SCM HSQ ANNUAL REPORT 2014old.staff-centre.com/upload-files/SCM_HSQ_ANNUAL_REPORT...Francuzsky Buelvard 54/23, 65009, Odessa, Ukraine Tel: +380 487 34 00 65 Fax: +380 487 34 00 64

Staff Centre Shipmanagement Health, Safety and Quality Annual

Report 2014

TECHNICAL, SAFETY & OPERATIONAL MANAGEMENT

Staff Centre Shipmanagement

Health, Safety and Quality Annual Report 2014

TECHNICAL, SAFETY & OPERATIONAL MANAGEMENT

ISM Certified Co

2002 IMO No. 5033921

Staff Centre Shipmanagement Ltd.

3rd floor, Sigurd Hall Business Centre, Francuzsky Buelvard 54/23, 65009, Odessa, Ukraine

Tel: +380 487 34 00 65 Fax: +380 487 34 00 64

E-Mail: [email protected] Web: www.staff-centre.com

mailto:[email protected]

http://www.staff-centre.com/

The SCM aims to be recognized as the global supplier of the quality services to the shipping industry with absolute regard for safety and marine environmental.

Introduction

Staff Centre Shipmanagement Ltd. specializes in providing ships with technical, safety, security and operational support from shore-based management. The Company offers the complete range of ship management and marine consultancy according to the highest international standards, designed to relieve the ship owners of the routine workload related to operation of their vessels. We are fully IACS ISM, ISO 9001:2008 certified company, which allows us to provide our services in full compliance with the highest international management standards. Our standard full management package for a vessel consists of such main services as all safety related aspects, security aspects in accordance with ISPS Code (including arrangements for safe passage through Piracy High Risk Areas), full maintenance of the vessel, including repairs and dry docking, supply of stores, spare parts, lubricants and fuel. The service also includes keeping of records and ensuring that the vessel is well documented with all certificates, manuals and other documents, required for world-wide trade, and many other services, ensuring the compliance of each vessel with all regulatory bodies such as IMO, SOLAS, MARPOL, etc. -

A multi-disciplinary team of professionals, with decades of seagoing experience in the positions of Masters and Chief Engineers, manages the daily technical maintenance, safety & security, repair and operational aspects of each vessel as well as offers practical advice on all shipmanagement aspects, such as consulting, supervising of new building and conversion of the vessels, pre-purchasing inspections and vessel’s condition assessment for ship-owners.

We are ready to find, evaluate and purchase the vessel for our clients; register, classify, insure, manage and operate her; and after years arrange her sale to other owner or scrap. Our specialists arranged technical support and supervision under the construction of bulk carriers. The Company’s supervision group consists of experienced and highly educated engineers, specialists in construction and operation of modern vessels’ hulls and machinery. All members of this group have work experience at shipbuilding and shiprepair plants, and in operation of large capacity sea-going vessels as masters and chief engineers.

Our Team

Korneliu Russu Director Graduated from Odessa State Maritime Academy with Master’s Degree in navigation in 1984. Started his career in Black Sea Shipping Company as navigational officer. In 1995 got diploma of Deep Sea Captain and till 2007 was working as Captain on the vessels of Staff Centre Shipmanagement Ltd. Joined Staff Centre Shipmanagement Ltd. team in 2007 in position of DPA. From 2011 till now is working in position of Director of Staff Centre Shipmanagement Ltd.

mobile: +380 50 390 74 82 e-mail: [email protected]

Borys Kononenko Technical Manager Graduated from Kherson State Maritime Academy (1972) and Odessa State Maritime Academy (1980) with First Class Engineer degree. Started his carrier in Black Sea Shipping Company (1973-1990). Worked in position of chief engineer for 15 years. In 1999 joined Danaos Shipping Company in position of Technical Supervisor. In 2002 was employed by the company Univan as Technical Superintendent. Joined the team of Staff Centre Shipmanagement Ltd. In January 2003 in position of Technical Manager.


Management

Oleksandr Sinitsyn Designated Person / MS&Q Superintendent from September, 2012 till August, 2014 Graduated from Odessa State Marine Academy with Master’s Degree on navigation in 1993. Worked as Shipmaster for 12 years on various types of ocean-going ships. Since 1998 - individual member of IFSMA (International Federation of Shipmasters' Associations) in London. From 2008 till 2012 worked in reputable shore companies such as V. Ships, SeaTec etc., in position MS & QS. Since 2011 till 2012 was employed in position of Safety Manager in Pasin Marine Consultants, Panama.


Vasyl Vasylyev Marine Safety & Quality Superintendent / Designated Person / Company Security Officer from August, 2014 Graduated from Kaliningrad High Naval College with Master’s Degree in Naval Navigational support & Sea Navigation in 1975. Completed naval carrier in 1998 and same year joined Merchant Fleet. Since 1998 was working as Shipmaster on Bulk Carriers operated by Ocean Agencies Ltd, London and under management of Staff Centre Shipmanagement Ltd. Joined Staff Centre Shipmanagement Ltd. in September 2011.


Management

Stanislav Sergeychik Manager of Purchasing Department Graduated from University of Westminster in London with degree in Economics for Business in 2004. Same year he was employed by Staff Centre Shipmanagement Ltd. as a Purchasing operator. Currently occupies position of Manager of Purchasing Department.


Tatyana Garnyk Financial Manager Graduated from Odessa Marine Engineering Institute. Since 1993 till 1995 was working as economist in Black Sea Shipping Company. In 1995 continued her carrier as Financial Manager in Marnel, Ukmar. Since 2000 till 2005 worked in Chesva Enterprises Ltd. as Financial Manager. Joined Staff Centre Shipmanagement Ltd. in June 2005.


3rd floor, Sigurd Hall Business Centre, Francuzsky Buelvard 54/23,

65009, Odessa, Ukraine Phone: +380 487 34 00 65

Fax: +380 487 34 00 64 E-Mail: [email protected]

www.staff-centre.com

Fleet list

№ Vessel’s name Built Type DWT Flag Class

1 ANARITA 2012 Bulk Carrier 58018 Liberia BV

2 ARCADIA 2012 Bulk Carrier 58018 Liberia BV

3 ALMERIA 2011 Bulk Carrier 57002 Liberia BV

4 AVIONA 2011 Bulk Carrier 56898 Liberia BV

5 ARIZONA 2010 Bulk Carrier 56969 Liberia BV

6 ARNICA 2010 Bulk Carrier 56106 Liberia NKK

7 ARINAGA 1999 Bulk Carrier 47263 Liberia NKK

8 IRON KOVDOR 1998 Bulk Carrier 72474 Liberia NKK

9 ALPENA 1998 Bulk Carrier 48475 Liberia NKK

10 AMANDA 1997 Bulk Carrier 46500 Liberia RMRS

11 USOLIE 1990 Bulk Carrier 68789 Liberia NKK

12 CAPTAIN V.MAZURENKO* 2011 Bulk Carrier 56947 Liberia BV

13 ANAPA* 2010 Bulk Carrier 57038 Liberia BV

* − in SCM Management till August, 2014

ANARITA Bulk Carrier Built: 2012, China IMO/Reg №: 9636008 DWT 58018 GRT 32839 Main Engine: Type/KW/RPM Man B&W 6S50MC-MK7

