INTERNATIONAL SALVAGE UNION

ISU 57th AGM, Cartagena, Colombia

1

OCTOBER 2011

Mr Andreas Tsavliris, a Principal of TSAVLIRIS SALVAGE GROUP, has been appointed by the 57th General Meeting of the ISU as the new President of the ISU. At the same meeting, Captain Leendert Muller was elected as Vice President of the ISU. Mr Muller is the Chief Executive of Dutch salvage company, MULTRASHIP.

Mr Tsavliris has been a member of the ISU Executive Committee since 2006 and succeeds Mr Todd Busch who will continue as a member of the ISU Executive Committee.

Mr Busch said: “It has been a privilege to be the President of the ISU and to represent our members as we have tackled many important issues. I have greatly enjoyed my Presidency and look forward to continuing to work for the benefit of all marine salvors. I am delighted to be handing over to Andreas Tsavliris who has vast experience of salvage and has demonstrated great commitment to the ISU and to the salvage industry.”

Commenting on his appointment, Mr Tsavliris said: “It is a great honour and I am proud to have been elected President of the International Salvage Union. I am

grateful to the members for entrusting this prestigious position to me. As a company, we have been a committed member of ISU for many years and I will undertake to uphold its ideals and will always try my hardest in the best interests of the ISU.”

Tsavliris Salvage Group's origins go back to the 1920s. Andreas Tsavliris followed in the footsteps of his father, Alexander G Tsavliris, and joined the company in 1970. He has worked to maintain a modern, global network

through the strategic positioning of the Group’s own salvage assets as well as through cooperation with regional and international salvage companies.

Tsavliris Salvage is one of the few firms to maintain salvage tugs on station in strategic locations. It says that its policy of modernisation means it is well-equipped to cope with today’s larger and more complex vessels and with the threat of pollution which has imposed new demands on salvors.

New President for International Salvage Union

The International Salvage Union held its 57th General Meeting at The Santa Clara Hotel, Cartagena, Colombia, 27–28 September 2011. Some 70 delegates and their guests from the ISU’s 57 member companies attended. The meeting was hosted by Intertug of Colombia; Remolcadores Ultratug and CPT Remolcadores, both from Chile.

The meeting, chaired by outgoing ISU President, Todd Busch, was updated on the business of the ISU, its Executive Committee and professional advisers during the past year.

ISU General Manager, John Noble, reported on the joint work with the Nautical Institute to develop a professionally produced set of Casualty Management Guidelines. The work of the Comité Maritime International on the issue of environmental salvage awards was considered and legal adviser Rob Wallis updated members on the UK’s new and far-reaching Bribery Act. Communications adviser, James Herbert, showed the planned new environmental salvage webpages and presented the results of the 2010 pollution prevention survey and discussed use of social media as a communications channel. The Colombian Navy described its work in the Caribbean region and the substantial progress which is being made to control illegal drug trafficking.

There was a full social programme including a Gala Dinner at which Todd Busch handed over to new ISU President, Mr Andreas Tsavliris. (For more AGM pictures see back page)

ISU's new President, Mr Andreas Tsavliris of TSAVLIRIS Salvage Group

2

ISU NEWSSalvage conference December

ISU is supporting the Salvage and Wreck Conference in London 7-8 December 2011. ISU members will receive a 25% discount on attendance at the conference. For more information:

www.informamaritimeevents.com/salvageandwreck

General manager position

The ISU Executive Committee has decided to hire a full-time, professional General Manager. The post will combine the roles of current Secretary General and General Manager, who are due to retire. The post will be based at the ISU’s office in the City of London. More details will be available when the post is advertised in the maritime press and on the ISU website.

ACI conference

The ACI salvage conference, chaired by ISU General Manager, John Noble, was a success with some 70 attendees representing a wide range of maritime interests. Mr Noble said: “The conference had a very different take and really was about salvage. The “round table” discussions went well and there was a general positive “buzz” at the end.”

