Horizons

November 2011

A special supplement on Chinese enterprise and achievement

Horizons

This is a special supplement to Horizons, produced for Marintec

Lloyds Register leads

Lloyds Registers progress in China goes from strength to strength. Nick Brown, Lloyds Registers Area General Manager and Marine Manager, Greater China, told a record audience at the recent China Technical Committee meeting that more Chinese ships than ever are being built to LR class and more and more are going to Chinese owners. Here we look at an exciting cross-section of Chinese-led projects ranging from Bestways advances in green newbuild technology, enterprising developments at Shanghai Cruise Terminal and some challenging activities at Huarun Dadong Dockyard (HRDD).

Front Cover: Chinas two largest shipbuilding groups, CSSC (see night-time image of Jiangnan Changxing Shipyard) and Beijing-based CSIC (see image right) are leading the Chinese boom in design, new construction and conversions

Emerald heads the green

Chinas Bestway is building a series of very efficient ships indeed, Communications Manager for Asia
Green parklands with meandering waterways and wooden walkways might seem an unlikely setting for a Shanghai ship designer. But this is where the offices of Chinas Bestway Marine Engineering Design Company (Bestway) are based. Set on the edge of one of Shanghais densest industrial areas, this medium-rise development with its tranquil roof gardens is the source of some of the worlds greenest and most radical ship designs. It could be Germany or northern California. But, no, this is very much eastern China. Aided by Lloyds Register, Bestway has designed the Emerald, a medium-sized, 35,000 dwt bulk carrier. Planning began in 2009 when teams from Bestway and Lloyds Register met to study the commercial and design feasibility of eco-friendly bulk carriers. First we had to make sure the project was commercially viable. The shipping industry showed initial interest in areas of environmental emissions and navigational safety. However that has now changed. We and the industry are now committed to full environmental standards from energy efficiency and improved energy management

For further information contact: Nick Brown Area General Manager and Marine Manager Greater China T +86 (0)21 5158 1001 E nicholas.brown@lr.org

Horizons is the journal for Lloyds Register Marine clients and employees, delivering news and analysis on our global activities. The Horizons team are: Editor: Chris Browne T +44 (0)20 7423 2305 E chris.browne@lr.org Marine Communications Manager: Nick Brown Design and production: Pipeline Design

Hull of Lloyds Register-classed bulk carrier at Tianjin Xingang shipyard in Tianjin

Key Lloyds Register facts

Ships being built in China and classed to LR have reached an all-time high of 300 Average age of Chinese-owned ships classed by LR has fallen to seven (from 18 three years ago!) Total gross tonnage of ships being built in China to LR class rose 70% from July, 2010 to July, 2011 Lloyds Register Chinas graduate training scheme provides a four-year structured training programme

Horizons is produced by Marine Communications. Care is taken to ensure the information it contains is accurate and up to date. However Lloyds Register accepts no responsibility for inaccuracies in, or changes to, such information.

Printed on Soporset Premium Offset from the Robert Horne Group. The virgin wood fibre is sourced from Spain and Chile and produced at a mill in Scotland that has been awarded the ISO14001 certificate for environmental management. The pulp is bleached using an elemental chlorine-free (ECF) process. Soporset is an FSC product group from well-managed forests and other controlled sources.

from the front in China

Lloyds Registers China team with shipyard representatives, shipowners and marine industry stakeholders at the Technical Committee meeting in Shangri-La, south-west China