Flag Liberia Class BV In management since 2012

ARCADIA Bulk Carrier

Built: 2012, Dayang Shipbuilding Co., Ltd. IMO/Reg №: 9635999 DWT 58018 GRT 32839 Main Engine: Type/KW/RPM Man B&W 6S50MC-C7


CAPTAIN V.MAZURENKO Bulk Carrier Built: 2011, LMP, Dalian, China IMO/Reg №: 9554664 DWT 56947 GRT 33044 Main Engine: Type/KW/RPM

YMD-WARTSILA / 6RT-FLEX50B / 9960 kW / 124 rpm


ALMERIA Bulk Carrier Built: 2011, COSCO, Zhoushan, China IMO/Reg №: 9592721 DWT 57002 GRT 33044 Main Engine: Type/KW/RPM

MAN B&W 6S50MC-C /10381 hp-92 rpm / 9400 kW / 88 rpm


AVIONA Bulk Carrier

Built: 2011, COSCO, China IMO/Reg №: 9592745 DWT 56898 GRT 33044 Main Engine: Type/KW/RPM



ARIZONA Bulk Carrier

Built: 2010, China IMO/Reg №: 9592733 DWT 56969 GRT 33044 Main Engine: Type/KW/RPM



ARNICA Bulk Carrier

Built: 2010, Chiba, Japan IMO/Reg №: 9514418 / 104120 DWT 56106 GRT 31759 Main Engine: Type/KW/RPM

Mitsui MAN-B&W /6L50MC-C type 2/ 9070 kW / 125 rpm

Flag Liberia Class NKK In management since 2010

ANAPA Bulk Carrier

Built: 2010, LMP, Dalian, China IMO/Reg №: 9554676 / 14393W DWT 57038 GRT 31044 Main Engine: Type/KW/RPM

YMD-WARTSILA / 6RT-FLEX50B / 9960 kW / 124 rpm


ARINAGA Bulk Carrier

Built: 1999, Oshima, Japan IMO/Reg №: 9200324 / 980338 DWT 47263 GRT 25955 Main Engine: Type/KW/RPM

Kawasaki MAN B&W 6S60MC-C / 7022 kW / 104 rpm


IRON KOVDOR Bulk Carrier

Built: 1998, Sasebo Heavy Industries, Japan IMO/Reg №: 9168465 DWT 72474 GRT 37818 Main Engine: Type/KW/RPM MAN-B&W 6S60MC


ALPENA Bulk Carrier

Built: 1999, Oshima, Japan IMO/Reg №: 9162980 / NK 980581 DWT 48475 GRT 25980 Main Engine: Type/KW/RPM

Mitsubishi 6 UEC 50LS II / 9570 kW / 106 rpm


AMANDA Bulk Carrier

Built: 1997, Korea IMO/Reg №: 9122289 / 960353 DWT 46500 GRT 27681 Main Engine: Type/KW/RPM

Hyundai HM MAN B&W 6S50 MC / 8558,8 kW / 127 rpm

Flag Liberia Class RMRS In management since 2009

USOLIE Bulk Carrier

Built: 1990, Korea IMO/Reg №: 8800315 DWT 68789 GRT 37519 Main Engine: Type/KW/RPM

HYUNDAI - B&W 6S 60MC / 12260 BHP / 83.7 rpm


MANAGEMENT SYSTEM

Table of Content

1. Staff Centre Shipmanagement Preview 2014......................................................................................... 1

2. The Staff Centre Shipmanagement System (E-SCMS) ........................................................................ 3

What’s New? .................................................................................................................................................................. 5

E-SCMS Self-Assessment .......................................................................................................................................... 6

Weekly Engine Abstract Report ........................................................................................................................... 6

3. Company Vision, Policies and Objectives ................................................................................................. 7

4. General Overview of SCM HSQ Report ........................................................................................................ 8

5. Risk Management and Risk Analysis 2014 .............................................................................................. 8

Company Risk Management 2014....................................................................................................................... 8

Fleet Overview 2014 .................................................................................................................................................. 9

Dynamics of Near Miss, Accident and Incident Reports 2014 ............................................................ 10

SCM Safety Performance through the Years ............................................................................................... 10

6. Accident Reports Review 2014 .................................................................................................................... 11

Accidents Control Measures................................................................................................................................ 12

7. Incident Reports Review 2014 ..................................................................................................................... 13

Type of Incidents 2014 .......................................................................................................................................... 13

Damage to Vessels/Equipment 2014 ............................................................................................................. 13

Why Are The Incidents Occurred In 2014?.................................................................................................. 15

Direct Causes .............................................................................................................................................................. 15

Root Causes: ................................................................................................................................................................ 15

Remedial Actions ...................................................................................................................................................... 15

Incidents Control Measures ................................................................................................................................ 16

8. Near Miss Reports Review 2014 .................................................................................................................. 17

Possible Consequences .......................................................................................................................................... 17 Page 1 of 2 TABLE OF CONTENT Created: January, 2014

MANAGEMENT SYSTEM

Shipboard Operations ............................................................................................................................................ 17

Most Common Direct Causes of Near Miss Reports 2014 .................................................................... 17

Most Common Root Causes of Near Miss Reports 2014 ....................................................................... 17

Remedial Actions 2014 .......................................................................................................................................... 17

9. SCM Inspections 2014 ........................................................................................................................................ 18

Port State Control Inspections 2014 ............................................................................................................... 18

PSC Deficiencies 2014 ............................................................................................................................................ 19

Direct Causes of PSC Deficiencies 2014 ......................................................................................................... 20

Root Causes of PSC Deficiencies 2014 ............................................................................................................ 20

USCG Inspections 2014.......................................................................................................................................... 21

Company Performance Profile and Managed Vessel’s Risk Profile under the Paris MOU PSC (NIR) Standards ........................................................................................................................................................ 22

Ship risk profile 2014 ............................................................................................................................................. 22

SCM HSQ Paris MOU Historical Parameters ................................................................................................ 23

Company Performance Profile In 2014 ......................................................................................................... 23

LISCR ASI Inspections 2014 ................................................................................................................................ 25

SCM Internal ISM/ISPS Inspections 2014 .................................................................................................... 26

Inspection Deficiencies Control Measures ................................................................................................... 26

Joint Ship-Shore Exercise 2014 .............................................................................................................................. 27

10. Conclusion .............................................................................................................................................................. 28

SCM HSQ Objectives 2014 .................................................................................................................................... 28

SCM HSQ Objectives 2015 .................................................................................................................................... 29

Page 2 of 2 TABLE OF CONTENT Created: January, 2014

MANAGEMENT SYSTEM

1. Staff Centre Shipmanagement Preview 2014

In the beginning of 2014 the Company has 13 ocean-going bulk carriers in management.

Half of managed fleet vessels are new-buildings built in 2010-2012.

