The Role of Ship Classification Ownership and Future Challenges

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1 The Role of Ship Classification Ownership and Future Challenges Lloyd s Register s View, Experience and References IDA 17th March 2014 Working together for a safer world

2 My Background and Experience 1985 D/S NORDEN Ships Officer 1989 von Karman Institute for Fluid Dynamics, Belgium Research Engineer 1990 Lloyd s Register Surveyor, Auditor, Project and Office Manager 2001 TORM A/S Executive Vice President, Technical Director 2006 DFDS A/S Technical Director 2007 Dannebrog Rederi Deputy Director 2014 Lloyd s Register Area External Affairs Manager Nordic and Western Europe 2 - Ship Classification

3 Agenda Setting the Scene Interest - Why Ship Classification? Ownership base Lloyd s Register work done today What s currently Out There? What challenges may the future bring? Conclusions 3 - Ship Classification

4 Setting the Scene Development of world fleet by millions of dwt 4 - Ship Classification Source: Compiled by the UNCTAD

5 How we started Our heritage is genuinely historic Formed in 1760 in Edward Lloyd s coffee house to examine and classify merchant ships according to their condition. We have 250 years of global marine history The world s first ship classification society and this remains our core activity today. and over 100 years serving other industries across society from energy, rail, food safety to power and manufacturing. Heritage an important part of our culture and forward-thinking approach to our business 5 - Ship Classification

6 Interest Why Ship Classification 6 - Ship Classification

7 History of Ship Classification Lloyd s List 7 - Ship Classification

8 History of Ship Classification Lloyd s Register Founded in first Register of Ships 1834 Lloyd s Register of British and Foreign Shipping + General Committee + first published Rules 1868 first European office 1872 Office in Copenhagen 1870s first offices in America and Asia 1914 Lloyd s Register of Shipping 2002 Lloyd s Register Today diversified business: - marine - management systems - land-based industries - railway sector - oil & gas 8 - Ship Classification

9 Lloyd s Register today +9,000 Employees worldwide 4 Business divisions 1 billion Turnover 3 Regions 9 - Ship Classification +60,000 Clients, from SMEs to Fortune 500 companies

10 Ownership base Founded in 1760 as the first classification society no connection with the Lloyd s of London insurance market One shareholder, the Lloyd s Register foundation governed by a General Committee of industry representatives non-profit distributing Purpose to promote safety of life and property to improve overall business performance in the industries we serve Achieved through securing high technical standards of design, construction, maintenance and operation 10 - Ship Classification

11 Lloyd s Register today Singapore Global Technology Centre working with joint project partner A*Star to advance technical innovation and support economic growth in the region Research themes of Joint Industry Projects: Subsea drilling and well control equipment. Risk (including asset performance management and life extension). Deep-water / floating offshore installations. Enabling / emerging technologies (including renewables) Ship Classification

12 Work today Birth of a sea giant 21/01/2014 Aegir Deepwater construction vessel (DCV) Life-saving Equipment Aegir has life-saving equipment on board for 399 people. Pipelay Equipment Type: Pipelay tower for J-lay and Reeling. J-lay: Quad joints, 32 OD Top tension 2000 t. R-lay: 2 x 2,000 t reels capacity, 16 OD, 800 t top tension. A&R system: 2,000 t capacity. Deep water lowering: 3,500 m waterdepth, active and passive system heave compensation up to 750 t. Heavy Lift Crane Type: Revolving mast type crane. Boom length: 125 m. Capacity revolving: 4000 t between 17 m and 40 m radius; 1500 t at 78 m radius. Lifting height: 96 m above main deck. Maximum radius: 79 m Ship Classification

13 Work today Bekendtgørelse af lov om sikkerhed til søs Klassifikationsselskaber m.v. 22. Erhvervs- og vækstministeren kan på nærmere angivne vilkår autorisere klassifikationsselskaber, andre virksomheder eller enkeltpersoner til på Søfartsstyrelsens vegne at foretage syn af skibe, herunder at foretage beregninger, undersøgelser og opmålinger af skibe, samt at udstede certifikater. Stk. 2. Erhvervs- og vækstministeren kan på nærmere angivne vilkår autorisere virksomheder eller enkeltpersoner til at foretage godkendelsesarbejde samt undersøgelser af og prøver med skibe, skibsudstyr og andre produkter, der skal være godkendt af Søfartsstyrelsen Ship Classification

