December 2008 On November 27 no less than three new 2810 ASD tugs were named in Rotterdam. More Well-positioned to thrive in the new environment 2 First 3213 class tugs join SMIT’s fleet 3 When connecting up is hard to do 6 development 8 “L Class” newbuilding programme reaches completion 8 Windfarm schemes feature in transport workload 4 SMIT’s harbour towage services expand in Eastern Europe page Exploiting synergies between innovation and business page 5 New bunkering services contract in Bahamas page 5 Salvage tasks in the wake of hurricane Ike 10 SMIT Marine Projects completes first phase of MOPUstor installation 11 SMIT Subsea Europe progresses Cirrus gas development 13 SMIT Amandla Marine advances towards sustainability goals 13 SMIT Amandla Marine continues to invest in its people 14 New projects explore the frontiers of tug design 14 Making progress towards SMIT’s new SHE-Q standard 15 Busy schedule ‘Asian Hercules II’ 16 Three is a charm 16 7 Defending the Italian coast from persistent oil seepage page 10 ‘Taklift 4’ tackles European windfarm lifts page page 15 Rapid expansion of SMIT Rebras fleet w w w. s m i t. c o m tug magazine WELL-POSITIONED TO THRIVE IN THE NEW ENVIRONMENT SMIT Harbour Towage would have been sold to one or more unidentified parties. SMIT Terminals would have been sold to Lamnalco (the Boskalis/Rezayat joint venture) and SMIT Salvage, SMIT Transport & Heavy Lift would have been absorbed by Boskalis. We remain firm in our belief in the inherent value of the current four-Division SMIT structure. For these reasons, we are resolved to maintain our close ties and strong relationships with clients. For these reasons, we wholeheartedly reject the break-up scenario. Our position is rooted in the tremendous progress made by SMIT over the past six years. We have achieved steady growth and boosted share value. Much of this success reflects the great synergies existing between the four Divisions. SMIT continues to advance in its core markets, despite the world’s financial difficulties and, at a more specific level, the unwelcome attentions of Boskalis. During the first half of 2008 the Harbour Towage Division contributed revenue nearly double that achieved in the corresponding period of last year. Revenue from transport activities also rose strongly. Taken overall, the Group’s operating result for the first six months represents a record first half. The financial crisis developed at a time when SMIT is particularly well-positioned to weather the storm. The world’s merchant fleet continues to operate and demands for harbour towage and terminal services remain constant. Furthermore, our long term contracts in areas such as terminal support and transport contribute to SMIT’s inherent strength and resilience. In such turbulent times it can be seen that our strategy - based on organic growth and the expansion of activities generating steady income - is exactly what is required in today’s arduous economic conditions. Stable income is all-important in this new and challenging commercial environment. At the same time, the crisis in world markets is now accelerating the long-term trend of consolidation. In this sense, the new environment is creating fresh opportunities for SMIT to grow. With this promising background in mind, we reject the attempted imposition of a Boskalis break-up of SMIT. There is some history behind Boskalis’ pursuit of SMIT. There has been interest on this front for many years. In February 2008 Boskalis made a public offer for our terminals business. This was rejected, as the Terminals Division is an integral part of our service offering with lots of synergies with the other Divisions in place. In mid-September Boskalis came back with an offer for the entire SMIT Group. They announced that SMIT would be split into a minimum of three sections, two of which would be sold off. This was flatly rejected. Boskalis has undervalued SMIT and, most importantly, seeks to break up the business. The vast majority of our shareholders recognise what would be placed at risk in a breakup. They remain loyal. I thank them for their confidence in our vision of SMIT’s future. It is true, naturally, that the global financial crisis is imposing new strains and influences. Yet it is also true that all past discussions with Boskalis have ended with a clear view: no synergy exists between the groups. The events of recent months have done nothing to change that fundamental reality. SMIT and the world of dredging are very far apart, in terms of business approach and entrepreneurial spirit. According to stock market regulations Boskalis has to make public its intentions before December 8. Mid-year results Turning to SMIT’s reality, I was very encouraged at the first half year performance. We saw a record outcome in terms of revenues and net profit was unchanged, despite a substantial dollar downturn. The quality of first half results was also very impressive. We forecasted a marked improvement for the second half of this year. This means an improvement in the 7-12 per cent range. In turn, this implies an end-year result of around €100 million, as against €105 million in 2007. This is impressive, given the fall in the dollar and lower income from the Salvage Division (which experienced an extraordinary year in 2007). Above all, this will demonstrate the effectiveness of a commercial strategy based on steady income generation. FIRST 3213 CLASS TUGS JOIN SMIT’S FLEET per cent. Antwerp performed very well during the first half. Developments elsewhere in the world during the first half included the launch of eight of a series of 18 newbuildings for the joint venture SMIT Rebras in Brazil. Our target for the Harbour Towage Division is a 50 per cent increase in net result over the five years commencing 2007. SMIT Terminals achieved a satisfactory first half result, given that this Division is the most exposed to dollar influences. This negative effect was fully compensated by the successful renewal of a series of five contracts. We also look forward to income from major new contracts in Italy and Kuwait, which will begin to contribute to results in 2009. We are now on course towards our target: a 100 per cent increase in the Division’s net profit over the five years starting in 2007. SMIT Salvage contributed extraordinarily well to results in 2007, largely as a result of the huge demand for salvage and wreck removal services following hurricanes Rita and Katrina. This year the Division’s contribution is likely to be in line with the historical average over the last five years. Even this figure should be regarded as unusually high due to the impact of the extraordinary results of 2007. The first two in a series of four newbuild 3213 class ASD tugs will be delivered in the second quarter of next year. These vessels, designed in partnership with Damen, are building at the Song Cam shipyard (Damen) in Vietnam, Haiphong. The second pair of 3213 tugs will join the fleet in the third quarter of 2009. These newbuildings are expected to proceed to Rotterdam, for service in the Maasvlakte. The new vessels, in the 85-90 tonnes bollard pull range, are specially designed and equipped for service at LNG terminals. LNGspecific systems include remote closure of engineroom and accommodation intakes (from the bridge), gas detection systems and external lighting. The 3213 class is a modern concept combining power and high manoeuvrability. Damen was responsible for the hull design, while SMIT developed the deck and accommodation layouts. The many innovative features include equipment and machinery designed for low maintenance. The tugs feature two main engines and two azimuth units. Scheduled for delivery in November is another 2810 newbuilding from Damen, Romania, also for service in Kuwait. This tug is the ‘Smit Martinique’. The 3213 design is focused on future service needs at Rotterdam - Europoort’s Maasvlakte 2 LNG and container terminals. The 3213 class, however, offers great flexibility. Potential roles range from terminal duties and harbour towage assistance to tug escort and coastal towing. The equipment outfit includes a double-drum render and recover forward winch, for harbour duties, and a towing winch and associated equipment at the stern deck. In the harbour towage/terminal role the 3213 offers a high level of tow safety, especially in the indirect towing mode. During December the Turkish yard of Bogazici will deliver the 70 tonnes bollard pull ASD tug ‘San Nicola AT’ . This is one of four tugs in the class ordered for service at the new Adriatic LNG offshore