bulk carrier revolution

reports Richard Cook, Lloyds Registers Corporate
and emission reduction to recycling, alternative power use and the safety and comfort of ships crews. All these factors have to be considered before any of our projects get the go-ahead, said Professor Liu Nan, General Manager of Bestway. We started by looking at the functional specifications with Lloyds Register. We looked at the design fundamentals involved, the hull form, the engine and the electrical systems. But we also gauged market need, carrying out a questionnaire of owners to understand their needs and interest in green technology in the bulk carrier segment. After producing a market report, we talked to the shipyards. We also realised there was considerable interest in green technology from shipowners in Asia and Europe. This research was essential as before we moved into the precise technical aspects, we had to know that the market had our full support. The results of this co-operation between Bestway and Lloyds Register speak for themselves. If looked at in terms of the International Maritime Organizations (IMO) Energy Efficiency Design Index or EEDI as it is known the Emerald is a very efficient ship indeed. EEDI, of course, is the IMOs formula to improve marine engine efficiency and the best practices of merchant ship construction, limiting global warming through pollution of the environment by marine engines. It allows a specific figure for an individual ship design to be calculated via a fairly complex formula which works out a ships carbon dioxide output in relation to its cargocarrying capacity. By studying every aspect of a ships design and operation, the Bestway 35,000 dwt bulk carrier improves by an impressive 18% the existing EEDI performance of standard bulk carriers. The hull lines optimisation work creates energy savings of 11% and structure optimisation leads to steel weight reductions of 370 tons. The work carried out on optimising the main engine leads to fuel oil savings of 6.5%, while a new propeller design gives an energy saving of 2%. The Emeralds electrical systems optimise pump power and use shoreside electrical sources where possible. Solar power and fuel cells are used on board and LED lights replace fluorescent ones. Modern emission control systems limit and monitor the SOX, NOX and CO2 emissions and the ship boasts advanced oil, sewage and solid waste

Bestways General Manager, Professor Liu Nan

There is considerable

interest in green technology from shipowners in Asia and Europe

disposal systems as well as highly efficient ballast water treatment systems Advanced navigation allows for better route planning (avoiding harsh weather) and also helps reduce fuel consumption, while state-of-the-art anti-fouling coatings bring about further fuel savings and cut fuel emissions by 1,100 tons. After extensive model-testing, the new design has exceeded targets in a number of key areas, and the 19.5% reduction in fuel consumption is set against a target of 15%. Six of the new designs are currently being constructed at the Guangdong Jiangmen Nanyang Shipyard in southern China and more orders are in the pipeline. The low EEDI indicates to the industry how energy-efficient this ship design is, said Professor Liu Nan. We have forged a very close working relationship with Lloyds Register on this project and our joint teams are now working on honing the design to bring in further improvements. The design is now in its third generation and its low EEDI value means it will be compliant with IMO regulations until 2024.

Under construction: scaffolding shrouds the hull of one of Bestways green bulk carriers

Horizons

Multiple berth: (l-r) Royal Caribbean Cruises International (RCCI) owned Rhapsody of the Seas; Xin Jian Zhen, ferry owned by China-Japan International Ferry Company; Dawn Princess, owned by Princess Cruise and classed by Lloyds Register; and the Fred Olsen Cruise Lines-owned Balmoral line up at Shanghai Cruise Terminal

Why its cool to cruise in China

As Chinas and one of the worlds largest cities, Shanghai with its population of 23 million and growing could soon become a leading global cruise terminal. Several major companies are eyeing its cruise terminals huge potential and both Costa Cruises and Royal Caribbean Cruises International (RCCI) have been using it as a home port. Madame Dorothy Xu, Director of Enterprise Development at Shanghai Cruise Terminal, told Horizons: No doubt Shanghai is a cruise hub, absolutely because of the location, size and wealth of the population. In fact many Chinese companies want to enter the cruise market, but it is not easy to find the right cruise ship formula, which is likely to involve shopping facilities, attractive excursions and an onboard casino, all of which need development time. With the Shanghai Cruise Terminal now an established cruise hub and with other Chinese ports already following its lead, it is only logical that Chinese shipyards are keen to diversify their business into cruise vessel building, not just for the Chinese market to start with but also for the US and European markets as builders and designers gain experience in this specialist shipping segment.
Lloyds Register capped another great year in China and the rest of Asia when we were named Best Classification Society in the 2011 Lloyds List Asia Awards. The judges said the award was made to the society that had made the greatest contribution to creating a safe and environmentally friendly shipping industry as demonstrated through a commitment to quality and innovation through the development lifecycle from design to building and maintenance of the regions shipping fleet. Picture shows: Iain Wilson, Regional Marine Manager Asia (sixth from right), with the other award winners at the Hong Kong ceremony

