‘We Understand Risk’

Chitta Dash
Marine Manager -
South West Asia Lloyd's Register Asia
Chitta Dash, a DMET (now MERI) 1980 graduate, is at the helm of Lloyd’s Register’s South West Asia Marine business. Subsequent to taking over the leadership, he has developed a highly competent team, trained to discharge their duties as responsible Class/RO surveyors and provide prompt and effective technical solutions to the shipping clients in the area. Dash talks to Supriya Oundhakar & Rakesh Roy about the risk management, eco-friendly ship, green passport, measures to be taken for energy efficiency and many more.

Can you please brief us about risk management in Shipping and Marine sector? What is the role of Lloyd Register in mitigating these risks?
Risk management is focused on protecting human life, assets (ships) and the marine environment.
Lloyd’s Register is a leading provider of marine classification and certification services around the world, helping ensure that internationally recognised safety and environmental standards are maintained at every stage of a ship's life.

Please comment on LR's technical expertise in meeting better performance of ships?
Our position is one of providing the best independent technical and operational insight to enable owners, operators, designers and builders to achieve the highest possible levels of performance in safety and make the best commercial decisions in confidence. We understand risk. We are helping owners get to a position where they can decide whether it makes commercial sense. The same goes for other fuels, efficiency measures and for scrubbers. It is unlikely that many deep sea ships will be using gas by 2020 so the industry is either looking at low sulphur fuel or exhaust gas cleaning to comply with anticipated global regulatory requirements.

What are the standards for certification of new ecofriendly ship based on IMO standards?
As we can see, some shipyards and owners are talking of these current generation ships as 'eco' to differentiate their product or services. Eco might just as much mean 'economical' as 'environmental'. Indeed, the focus has switched to the latter. In some ways, there is nothing new in this label. For example, Tsuneishi have been marketing the Tsuneishi Economical Standard Ship (TESS) since the early 1980s.

Obviously, the ships ordered recently have yet to prove themselves. Time will tell what their real fuel consumption is when they are operating. But we anticipate that substantial efficiencies will be realised. The bottom line is that it’s all about the bottom line. More economical ships are being demanded and shipyards are responding to that demand. Owners have been seeing recent cyclically low prices as an opportunity. As long as energy prices remain high and earnings remain low, efficiency will be the number one priority. Even if freight rates rise considerably, it is highly likely that more economical ships will continue to be in demand.

Marine vessels are responsible for emission of 3 per cent of world’s greenhouse gases. What measures should be taken for cutting emissions from ships and how can the situation be improved?
It is true that marine emissions requirements are less strict as compared to land-based or automotive industries. On the other hand, ships operate globally and it is much more complicated to regulate and apply a common standard similar to cars or power stations. Emissions from ships are regulated by the Marpol Convention and further reductions are scheduled over the coming years. This will require investment in technology and/or use of cleaner fuels – either way a high cost to the industry. Within the same regulations, countries can designate special areas, so called emission control areas (ECAs), where SOx and NOx limits can be even lower. North America, Caribbean and the Baltic are such areas. So, it is up to a country or group of countries to consider the environmental and human health benefits against the economic and societal impacts (potential loss of ship traffic) if they wish to further reduce local emissions from shipping.

Please appraise us Energy Efficiency Design Index (EEDI) of IMO regulations in building ships?
The EEDI is intended to incentivise improvements in design efficiency of ships. This is through regulatory limits for efficiency, which will become increasingly more stringent over time (much like the phased approach for NOx regulations). There are a number of options for improving efficiency and many shipbuilders, consultancies and technology companies are also looking at technology solutions in this regard. These range from optimising hull form, bulbous bow modification, machinery optimisation and use of alternative fuels such as LNG or biofuels. New and emerging technologies include using wind power in kites, sails, flettner rotors to underwater air-hull lubrication 'air-bubbler' systems to reduce friction.

What is the core expertise provided by LR in fuel technology to improve sustainability of marine activity?
Lloyd’s Register provides core understanding of the risks and realities involved in any new technology to increase fuel efficiency and we have a wide range of expertise available to provide in-depth review of the potential for future fuels.