According to Shipowners’ decision MV «CAPTAIN V. MAZURENKO» and MV «ANAPA» were sold and left SCM fleet in July 2014. Captain A. Sinitsyn (DPA / Safety & Quality Superintendent) has left Staff Centre Shipmanagement Ltd in July 2014. I have enjoyed my tenure in the team of professionals and appreciate having had the opportunity to work with all SCM staff. Thank you for the trust, support, and encouragement SCM staff have provided to me during my time at SCM. Hope our cooperation will be continued in future. Thanks again for everything! Yours sincerely, Oleksandr Sinitsyn From 01 August 2014 Captain Vasyl Vasylyev is appointed as the Company Safety & Quality Superintendent / DPA / CSO. Deep Sea Captain with Endorsement. 12 years’ experience as Master of Bulk Carriers and Senior Navigation Officer. 20 years’ experience as a Teacher (lecturer) of Navigation at the Odessa State Marine Academy. From 01 August 2014 Superintendent Andriy Litovenko will act as Deputy DPA.

Page 1 of 30 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2014 Created: January, 2015

MANAGEMENT SYSTEM

Staff Centre Group of Companies 15 years Anniversary This year Staff Centre Group of Companies celebrated its 15 years anniversary. Staff Centre Shipmanagement, as an integral part of SC Group, has made a great contribution to marine community by offering high quality technical, safety, security and operational services. For all these years a great work was done by brilliant team of dedicated personnel who has demonstrated that success comes to those who work hard for the same, in spite of all challenges. Owing to their efforts our Company stood the test of time, proved its worth, built a solid reputation and has gained the much deserved recognition and fame. The formula of success of this privately owned company with partners being actively engaged in the daily business is seen in the consequent focus on the customers’ demands. There is no doubt that Staff Centre Shipmanagement will continue to focus on the business issues and deliver significant benefits to marine community.


MANAGEMENT SYSTEM

2. The Staff Centre Shipmanagement System (E-SCMS)

The Staff Centre Shipmanagement System (SCMS) applies to the Ship Management Division of the Staff Centre Shipmanagement Group and is written in compliance with the ISM and ISPS Codes.

The SCMS is the Safety and Quality management system used by Ship Management Office (SMO) of Staff Centre Shipmanagement Ltd. and by all vessels managed therein.

The E-SCMS incorporates business, personnel and technical management and the execution of all activities deemed as vital in obtaining safety, environmental and quality performance in service and customer satisfaction.

E-SCMS applies to all critical activities executed by the Company ashore and onboard. Activities performed on behalf of the Company by contractors and suppliers are monitored accordingly. The Company ensures that contractors and suppliers maintain a similar level of safety, environmental and quality performance.


MANAGEMENT SYSTEM

Staff Centre Shipmanagement Ltd. has successfully passed an Audit carried out by Bureau Veritas and Company's Management System (E-SCMS) found to be in compliance with ISO 9001:2008 standard. Scope of certification:

Ship Management Services;

Operation of Bulk carriers, Container ships and

Passenger ships;

Seafarers' training.

Key benefits of ISO 9001:2008

Well defined and documented procedures improve the consistency of output;

Improves and establishes training processes;

Defines roles and responsibilities;

Greatly increases operational efficiency;

Quality is constantly measured;

Procedures ensure corrective action is taken whenever defects occur;

Builds opportunities for global commerce with international recognition;

Improves customer relations;

Improves relationships with suppliers due to clear, concise production standards· provides basis for consistent and fact-based decision making;

Carefully planned improvements, based on documentation and analysis;

Provides for regular audits/reviews of performance

And subsequently Staff Centre Shipmanagement Ltd. successfully passed ISM External Annual Verification on May 22, 2014, with relevant endorsing of Document of Compliance, also Company Electronic Management System (E-SCMS) has been officially approved by Russian Maritime Register of Shipping (RMRS).


http://www.staff-centre.com/e-scms

http://the9000store.com/iso-9001-procedures.aspx

http://the9000store.com/ISO-9000-Tips-Corrective-and-Preventive-Action.aspx

MANAGEMENT SYSTEM

What’s New?

During 2014 the Ballast Water Management Plans for SCM fleet have been newly revised by Safety Department/Implementation Team and afterwards reviewed and approved by LISCR in accordance with current guidelines on Ballast Water Management, Ballast Water Management Plans and Ballast Water Exchange developed by IMO following adoption of the International Convention for the Control and Management of Ship’s Ballast Water and Sediment, 2004. The plans meet the requirements of NORMAN-20/DPC, Brazilian Navy Ports & Coastal Directorate 2005 Regulations on Ballast Water Management and the requirements of Norwegian Ministry of the Environment Regulation No.992 of 7 July 2009 (the Ballast Water Regulation).

From July 20141, all ships are required by new IMO regulations (SOLAS Regulation III/I7-1) to have ship-specific plans and procedures for the recovery of persons from the water. The plans and procedures must identify the equipment intended to be used for recovery purposes and measures to be taken to minimise the risk to shipboard personnel involved in recovery operations. This document should be considered as a part of the emergency preparedness plan required by paragraph 8 of Part A of the International Safety Management (ISM) Code. Implementation Team in close cooperation with shipboard staff under strict control of Safety Department developed and implemented required plans for all SCM vessels.

The Energy Efficiency Design Index (EEDI) was made mandatory for new ships and the ship Energy Efficiency Management Plan (SEEMP) for all ships (>400T) at MEPC 62 (July 2011) with the adoption of amendments to MARPOL Annex VI (resolution MEPC.203 (62)), by Parties to MARPOL Annex VI. The Ship Energy Efficiency Management Plan (SEEMP) incorporates best practices for the fuel efficient operation of ships, such as better speed management throughout a ships voyage, for example. Such efficiency measures will significantly reduce fuel consumption and, consequently, CO2 emissions. Technical Department with assistant of Implementation Team revised, developed and implemented new plans for all SCM vessels.

The implementation of ISM Code and ISPS Code requires from the management system to include contingency planning procedures to ensure effective reaction in case of emergency. In accordance with ISM Code Part A Clause 8: The Company should identify potential emergency shipboard situations, and establish procedures to respond to them; establish programs for drills and exercises to prepare for emergency actions; the safety management system should provide for measures ensuring that the Company’s organization can respond at any time to hazards, accidents and emergency situations involving its ships. Joint Ship to Shore Booklet was developed and implemented by Implementation Team under strict supervision of Safety Department. In April 2014 «Joint Ship to Shore Exercise» was conducted with all SCM vessels.


MANAGEMENT SYSTEM

E-SCMS Self-Assessment IT Department developed and designed E-SCMS Self-Assessment as a perfect tool to ensure that all pre-joining and shipboard personnel as well as shore based staff are fully familiarized with E-SCMS. E-SCMS Self-Assessment is used by Staff Centre Training for in-house training purpose. Under certain circumstances Shipboard Report of Candidate’s Skills Testing and Appraisal Report may be substantiated with results of test duly signed and stamped by Master.