Decommissioning conference

ISU is a supporting organisation to the 8th Annual North Sea Decommissioning Conference in Aberdeen, UK, 15-16 November. ISU members will receive a discount. The conference will explore the challenge of decommissioning over 400 structures in the North Sea and has high-level speakers from the oil majors and the UK government. For more information: www.decomworld.com/nsd

Executive Committee matters

After many years of service to the ISU, including two stints as President, and long service as a member of the Executive Committee, Mr Arnold Witte has resigned. Outgoing President, Todd Busch, warmly thanked Mr Witte for his contributions and support. Mr Witte said he would continue to be an active participant in the wider ISU.

Mr Witte’s resignation and that of Svitzer’s Robert Jan van Acker (see Members’ News) means there are two vacancies on the Executive Committee. Selection of new members of the committee will take place at the next meeting in December.

In May an oil storage tank exploded in the port of Gibraltar just metres from where the Royal Caribbean cruise ship INDEPENDENCE OF THE SEAS was berthed.

Two welders working on the tank were injured in the blast, with one suffering serious, extensive and life threatening burns. The cruise ship immediately put to sea but 12 of its passengers suffered injuries - mostly minor burns - though one passenger received a fractured shoulder. The ship was not seriously damaged.

The captain of the INDEPENDENCE OF THE SEAS personal ly thanked Steelmac’s rope handlers (see picture below) for their "heroic" efforts during the un-berthing operation of his cruise ship after the explosion.

The rope handlers managed to free the cruise ship within four minutes when it normally takes 10-15 minutes. Some even had to be sprayed with water so they could work in the extreme conditions created by the flames.

New ISU member in Gibraltar fire fighting operation

New Members

ISU welcomes the following to full membership:

Steelmac Unit 27, New Harbours PO Box 764 GIBRALTAR GB1 1ZZ Tel: +350 200 74221 Email: info@steelmaclimited.com Internet: www.steelmaclimited.com

Harbor Star Shipping Services Inc 2224 Gen A Bonifacio Street Corner South Super Highway Barangay Bangkal,Makati City 1233, Philippines + 632 8863703 to 09 loc. 106 Email: gpbellajr@harborstar.com.ph

Kumho Salvage; Remolcadores Nossa Terra SA; and Matsas Salvage have ceased to be members.

Lloyd’s Salvage Appeal Arbitrator

Sir David Steel, QC, has been announced as the new Lloyd’s Appeal Arbitrator in succession to Sir Nigel Teare. Sir David will take over later this month on retirement from his position as Admiralty Judge.

STEELMAC mobilised its emergency response personnel and equipment immediately and was on site 20 minutes after the incident. The operation was supported by FIVE OCEANS SALVAGE whose tug RED SEA FOS began fighting the flames immediately.

Company personel aboard its barge ISAAC 1874 with a 1400 m3 per hour Fi-Fi Monitor and the fire response vessel, NEPTUNE, that had recently joined the fleet, fought the flames throughout the night.

All the fire-fighting foam used during the operation was provided by Steelmac. The fire was extinguished after 14 hours.

3

MEMBERS’ NEWSSVITZER

Robert Jan van Acker has stepped down in order to take the position of chief executive of Sea Trucks Group, a Dutch marine transport group. He is succeeded by Peter Pietka as Managing Director, Svitzer Salvage, with Marinus Lorwa as Chief Operational Officer.

T&T BISSO

Oscar Lopez is joining T&T Bisso as an Assistant Project Manager and On-Site Coordinator, bringing more than 10 years of experience in salvage logistics support and project management. Lopez served in the US Army before beginning his maritime career as a salvage diver for Titan Salvage. He has also worked for Resolve Marine Group. Lopez will be supporting the on site management needs of T&T Bisso’s growing salvage and wreck removal business around the world.

TITAN

TITAN Salvage has appointed Dan Dolson to the senior management team as operations manager for the Americas. In this new role, Dolson has responsibility for the operations and profitability of TITAN’s US office and depot in Pompano, Florida and will report to TITAN Vice President Richard Habib. He has more than 15 years of experience in the marine and salvage industry.

