New BWT technology development. Investment cost,, financing and charter parties



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Which technology for which ship? What is going to happen on the regulatory side? New BWT technology development Fleet implementation plan - timing Vessel s operation profile and manning Availability of internal and external resources Investment cost,, financing and charter parties

We shall prepare a policy and plan implementation for: KGJS has a total fleet 50 which is partly relatively new and mature from abt 2000 160 000 tdw engaged in local as well as world-wide trade KGJS has a different ship types; OBOs, pneumatic cement carriers, crude and product oil tankers We have as per today a new building programme with 4 deliveries from 2011-2012; What to do on coming projects?

1. Pilot project on 2 sailing vessels where we will test different makers and type of system 2. Installation on any new ships ordered from 2010 and onwards prior to delivery from Builder. 3. On previously ordered vessels, make preparations as far as possible 4. Executed assessment of sailing fleet and defined an implementation plan

Evaluate systems and prepare for 2 pilot installations early 2011 prior to implementation of ballast water treatment systems for the KGJS managed fleet The pilot project aims to: Obtain experience for retrofit suitability and challenges Obtain operational experiences with respect to maintenance, reliability, follow up from makers Obtain BWT capacity experience Check quality on treated water

NB S 504 (120 kdwt SKS D-class product oil tanker) with 1 x 2500 m 3 /h Wilhelmsen Unitor system combined under installation now at Hyundai Samho Heavy Industries.

Treatment only on inlet we may reduce capacity lower cost Reputable well established supplier with world-wide network Acceptable footprint Installation on suction side may be complicated for retrofit due to space restraints and will result in some uncertainty with respect to pressure loss on ballast pump Have ordered system for 1 nb + done preparations on 2 vessels under construction in Vietnam Gearbulk whom we cooperate with are also testing this system

M/V Cyprus Cement with 1 x 350 m 3 /h Optimarin UV system to be installed March/April 2011 and are presently under commissioning

Small vessel limited crew resources frequent port calls hopefully simple operation Limited space requirement No active substance in UV system Hopefully simple in operation Reasonably easy to install and we have sufficient power available.

Construct fleet database according to: A list of vessels in 3 categories ; GREEN, YELLOW and RED where: GREEN are vessels recommended for system retrofit YELLOW vessels recommended to be kept pending due to age RED is vessel not recommend for retrofit of BWTS mainly due to age/potential re-cycling

Consider each vessels electric balance and bw pumping system Space allocation on deck/engine room not only foot print but where do we have space to fit a complete system Dry docking schedule and intervals Possible installation windows Preparing and propose an installation plan and present it for the respective owners Propose implementation date

Mapped available systems and technology descriptions Mapped selection criteria and define selection criteria considering DNV s questions Checked and defined operational requirements like ballasting/de-ballasting time together with respective operation departments Consider and define selection criteria for the different fleets Request offers for pilot vessels and made nominations Evaluate cost system and installation cost Consider mobile solutions for older ships in the fleet Monitor new and emerging technology

Propose to prepare all vessels at first drydocking (from 2011) in order to obtain flexibility in timing for installation Install pipe lines, isolating valve(s), electric power breaker in main switch board o.a. in order to enable installation during sea voyage Installation of ballast water treatment plant can then be planned between 2014 2017 for the applicable vessels in the fleet We suggest to wait with yellow vessel unless it is considered beneficial out from a commercial point of view Frame-work agreement with respective selected suppliers

Committing now for longer nb series with relative unproven technology should we do that? Is the convention applicable when the vessels are ready for delivery? Technology and market price development Development on port state and international regulations If preparing we must nominate one system will this remain unchanged when in it in case is needed? If correctly prepared, will installation cost and operation become more favourable?

Charter Parties should be considered with respect to performance guarantees related to BWT systems Operation pattern number of annual cargo cycles ballast capacity and bwt system capacity Trading area and possible mud ports

We expect to obtain operational experience through pilot project in order to evaluate the benefits and disadvantages of the test systems after a period of abt.12 months and then select 2 3 manufacturer who suitable for the respective fleet between 2014 2017 KGJS should allocate personnel to monitor product development, system improvements and test vessels during the implementation period. New technology and application methods will come we should rush slowly

It is easier and results in lower cost to fit BWTS on a nb than to carry out an «unprepared» retrofit during the sailing phase Competition between makers is tough and systems may yet be considered as prototypes. Recommend owners/managers to work systematically with this, make their own opinion, and be critical towards information received from suppliers as marketing in many cases is in form of dirt packages about competitors Questions?