Weekly Engine Abstract Report In 2014 IT experts developed electronic dynamic tool for monitoring and controlling of ship propulsion including consumption of fuel, diesel and lubricating oil on all SCM vessels for all reporting years. Charts to display:

Sea / Wind / Current Speed / Slip / RPM / Draft IFO HS Daily Consumption IFO LS Daily Consumption MDO HS Daily Consumption

MDO LS Daily Consumption IFO HS Onboard IFO LS Onboard MDO HS Onboard MDO LS Onboard


MANAGEMENT SYSTEM

3. Company Vision, Policies and Objectives The SCM aims to be recognized as the global supplier of the quality services to the shipping industry with absolute regard for safety and marine environmental.

4. Policy of zero accidents and incidents 5. Policy of zero spills to the sea

Quality Policy

Safety and Environmental Policy

Health Policy

Drug and Alcohol Policy

Security Policy

Technical Management Policy

Navigation Policy

Human Resource Policy

Crewing Policy

Preventing human injury or loss of life

Avoiding damage to the marine environment

Avoiding damage to the property

Policy of zero accidents and incidents

Policy of zero spills to the sea


MANAGEMENT SYSTEM

4. General Overview of SCM HSQ Report Staff Centre Shipmanagement Ltd. has a strong focus on health, safety, environment and competence and shall always be prioritized during operation.

This is SCM HSQ’ second report focuses on our health, safety, quality (HSQ) performance covering the calendar year 2014.

SCM measures performance within these areas in order to improve our performance and to document our progress.

SCM staff has made every effort to ensure that all data contained in the report is as accurate and as reliable as possible.

The organisation boundary of the report has been established on the basis of what is defined as the operational control approach which means that SCM have the authority to implement Health, Safety and Quality management system, or that we are otherwise able to control performance in these areas. Annual report of Company’s Safety Management System (SMS) is a dynamic tool for continuous improvement.

Staff Centre Shipmanagement Ltd. works continuously to raise the consciousness of competence and operational quality.

5. Risk Management and Risk Analysis 2014

Risk Management and Risk Analysis have been maintained for monitoring Near Miss, Incident, and Accident Reports in the course of year among SCM managed fleet.

Company Risk Management 2014

The report covers health, safety and quality impacts of assets over which the SCM Ltd. has operational control.

93%

7% 0%

0%

20%

40%

60%

80%

100%

Near Misses Incidents Accidents


MANAGEMENT SYSTEM

Fleet Overview 2014

Vessel Near Misses Incidents Accidents

MV ALMERIA 12 0 0

MV ALPENA 0 0 0

MV ANAPA 5 0 0

MV ANARITA 2 2 0

MV ARINAGA 1 1 0

MV ARIZONA 7 0 0

MV ARCADIA 1 1 0

MV ARNICA 12 0 0

MV AMANDA 3 0 0

MV AVIONA 6 0 0

MV IRON KOVDOR 0 0 0

MV CAPTAIN V. MAZURENKO 8 0 0

MV USOLIE 5 1 0

TOTAL 62 5 0


MANAGEMENT SYSTEM

82%

11% 7%

93%

7%

0% 0%

20%

40%

60%

80%

100%

Near Misses Incidents Accidents

2013

2014

12

20

12

6 6

3 3

0 0 0 0 0 0

1 1 0 0 0 0

0

2

4

6

8

10

12

14

16

18

20

22

Nu

mb

ers

Near Miss Incident Accident

Dynamics of Near Miss, Accident and Incident Reports 2014

SCM Safety Performance through the Years


MANAGEMENT SYSTEM

6. Accident Reports Review 2014 According to SCM Safety Policy the Company is committed to identify all risks associated with operation of managed vessels; implement necessary safeguards in order to provide safe working practices for the health and safety of its employees and the third parties.

E-SCMS contains procedures describing and providing safe practices in ship operation and safe working environment (SEM 2; SEM 4; SFOM).

Referring to COM 3.2.8 and SEM 8 all accidents are to be reported to the office via e-mail by ship using SAF 02 - ACCIDENT REPORT. This year has been one of the best years in the Company’s history in terms of health performance. SCM Ltd met and exceeded health targets for 2014 and launched several key safety initiatives.

SCM HSQ health performance data table

Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total

2013 0 0 0 1 0 1 2 1 0 0 0 0 5

2014 0 0 0 0 0 0 0 0 0 0 0 0 0

Nevertheless, the Company implemented preventive measures for maintaining a zero level of accidents in future.

On 8 August 2014, the World Health Organization (WHO) declared the Ebola virus disease outbreak in West Africa a Public Health Emergency of International Concern (PHEIC) in accordance with the International Health Regulations (2005). The International Maritime Organization (IMO) issued Circular Letter No.3484 regarding Ebola virus disease to provide information and guidance, based on recommendations developed by the World Health Organization (WHO), on the precautions to be taken to minimize risks to seafarers, passengers and others on board ships from the Ebola virus disease (EVD).

Safety Flash Bulletin 07.14 was issued and circulated among SCM fleet with following recommendations: SCM Fleet Shipboard Management Teams should be appropriately informed and aware about

outbreak of above mentioned virus and the territories where it has been spread;

Subject of this Bulletin to be discussed during the next Safety Meeting on board and all staff should be familiarized in a proper manner;

In case of calling West African countries affected by Ebola virus, additional advance warning to be given for crew, appropriate training provided and precautionary measures taken on board during port stay;

Circular 011-14 - Ebola: Infectious Disease Preparedness for the Maritime Industry is attached;

IMO Circular Letter № 3484 - Ebola virus disease is attached. Page 11 of 30 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2014 Created: January, 2015

http://www.imo.org/Pages/home.aspx

http://www.safety4sea.com/images/media/pdf/2014/Circular-Letter-No-3484-Ebola-Virus-Disease.pdf

MANAGEMENT SYSTEM

Accidents Control Measures The accidents are reported and analysed with the purpose of establishing measures to prevent recurring accidents of the same nature.

Our management takes on responsibility for its employees so that everyone feels safe at work and returns home healthy at the end of the day. This also applies to the contractors working for us. They have to comply with high standards, but are also actively supported in their occupational safety work. Our ambitious goal is zero incidents in all of our activities. And even though this goal may not be achieved every year, we continue to work towards preventing accidents and operating our plants safely. Should an incident occur, we are prepared to do our utmost to minimise the impact on the people involved, the environment and the public. SCM Ltd. will consistently implement the methods developed for contractor management so that contractors also meet the requirements that we set for our own employees.

To ensure that safety continues to be top of mind for all employees and to reinforce behavior based safety, SCM launched and set several safety recommendations and tasks throughout the forthcoming year.

SCM HSQ Performance 2015 in light of reducing and preventing accidents among managed fleet

Company's Safety & Environmental Procedures to be strictly followed by all shipboard personnel

Code of Safe Working Practices is important for a clear understanding of job requirements and procedures

Any shortcomings which impact upon the safe operation of the vessel must be reported to the Ship Management Office immediately

All crew are to have a copy of the Company's PPE Matrix

Company's Safety Posters are one of the important ways that can help to maintain a safe and healthy workplace environment onboard SCM vessels


MANAGEMENT SYSTEM

7. Incident Reports Review 2014 According to SCM Safety Policy the Company is committed to identify all risks associated with operation of managed vessels; implement necessary safeguards in order to provide safe working practices for the health and safety of its employees and the third parties.