facility, Italy. New orders placed by SMIT in recent months include two new tugs for URS. These are to be built by the Turkish yard Dearsan. These Robert Allan 3200 series tugs, rated at 65 tonnes bollard pull, will be delivered early next year. During September Damen’s yard in Romania completed the ‘Smit Schelde’, a 2810 tug with a 60 tonnes bollard pull. This newbuilding recently arrived in Rotterdam. September also saw completion of the ‘Smit Bubyan’, built by Strategic Marine Singapore. This 22 metre crew/pilot vessel is for service in Kuwait. SMIT Transport’s result’s showed strong growth in the first half. This success story is founded on high vessel employment levels, servicing long-term contracts. The smaller vessels and barges are also doing well on the spot market. As for SMIT Heavy Lift, results were influenced by the rescheduling of a number of projects. However, the opportunity was taken to progress maintenance of the sheerlegs, in readiness for a second half which saw all units fully employed. Looking ahead, our confidence in the future is translating into expansion of our operations in Latin America, Eastern Europe and the Far East. During the first half, for example, we mobilised tugs from Rotterdam and Antwerp to Ventspils and Klaipeda, to reinforce the fleets in these Baltic ports together with our partner, Towmar. We also continued to develop our new harbour towage services cooperation agreements in Taiwan and China. We now have fresh opportunities to exploit synergies between the Divisions and continue our advance in 2009. SMIT Harbour Towage performed well during the first half, with a significant increase in results. During February we concluded the increase of our shareholding in URS to 100 Ben Vree Chief Executive Officer Photography SMIT Public Relations Roderik van Nispen Steven Snoep Aerolin and various SMIT colleagues Printing Schefferdrukkerij, Dordrecht Colophon For any information about specific activities, equipment and services, please apply to: SMIT Waalhaven O.Z. 85 P.O. Box 59052 3008 PB Rotterdam Tel + 31 10 454 99 11 Fax + 31 10 454 97 77 E-mail [email protected] Editor SMIT Public Relations Texts TRS Public Relations SMIT Public Relations Copyright Texts can only be reproduced after permission from the editor. Design & production Studio Clarenburg, Schiedam 3 w w w. s m i t. c o m tug magazine NEW BUNKERING SERVICES CONTRACT IN BAHAMAS SMIT’S HARBOUR TOWAGE SERVICES EXPAND IN EASTERN EUROPE SMIT’s harbour towage services are now commencing in Lithuania and Latvia, under the banner of a new joint venture known as Towmar SMIT. These operations focus on the Lithuanian port of Klaipeda and the major Latvian oil export port of Ventspils. Traffic levels are rising at both ports and there is substantial future growth potential, given the huge Russian hinterland. Loek Kullberg, Managing Director of SMIT’s Harbour Towage Division, explains: “We have known Towmar for some years, as a result of our terminal support operations at Klaipeda. Towmar approached us a year ago to discuss a joint venture. “We found there was much common ground. Towmar wanted to grow and it sought a suitable partner. SMIT regards Eastern Europe as a priority region for expansion, so as to follow our global customers. This joint venture came together on the basis of redeployment of a Romanian yard during the Summer period. The joint venture began operations, in the formal sense, during October. Towmar SMIT has an ambitious development plan, based on harbour towage services provision in six ports in Lithuania, Latvia, Estonia and St. Petersburg in Russia.” Growth in Latin America During the second quarter of this year, in Argentina, SMIT acquired the local tug operator Satecna Costa Afuera. Four tugs are now operating at Bahía Blanca. They include the ‘Smit Antigua’. In addition, two tugs are operating in the north, at Buenos Aires - the ‘Smit Jamaica’ and ‘Buni’. Loek Kullberg says: “Business volume is increasing at both ports. At Buenos Aires, for example, a new customer in the container trades has prompted us to plan for the deployment of another 2810 at this port.” SMIT Terminals secured a new contract in September relating to bunkering services in the Bahamas. A new bunker barge was constructed under a contract with Vopak, to provide bunkering services at the Shell terminal in the Bahamas. This Vopakoperated facility is a six-berth terminal at Grand Bahama Island. Three SMIT tugs service this terminal: the 65 tonnes bollard pull ‘Smit Oneida’ and ‘Smit Missouri’ and the 45 tonnes bollard pull ‘Smit Abaco’. 4,000 bhp Voith-Schneider tug ‘Union 9’ (formerly based at Antwerp). Operations at Taipei commence on January 1 next year. We plan to deploy a second 4,000 bhp tug at Taipei in January 2011. Furthermore, as from April 2009, the 5,000 bhp Voith-Schneider tug ‘Smit Trafalgar’ (formerly based at Liverpool), will be deployed at Taipei. This tug’s role would be to assist very large container vessels. “Elsewhere in Asia we recently signed a joint venture agreement with the Port Authority of Taizhou, China, for the provision of harbour towage services. This will result in the deployment of the ‘Smit Puma’.” The ‘Smit Trafalgar’ will not be replaced at Liverpool. The Liverpool fleet will thus consist of two 60 tonnes bollard pull tugs (‘Smit Barbados’ and ‘Smit Donau’), together with three Voith-Schneiders (‘Smit Liverpool’, ‘Smit Collingwood’ and ‘Smit Waterloo’). The new bunker barge, the ‘Smit Inesita’, is a double hull construction. Built in Orange, Texas, the 35,000 bbls. capacity barge was delivered in mid-November. Harbour tugs ‘Smit Donau’, ‘Smit Collingwood’ and ‘Smit Barbados’ assisted cruiseship ‘Queen Elisabeth 2’ at arrival, berthing and departure from Liverpool, UK. In Rotterdam, the 2810 new generation tugs ‘Smit Schelde’ and ‘Smit Hudson’ arrived during the September/October period. The 60 tonnes bollard pull newbuildings are equipped for two-man operation. In addition, the ‘Smit Portugal’ is departing Rotterdam for operation on the spot market - with the eventual goal of service in Indian waters. During December two bareboat-chartered Robert Allan 3200 series tugs will be deployed at Antwerp. This charter agreement with Globeco spans five years. Beyond the Globeco charter, URS has also acquired two 65 tonnes bollard pull ASD tugs from the Turkish yard Dearsan. They will replace two existing URS tugs, including the ‘Union 9’, currently operating in Taiwan. Loek Kullberg, Managing Director of SMIT’s Terminals Division comments: “The bunker operations contract in the Bahamas has a five-year span, plus five one-year options. The barge will service tankers calling at the Vopak Terminal and, in addition, other vessels calling at Grand Bahama to bunker. We are very proud of this expansion of our services”. rig ‘Blackford Dolphin’ during tests at Europoort, in Rotterdam. number of SMIT tugs to Klaipeda and Ventspils.” Towmar has a fleet of eight tugs - five based at Klaipeda and three at Ventspils. Two of the latter are bareboat charters and will be replaced by the 2810 tugs ‘Smit Aruba’ and ‘Smit Mersey’ towards the end of the first quarter of 2009. At that point ‘Smit Trinidad’ - currently at Ventspils - will redeploy to Klaipeda. Loek Kullberg says: “Smit Trinidad’ is a newbuilding. Ventspils was her first significant deployment, following delivery from a Progress in Asia Expansion is also continuing in the Far East region. Recently, SMIT Harbour Towage concluded a new joint venture agreement with Kueen Yang Enterprise, a local tug operator based at Taipei. Kueen Yang has a six-year contract with the Taipei Port Authority to provide harbour towage services. Loek Kullberg says: “The new joint venture will operate three ASD tugs and, in addition, the Loek Kullberg says: “In addition, the third quarter of the year saw commencement of SMIT’s four-year contract with Kuwait Oil Company (KOC) to support vessels calling at KOC terminals in Kuwait - both onshore terminals and SPMs offshore. The contract began in November. A total of 10 vessels are required, including five tugs. The latter include the 70 tonnes bollard pull ‘Smit Africa’ and ‘Smit Europe’.” Multipurpose vessel ‘Smit Al Kout’ was delivered by Neptune Marine Services, the Netherlands. The vessel will be deployed for maintance work at the SPM buoys in Kuwait for SMIT Terminals. The start date for another major SMIT Terminals contract - support for the Adriatic LNG offshore terminal - has been deferred until next March. The four 70 tonnes bollard pull newbuildings required for this contract were delivered