China has already built LNG ships so why not take up the next challenge of cruise vessel building for the international as well as the rising domestic market. As the worlds leading classification society for cruise ships, Lloyds Register is in discussion with several Chinese and foreign industry partners to support the development of this unique market in China. While Lloyds Register can offer support and expert advice for the design and construction

of cruise ships, the right cruise ship formula still needs development time. Because of the complexities involved, the Chinese domestic market will need to evolve its own business models and approach, while across Asia many see cruising as a key target area for future tourism. Its a work in progress which all bodes well for a successful Seatrade All Asia Cruise Convention which returns to Shanghai in September 2012.

Operations team:

Horizons

Lloyds Registers Greater China teams

Operations team
Gao Weijie, Chairman, China Operations and Nick Brown, Marine Manager and Area General Manager, Greater China

Dr Maogen Xue, Shanghai Design Support Office, General Manager; Henk Van Staalduinen, Marine Operations Manager, Greater China; Jerry Souster, Greater China Quality Officer and Technical Performance Manager

David Power, Area Manager, Hong Kong and Taiwan; Alan Williams, Area Manager, Central China; Teruhisa Yamato, Area Manager, Shanghai; Gary Horrocks, Area Manager, North China; Alan Sharp, Area Manager, South China; James Gething, Area Manager, East China

Business Development team

Tzu-I Huang, Marine Manager, Taiwan; Adrian Zaphiropoulos, Qingdao and Tianjin Operations Manager

Peter Campbell, Greater China FOI Technical Manager; Fangsen Zhou, Vice President and Deputy BDT Manager; Capt Chen Shizhou, Vice President, Hong Kong and South China Thomas Klenum, Greater China Marine Business Development Team (BDT), General Manager

Carl Tian, China Ship Owner Business Manager; Bao Jun, Marketing Manager, Central China; Zhang Wen, Marketing Manager, North China; Tian Bin, Marketing Manager, South China; Qingchen Sun, Marketing Manager, East China

Horizons

HRDD moves into the fast lane

From conversion projects to newbuilds theres no stopping the Chinese yard
An impressive array of sophisticated and challenging conversion projects, featuring the changing of single-hull tankers into either double-hulled versions or very large ore carriers (VLOCs), has been carried out by Chinas Huarun Dadong Dockyard (HRDD). Based on Chongming Island in the Yangtze River delta, the conversion projects carried out by the shipyard will vastly extend the operating lives of ships that had been facing early obsolescence. Lloyds Register has been actively involved in nearly all of these conversion projects from conception to delivery. Teamwork and partnership with HRDD has been vital, says Henk Vanstaalduinen, Lloyds Registers Marine Operations Manager for Greater China. And now HRDD is moving into newbuilding with the construction of a group of 8,800 teu containerships due to start next year. The yard recently added a large graving dock (see picture) which is now fully operational and a series of steel and coatings workshops with an 800-ton gantry crane due to arrive soon. Alexander Lee, HRDDs Commercial Department Deputy General Manager, says: We have developed fast here and we had so much

HRDDs graving dock inauguration ceremony in October. The 380 metre long graving dock can handle new construction repairs and conversions on ships of any size

help from Lloyds Register. Now as we move into new construction we face new challenges. As high energy prices, new emissions requirements and the prospect of the new ballast water convention force change on the industry, such work may well be a template for the future as owners may soon seek retro-fit opportunities for relatively young ships.

We have developed fast

here and we had so much help from Lloyds Register

Lloyds Register EMEA T +44 (0)20 7709 9166 F +44 (0)20 7423 2057 E emea@lr.org 71 Fenchurch Street London EC3M 4BS UK

Lloyds Register Asia T +852 2287 9333 F +852 2526 2921 E asia@lr.org Suite 3501 China Merchants Tower Shun Tak Centre 168200 Connaught Road Central Hong Kong, SAR of PRC

Lloyds Register Americas, Inc. T +1 (1)281 675 3100 F +1 (1)281 675 3139 E americas@lr.org 1330 Enclave Parkway Suite 200 Houston Texas 77077 USA

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