDENT

INTRODUCTION WRECK REMOVAL OF M.V. “SMART”

Ardent Global Presence

Ardent Location

OPA-90

OPA-90 OPA-90

Houston Miami

Santo Domingo

Colón

Macaé

Buenos Aires

London

Walvis Bay

Cape Town Durban Maputo

Mauritius Beira

Nacala Pemba

Dubai

Suez Athens

Hamburg

Genoa Alicante

Singapore Balikpapan

Seoul

Cairns Karatha

Sydney

Visayas

Copenhagen

Ardent Subtech Location

Aberdeen

Value Creation Through Three Pillars

• Emergency response track record dating back to 1833

• A global preparedness portfolio of more than 35 agreements and growing

• Services include training, standby and pre-arranged protocols

Emergency Management Projects Underwater Services

• Shallow and deep water wreck removal, pollutants recovery, environmental care projects, port clearance and offshore decommissioning

• Ground breaking WR project – the raising of the Costa Concordia

• Innovative solution - safe, cost-effective and minimize environmental impact

• One stop solution for Hull Cleaning, Propeller Polishing, Condition Inspections, Class Surveys, Grounding Inspections, and Underwater Repair

• Use of heavily vetted local expertise allowing for optimal cost efficiency which passes through to the client

THE OPERATION WRECK REMOVAL OF M.V. “SMART”

The Operation

Wreck Removal of m.v. “SMART”

I. The incident

II. Time Scale

III. Challenges

IV. Project Phases

V. Contractors

VI. Conclusion

I . THE INCIDENT WRECK REMOVAL OF M.V. “SMART”

The Incident

19 August 2013

The 151,279 DWT bulk carrier ran onto a sand bar shortly after setting sail from Richards Bay coal terminal in a 7 m Indian Ocean swell.

August – October 2013 (Smit Salvage)

The fuel was removed without spillage, followed by 10,000 t of coal slurry in the ruptured no. 9 hold.

The separated stern section was refloated and scuttled it offshore.

It was carrying 147,650 to of coal, 1,769 t of fuel oil and 129 t of diesel. All 23 crew members were safely rescued and, just a couple of days later, the 273 m long ship split in to three parts.

I I . TIME SCALE WRECK REMOVAL OF M.V. “SMART”

Date Activity

8th Dec 2013 First team member arrived in Richards Bay, South Africa.

11th Dec 2013 BIMCO Wreckstage 2010 contract signed.

21st Dec 2013 Day 01, Wreck taken over from Subtech , Subtech caretaker crew continues.

30th Dec 2013 Start operational Phase, Subtech’s diving team and floating assets arrive in Richards Bay.

Project Time Schedule

Overall delivered on Time and on Budget

Titan Salvage won the tendering process to perform the lightening, refloating and scuttling of the partially buried bow section

Milestones

June 2014

04th Nov 2014

Coal discharge completed no. 2 hold de-watered and bow re-floated. Re-grounded due loss of tow. Finished discharging of coal out of cargo hold no. 1, overall abt. 26,300mt recovered and dumped

11th/ 12th Dec 2014 31st Dec 2014

Bow Section refloated and scuttled offshore in abt. 1000m water depths Commenced scrap steel removal of the midbody section, cargo holds no. 4 – 6

09th Jun 2015 100% of scrap steel protruding the seabed are removed, demobilization of equipment

01st Sep 2015

After 01st Sep

Hole at Wreck Site backfilled, remains of wreck are covered with at least 2m of Sand The rehabilitation of the seabed completed immediately

I I I . CHALLENGES WRECK REMOVAL OF M.V. “SMART”

Challenges

Complicated operations

High risk with uncertain factors

The weather conditions on the South African coast

Winter Period

Heavy lift assets

IV. PROJECT PHASES WRECK REMOVAL OF M.V. “SMART”

Principal Phases • Mobilisation • Remove Cargo • Re-Float Bow (Bow back to Hold 3, part) and Scuttle • • Remove mid body piecemeal (Holds 4 – 6 ) • Remediate Sea bed

• Demob.

Mobilization 2013/ 2014

A – Frame Barge UBHEJANE with Dredging Equipment

Mobilization 2013/ 2014 (First Bow Re-Float Operation)

Dump Barge LADY GINA (ex – PIPER) and Tug N’DONGENI

Mobilization 2013/ 2014

Jack Up Barge KARLISSA B

Floating Assets “Karlissa B” Jack-Up Barge

o 250mt Ringer Crane o T&T Marine DOP Pump o Salvage and Dive Equipment

“Karlissa A” Jack-Up Barge o 100mt Crawler Crane o Salvage and Dive Equipment

“JUMBO” Deck Barge (Coal) o 48.7m x 17.00m x 2.90m o Displacement 2200mt o Sidewalls

“JMC 3335” Deck Barge (Scrap) o 100.58m x 30.48m x 6.10m o Displacement 11000mt o 4-point mooring

Floating Assets

“AFON CADNANT” Shoal Buster / AH Tug o Bollard Pull: 55 tons o LxB 36m x 11.5m; Draft 2.4m

“SMIT AMANDLA” Salvage Tug o LxB: 94.6m x 15.8m; Draft: 7.5m o Horsepower: 19,200 o Bollard Pull: 185 tons