during the final quarter of this year. They secured short-term work in Italian waters, pending the commencement of the LNG contract. Crew/pilot vessel ‘Smit Failaka’ - as well as sister vessel ‘Smit Bubyan’ - will be deployed for the KOC contract in Kuwait. The newly built bunker barge ‘Smit Inesita’. SALVAGE TASKS IN THE WAKE OF HURRICANE IKE Extreme weather events continue to contribute to the SMIT Salvage workload. This year, so far, has seen severe storms in North West Europe and Asia, together with hurricane Ike in the US Gulf. Each event produced casualties among vessels proceeding in the affected areas. SMIT Harbour Towage assisting the semi-submersible drilling Elsewhere in the world, SMIT Terminals recently signed a contract requiring the provision of a 45 tonnes bollard pull ASD tug (KSTbuilt) for service at Port Qasim, Pakistan. Abel Dutilh, Managing Director of SMIT’s Salvage Division, says: “The aftermath of hurricanes Rita and Katrina involved major programmes of salvage and wreck clearance spanning a period of three years. Our teams were still working on Katrina - related projects this year. Then, in the third quarter, hurricane Ike struck the US Gulf. While the damage was not as great as some anticipated, the hurricane left over 10 offshore rigs in a damaged condition and requiring salvage assistance. During the course of the year to end-September SMIT Salvage secured some 20 Lloyd’s Open Forms, although these cases were not of a major character. There was good news from South Africa. SMIT secured an extension to its standby salvage contract with the South African Maritime Safety Authority (SAMSA), a service provided through the deployment of the Cape Town-based salvage tug ‘Smit Amandla’. This year saw further progress in the removal of the wreck of the container vessel ‘MSC Napoli’, beached off the Devon coast in early 2007 in order to prevent her sinking. “Tasks following hurricane Ike included the Lloyd’s Open Form salvage of the bulk carrier ‘Antalina’. This vessel lost power during the hurricane. SMIT Salvage was also contracted to remove the wreck of the jack-up ‘Pride Wyoming’, situated in the shallow waters of the Gulf. ‘Taklift 1’ has been mobilised for this assignment.” ‘Smit Amandla’ responding to a vessel in distress. Subsequently, SMIT Salvage removed bunkers and more than 2,000 containers. Abel Dutilh says: “Operations were suspended for the winter period, following the removal of around 3,000 tonnes of the vessel’s structure.” Harbour tug ‘Smit Jamaica’ attending to a container vessel in the port of Buenos Aires, Argentina. Sheerlegs ‘Taklift 1’ was mobilised for the wreck removal of platform ‘Pride Wyoming’ in the Gulf of Mexico. 5 w w w. s m i t. c o m tug magazine DEFENDING THE ITALIAN COAST FROM PERSISTENT OIL SEEPAGE SMIT Salvage assignments during the first six months of this year included a challenging project to remove all oil residues from the accommodation block and engineroom of the wreck of the Very Large Crude Carrier (VLCC) ‘Haven’. This VLCC was lost off the Italian coast in the 1980s, following a catastrophic explosion. It was known that this wreck’s cargo tanks were empty. Most of her cargo was consumed in a fire of huge proportions, at the time of the loss. In recent times, however, the Municipality of Genoa became increasingly concerned at the threat of persistent oil seepage from the ‘Haven’. This threatened tourist beaches and the concentration of oyster and mussel fisheries in the area. WHEN CONNECTING UP IS HARD TO DO Lloyd’s Open Form (LOF 2000) cases for SMIT Salvage in the second half of this year included ‘DINA Barge’ and her cargo of 12 river barges. This vessel was on a voyage from the Far East to Europe when the tow was lost in a violent storm. ‘DINA Barge’ eventually grounded on the Indian west coast, at a location around 90 kilometres south of Mumbai. With LOF 2000 agreed, two tugs were dispatched from Dubai. The 120 tonnes bollard pull ‘Matsas Star’ and 82 tonnes bollard pull ‘Seacor Valor’ reached the casualty and found ‘DINA Barge’ to be inaccessible, at a position far into the shallows. SMIT Salvage has a solution to such difficulties - the use of Dyneema synthetic towing wire. These towing wires have a strength equivalent to steel but have only one fifth of the weight. Lightweight synthetic towing wire makes it possible to rig a long-distance tow connection, using small craft working in the shallows or even, in some cases, helicopters. ‘DINA Barge’ was out of reach in terms of a conventional tow connection. She was also distant enough to test even the Dyneema solution. Nevertheless, SMIT Salvage mobilised two Dyneema towing wires which, together, produced a single towing wire of the required length of 1,900 metres. The towing wires, flown in from Rotterdam and Cape Town, were loaded onto ‘Seacor Valor’ for the voyage to the grounding location. Things then took a different turn. The most immediate threat was damage caused by the casualty’s excessive movement in the heavy swell. With this in mind, plans were changed and preparations were made for an early refloating attempt, prior to the arrival of the lightering vessel. The salvage of ‘DINA barge’ required a towing wire of nearly 2 kilometres. The salvage contract was agreed on August 12 and, subsequently, the two tugs connected to ‘DINA Barge’ by the ultra-long synthetic towing wire. They succeeded in refloating the casualty on August 31. This was the first use of a Dyneema towing wire of such length. The key to success here was detailed preparation. As a result, the operation to connect up the towing wire took just four hours. At this stage, it was important to avoid an excessive bow in such a long towing wire, so permitting the tugs to pull as straight as possible. The connection to the two tugs were made by means of a triangular plate. This was a challenging project in many ways, extending beyond the inability to rig a conventional towing wire. For example, there was no scope for lightering this vessel. Success, therefore depended on being ready for the only spring tide available until the end of the monsoon season. Failure to meet this deadline would have condemned the ‘DINA Barge’ to a lengthy stay on that Indian beach. In the event, the salvage team succeeded, refloating the ‘Peonia’ on July 9. This casualty was then towed by the tug ‘Malika’ to Isla de Santiago. Subsequently, a ship-to-ship transfer to the lightering tanker ‘Alice’ was performed in Porto Grande Bay. The ‘Peonia’ salvage ended in success due to SMIT’s flexibility of approach. Recognising the inherent dangers of excessive movement, the Salvage Master and his team responded with new tactics to save vessel and cargo and safeguard the environment. Saving ‘Peonia’ SMIT Salvage operations in the third quarter also included the freeing of the 28,978 DWT chemical/oil tanker ‘Peonia’ from her grounding position north east of Isla de Maio, Cape Verde, during July. This vessel was proceeding on a voyage from San Lorenzo, Argentina, to the Algerian port of Bejaja when the grounding occurred on July 1. This was a LOF 2000 salvage requiring a substantial mobilisation. A salvage team flew in from Rotterdam and tugs were dispatched from West African waters. Lightering tonnage was arranged, for mobilisation from the Mediterranean. This vessel was required as a salvage inspection had led to the conclusion that refloating necessitated the discharge of fuel and cargo, to lighten the vessel. Accordingly, the Municipality awarded a contract to SMIT Salvage calling for the systematic search of spaces and the recovery of all residues from the accommodation and engineroom. Barge ‘Ilma’ served as surface platform for the salvage team during the ‘Haven’ oil recovery project. A diving bell took SMIT’s saturation divers to a depth of 75 metres. Future work The project spread mobilised included SMIT’s MINI SAT saturation diving system. SMIT’s diving team worked in depths of up to 75 metres. The spread also included a barge with four-point moorings, acting as a surface platform for the project team. Another pollutant recovery assignment will be undertaken in the New Year by SMIT Salvage. The project calls for the removal of 300 tonnes of Intermediate Fuel Oil (IFO) from the wreck of the general cargo vessel ‘Ice Prince’, lost recently in the English Channel when her timber cargo shifted. The ‘Ice Prince’ IFO recovery will be a diverless operation, utilising the remote-operated ROLS hot-tap/pumping system. The work was progressed from the top down by surface demand divers and from the bottom up by