E-SCMS contains procedures describing and providing safe practices in ship operation (FOM, SEM SFOM).

Referring to COM 3.2.8 and SEM 8 all accidents are to be reported to the office via e-mail by ship using SAF 03 - INCIDENT REPORT.

SCM HSQ safety performance data table


2013 0 0 0 3 0 0 0 0 1 2 2 0 8

2014 0 1 1 0 0 0 3 0 0 0 0 0 5

Ballast overflow - 1 incident (20%)

Fire in the cargo hold - 1 incident (20%)

Damage of shore truck by grab - 1 incident (20%)

Touching the berth - 2 incidents (40%)

Type of Incidents 2014

Damage to Vessels/Equipment 2014

Other equipment - 1 incident (20%) Hull contact/damage

- 2 incidents (40%) Other equipment - 1 incident (20%)

Deck equipment - 1 incident (20%)

5 incidents occurred in 2014. SCM management is working diligently to reduce the frequency of these occurrences. Often, these incidents occur in spite of existing Company’s procedures, which emphasizes the requirements of ship specific operations, safety precautions and measures, the need for ongoing training and awareness of how a safe working environment is built and maintained.

Risk Management and Risk Assessment is a major part of the proactive work to avoid danger for crew, equipment and environment. The industry demands continuous risk assessment for both operation and equipment. When it comes to safety SCM Ltd. is conscious of importance of continuous motivation and adaptation. During the year the Company has carried out sequences of training for maritime personnel towards safety onboard for different ship specific operation.


MANAGEMENT SYSTEM

04-June 2014 during discharging at port BIK in result of breaking out the fire caused by malfunction payloader some part of cargo was contaminated. Bulldozer's driver and crane operator have noticed the fire much earlier than it became evident to the crew and escaped without reporting to anybody. Ship's equipment was working properly and didn't failure. Lessons learned/Preventing measures: Additional supervision to be arranged while operating of hazardous equipment in cargo compartments.

08-July 2014 during discharging operations the shore truck was overthrown by ship’s grab loaded with cargo. No injured persons. No damages to vessel observed. Crane operator discharge cargo directly into the truck’s body without any hopers, assistance equipment etc. Stevedores rotated grab with cargo above truck’s body by shore assistance man. This process is unsafe due to shore stevedore doing it on upper part of truck’s body. Ship’s equipment was working properly and didn’t failure. Lessons learned/Preventing measures:

Control the reinforcement of stevedore’s job and safe working practices. Issuance of Guard/Protest Letters aiming to defend the ship’s interest. 08-March 2014 during ship’s handling operations aiming to bring the vessel alongside berth - slight siding impact by the ship’s port side bow quarter took place. The small part of wharf step has been chopped off. Non-coordination between pilot and tugboat masters. Communication between pilot and tugboats masters was on Portuguese language. The mooring operations have been presented in full compliance with E-SCMS and Code of Safe Working Practice. Lessons learned/Preventing measures: Communication Master - Pilot - Tugs to be executed in English language. Mooring plan (sketch) to be prepared and discussed during Master - pilot information exchange and also with all participants of the mooring operations.

11-July 2014 during cargo discharge process vessel was carrying out ballast operations aiming to reduce ship’s trim by stern and to inspect propeller blades. Ballast water overflow overboard. Due to failure to comply with port regulation vessel was applied a fine which was paid immediately. All ballast operations was properly logged and relevant forms of BWMP used. Lessons learned/Preventing measures: All specific and/or unusual ballast operations to be arranged with preliminary consideration, planning, proper risk assessment and

SMO written authorization. Page 14 of 30 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2014 Created: January, 2015

MANAGEMENT SYSTEM

Local stevedore was injured by damaged bundle of plywood during discharging. Stevedore’s legs were obstructed by fallen plywood batch during lifting up process. Numerous protests of ship master and claims describing situation with safety culture maintained by Stevedoring Company were totally ignored by its management. Lessons learned/Preventing measures:

To avoid such incident in future the cargo operations should be ceased until guarantee letter releasing the liability obtained from Stevedoring Company and countersigned by Agent’s. While port anchorage five robbers armed with long knives boarded SCM bulk carrier and attempt to steal mooring ropes from the aft locker. Officer on watch rose general alarm, using all available means of light and sound alarms to prevent attack. Crew arrived at place of security incident, robbers escaped the vessel. The padlock and turnbuckle was broken, about 15 meters of mooring rope was stolen. Port authorities informed about the security incident by VHF radio. Lessons learned/Preventing measures: SSO has to analyze possibility of such occurrence on board; Security Training /Instruction to be organized on board of all ships under SCM Management explaining to everybody what and how should be done on board to secure crew and ships property against robberies/piracy. Why Are The Incidents Occurred In 2014? Direct Causes: - Failure to follow rules and regulations; - Failure to follow Company’s procedures

Root Causes: - Lack of familiarization; - Lack of supervision and control

Remedial Actions:

Safety Flash Bulletin 03.14 - Injury of Stevedore was issued and circulated among SCM fleet;

Safety Flash Bulletin 04.14 - Fire in Cargo Hold was issued and circulated among SCM fleet;

Safety Flash Bulletin 09.14 - Piracy Attack was issued and circulated among SCM fleet;

Technical Flash Bulletin 02.14 - Ballast Overflow was issued and circulated among SCM fleet;

Additional Internal Safety Inspections were conducted by DPA and Technical Superintendents;

Qualified On board Training (OBT) program was planned and initiated by Training Centre;

Training Centre adjusted all training modules regarding ship specific operation;

Training Centre re-worked «Case Study» reports and use them during in-house training;

As a part of the work for developing good attitudes towards safety on board SCM Management and Training Centre provided DVD films covering the safety issues for different work situations;

Training Centre developed and approved Risk Assessment for specific and/or unusual ballast operations;

Additional training in connection with above mentioned incidents information was performed with crew on SCM fleet and results reflected in SAF 22 - ON BOARD TRAINING RECORDS.


MANAGEMENT SYSTEM

Incidents Control Measures Global transport systems comprise a highly complex set of activities of which many can be hazardous, with heavy equipment, loads and etc. In addition, we deal with different safety mindsets in the many countries in which we operate.

The incidents in 2014 have mainly occurred during port stay. Each of these incidents has been investigated and follow-up action has been agreed. The causes vary, as does the detail of the root cause analysis provided. Investigations reveal both failure to follow Company’s procedures and a lack of establishment of or adherence to specific local procedures. None of the incidents are excusable however, SCM Ltd. will continue to stress the importance of work procedures and respect for local procedures and regulations.