Following an agreement between the Government of India and the Government of Sri Lanka, RESOLVE Salvage and Fire (Asia) Pte Ltd., a subsidiary of US-based RESOLVE Marine Group, Inc., has begun the removal of six wrecks that were sunk in Kankesanthurai Harbor (KKS) on the north coast of Sri Lanka.

The vessels were sunk in the Tamil Tiger separatist conflict between 1994 and 1996. The harbour was also badly damaged and has since been closed for commercial activity. The Government of India has taken responsibility for re-instating the KKS Harbour and has provided grant funding for the initial stages of work.

RESOLVE was awarded the contract for the wreck removal work by Shipping Corporation of India, the administrator of the project on behalf of the Indian

RESOLVE begins removing Sri Lankan wrecks

Government. The six wrecks range in size from 17m to 99.5m and are either ful ly, or part ial ly, submerged, and obstructing safe passage.

The operation will require not only the removal of wrecks but use of state-of-the-art, 3-D image scanning equipment to identify all obstructions within a 500-metre radius of each wreck, to ensure removal of wreck debris in preparation for dredging of the harbour and channel.

RESOLVE has sent a team and equipment to cut up the vessels and move the wreckage ashore for disposal. At a ceremony marking the start of the job at the Harbour, RESOLVE Marine Group President Joseph E Farrell, Jr said: “We are honored to be a member of the team and are committed to rapid completion of the first phase wreck removal that will clear the way for development and

DONJON

Donjon has added the 2400 HP tug CAITLIN ANN to its growing fleet to support its dredging, marine salvage, bulk material transport and marine demolition services.

The addition of the tug increases the Donjon towboat fleet to 14 vessels ranging from 1200 to 7000 horsepower. Donjon also owns and operates five derrick barges with a maximum capacity of 1,000 tons, more than 40 deck and hopper barges, 3-4000 cubic yard split hull dump barges and numerous small vessels, floats and related marine craft.

“The addition of the CAITLIN ANN allows Donjon’s Marine Transportation Division to add even more flexibility to its ever-growing and diverse operational needs,” said Steven G Newes, Donjon’s Senior Vice President of Marine Transportation.

RESOLVE MARINE GROUP

RESOLVE MARINE GROUP Inc. has acquired the staff and assets of the Elliott Bay Design Group’s (EBDG) New Orleans, Louisiana, office. It expands RESOLVE’s in-house engineering team, creating a new company and wholly owned subsidiary RESOLVE Engineering Group, LLC. The Group will support RESOLVE’s worldwide operations.

Separately, RESOLVE announced that former Lloyd’s Registry executive John Curley has joined the company as Commercial Director for RESOLVE Salvage & Fire (Europe), Ltd. (RSFA). Curley joined RESOLVE following a 26-year career with Lloyd’s Register where he was Head of Global Sales and Marketing.

commercial activity in the harbour. This initiative is important not only to the people of Sri Lanka, it is important to the RESOLVE team as it presents another opportunity to carry out our corporate philosophy: to leave the world a better place.”

Left to right above, Resolve’s Capt. Farhat Imam, Joseph Farrell, Francis Leckey, Capt Anuj Sahai, with Rear Admiral Ravi Wijegooneratne and Mrs Emelda Sukumar

Donjon’s new tug CAITLIN ANN

Nippon Salvage continues to clear up after the earthquake in Japan in March

4

Donjon secures US Navy contractDONJON Marine Co., Inc. has been awarded a $41,000,000 ceiling-priced, indefinite-delivery/indefinite-quantity, cost-plus-award-fee contract for marine salvage, salvage-related towing, harbour clearance, ocean engineering and point-to-point towing services to support the US Navy’s Director of Ocean Engineering, Supervisor of Salvage and Diving.

In addition to the salvage component of this agreement, Donjon was also awarded a contract to supply the US Navy with Engineering Support Services on a worldwide basis. These contracts were competitively procured, with the Naval Sea Systems Command reviewing all submitted proposals.