the saturation diving team. A total of 115 spaces were checked and subsequently certified as oil free. The oil residues were removed by vacuum tools. Tank residues were recovered by means of pumping from hot-tap stations established on the wreck’s hull. There are also prospects for more salvage and wreck removal work in the aftermath of hurricane Ike, which struck the US Gulf Coast in September of this year. The SMIT floating sheerlegs ‘Taklift 1’, with a full salvage spread, responded to the ‘Pride Wyoming’. This platform was left virtually submerged following hurricane Ike and is now the subject of a wreck removal. Underwater activities will involve work as deep as 160 feet. Other oil removal operations this year included work on the pusher-tug ‘Norsul Vitoria’, which capsized at Ilha de Sao Francisco do Sul - together with the barge ‘Norsul 12’ - at the end of January. The barge was laden with 9,000 tonnes of steel coils. The work method here involved hot-tapping and skimming. Around 160 cubic metres of oil was recovered. Many more rigs require salvage attention following this hurricane. A number can be expected to develop into major wreck removal projects. The interior of the compression tank in which the saturation divers were accommodated in between dives to the wreck. SMIT Salvage refloated tanker ‘Peonia’, which grounded off Cape Verde. This year also saw a second season of work on the wreck of the container vessel ‘MSC Napoli’, off the UK’s Devon coast. This vessel was deliberately beached in January 2007, in order to prevent her sinking. During 2007 SMIT Salvage removed bunkers and over 2,000 containers. Work on the wreck removal progressed this year, with the removal of some 3,000 tonnes of steel. A saturation diver leaves the diving bell at 75 metre waterdepth. 7 w w w. s m i t. c o m tug magazine SMIT Transport’s ‘Smit Bever’ and “B Class” vessel EXPLOITING SYNERGIES BETWEEN INNOVATION AND BUSINESS DEVELOPMENT SMIT Salvage established its Innovation & Business Development Department in order to integrate four main areas of interest for the longer term development in the Salvage Division. This department is about much more than R&D. Naturally, innovation - as a product of R&D - forms part of the remit. At the same time, however, the business development aspect is devoted to the investigation of new markets for SMIT Salvage expertise and services that aim to prevent pollution and protect the marine environment. In addition, it is of great importance to provide continuous development and training of SMIT’s naval architects and, last but not least, to retain and transfer technical expertise and knowledge within the organisation. SMIT’s Innovation & Business Development Department is an unusual concept in the world of salvage. Manager Bert van der Velden comments: “Salvage, of course, has its inherent uncertainties. At first glance it may be difficult to see how one can actually shape business development. There are trends in the market, however, which now provide more scope for securing a greater proportion of steady income from salvage and pollution prevention services. The most significant influence, naturally, is the continued growth in environmental concern.” The department, while part of SMIT’s Salvage Division, provides innovation and business development services in a broader sense. It is manned by a dedicated team of naval architects, business developers/consultants and technical specialists. The department has the resources and assets to look beyond tomorrow. In considering today’s market, there are some apparently conflicting trends. The number of vessels trading continues to increase and a larger proportion of these vessels are big ships. At the same time, new technology and other factors have made vessels safer. Nevertheless, there is still an acute shortage of qualified crew at the global level. There is clear statistical evidence that the number of vessels requiring salvage assistance is in decline and this may well continue. On the other hand, salvaged values now are much higher. Salvage operations are becoming larger and more complex. Furthermore, as the number of casualties declines, it becomes ever more important to secure these assignments, ‘Smit Bronco’ assisted in the installation of the second transformer station for Robin Rigg windfarm. foundations required for the Rodsand II windfarm in Danish waters.” New deliveries for SMIT’s expanding transport fleet during the first quarter of next year will include four 84-metre barges from the yard of Jiangmen Nanyang Ship Engineering. These barges are required for operations in the North Sea region. SMIT Salvage provides emergency response services to the maritime sector in Brazil, under a cooperation agreement with Alpina Briggs. in order to stay at the forefront of marine salvage and wreck removal. The results of SMIT’s analysis suggest that, overall, the market for salvage and wreck removal services is likely to grow, at least in terms of value. The challenge now is to reduce the business uncertainties that stem from the unpredictability of casualty salvage. One way forward is to package salvage-related services that generate a greater volume of steady income. In turn, this requires the development and expansion of our environmental care offering and the forging of long-term relationships with clients. New initiatives include developing new joint services with regional partners, so increasing geographical spread. One notable example is the cooperation agreement reached during the second quarter of this year between SMIT Salvage and Alpina Briggs. This is for the provision of front-line marine emergency response services to the maritime sector in Brazil. Under the agreement SMIT Salvage provides emergency response, bunker and cargo recovery and wreck removal services, while Alpina Briggs is responsible for spill prevention and response. Alpina Briggs, a joint venture between Brazilian Alpina Ambiental S.A. and British Briggs Marine Ltd, has been active in the market for the past eight years. It is now responsible for the operation of more than 45 Environment Defence Units in Brazil and abroad, supplying services and equipment for oil spill response. The company strengthens its activities abroad by promoting and organising drills and exercises simulating spills involving oil and oil derivatives, technical training programmes, environmental planning and consultancy work, as well as supplying equipment. SMIT’s and Alpina Briggs’ services are fully complementary, so providing added value to the customers in total turnkey solutions. Recent new orders include two DP2-equipped “L Class” vessels, required by the joint venture Ocean Marine Services of Egypt. These vessels, due for delivery in 2010, will contribute to fleet renewal. is providing heavy lift support for main contractor Muhibbah of Malaysia. This series of jacket lifts is nearing completion. “’Taklift 4’ is undertaking a large number of short duration projects in North West Europe, while ‘Taklift 6’ is continuing to play a major role in the removal of the wreck of the bulk carrier ‘New Flame’, at Gibraltar. Meanwhile, ‘Taklift 1’ is engaged in salvage support work in the US Gulf.” Another development is the provision of standby salvage services involving ETVs, or Emergency Towing Vessels. More countries are now receptive to the ETV solution. SMIT intends to expand its involvement in standby salvage arrangements and ETVs, also for the oil & gas industry. Much of the department’s innovation workload centres on new challenges arising from the entry into service of ever larger vessels, including container vessels in the 14,000 TEU class and new, mega LNG carriers. SMIT has to be ready to face the challenge of a container vessels casualty around four times larger than the ‘MSC Napoli’. Many of the problems are logistical, as groundings often happen at very remote locations. There is also the need for specialised equipment. SMIT has taken the initiative here. It is looking into the feasibility of an emergency discharge system for ultralarge container vessels. At the same time, it has taken important steps in the area of knowledge management. SMIT Salvage wants to ensure the structured transmission of expertise from one generation to the next. As always, the organisation looks beyond tomorrow. Other Division activities include the recently commenced transportation of aggregates for the construction of a new LNG facility in Angola, completion of the first phase of SMIT Marine Projects work associated with the installation of the MOPUstor