In order to highlight the cross-learning experience that can be gained from any incidents that may occur across the SCM managed fleet, the Company initiated and held Company Safety Meeting on monthly basis with Incident Review Meeting. The aim is to share experience to reduce the possibility for reoccurrence of similar incidents. A summary of these meeting reflects in Bulletins which are circulated throughout the SCM Fleet, detailing incident and the corrective actions taken.

Through learning the past and more robust investigation techniques, SCM Ltd. aims to improve her performance in the future.

All incidents reports issued during 2014 are closed out; necessary corrective and preventive actions are fully implemented. The incidents are reported and analysed with the purpose of establishing measures to prevent recurring incidents of the same nature.

SCM HSQ Performance 2015 in light of reducing and preventing incidents among managed fleet

Company's Safety & Environmental Procedures to be strictly followed by all shipboard personnel

The majority of incidents onboard ship can be avoided by following specific local rules, regulations

Training Centre must provide additional familiarization with Company's procedures regarding ship specific operations

Additional security drills and trainings must be initiated by Ship Security Officers

All ship specific operations to be arranged with preliminary consideration, planning and proper risk assessment.


MANAGEMENT SYSTEM

8. Near Miss Reports Review 2014 Referring to COM 3.2.8 and SEM 8 all Near Misses are to be reported to the office via e-mail by ship using SAF 05 - NEAR MISS REPORT. The intent of reporting near misses is to provide a mechanism for all Company employees, both shoreside and aboard ship, to raise health, safety, and environmental concerns prior to an accident occurring and resulting in a loss.

SCM HSQ near miss reports data table


2013 0 0 0 0 1 14 12 7 6 1 8 7 61

2014 12 20 12 6 6 3 3 0 0 0 0 0 62

62 Near Miss Reports were received in 2014 from SCM managed fleet.

Most Common Direct Causes of Near Miss Reports 2014: - Failure to follow Company’s procedures (44%); - Failure to follow rules and regulations (21%); - Failure use PPE properly (15%); - Failure to follow maintenance instructions (8%) - Poor housekeeping (6%); - Using defective equipment or machinery (6%)

Most Common Root Causes of Near Miss Reports 2014: - Lack of supervision (38%); - Lack of training (27%); - Personal factor (23%); - Job factors (6%); - Inadequate equipment (4%); - Inadequate assessment of operational readiness (2 %)

Remedial Actions 2014: - Additional safety instruction of crew; - Additional training with all crew concerning the fire precautions;

- Increasing control over the crew members; - Additional unscheduled safety training session and briefing concerning the oil pollution

Mechanical damage; 2%

Pollution; 6%

Injury; 53%

Fire; 15%

Mooring operation; 3% Supplying

operations; 3%

Cargo operations; 8%

Deck Maintenance;

42%

Engine Room General; 15%

Working aloft/overside;

2%

Shipboard Operations Possible Consequences


MANAGEMENT SYSTEM

9. SCM Inspections 2014

Port State Control Inspections 2014 Port State Control (PSC) is a method of checking the successful enforcement of the provisions of various international conventions covering safety, working conditions and pollution prevention on merchant ships. Under international law the shipowner has prime responsibility for ensuring compliance, with much of the work involved being carried out by the state whose flag the ship flies. Referring to COM 3.2.11 our clients and their customers treat PSC detentions very seriously and a prospective charterer is unlikely to charter a ship that has a bad record. Similarly a ship that has been involved in a serious incident is similarly “blacked” until a full investigation and report is made. The consequences of having a port state detention is totally unacceptable and may in fact result in the ship being banned from the country or from a number of countries as a result. It also has a very damaging impact on the reputation of SCM. A total 43 Port State Control (PSC) Inspections were carried out on SCM managed fleet in 2014.

0%

20%

40%

60%

80%

100%

PSC Inspections withoutdeficiencies

PSC Inspections less than 3deficiencies

PSC Inspections more than 3deficiencies

72% (31 inspections)

26% (11 inspections)

2% (1 inspection)

Port State Control Inspections 2014


MANAGEMENT SYSTEM

6

5

3

2 2 2 2

1 1 1 1 1 1

0

1

2

3

4

5

6

7PSC Deficiencies 2014

59

83

32

13 14

0

43

29 31

11

1 0 0

10

20

30

40

50

60

70

80

90

Total numberof PSC

Inspections

Total numberof PSC

deficiencies

PSCInspections

withoutdeficiencies

PSCInspectionsless than 3deficiencies

PSCInspectionsmore than 3deficiencies

Total numberof detention

2013

2014

SCM HSQ PSC Inspections data table


MANAGEMENT SYSTEM

SCM HSQ PSC Deficiencies data table

Reporting Year 2013 2014

Life Saving Appliances 6 6

Fire Safety 0 5

Alarms 5 0

Water/Weathertight condition 4 3

Documents 5 2

Working Conditions 3 2

Crew Certificate 0 2

Safety of Navigation 3 2

Cargo operations and equipment 3 0

Propulsion and auxiliary machinery 0 1

Emergency Systems 0 1

Ship Certificates 2 0

MARPOL Annex VI 2 1

Radio Communication 0 1

MLC 2006 1 1

Fire Fighting Equipment 2 0

Structural Condition 1 0

ME and Aux. Machinery 1 0

Living Conditions 1 0

ISM 1 0

ISPS 0 1

In spite of existing Live Saving Appliances Procedures (SEM Chapter 6) numbers of LSA deficiencies are still prevailing in 2014 as a result not following Company’s procedure by crew. The same situation with raised deficiencies concerning Fire Safety despite implemented in E-SCMS Fire Prevention and Firefighting Equipment. Lessons learned/Preventing measures: Training Centre to arrange more detail familiarization with above mentioned Chapters with all pre-joining personnel to avoid repetition of such deficiencies in future.

54%

11%

36%

Failure to follow rules and regulations

Failure to follow Company's maintenance instructions

Failure to follow manufactures instructions

Direct Causes of PSC Deficiencies 2014

64%

18%

7%

11%

Lack of supervision

Lack of knowledge and experience

Inadequate monitoring of operations

Lack of training

Root Causes of PSC Deficiencies 2014


MANAGEMENT SYSTEM

At the 23rd meeting of the Port State Control Committee in Singapore last month, the Memorandum of Understanding on Port State Control in the Asia-Pacific Region (Tokyo MOU) decided to introduce a New Inspection Regime (NIR) for selection of ships from 1 January 2014. In order to harmonize PSC procedures to the highest level between the two regions, the Tokyo MOU NIR was developed by taking advantage of the one introduced in the Paris MOU a couple of years ago. Under the NIR, ships would be identified into three categories (i.e. high risk ships-HRS, standard risk ships-SRS and low risk ships-LRS) based on ship risk profile, which will be calculated automatically in the PSC database system (APCIS). Safety Flash Bulletin 01.14 was issued and circulated among SCM fleet with following content: SCM Fleet Shipboard Management Teams should be appropriately informed and aware about new Inspection Regime of Tokyo MOU. All SCM vessels have to be ready for possible PSC Inspection in the Tokyo MOU region. USCG Inspections 2014

The USA Government maintains that the prime responsibility for compliance with the requirements laid down in the international maritime conventions lies with the ship owner/operator. It also continues to maintain that the responsibility for ensuring such compliance lies with the flag states, but the language contained in the various statements, papers etc. issued by the USCG indicates that while Port State Control is seen as a safety net, it is to be regarded as a proactive one and the USCG has recently begun to demonstrate, both by statements and by action, that it intends to enforce international standards stringently.