“Donjon is very pleased to continue to partner with the US Navy as its commercial marine salvage and engineering support contractor,” said J Arnold Witte, President, Donjon Marine Co., Inc. “We value the relationship we have developed with the Navy since Donjon was first awarded the Salvage Support Contract in 1979 and we stand ready to serve the needs of the US Navy moving forward,” he continued.

Separately, Donjon has salvaged the 100 foot passenger ferry ROYAL MISS BELMAR, which grounded on approach to St Thomas in the Virgin Islands. Donjon mobilized its 400 ton capacity derrick barge COLOMBIA NY to the site

with its 3000 HP tug MARY ALICE to lift the vessel from its grounded position. The recovered vessel was then loaded onto the deck of the derrick barge, lashed for seaworthiness, and delivered to Savannah, Georgia, where she was moved to a local shipyard for repair.

Above - DONJON’s derrick barge, COLOMBIA NY lifts the grounded ferry ROYAL MISS BELMAR

5

The bulker MAGNUM POWER (53,662 tonnes dwt), laden with 33,649 tonnes of corn and wheat, ran aground in the Magdalena River, Barranquilla, Colombia , approximate ly 6km upstream from the river entrance. TSAVLIRIS Salvage was awarded the first LOF 2011 contract to salve the vessel.

High rainfall in the preceding months meant the river was at its highest level in several years with extreme currents, sediment and debris at the casualty’s location.

An initial refloating attempt using tugs from Barranquilla and Curacao was unsuccessful. Then, four days later another bulker, CHIOS WIND (40,707 tonnes dwt), laden with 25,132 tonnes of wheat and corn gluten, ran aground while entering the Bocas de Cenizan, also on the River Magdalena. All operations on the MAGNUM POWER were suspended by the harbour master of Barranquilla until the CHIOS WIND was refloated.

Double trouble on the Magdalena River

Significant losses at Lloyd’s

Tsavliris dispatched the tug EOS II (50 tons BP) from Barranquilla to provide immediate assistance by connecting to the casualty’s stern to prevent further shifting to shore.

The DON LUCHO connected to her bow in order to keep the casualty in position. Initial refloating attempts were unsuccessful. The 8 knot current meant the tugs, now joined by the ORCA VI, had to remain connected. The authorities declared an emergency and closed the port.

Some days later the AHT tug URANUS (280 tons BP) arrived and berthed alongside the casualty. The substantial BP of URANUS meant a special towage bracket with a 400 tonnes SWL had to be welded to CHIOS WIND’s bow. She was refloated the same day by the URANUS, with assistance from the other tugs, and towed to Barranquilla and redelivered to her owners.

It meant preparations to refloat the

MAGNUM POWER could continue and a revised refloating plan - towage by stern up river was approved.

MAGNUM POWER was de-ballasted and successfully refloated by URANUS supported by ORCA VI, EOS II, LIMA II, GOLIATH and DON LUCHO (see below). After refloating the casualty proceeded by her own means, escorted by the URANUS, to Barranquilla. During the three week operation on both casualties TSAVLIRIS was supported by T&T BISSO on location.

Elsewhere, in July, the LPG Carrier DP PROTEUS (4,998 tonnes dwt) and laden with 600 tonnes of butane gas lost her propeller during passage from Singapore to Zhenjiang.

TSAVLIRIS dispatched the tug PHU MY O3 (5,500 BHP, 65 TBP) from Vietnam, and salvage tug PACIFIC HICKORY (7,200 BHP, 95 TBP) from Singapore to the casualty which was towed to South Korea for discharge of cargo.

Lloyd’s announced an interim loss before tax of £697 million ($1,122 million) for the six-month period ending 30 June 2011 compared with a £628m profit for the same period last year.

Lloyd’s said the results follow the costliest first six months on record for major catastrophes for the insurance industry, with 2011 already likely to be the second most expensive year ever for insurers. But it said central assets are at a record high, leaving the market well capitalised

despite the high level of claims.