platform in the Norwegian sector of the North Sea - with a second phase of works to start in the New Year - and a new, five-year contract for SMIT Subsea, to provide diving support for Qatar Petroleum at two locations. SMIT Heavy Lift previously installed modules onto several new Petrobras FPSOs and FSOs in Brazil. SMIT Marine Projects commenced transportation of aggregates from Dande to Soyo in Angola for the construction of a new LNG facility. “L CLASS” NEWBUILDING PROGRAMME REACHES COMPLETION ‘Smit Laisa’, the final vessel in a series of seven “L Class” newbuildings to be delivered, joined the SMIT fleet in July. All “L Class” vessels are now committed to long-term work programmes in Gabon and the Middle East (on behalf of Saudi Aramco). Abel Dutilh, Managing Director of SMIT’s Transport & Heavy Lift Division, says: “The first of the “L Class” vessels, ‘Smit Lombok’, is nearing the completion of a three-year contract in Saudi Arabia. A new contract has been concluded for another three-year period, but on this occasion for operation in South East Asia. Meanwhile, SMIT Transport has secured the renewal of a contract to support the offshore mining operations of De Beers in Namibian and South African waters. Activities centre on Port Nolloth, on the north west coast of South Africa, close to the Namibian border. The contract requires two supply crafts. This is a fiveyear renewal, together with three one-year options. SMIT’s “B Class” vessels also continue to enjoy exceptionally high rates of utilisation. Abel Dutilh adds: “We are also increasingly involved in windfarm-related work. The submersible barge ‘Smit Anambas’, for example, is about to start a one-year transport contract for turbine Abel Dutilh says: “There is more work in prospect in Brazil. Forthcoming projects requiring heavy lift services include the ‘P.56’, a semi submersible type FPSO, building at Brasfels.” In the heavy lift sector SMIT sheerlegs are experiencing an intensive programme of work, following a relatively quiet first half. Asian Lift is also exceptionally busy, with its sheerlegs achieving extraordinarily high levels of utilisation. Abel Dutilh says: “Looking at our deployments worldwide, ‘Taklift 7’ continues its assignment at the Yemeni port of Balhav, where a new LNG terminal is under construction. This sheerlegs Sheerlegs ‘Taklift 4’ unloading hulls of inland vessels in the port of Rotterdam. 9 w w w. s m i t. c o m tug magazine WINDFARM SCHEMES FEATURE IN TRANSPORT WORKLOAD Towout of the MOPUstor. Semi-submersible barge ‘Giant 4’ was deployed as offhore lifting platform for the Hooksiel Semi-submersible barge ‘Giant 4’s second half 2008 projects included a threemonth assignment for Bard Engineering GMBH, centred on the German port of Wilhelmshaven. The big barge’s role was to act as the offshore lifting platform for installing turbines for the Hooksiel Windfarm project. For the purposes of this contract, the 24,000 DWT vessel was equipped with a very large mobile crane (DEMAG CC6800). The beginning of the final quarter saw sister vessel ‘Giant 3’ performing the first transport in a new series moving river barges from New Orleans to the Parana River, near Buenos Aires. The client is Interbarges S.A. This is the first of two voyages. ‘Giant 3’ is no stranger to the Parana River. Over the past year, the semisubmersible has transported hopper barges and tugs for the Km171 Parana River project. In this case the client was Louis Dreyfus division Urugrain S.A. In addition, Interbarge of Houston has shown interest in ‘Giant 3’ for another two voyages from New Orleans to Buenos Aires. Over the past two years ‘Smit Anambas’ has completed six such voyages, including four for Interbarge’s account. These assignments reflect the strong demand for barge tonnage for service on the Parana River, required to carry cargoes such as iron ore and soya. Windfarm project in northern Germany. Meanwhile, ‘Giant 2’ has completed its project for Swiber Offshore of Singapore, involving the transportation of two jackets from Batam to location offshore Indonesia. This barge was redelivered in late September. This assignment followed a lengthy contract with J. Ray McDermott, calling for the transportation of piles from Jebel Ali to Kakinada, on the east coast of India. ‘Smit Anambas’ demobilised from its series of barge transportation voyages to the Parana River in August. Next January 1 this vessel will commence a 330-day charter for Danish contractor Per Aarsleff. The contract is for the transport of turbine foundations required for the Rodsand II windfarm development, off the Danish coast. The foundations will be lifted off by ballasting down the barge. SMIT’s four 84 metre newbuildings Smitbarges 5, 6, 7 and 8 - will be delivered by a Chinese yard at the end of this year. They are to be towed to North West Europe, where there are good prospects for these vessels. ‘Smit Kamara’, under charter to Shell for five years as an offshore platform maintenance vessel, has completed two years free of losttime incidents. ‘Smit Kamara’, deployed as offshore platform ‘Smitbarge 2’ is committed in Angola until 2010. The vessel is transporting aggregates required for a new LNG terminal at Soyo. This contract is with Bechtel. maintenance vessel for Shell, has completed two years free of lost-time incidents. SMIT MARINE PROJECTS COMPLETES FIRST PHASE OF MOPUSTOR INSTALLATION ‘Giant 3’ loaded with hopper barges and tugs for transport to the Parana River, near Buenos Aires. During the European Summer period SMIT Marine Projects successfully completed the first phase of the transport and installation of the MOPUstor production and storage facility, in the Norwegian sector of the North Sea. ‘TAKLIFT 4’ TACKLES EUROPEAN WINDFARM LIFTS Windfarm developments in North West Europe are providing a series of tasks for SMIT’s 1,600 tonnes lift capacity sheerlegs ‘Taklift 4’. Moving on from completion of heavy lifts for a windfarm project in German waters, the sheerlegs proceeded to the UK, for a similar project in the Irish Sea. Sheerlegs’Taklift 4’ was involved in the construction of the Doti Alpha Ventus windfarm in Germany. ‘Taklift 4’ installed a jacket and topsides for the German Bight development during the third quarter. This project is the Doti Alpha Ventus windfarm. The lifts were performed on behalf of the German joint venture between Hochtief and Bilfinger Berger. The 500 tonnes jacket was picked up at Wilhelmshaven. ‘Taklift 4’ then sailed with the jacket in the hooks for the 80 miles voyage to location. Subsequently, the 700 tonnes topside was loaded onto a barge at Wilhelmshaven and towed to Eemshaven. ‘Taklift 4’ then lifted the topside, pro- ceeded to location and installed the structure onto the jacket. This project was completed by late September. ‘Taklift 4’ then made for Rotterdam, to mobilise for the Robin Rigg project off Barrow, UK. This contract was awarded by MT Højgaard. It called for the installation of an equipment deck on the eastern substation for the Robin Rigg windfarm. The transformer station weighed in at 400 tonnes. This lift took place during slack tide conditions in October. The big sheerlegs’ next assignment was in Norway. During mid-November ‘Taklift 4’ commenced the lifting programme required for decommissioning the large jacket from the Frigg Field, in a fjord near Stavanger. This structure was cut into sections, which were then lifted and transported to a nearby scrap facility. Meanwhile, ‘Taklift 7’ continues its programme of work in Yemen for Muhibbah Engineering. This project involves the placing of jackets for a new LNG terminal. Work on site will be completed in December. At that point, ‘Taklift 7’ will The MOPUstor consists a three-leg production jack-up (the MOPU, or Mobile Offshore Production Unit), mounted on a substructure comprising a storage tank, caisson, columns and bracings. The substructure provides capacity for the subsea storage of 300,000 bbls of produced oil and also serves as the gravity base foundation for the jack-up. SMIT Marine Projects’ first task called for the transport and installation of the substructure. This was fabricated by MMHE Malaysia and transported dry to North West Europe by heavy lift vessel. Outfitting was carried out in Keppel Verolme yard, Rotterdam and subsequently finalised in Westcon’s yard, Ølen Fjord in Norway. This new structure is being installed in the Yme Field, in the Egersund Basin at a position around 110 kilometres off Stavanger. Water depth on location is 93 metres. The SMIT project team assembled in Norway in early August. Two large