14 History of Ship Classification Bekendtgørelse af lov om sikkerhed til søs Klassifikationsselskaber m.v. 22. Stk. 3. Erhvervs- og vækstministeren kan fastsætte regler om anerkendelse af prøvninger og godkendelser m.v. Stk. 4. Søfartsstyrelsen er ikke erstatningsansvarlig for fejl begået af de i stk. 1 og 2 nævnte autoriserede virksomheder m.v. Stk. 5. Søfartsstyrelsen er ikke forpligtet til selv at udføre syn og foretage godkendelser, der er omfattet af en autorisation, som er udstedt i medfør af stk. 1 eller 2. Stk. 6. Når der udstedes autorisation i medfør af stk. 1 eller 2, kan Søfartsstyrelsen, såfremt den, der autoriseres, ønsker det, indgå aftale om begrænsning af den autoriseredes ansvar for skader, der indtræffer på grund af simpel uagtsomhed under udførelse af de opgaver, som autorisationen omfatter. 23. Erhvervs- og vækstministeren kan fastsætte regler om, at skibe med en længde på 45 m og derover skal være optaget i registeret hos et autoriseret klassifikationsselskab Ship Classification

15 What s currently Out There? Pieter Schelte Project (Allseas) Largest vessel to be built ever Several LR offices involved in the design appraisal stage Any discipline covering classification as well as certification of equipment and components Developments from 2010 on-wards 15 - Ship Classification Life-saving equipment on board for 600 persons Pipelay Equipment Type: Pipelay tower for J-lay and Reeling. J-lay: Quad joints, 32 OD Top tension 2000 t. R-lay: 2 x 2,000 t reels capacity, 16 OD, 800 t top tension. A&R system: 2,000 t capacity. Deep water lowering: 3,500 m water depth, active and passive system heave compensation up to 750 t. Heavy Lift Crane Type: Revolving mast type crane. Boom length: 125 m. Capacity revolving: 4000 t between 17 m and 40 m radius; 1500 t at 78 m radius. Lifting height: 96 m above main deck. Maximum radius: 79 m.

16 What s currently Out There? We have: LR Rules and Regulations for the Classification of Ships: IMO Code for Recognised Organisation (RO Code) EU Regulations etc Ship Classification

17 Rules and Regulations Development SOLAS II-2 regulation limits the flashpoint of oil fuels to 60 or higher SOLAS II-2 regulation 17: Alternative Design and Arrangements Current designs must comply with SOLAS, MSC.285(86), LR Rules and National Administration requirements IGC Safe carriage by sea of bulk liquefied gasses Resolution MSC 285(86) Interim Guidelines on Safety for Natural Gas-Fuelled Engine Installations in Ships (2009) Lloyd s Register Rules for the Carriage of Liquefied Gasses in Bulk Draft IGF Code Lloyd s Register Rules for the Classification of Natural Gas Fuelled Ships (July 2012) IGF Code Lloyd s Register Rules for the Classification of of Natural Gas Fuelled Ships (July 2014) 17 - Ship Classification

18 What s currently Out There? Expectations! adopt technical solutions outside of prescriptive regimes adopt a robust but affordable approach go beyond assuring safety through the Class process broader sustainability assurance covering also environmental and commercial outcomes qualification of novel technology or alternative arrangements and more 18 - Ship Classification

19 What s Currently Out There? ~ 40 LNG-powered vessels in service Majority small ferries and off-shore support vessels 70 % built/converted since 2009 ~ 20 more in next 2 years Lloyd s Register Experience (excl. LNG-carriers): ARGONON (2011) First dual fuel IWW tanker VIKING GRACE (2013) First SRTP gas-fuelled Ro-Pax GREENSTREAM (2013) First gas only IWW tanker 10+ other LNG as fuel projects 19 - Ship Classification