Bow Removal (Planning) Separation of Buoyant Bow Section

Estimated Separation Line at abt. Frame # 230

Broco- Cutting

Cutting Charges

Bow Removal (planning) Separation of Buoyant Bow Section

Possible Use of Cutting Charges Explosives to break Bottom Structure

Cargo Removal(No 2 Hold Initially)

Dive Survey

Bow Removal

“SMIT AMANDLA” Towing Wire failed; Attempt unsuccessful; Refloated Bow Section needed to be

grounded again; Site abandoned for Winter Season, abt. 2

Month

Refloating 1st attempt, June 2014

Summary of Operations before Winter 2014

• Discharged and dumped coal of cargo hold 2 with A-Frame barge UBHEJANE and dump barge LADY GINA

• Bow Section Refloated in June 2014 using a cofferdam to seal off and pump out water from cargo hold no. 2

• Towing wire of Salvage Tug parted • Bow Section settled with different direction on the

seabed

Situation of the Bow Section after Winter 2014 Bow Section [frame ref: 210-327] Heading 014° (before abt. 060°) Trim 28° stern (before 19 °) Heel ~ 1.0° Port Draft @ FP ~ 8m(S)/ ~ 9m(P) Water depth ~16.5 m

June, 2014

June, 2014

Situation of the Bow Section after Winter 2014

• The bow section remains embedded with no observable movement

• A dive survey in June reported the bulkhead between holds 2 and 3 to be severely compromised

• Remnants of the cofferdam creates a potential danger for diver inspections

• Observable damage during refloat implies the lower section of hold 3 to be discontinuous

Situation on Seabed after Winter 2014

Cargo Removal (Second Bow Re-Floating)

The Coal was pumped out of Cargo Hold 1

onto the Barge JUMBO, similar to loading former Dump Barge

The Barge Jumbo was fitted with side walls on 3 sides.

The forward opening was closed by crane mats for loading and opened for discharging the coal at the dump site.

A Front End Loader discharged the coal with its bucket

Coal Loading and Dumping

Cargo Removal

Discharging of Coal in No. 1 Cargo Hold

Bow Removal

Counter ballast may be added to #1 WBT P/S and the FPT during coal removal

Pumping arrangement will be similar to previous attempt, (9) 6” Grindex submersible pumps or equivalent

Jack-up barges may be repositioned once pumping water out of hold #1

Refloat Operation (Second Re-Floating)

Bow Removal

Successfully Refloated the Bow Section

Bow Removal Scuttling of the Bow Section

Bow Removal

Scuttling Position & Dumping Ground

Mid-Section Removal

Both jack-ups positioned on either side o Conventional upward chain cutting o Downward and horizontal cuts with

Harrisaw o Piecemealing o Repositioning of larger sections and

scrapping while hanging in the chains with pullers

Mid-Section Removal Midbody-Section, Holds 4-6, Recovery from Seabed

Scrap Steel Handling

Transport of Scrap Steel Ashore

Scrap Steel Handling

Scrap Steel Disposal Ashore

The Remediation of the Seabed

Progress on Seabed as Shown in Surveys

The Remediation of the Seabed

Wreck had worked itself into the seabed Created a depression in the seabed Scouring effects caused steel to protrude

from the seabed

Solution Backfilling the hole with comparable sand

as found at the wrecksite

Condition of the Seabed

The Remediation of the Seabed

Use of Transnet Dredging Services Local Dredger ISANDLWANA Sand from the local sandtrap at the south breakwater of Richards Bay Harbour had been

reclaimed ISANDLWANA has dumped about 71,200m3 of sand at the wreck site

Backfilling of the Wreck Site

V. CONTRACTORS WRECK REMOVAL OF M.V. “SMART”

Contractor Management

Substantial Local Assistance including JV Partner Subtech and Transnet.

Other South African Contractors: Premier Hydraulic, Land and Marine, Jolem Shipping, SMIT Amandla Marine, Transnet Dredging Services, Richard Bay Region Vendors, etc.

VI. CONCLUSION WRECK REMOVAL OF M.V. “SMART”

Conclusions Challenging Status and Conditions

Global / Local Mix. Strong sub-contactor support

Never fully engineered out – damage status in dynamic environment

Stakeholders – strong drivers and active engagement essential

Planning

o More formalised Risk Planning/ Assessment

o Developed with Client

o Named Key Team Members – contractually

o BUT dynamic situations need adaptability

Strong Desire of Client for Certainty

Contractual Risk Certainty and Acceptance can be achieved -needs mutual

understanding and cooperative approach.

“Titan Salvage has successfully completed the complex and difficult removal of the wreck of the cape-size MV Smart coal carrier in South Africa. This was especially challenging given the prevailing weather conditions that prevail on the South African coast, especially during the winter period.

The removal of the vessel, which was entered in The North of England P&I Association Ltd (North) by Owners Alpha Marine, has been accomplished on time and on budget due to a high level of collaboration with the South African Maritime Safety Authority (SAMSA), contractors Titan and North”

NORTH P&I DELIVERS MV SMART SALVAGE ON BUDGET THROUGH A COLLABORATIVE APPROACH

Extract from Joint Press Release: North P&I and SAMSA

THANK YOU