anchorhandlers were deployed to tow the substructure to location. The towout commenced at the end of August, however upon arrival in the field the installation was postponed due to weather that deteriorated beyond the conditions forecast. Due to the persistent severe weather the substructure was brought into shelter at Amøyfjorden near Stavanger. When a high pressure suddenly developed above Norway resulting in calm seas the convoy left Stavanger on September 12 and the day-long tow to location was completed without incident. With additional vessel assistance on-scene, comprising of another two anchor handling tugs the substructure was hooked up into the prelaid moorings. With the substructure corners connected to the stern of the anchor handlers and their bows connected to the prelaid moorings, the tension in the wires was increased for fine-positioning. The DP-equipped installation vessel ‘Polar Prince’ was connected up to the custom built MEM (Mechanical Equipment Module) which was installed by SMIT on the MOPUstor substructure prior towout. ‘Taklift 4’ with the equipment deck for the eastern Robin Rigg One of two ROVs deployed during windfarm transformer station. the installation of the MOPUstor. When all necessary preparations and tests were completed, remote-operated ballasting commenced, by means of links between ‘Polar Prince’ and the MEM. All underwater operations were continuously monitored by means of ROVs. The substructure made the controlled descent onto its 3.5 metre skirts and ballast was then added to obtain penetration of the seabed. Pumps were reversed to create suction and pull the substructure and skirt The custom-built MEM. demobilise and return to North West Europe. In addition, ‘Taklift 1’ is engaged in a wide range of salvage and wreck removal works in the US Gulf, primarily as a result of damage to offshore installations caused by hurricane Ike. The MOPUstor was positioned with assistence of four anchor handlers and installation vessel ‘Polar Prince’. 11 w w w. s m i t. c o m tug magazine SMIT SUBSEA Europe PROGRESSES CIRRUS GAS DEVELOPMENT SMIT Marine Projects removed Wintershall platform ‘P14-A’ from the North Sea. tensioning and cutting of the legs. The total weight of the main lift was 740 tonnes. jacket legs were cut at positions 6 metre below the seabed, using an abrasive cutting system. ‘Taklift 4’ held the topside in the blocks for the voyage to Rotterdam, where the structure was transferred to a SMIT Transport barge. The drill deck was separated from the topside in the Waalhaven. The drill deck was scrapped and the topside was transported to the NAMI yard, for refurbishment and re-use for another Wintershall project. This lift required pin-drilling, as the existing pad-eyes had insufficient strength to bear the weight of both jacket and foundation piles. Lifting pins were installed at the top of the jacket and lifting slings then rigged. The jacket and foundation piles, with a total weight of 855 tonnes, was lifted clear of the seabed and transported to Rotterdam, with the assistance of a SMIT tug. On arrival in Rotterdam, a second sheerlegs was used to topple the jacket, prior to loading onto a SMIT Transport barge for the voyage to a scrapyard at Flushing. Back on location, the project team then prepared the jacket for removal. The first stage of this work involved airlifting and the removal of soil plugs from inside the jacket legs. The further into the seabed. With maximum penetration achieved, the void space was filled with low density grout, pumped from a large grouting plant mounted at the stern of ‘Polar Prince’ and operated subsea by two ROVs. As part of the contract with Cirrus, SMIT Subsea is also providing diving and ROV services on board of the construction jack-up ‘Seafox 7’. Working from the ‘Seafox 7’, the M7 monopile platform is to be installed. It took around nine days on site to complete the offshore works, comprising the tow, hook up, ballasting, suctioning, grouting, final valve handlings and then demobilise. Everything went very smooth thanks to extensive preparations, a highly motivated project crew and high quality of project equipment and vessels. The job was completed well ahead of schedule. The project team looks forward to phase 2 in 2009. The second phase of work, planned for the summer of next year, provides for the transport and installation of the MOPU. This will be towed by two anchorhandlers to location in the Yme Field. On arrival, a third anchorhandler will connect up aft. By tensioning the moorings, with the aft deck connection exerting back pull, the MOPU and its three long legs will be manoeuvred into position. Two ROVs will be used to monitor the critical phase as the legs are guided into “catchers”. With all three engaged in the catchers, the legs will be lowered, to enter the substructure. The platform will then be jacked up into the required position. Removing ‘P14-A’ Another SMIT Marine Projects team completed the removal of the ‘P14-A’ gas satellite platform during June and July. This redundant platform was located in the Dutch sector of the southern North Sea. The removal was undertaken on behalf of Wintershall Noordzee B.V. SMIT’s contract covered decommissioning, removal and disposal. The topside is to be refurbished for further service, while the drill deck and jacket is to be scrapped. SMIT’s team mobilised for ‘P14-A’ in late May with the 1,600 tonnes lift capacity sheerlegs ‘Taklift 4’ deployed from Brazil, on completion SMIT Subsea Europe’s recent projects include the first round of diving and ROV operations required for the M1/M7 developments in the Dutch sector of the North Sea. The work began in the M7 Field, with SMIT Subsea delivering the DP3 Diving Support Vessel (DSV) ‘EDT Protea’. The DSV, operated by SMIT Subsea Europe, is fitted with a dedicated surface demand diving system and an inspection class ROV system. SMIT’s client for this project is the independent oil company Cirrus Energy Nederland B.V. The M7 development is centred on a new monopile installation, tied back to the NAM Shell platform L9-FF. NAM will process the M7 gas. The scope of work this year included the installation of a riser, followed in October by the installation of spool pieces. Assignments this Summer for SMIT Subsea Europe also included the disconnection of the FPSO ‘Uisge Gorm’ in the UK sector of the central North Sea, close to the UK/Norwegian border. This contract was awarded by Bluewater Energy Services/Amerada Hess. DSV ‘EDT Protea’ at the Shell L9-FF platform in the North Sea. Once again the DP3 DSV ‘EDT Protea’ was mobilised. The scope of work included disconnection of the flowline, umbilicals and risers, together with mooring lines. The work was undertaken with divers and the ROV on board. During several phases of the work the ‘EDT Protea’ was moored alongside of the FPSO. One particular feature of this project was its fast-track character. The contract was awarded in early July, with just three weeks for prepara- tion. Diving activities focused on operations beneath the FPSO’s turret. Hoses were lowered to the seabed and chains were released. All work offshore was completed during AugustSeptember. SMIT AMANDLA MARINE advances TOWARDS SUSTAINABILITY GOALS Together with another sheerlegs, ‘Taklift 4’ toppled the jacket prior to its transport to a scrapyard in Flushing. of its lengthy programme of module and component lifts for FPSO newbuildings. ‘Taklift 4’ was required for the first phase of work, which prepared the topside for removal in one lift. These preparations involved the installation of a new pad-eye on the topside, weld inspections to confirm the integrity of existing pad-eyes and the cutting of risers and cables, in preparation for the separation of the deck structure (topside and drill deck) from the jacket. Preparations are under way to provide services under a major contract extension for marine support in Durban. Earlier this year, SMIT Amandla Marine signed a new agreement with SAPREF (Southern Africa Petroleum Refineries), a joint venture between BP and Shell, for refinery terminal management services in Durban. Paul Maclons, Managing Director of SMIT Amandla Marine, says: “We are pleased that this important renewal secures SMIT’s terminal activities in Durban for a decade or more. September also saw the renewal of our PetroSA contract for terminal operations at Mossel Bay. In this case, the span is three years, plus options. SMIT’s existing contract with SAPREF expires at end-2010. This will roll into a new contract with a span of 10 years, plus options. The new