Lloyd’s Chairman, Lord Levene, said: “2011 has already been one of the most challenging years on record for the insurance industry with major natural catastrophes devastating communities in Australia, New Zealand, Japan and the US. Lloyd’s ability to pay billions in claims to help these communities rebuild is unquestioned and the fact that we have managed to do so without any call on our central capital reserves is testament to the market’s exposure management.”

Lloyd’s Chief Executive, Richard Ward, added:

“These are tough times for the insurance industry, but we are well positioned to handle them. Despite incurring $10.8bn in claims from the costliest first half year on record, Lloyd’s entered the second half of the year with $92bn in net assets to support our business and pay claims. However, while interest rates are low and equity markets are volatile, we can’t rely on investment income to subsidise our underwriting, we must decline under-priced risks.”

ASSOCIATES’ NEWS

6

Intercargo

The International Association of Dry Cargo Shipowners (Intercargo) has launched the latest edition of its annual publication, Benchmarking Bulk Carriers 2010-11. The fifth edition contains statistical information relating to the world bulk carrier fleet, Port State Control deficiencies and detentions and analysis of Negative Performance Indicators such as collisions, groundings and casualties during 2010. This year’s edition also contains an overview of how piracy in the Gulf of Aden has impacted the dry-bulk sector. To order email: info@intercargo.org

Shipowners’ Club

The Shipowners’ P&I Club has announced a reorganization of its London branch. It includes setting up two internal syndicates bringing together both underwriters and claims handlers specializing in specific geographical regions. A third syndicate will focus on the offshore sector. Charles Hume, Chief Executive of the Club, said: “We believe [this] will ensure the Club’s high service levels are maintained and, indeed, enhanced.”

Redwise

Redwise Maritime Services BV reports that it has transported 50 ships since the start of 2011 which it describes as a “remarkable year” for re-positioning ships under their own engine power.

Pictured below, the SAJALICES, which, along with sister vessels BELEN and DOLEGA, were mobilized from Hong Kong to Balboa, via Honolulu. These tugs are three from a series of 14 units built by Cheoy Lee Shipyard of Hong Kong and all destined for the Panama canal.

The ABR Company Limited

The programme for the next ITS Convention in Barcelona 28 May - 1June 2012, puts salvage high on the agenda with several key speakers addressing salvage industry issues, including new ISU president Andreas Tsavliris. Salvage stalwart, Nick Sloane, will ask if salvors are ready for a catastrophic emergency, highlighting the new breed of super-ships and the risks if the industry cannot properly respond.

Simon Tatham, a partner at ISU Associate Member, Wirkborg Rein LLP, will explore the new 2010 Bimco wreck removal contracts and the 2011 LOF. Moya Crawford, MD at ISU Associate Member, Deep Tek Ltd, will elaborate on ‘technology transfer’ and how the ‘goal-based’ approach of the salvage industry can be implemented in the oil and gas sector.

Director of marketing and strategy at Titan Salvage, Mark Hoddinott, focuses on the use of offshore support vessels in marine salvage and wreck removal operations. The organisers anticipate 450 delegates and more than 150 exhibitors at the International Convention Centre in Barcelona, located on the seafront. For more conference details: www.tugandosv.com

Meanwhile, International Tug & Salvage (IT&S), published by ITS organisers, ABR, has re-launched as International Tug & OSV (IT&O) incorporating salvage news. It embraces all the subject areas covered by IT&S, but now also includes coverage of vessels serving the offshore industry. IT&O says it still has a keen eye on the salvage world, with the re-launch issue featuring a new section devoted to salvage news.

Editor Dawn Gorman said: “The salvage content of the magazine remains a key priority for us. Our plans for future issues include highlighting current, prominent salvage trends and links with the offshore industry, including decommissioning, plus one-on-one interviews with key salvage figures. We would particularly like to invite salvors to contact us with any salvage news or views which they would like to share with our readers, or any ‘on the spot’ photographs we might run in the magazine.”

For more info: dawn@tugandosv.com or te lephone +44 (0)1225 868821.