SCM HSQ USCG Inspections data table

Year Inspections Deficiencies Nature of Deficiencies

2013 3 1 Non-compliance with STCW VI/6

2014 3 2 Non-compliance with SOLAS II-1 Regulation 26.1 Non-compliance with SOLAS II-2 Regulation 14

Lessons learned/Preventing measures: During USCG Inspection it was found that insufficient information provided in service manual by manufacturer regarding testing of heat, smoke, flame, detectors. Appropriate testing appliances were supplied onboard with further instruction and training of crew. New Company form for test of fire detectors and water mist system was developed for all fleet vessels.


MANAGEMENT SYSTEM

Company Performance Profile and Managed Vessel’s Risk Profile under the Paris MOU PSC (NIR) Standards Ship risk profile 2014

Each ship in the Paris MOU database system will be attributed a Ship Risk Profile (SRP).

This SRP will determine the ships priority for inspection, the interval between its inspections and the scope of the inspection. Based on generic and historical parameters, all ships are assigned as: High Risk Ships (HRS) – applicable PSC inspection intervals: 5-6 month

Standard Risk Ships (SRS) – applicable PSC inspection intervals: 10-12 month

Low Risk Ships (LRS) – applicable PSC inspection intervals: 24-36 month

A ship’s risk profile is recalculated daily taking into account changes in the more dynamic parameters such as age, the 36 month history and company performance.

Recalculation also occurs after every inspection and when the applicable performance tables for Flag and R.O.s are changed. Parameters for Ship Risk Profile

General Parameters Results

Type of ship Bulk carriers – 2 negative points

Is the ship older than 12 years 1 point if YES / 0 points if NO

Flag State performance LIBERIA for all fleet / White List – 0 points

Is the Flag IMO Audited YES for all fleet – 0 points

Recognized Organization Performance NKK, BV, RMRS - HIGH performance – 0 points

Is the RO recognized by one of the Paris MOU member States NKK, BV, RMRS – 0 points

ISM Company Performance Medium – 0 points

Historical Parameters in the last 36 months for each vessel in accordance with the table below


MANAGEMENT SYSTEM

SCM HSQ Paris MOU Historical Parameters

Vessel’s Name

Total Number of inspections Paris

MOU within last 36 month

Total number of non ISM deficiencies

Total number of ISM

deficiencies

Number of detentions

Ship’s current Risk Profile

MV ALMERIA 2 1 0 0 SRS

MV ALPENA 2 2 0 0 SRS

MV AMANDA 3 13 0 0 SRS

MV ANARITA 3 2 0 0 SRS

MV ARCADIA 3 1 0 0 SRS

MV ARINAGA 1 6 0 0 SRS

MV ARIZONA 2 2 0 0 SRS

MV ARNICA 1 0 0 0 SRS

MV IRON KOVDOR 2 1 0 0 SRS

MV USOLIE 4 8 0 0 SRS

MV C.V.MAZURENKO 4 4 0 0 SRS

MV ANAPA 2 2 0 0 SRS

TOTAL 29 42 0 0

Company Performance Profile In 2014

Company performance takes account of the detention and deficiency history of all ships in a company’s fleet while that company was the ISM Company for the ship. Companies are ranked as having:

• Very Low Performance Profile – significantly increase the risk for all managed vessels to be

assigned as “High Risk Ships” automatically, notwithstanding the age and PSC history, with shortening of PSC inspections interval to 5/6 month.

• Low Performance Profile – increase the risk for all managed vessels to be assigned as “High Risk Ships” automatically, notwithstanding the age and PSC history, with shortening of PSC inspections intervals to 5/6 month.

• Medium Performance Profile – good results adding “0” negative points to managed vessel’s Risk Profile and increasing the PSC inspections intervals to 10/12 month. However, not allowing to any managed vessel to become “Low Risk Ship”

• High Performance Profile – best possible result adding “0” negative points to managed vessel’s Risk Profile and giving to all fleet vessels good chance to become “Low Risk Ship” and increasing the PSC inspections intervals to 24/36 month. In this case the actual “Risk Profile” of all ships in fleet will depends on own PSC history only.


MANAGEMENT SYSTEM

Parameters for Ship Risk Profile

General Parameters Results

How many PSC inspections has the fleet undergone in the Paris MOU region? 29

In how many detentions have these inspections resulted? 0

How many Non ISM deficiencies have been recorded during these inspections? 42

How many ISM deficiencies have been recorded during these inspections? 0

Has a refusal of access order been issued to any ship of the fleet? No

Basis above evaluations, Staff Centre Shipmanagement Ltd. is assigned for the times being “Medium” Company Performance Profile. Calculations show that in case of existing PSC history (29 inspections) for fleet vessels could be improved at least as follows:

− Records of 30 Non ISM deficiencies instead of 42 The Company Performance Profile in this case could be assigned as “High”. Our aim is to reach “High Performance Level” within the year 2015.

All PSC deficiencies raised during 2014 are closed out (using relevant Company form OSQ 06 - FINDING REPORT); corrective and preventive measures fully completed; all concerned parties are informed and provided with evidences.


MANAGEMENT SYSTEM

LISCR ASI Inspections 2014 LISCR ASI is carried out annually.

Referring to COM 3.2.10 the MS&Q Superintendent is to monitor the status of the Flag State Inspection Certificate and arrange for the attendance of the Flag State Inspector.

Attendance arrangements are to be made in conjunction with the vessel’s Fleet Superintendent. The MS&Q Superintendent, in conjunction with the Fleet Superintendent, is responsible for implementing the agreed corrective action for any findings raised. Outstanding items should be discussed at the Fleet Cell Meeting and the Technical Manager is to monitor that corrective actions have been implemented and reported to the Flag State in a timely manner.

LISCR ASI inspections were carried out on all managed fleet (11 SCM vessels) during 2014.

After completion of Annual Safety Inspection on MV ARCADIA LISCR Inspector noted that the vessel and Company SMS are maintained on good level and this fact was officially stated in relevant LISCR report. All LISCR ASI deficiencies raised during 2014 are closed out (using relevant Company form OSQ 06 - FINDING REPORT); corrective and preventive measures fully completed; all concerned parties are informed and provided with evidences.

LISCR Annual Safety Inspections 2014

69%

19%

12%

91%

9%

0% 0%

20%

40%

60%

80%

100%

ASI Inspectionswithout deficiencies

ASI Inspections lessthan 3 deficiencies

ASI Inspections morethan 3 deficiencies

2013 2014


MANAGEMENT SYSTEM

SCM Internal ISM/ISPS Inspections 2014 Referring to FOM 3.5.1 it is important to ensure and verify that the SCMS is correctly implemented and is being used effectively on board ship. Visiting company representatives duly qualified as an internal auditor carry out internal auditing of SMS. The 14 areas of audit are listed in (Form OSQ 07).