contract is to be serviced by a newbuild terminal support vessel. “Looking ahead, our five-year contract with DEAT expires in late 2010. This involves vessel management services for a substantial fleet of nine vessels, operating in the fisheries protection and research, offshore patrol and Antarctic supply roles. These vessels perform vital tasks. In the fisheries control sector, for example, the vessels monitor the key parameters - such as The big sheerlegs was positioned alongside the platform jacket, with team transfer to and from the platform by means of the Ampelmann access system. ‘Taklift 4’ returned to Rotterdam for the installation of the 30 metre jib required for the main lift. On the sheerlegs’ return, the rigging was connected to the pad-eyes and the big lift followed pre- The ‘Smit Amandla’ is the standby tug on the South African coast on contract to the National Department of Transport. salinity and water temperature - which are used to set quotas. We intend to put together an attractive bid for contract renewal.” In August, the contract for the Operations and Management of PetroSA’s Mossel Bay Multi Loading Facility (MLF) in Voorbaai was awarded to SMIT Amandla Marine for a period of three years plus options. Following the platform’s topside, SMIT Marine Meanwhile, SMIT Amandla Marine has secured a one-year renewal of its contract for standby towage services with the National Department of Transport. Under this commercial arrangement, the tug ‘Smit Amandla’ is tasked to respond to vessels requiring emergency response assistance and so protect the South African coastline. The current contract expires this December; the interim renewal covers 2009. Paul Maclons says: “We are already thinking about the pending tender for long-term renewal, commencing 2010. Here, there is the possibility of a large ETV newbuild - which would be a major opportunity for the South African shipbuilding sector. This contract is likely to be placed in September of next year. “We believe this vessel can be built in South Africa. The present tug ‘Smit Amandla’ was South African-built, as was our recently delivered bunker barge ‘Smit LiPuma’. There can be no doubt that an order such as this would give a major boost to local shipbuilding.” Projects removed the remaining jacket. 13 w w w. s m i t. c o m tug magazine MAKING PROGRESS TOWARDS SMIT’S NEW SHE-Q STANDARD SMIT AMANDLA MARINE CONTINUES TO INVEST IN ITS PEOPLE SMIT Amandla Marine is reinforcing its programme of investment in its employees through employee assistance and recognition. One initiative on this front concerns the Employee Trust, which represents a 12 per cent stake in the company. the employee to access the value of his or her stake in the Employee Trust.” In South Africa there has been a history of companies making loans to employees. This is no longer permitted under the recently promulgated Credit Act. Paul Maclons says: “In SMIT’s case, employees occasionally face special financial demands. For this reason we hope to establish a Compassionate Fund. In 2009, the Employee Trust will move into surplus. A Compassionate Fund would allow this surplus to be put to the best possible use.” In an associated move, SMIT Amandla Marine is to provide employees with access to independent financial planning advice. This programme element is to be run in association with Alexander Forbes. SMIT Amandla Marine’s team in Mossel Bay attend a Drug & Alcohol Awareness briefing. Paul Maclons, SMIT Amandla Marine’s Managing Director, explains: “We want our employees to really feel that they belong to SMIT’s family. One way forward here is to increase understanding of the Employee Trust and demonstrate its real value to each beneficiary. “With this in mind we have produced an Employee Trust Handbook, which sets out in clear terms the significance and purpose of the Trust. We have also taken an additional step which, in appropriate circumstances, allows cant changes in this area. Paul Maclons says: “Rather than the informal presentations of the past, we now present Long Service Awards in the more formal setting, at a dinner given immediately following a Board meeting. We use an external venue, providing entertainment and a sit-down dinner. This new arrangement, which began in October, offers us a much better opportunity to express our appreciation of long service.” In a new safety initiative SMIT Amandla Marine has commissioned a well-established safety consultancy to provide safety coaching. The objective is to accelerate a shift in safety culture towards personal engagement and accountability. Paul Maclons says: “It is important that everyone understands exactly what is expected, at the individual level, under our safety management system. This programme began with our safety coach delivering induction briefings for all managers. The second phase of the programme will use gap analysis to identify key issues requiring response action.” SMIT’s corporate Safety, Health, Environ ment and Quality (SHE-Q) department is undergoing expansion. Steering this change is SHE-Q General Manager Sageed Kunhiraman. He says: “We want a corporate SHE-Q organisation with the necessary resources to interact to the full with around 30 of our SHE-Q “champions” at locations around the world. We also want to invest in behavioural safety, to make it a key component in the company’s organisational culture”. SMIT Amandla Marine holds “Wellness Days” in all of its key operational bases. Here one of SMIT Amandla Marine’s employees in Port Nolloth gets his blood pressure tested. Another employee assistance initiative focuses on awareness of the consequences of addictive behaviour, including alcohol abuse. Paul Maclons adds: “We operate a policy of zero tolerance regarding drugs and alcohol. However, we believe we have a wider responsibility to raise awareness of the health and social impact of such problems. We are concentrating on the impact of excessive use of alcohol, by providing employee briefings. We are providing these information sessions in an open format, involving employees and their families.” Behavioural safety is only one aspect of a new and comprehensive SHE-Q strategy, but it is an important element. Sageed Kunhiraman explains: “Behavioural safety is all about safety at the personal level. It is founded on care - for yourself and for others. Our CEO, Ben Vree, after observing a dangerous occurrence, summed it up in a telling phrase: “What if the AB on deck was my son?” This says it all. This comment had a deep impact on me. Previously, I tended to think of people solely in a professional context. Today, that is no longer enough. We all have wider responsibilities. We must regard our colleagues not just as colleagues, but also as family. One of my most important tasks, as SHE-Q General Manager, is to spell out what this really means in practice.” Expansion of corporate SHE-Q involves not only recruitment but also specialised training Many SMIT Amandla Marine employees have been with the company for many years. Long service warrants due recognition and this year saw SMIT Amandla Marine make some signifi- for department personnel, both new and existing. Sageed Kunhiraman says: “In recruiting our new people, we are looking for industrial experience - preferably in the marine sector together with SHE-Q-specific knowledge and expertise. In addition, we want personalities strong enough to motivate, convince and “sell” SHE-Q best practices. “Gender is not an issue here. SHE-Q posts are open to suitably qualified men and women. In fact one of our successful recruits was a female seagoing officer. She has since decided to take her career in a new direction, becoming SMIT’S first female Assistant Salvage Master. A sound SHE-Q background is a good platform for future management aspirants and, of course, for SMIT.” Environmental priorities are beginning to influence tug design. Certainly, this has been taken into account by the E3 Group - a cooperative venture between SMIT Engineering (the lead partner), tug builders Damen and Alewijnse of Eindhoven, specialists in, amongst other things, vessel power and energy management systems. NVIRONMENTALLY FRIENDLY CONOMICALLY VIABLE FFICIEN T IN OPERATIONS Sageed Kunhiraman adds: “Our priorities now include establishing a new SMIT Standard SHE-Q benchmark for all SMIT operating units. In the past the Standard was more of guidance whereas in the revised version the elements become a performance requirement. We plan to have the SMIT Standard in place during the first half of next year.” For every job, safety is a