InterManager

InterManager members have called for more proactive methods to protect ships transiting pirate-infested trade lanes by launching a campaign to allow owners and third party managers the freedom of choice in employing armed guards onboard ships they manage. The InterManager campaign, which has received more than 90% support from its members, proposes to lobby Flag States and Charterers to review their rules relating to armed guards onboard ship.

InterManager says that the decision taken to provide armed guards should be based on a robust risk assessment of each vessel and its voyage and should be in accordance with the guidance set out in Best Management Practices 4 (BMP4) – the recent IMO guidelines on armed guards. It says such decisions should be unhindered by restrictive Flag State legislation or Charter Party agreements.

Alastair Evitt, InterManager President, said: “It is the welfare of our crew members and their families that is at stake and there can never be too many initiatives running in parallel to address this disgraceful situation.” See also International Monitor.

7

Newly re leased updates of the WRECKHIRE, WRECKFIXED a n d WRECKSTAGE contracts along with explanatory notes are now available from ISU affiliate member, BIMCO.

The revised standard agreements reflect the last 10 years’ developments in legislative and technical requirements for wreck removal. The primary focus of the revision has been to update WRECKHIRE, which is the most commonly used version, but also to make parallel amendments to the lump sum and staged payments editions.

One of the most significant changes to WRECKHIRE is the introduction of a bonus incentive scheme. A bonus will

Updated BIMCO wreck removal and marine services standard agreements published

be paid if the contractors are able to complete the task within the specified period, but pro rata on a sliding scale from the agreed date until the final date for completion. If the contractors don’t finish by the completion date the bonus will be lost and they will be faced with a reduced daily rate of hire.

Dealing with disputes has been updated with the introduction of a new flexible system to accommodate issues which require more or less on-the-spot decisions: there is now a two-tier approach to dispute resolution with expert evaluation added to arbitration.

Expert evaluation applies to disputes relating to the application of standby

rates and additional costs following a change to the nature of the services. It is intended that the expert evaluator will be a Special Casualty Representative (SCR).The evaluation is not binding on either party but allows work to continue based on the advice of the expert evaluator without prejudicing their right to resolve the dispute by conventional arbitration.

Sample copies of WRECKHIRE 2010, WRECKFIXED 2010 and WRECKSTAGE 2010 along with explanatory notes can be downloaded free of charge from the Documentary section of the BIMCO website at www.bimco.org.

Boluda: fleet update

The tugs VB CONQUERIDOR (pictured right), VB SOÑADOR, VB FURIA and VB PODER belong to BOLUDA TOWAGE AND SALVAGE which operates in the port of Valencia. They are Voith W Tractor with 5,508 BHP and 56 tonnes bollard pull. They all have fire fighting systems and pollution control capability.

BOLUDA TOWAGE AND SALVAGE has a total fleet of more than 200 tugs - harbour, offshore, ocean-going and salvage - which operate in the main ports of Spain and France and also in West Africa and South America.

MULTRASHIP’s new tug

MULTRASHIP has added the MULTRATUG 4 to its fleet. The vessel is a twin Voith with 75 tonnes bollard pull and is the former FAIRPLAY 28. She is a multi-purpose tug set to work at sea, in port and for salvage operations.

(Photo: Jan Plug)

87

New Zealand

The International Chamber of Shipping (ICS) has urged the New Zealand Government to consider the benefit of current practices in other parts of the world when it considers making changes to its maritime competition regime. New Zealand is particularly reliant on shipping for its international trade.

ICS says it believes there is “a very strong case” for the exemption of liner trade practices from the competition provisions of the NZ Commerce Act.

ICS says the practices allow shipping services to cope better with the severe and sudden imbalances in trade flows that are a feature of global shipping markets, including intense seasonal fluctuations. Co-operation amongst liner companies helps them to commit to the long term investments required to operate their high value assets.

Indian ocean pirates

The global shipping industry - through the Round Table of International Shipping Organisations - has called for the establishment of a United Nations force of armed military guards to tackle the piracy crisis in the Indian Ocean, which it says is spiralling out of control.