The requirement is that these areas are audited at intervals not exceeding 12 months; however this may not always be possible in one visit.

Internal ISM/ISPS inspections were carried on all SCM managed vessel with following results:

The majority of defective items: Shipboard filing systems are not corresponding to the Company's standards described in E-SCMS; Restricted access areas on board are not properly identified and marked in accordance with Ship's Security Plan (SSP)

All SCM Internal deficiencies raised during 2014 are closed out (using relevant Company form OSQ 06 - FINDING REPORT); corrective and preventive measures fully completed; all concerned parties are informed and provided with evidences. Inspection Deficiencies Control Measures

The PSC, LISCR ASI, SCM Internal deficiencies are reported and analysed with the purpose of establishing measures to prevent recurring deficiencies of the same nature.

InternalInspections

withoutdeficiencies

InternalInspections less

than 3deficiencies

InternalInspections more

than 3deficiencies

0%

20%

40%

60%

80%

100%

55% 6 inspections

18% 2 inspections

27% 3 inspections

SCM HSQ Performance 2015 in light of maintaining vessels in high standards among managed fleet

All applicable maritime rules and regulations as well as Company's Procedures to be strictly followed by all onboard personnel among SCM fleet

The continuous and proper onboard maintenance is the most effective way to reduce deficiencies to the minimum

Training Centre must provide additional familiarization with Company's procedures with special attention to Live Saving Appliances and Fire Prevention Chapters

Heads of Bridge and Engine Departments must arrange adequate supervision, leadership and necessary training in respect of vessel maintenance


MANAGEMENT SYSTEM

Joint Ship-Shore Exercise 2014 The procedure "Joint Ship to Shore Exercise" established in the Company for response to the emergency situations takes into account potentialities of the SCM, specifically and peculiarity of areas of navigation of the fleet. Our Company works out these procedures, taking into consideration vessel's itinerary and specificity of ships by carrying out the joint exercises "ship-shore" and subsequent review of their results. Performance of shipboard operations is affected by means of the formalized procedures/check lists reflecting the specificity of the particular ship of the Company, equipment and availability of the prepared personnel.

Joint Ship to Shore Booklet was developed and implemented by Implementation Team under strict supervision of Safety Department. This booklet contains following information:

general information; instructions to masters; scenarios; reporting requirements; joint ship to shore report

Type of drill scenarios: fire in galley; fire in Engine Room; oil spill; steering gear failure; man overboard; ship abandon collision bomb threat search for unauthorized personnel

All crewmembers onboard SCM fleet must complete additional training and familiarization with "Joint Ship to Shore Exercise Booklet" for improving reporting procedures and avoiding unsatisfactory result of exercise.

Results of Ship-Shore Exercises

Results Good 7 vessels Satisfactory 4 vessels Unsatisfactory 2 vessels

ICS flags IV 1 raised on MV ANARITA

All crew mustered on MV ALPENA

BA Party entering the scene of fire on MV AVIONA

Evacuation of casualty on MV AMANDA

Preparing portable pump on MV ARCADIA


MANAGEMENT SYSTEM

10. Conclusion As many of our employees work under challenging conditions, it is our responsibility to control risks to their health and safety from work activities. We are committed to providing all people working under our direction with a healthy and safe work environment, and continuously strive to improve our performance. The further implementation of E-SCMS shall lead to increased activity in the area of health and safety in 2015. 2014 year has been one of the best years in the Company’s history in terms of health performance - zero accidents with SCM employees. 5 incidents have occurred during 2014 on SCM vessels that have resulted in damages to vessel/equipment. Though these incidents haven’t led to serious damages and environmental pollution, these incidents are unacceptable to SCM and stress the importance of continuous awareness and training to ensure following Company’s procedures relating to critical shipboard operations and safe working conditions. Unfortunately PSC deficiencies were raised during 2014 but further analyzing and taking timely corrective and preventive actions are helpful tools for SCM in setting up counter measures for improving the PSC records and the safety of SCM managed vessels at sea. SCM Ltd. will continue to integrate sustainability in our operations, mitigating risks and raising performance levels. The Group programs will carry on ensuring compliance with our policies and standards. Every year, this work will be subject to a compliance self-assessment process where the SCM Ltd. follows up on the progress of implementation and reports on the performance achieved. SCM HSQ Objectives 2014

Staff Centre Shipmanagement HSQ Objectives 2014

Purpose to sharpen our employees’ safety mindset and improve the overall health, safety and environmental culture of SCM

Intensive familiarization and training of employees with E-SCMS by Training Centre

Electronic depositary (E-DEP) planned to move into E-SCMS system and assess to be enhanced by IT Department

Purpose to include environment performance (Ship Energy Efficiency Management Plan (SEEMP) with supporting EEOI average calculation)

Passing ISO 9001:2008 Audit with BV


MANAGEMENT SYSTEM

SCM HSQ Objectives 2015 Staff Centre Shipmanagement Ltd. expects to face a number of challenges in the areas of quality, health and safety in the coming 2015 year. In the 2015 we also look forward to more consistent HSQ reporting from vessels and stronger follow-up of the same by Marine Standards. Action Plan 2015

Title Objectives Targets Actions

1 Mooring

Campaign

Incident Analysis has identified Mooring Operations as an area for improvement.

Give sea farers an improved knowledge into the safety aspects relating to Mooring Operations, therefore reducing the accidents.

A Mooring Campaign DVD will be distributed to the fleet.

2 Safety

Behavioral

Adopt the concept of Behavioral Safety.

Improve safety performance and reduce the number of accidents that occur.

In addition to the current E-SCMS tools in place to maintain safety performance, Behavior will be analysed and used to improve safety performance.

3 Security Training

Ensure that abs and officers receive onboard CBT (Computer Based Training).

All on board have “on board security training certificate”.

An interactive CD will be distributed to the vessel (if the SSO (Ship Security Officer) does not have one already).

4 PSC

Excellence

PSC Deficiencies Analysis has identified Live Saving Appliance / Fire prevention and Fire Fighting Equipment Procedures as the areas for improvement.

Give sea farers an improved knowledge of maintenance relating to Live Saving Appliance and Fire Fighting Equipment, therefore reducing PSC deficiencies.

Training Centre to arrange comprehensive familiarization of pre-joining personnel with relevant procedures.

5 Maintenance

Program

Newly designed and improved PMS module 1 to be implemented.

Vessels to be supplied with special server equipment (with Owner permission and improvement).

IT Department to develop PMS module 1.


MANAGEMENT SYSTEM

Notes


Staff Centre Shipmanagement Ltd. 3rd floor, Sigurd Hall Business Centre,

Francuzskiy Boulevard 54/23 65009, Odessa, Ukraine Tel.: +380 487 34 00 65 Fax.: +380 487 34 00 64 E-mail: [email protected]

www.staff-centre.com

mailto:[email protected]