Please brief about Indian scenario in LNG ship building?
LNG is becoming increasingly available. The technology is understood and can be applied. The big questions are over investment in infrastructure, which will also be related to the perceptions of future pricing of gas.

What is the share of LR's in LNG carriers in world?
The top 5 classification societies at end of 2012 classed the following number of LNG ships:
Classification Societies LNG Ships
LR 119
ABS 80
BV 57
Class NK 55
DNV 53

What is Green Passport?
The IMO’s voluntary Guidelines on Ship Recycling (2003) introduced the concept of a Green Passport Inventory, essentially an inventory of hazardous materials present in a ship’s structure, systems and equipment that may be hazardous to human health and the environment.

The 2003 Guidelines have been effectively replaced by the Hong Kong Convention, which was adopted in 2009 but is yet to come into force. The Convention aims to improve standards of safety and reduce environmental pollution resulting from the recycling of ships and will require ships over 500 GT to maintain a hazardous materials inventory. The term Green Passport is no longer used by the IMO and is also being phased out by Lloyd's Register - the inventory is now known as the Inventory of Hazardous Materials (IHM).

Full details on the Inventory of Hazardous Materials can be found in the 'Guidelines for the Development of the IHM' (see MEPC.197(62)) which accompany the Convention.

How will Green Passport help in dismantling of ships?
A ship's IHM is maintained throughout its life. Prior to recycling, details of additional hazards in stores and operationally generated wastes are added, and the document can be used to help an authorised recycling facility formulate a safe and environmentally sound, ship-specific recycling plan.

Full details on the role and responsibilities of recycling facilities, and how the IHM plays a part, can be found in the Hong Kong Convention text, SR/CONF/45 (Regulations 5, and 8 to 25).

What is the Indian ship breaking scenario in terms of IMO's guidelines while dismantling a ship?
Once the Hong Kong Convention comes into force each National Authority will be responsible for ensuring their ship recycling facilities operate in accordance with the Convention's requirements. Therefore, if India ratifies the Convention, the competent authorities and recycling facilities will have to comply with SR/CONF/45 (Regulations 8 to 10, and 15 to 25).

Is LR providing their solutions to any Indian shipping company?
Some of the ways we have helped the industry globally, this year, include: technical consultancy on a variety of subjects, from lengthening container vessels to a risk assessment study on LNG terminals; highlevel guidance on LNG bunkering; energy efficiency optimisation using advanced CFD techniques; and approval of state-of-the-art offshore support vessel designs.

Coming back to India specifics, we have provided the following solutions to the shipping industry:
a) Trim Optimisation services for enhancing fuel efficiency to shipping companies;
b) Hull structural analysis to shipyards towards optimisation of scantlings for the new building project; and
c) Analysis and reduction of noise and vibration levels, for the new building projects.

What are the LR’s future plans?
Today, our technical expertise is meeting the demand for ships that are designed and operated to perform better in every way from the fuel they consume to the technologies and procedures they employ.

Our new Global Technology Centres in Southampton and Singapore will ensure we stay at the forefront of new technology and assess the risk before it is applied to engineering solutions. A fundamental understanding of new technology is essential in solving the world’s technical challenges. Putting our practical experts next to university learning and research facilities will stimulate technical innovation.

We want our new Global Technology Centres to lead the world in helping to develop the solutions that will support safer, cleaner, more efficient shipping and offshore activity. Earlier this year, we also released Global Marine Trends 2030, a report based on two years of research into the future of the maritime industries. The report indicates that 2030 could usher in a world where China would own a quarter of the merchant fleet. Almost half of offshore oil is taken from the deepest waters and there are 100 times as many offshore wind platforms. The tanker fleet grows the slowest of all the major ship-types and the number of containerships with a capacity that exceed 7,600 TEU grows three times faster than those below that threshold.

We are sharing this cutting edge research to encourage a broader understanding of global issues that affect the marine industry and their impact in the form of key drivers and scenarios.