In a hard hitting letter to UN Secretary-General Ban Ki-Moon, the International Chamber of Shipping (ICS), BIMCO, Intertanko and Intercargo demand a “bold new strategy” to curb rising levels of piracy which have resulted in the Indian Ocean resembling “the wild west”.

The shipping industry organisations -

which represent more than 90% of the world merchant fleet - say they support the UN’s long-term measures on shore aimed at helping the Somali people but, in addition, want the establishment of a UN Force of Armed Military Guards that can be deployed in small numbers onboard merchant ships.

Russia

More than 100 passengers died when a pleasure boat went down on the river Volga in a flash storm. Reports say the BULGARIA was overloaded. Many of the dead were children.

The ship sank rapidly near the village of Syukeevo in the Kansko-Ustinovsky district near the region’s capital, Kazan. Survivors reported that the ship was leaning to starboard as it made a turn and a wave washed over the deck. It sank in less than ten minutes two miles from shore in 60 feet of water. River cruise boats like the BULGARIA are very popular among Russian holidaymakers.

Norway

Two crew members died in a fire aboard a cruise liner off the coast of Norway. The blaze forced rescuers to evacuate more than 200 passengers.

The ship, on a popular tourist route from Bergen to the northern regions inside the Arctic Circle, was close to the port of Aalesund in Western Norway when a fire started in the engine room, according to police.

The fire was brought under control but the ship took in water and was taken to Aalesund for inspection.

Eight people were taken to hospital, two of them with serious injuries.

UK tonnage tax

ISU associate member, accountancy firm Moore Stephens, says the UK Revenue and Customs (HMRC) has agreed to re-examine, in consultation with the shipping industry, its earlier intention to unilaterally re-interpret the UK Tonnage Tax rules to the potential detriment of many shipowners (see Salvage World Q2 2011).

UK tonnage tax is widely credited with increasing the UK fleet substantially since its introduction in 2000, when it was regarded as a model of clarity and stability. But, under the re-interpretation of the rules, some groups would not have qualified for the UK regime, despite having previously received HMRC clearance, with the result that internationally mobile shipping groups might consider leaving the UK.

Moore Stephens said it would be “excellent news” if HMRC decides to consider the matter afresh and to consult fully with the shipping industry.

UK ETVs

Two of the UK’s ETVs stationed in Scotland have received a “stay of execution”. They were due to be withdrawn from service but are to be kept on for a further three months while government considers alternatives. The four UK ETVs were targeted as part of the coalition government’s broad attack on public spending.

In bad weather in the English Channel in August the container vessel MV KATJA suffered a technical failure. Her crew were unable to make repairs and she was drifting in the Channel’s shipping lanes.

T h e o c e a n - g o i n g s a l v a g e / A H T FAIRMOUNT EXPEDITION, under the command of Captain W A van der Kort, was immediately mobilized to the casualty and successfully connected and towed the KATJA to Dover where harbor tugs took over and the FAIRMOUNT EXPEDITION was released for her next assignment.

Fairmount EXPEDITION assists drifting vessel

INTERNATIONAL MONITOR

Salvage World is produced by the International Salvage Union. For matters relating to the publication contact: James Herbert, ISU communications advisor. Tel: +44 1423 331 096 Email: admin@gemcomms.com

For general enquiries contact: ISU, 2nd Floor St.Clare House, 30-33 Minories, London EC3N 1BP Tel: +44 20 3179 9222/3 Email: ISU@marine-salvage.com

9

AGM 2011 - pictures

1 2 3

4

5

6

7

8

1 L-R Andreas Tsavliris, Jacques Tanguay, James Herbert

2 L-R Joop Timmermans, Vivian Dahl, Kees van den Borne

3 L-R Alfred Hubner, Andreas Tsavliris, Alberto Camacho

4 L-R Capt. Jiahui Song, Hendrik Land, Hao Shen

5 Front row L-R Andreas Tsav-liris, Joop Timmermans, Cappy Bisso

6 Rob Wallis

7 L-R John Noble, Mike Lacey, Todd Busch, Rob Wallis, James Herbert

8 Front row L-R Alberto Cama-cho, Joaquin Lozano, Charo Coll