20 How Can LR Support You? LR support during pre-contract and plan approval stages: Single point of contact Dedicated design development team Spec. review JIP on Assessment of Risk Based Design (ARBD) LR Technical Performance Group (TPG) All plan approval disciplines can be handled in China Design familiarisation workshop with LR China LR optimisation services 20 - Ship Classification

21 How Can LR Support You in Design Optimisation? Requirements Concept Design Energy Efficiency Design Optimisation (EEDO) Energy Efficiency Operational Optimisation (EEOO) 21 - Ship Classification

22 How Can LR Support You in Design Optimisation? FINISH 7. Study naked hull (model scale) and integrated hull (full scale) 6. Study integrated hull (full scale) 5. Propeller, rudder and appendages added 4. Study naked hull (full scale) 3. Naked hull lines 22 - Ship Classification START 1. Optimised design and/or whole ship 2. Define Performance goals

23 Considerations Risk Based Designs STAR T Stage 1 Scoping Study Stage 2 Conceptual Design HAZID Acceptance criteria satisfied NO Stage 3 Detailed Study(s) Stage 4 Detailed Design HAZOP END Stage 1 Scoping Study Stage 2 Conceptual Design Hazard Identification Study (HAZID) Stage 3 Detailed Study(s) Stage 4 Detailed Design Hazard and Operability Study (HAZOP) Stages 1, 2 and 4 simple designs with few/minor safety implications Stages 1, 2, 3 and 4 complex designs and/or significant safety implications YES 23 - Ship Classification

24 The VIKING GRACE Built at STX Finland, Turku, delivered in 2013 World s largest gas-fuelled Ro-Pax ship Complying with Safe-Return-To-Port regs. Ice Class 1A Super 57,565 GT Length 218 m 2800 PAX/880 cabins 1300 lm trailers lm cars Wärtsilä 8L50DF engines, 30,400 kw 21,8 knots Type C tanks Approx. 140 t LNG Bunkering rate 320 m 3 /h 24 - Ship Classification

25 Flexibility in Design: Novel Modular design and construction The ships vary in length from 94 to 132 metres. Can be configured to meet client specific needs and requirements. IHC Supporter class has standardised fore- and aft-ships, pre-designed modules and a client-configured midship body. The midship can be fully client-defined or composed of pre-designed modules. Result/Benefit This allows a reduced lead time and ensures a lower price and a faster delivery of the vessel to the market. IHC Supporter class SAT diving vessel 25 - Ship Classification

26 Concept of the modular design Subsea offshore cranes Offshore access system Helicopter platform Cable-laying reels; Pipe7cable-laying Trenching system 26 - Ship Classification Working moonpool Working ROV/hangar

27 Flexibility in Operation: Working in the ice and cold Ice breaking and Ice management capability Double acting Winterisation to -35 degrees Oil Recovery Rescue capacity 195 persons Vitus Bering Courtesy: Archtech Helsinki 27 - Ship Classification

28 What Challenges may the Future bring? How to assess and manage Risk: ISO Definition of Risk: The effect of uncertainty on objectives Today a split responsibility/authority in shipping with: 1) Flag Administrations generally responsible for crew competency standards and safe management 2) Class providing asset integrity services. LR is still developing the best way of managing this 28 - Ship Classification

29 Conclusions Classification Societies have an important and growing role Ultimate goal is assurance of ships software in terms of operation and maintenance as well as hardware i.e. from design & manufacturing to recycling The design challenges for ships will be resolved through active dialogue and participation between stakeholders in the industry The alternative designs and arrangements mandated by SOLAS will lead to new and perhaps very different future solutions Solutions will be ship type and trade route specific The driving factors are demand, supply, price, and political pressures No matter what Navigare necesse est 29 - Ship Classification

30 Valdemar Ehlers Area External Affairs Manager, Nordic & Western Europe Lloyd s Register Marine T E valdemar.ehlers@lr.org Lloyd s Register EMEA Strandvejen 104A 2., DK-2900 Hellerup, Denmark Working together for a safer world Lloyd s Register and variants of it are trading names of Lloyd s Register Group Limited, its subsidiaries and affiliates. Copyright Lloyd s Register EMEA A member of the Lloyd s Register group.

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