priority. The new, enlarged Corporate SHE-Q department has three sections: `` Technical: responsible for inspections, audits and investigations, with staff here primarily involved in gauging the condition of the various fleets and their management organisations. `` Management systems: the expanded department will have the capacity to manage routine administrative tasks but, more importantly, tackle special projects. Already, for example, it is engaged in the certification of SMIT’s Tugmaster Programme. In the long run, this section RAPID EXPANSION OF SMIT REBRAS FLEET is Vitoria, a significant ore port. We will deploy four tugs - including some of the 65 tonnes bollard pull vessels during the first quarter of 2009. NEW PROJECTS EXPLORE THE FRONTIERS OF TUG DESIGN SMIT is now engaged in two innovation projects looking at future tug concepts. The emphasis is on “green performance”, combined with operational flexibility. Peter Kortekaas heads the project teams. He says: “The tug sector is fundamentally conservative. We have seen no really profound developments in tug design over the past decade, but this may be about to change.” will work towards standardisation of SMIT’s management systems and knowledge management. `` Behavioural: the function of this section is to keep the organisation informed and motivated, through training and promotional activities. New initiatives, such “Greening SMIT” and behavioural safety campaigns, will arise from here. The department is also considering structured SHE-Q training for all levels of SMIT’s staff around the world. The second innovation project involves a joint E3 signifies “Environment-friendly, Efficient group including SMIT Engineering, WorldWise and Economically viable”. The group first got Marine Engineering and an IJmuiden-based together during mid 2007. Peter Kortekaas tug operator. This group is focusing on the says: “Our first move was to measure. We development of the H3T, the Hydrogen Hybrid measured emission levels from existing tugs, Harbour Tug. together with fuel consumption, operating profiles, engine rpm and so on. This phase is NVIRONMENTALLY FRIENDLY Peter Kortekaas comments: “In contrast to now largely complete. Consequently, we now E3 - where we retain an open mind on conhave a benchmark to work with.” CONOMICALLY cepts - theVIABLE H3T project already has a firm direction to pursue. As envisaged, the H3T will use “Using this data we are developing and engiits hydrogen system for routine operations, neering an E3 tug. The next phase will include FFICIEN T IN OPERATIONS then switch to its conventional engine when establishing the engine layout and building engaged in heavy work demanding high pull a small-scale prototype of this configuration. forces, manoeuvrability and speed.” While our work is still in its early phases, there is no doubt that this project will have its influ“Both E3 and H3T have attracted state support, ence on the future character of SMIT’s fleet. We in recognition of their potential significance for are examining many options to increase fuel future tug design.” efficiency and reduce emissions.” Late October saw the twelfth in a series of 18 newbuildings for fast-growing SMIT Rebras enter service. The delivery of the ‘Smit Tupinamba’ is a milestone. It marks the completion of the 45 tonnes bollard pull Robert Allan RA 2500 newbuilding programme for SMIT Rebras - a 50:50 joint venture between SMIT and a Brazilian partner. The next phase in the newbuilding programme concerns six larger ASD tugs, with a 65 tonnes bollard pull. The first of the Robert Allan RA 3000 tugs will join the SMIT Rebras fleet in early December. The larger tugs are required primarily to assist large bulk carriers calling at Brazilian ore export terminals. Mauro Sales, General Manager of SMIT Rebras, says: “We are now operating at four locations. We began in February of this year at Santos, a major port for many trades, including bulk, chemicals and containers. We are now operating four tugs at Santos. “We are also operating four tugs at Sao Luis. This is mainly a bulk port, including ore, aluminium-related cargoes and grain. We began work at Sao Luis in May of this year.” “Meanwhile, the 2500 class tugs are performing well, both operationally and commercially. These tugs are fully equipped for firefighting and marine salvage. These capabilities were put to the test this year, with a number of minor assistances and rescue tows. There was also, however, a major emergency response at Santos in February, when a car carrier caught fire. All four SMIT Rebras tugs based at Santos responded. In fact, the fourth tug only arrived that night from the build yard. It went straight into action. The tugs fought the fire success- fully and this vessel was rescued. There is no doubt that the deployment of our new tugs at Brazilian ports has done much to reinforce firefighting and salvage capabilities at these locations.” Two SMIT Rebras tugs are now working at Paranagua - a major centre for the Brazilian grain trade. The tugs were deployed in September at this port, which also has container berths. Meanwhile, a further two tugs are at work at a fourth location: Sepetiba, south of Rio. This is a port spread over a large area. Facilities include the Petrobras oil terminal, ore terminals and container berths. There are plans to reinforce the two tugs at this location. Mauro Sales adds: “We are now looking forward to operating at a fifth port. This location 15 w w w. s m i t. c o m Busy Schedule ‘Asian Hercules II’ 3,200 tonnes lift capacity sheerlegs, ‘Asian Hercules II’, was mobilised from Singapore to the Gulf of Thailand to lift and install two platforms ‘Jasmine D’ and ‘Ban Yen A’ in the Jasmine Field, approximately 129 kilometers from the coast of the Satahip district. Asian Lift Pte Ltd, a joint venture between SMIT and Keppel in Singapore, was engaged by Thai offshore construction company Cuel Ltd for rigging and design calculations besides the main lifting integration. ‘Asian Hercules II’ lifted the topsides weighing a 1,062 tonnes each into position in the second quarter of 2008. Consequently, in the second, third and fourth quarter of 2008, ‘Asian Hercules II’ was contracted by PT Nippon Steel Batam to lift two deck sections and two jackets for loadout to the North Belut field in the Indonesian sector of the Natuna Sea. SMIT’s ‘Giant 2’ was involved in the transportation of the two jackets from Batam to the North Belut Field. The sections were part of the construction of the ‘North Belut Wellhead-D’ Platform, where operators ConocoPhillips and co-venturers Inpex and Chevron have an established oil and gas production programme. The development of North Belut currently is under way, and first production is scheduled for August 2009. Floating sheerlegs ‘Asian Hercules II’ lifted two jackets weighing 1,714 tonnes on the June 9 and the August 15, 2008 and a further two deck sections weighing 2,200 tonnes on the August 6 and October 22. ‘Asian Hercules II’ with a jacket destined for the North Belut Wellhead-D platform. Sheerlegs ‘Asian Hercules II’ installed two topsides for platforms in the Gulf of Thailand. Three is a charm A very special day at SMIT’s head office in Rotterdam. On November 27 no less than three new harbour tugs were named simultaneously in the Waalhaven. The triple ceremony was performed by three sponsor ladies. Mrs. Dorhout-Mees, Mrs. Francken and Mrs. Smit respectively named the ‘Smit Aruba’, ‘Smit Schelde’ and ‘Smit Hudson’. Harbour choir ‘De Sleeptros’ surprised the guests with a protest song. The guests also enjoyed a stirring performance by a Bras (percussion) band and harbour choir ‘De Sleeptros’. The vessels are all 2810 ASD tugs, built by Damen Shipyards in Galatz, Romania. The ‘Smit Aruba’, ‘Smit Hudson’ and ‘Smit Schelde’ moored alongside the ‘Smit Anambas’. Sponsor lady Minnemijn Smit performed the Naming ceremony of the ‘Smit Hudson’. An impressive performance by Bras band ‘Earthquake’. F.l.t.r: CEO Ben Vree, sponsor ladies Minnemijn Smit, Marie-Jose Dorhout Mees-de Pont and Ingrid Francken-Lauryssens, and Joris Neven (Damen Shipyards). The event took place on board SMIT’s semisubmersible barge ‘Smit Anambas’, which was moored alongside the quay right in front of the head office. About 250 guests, consisting primarily of SMIT colleagues attended the Naming ceremony and subsequent reception. CEO Ben Vree, the sponsor ladies, Mr. Francken (Chairman of the board of URS) and Mr. Neven (Damen Shipyards) each spoke a few words in honour of the occasion.
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