Optimal Vessel Type for Jordan's Trade Requirements

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10-1990

Optimal Vessel Type for Jordan's Trade Requirements Optimal Vessel Type for Jordan's Trade Requirements

Mohamad El-Dalabieh

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OPTIMAL VESSEL TYPE FOR

JORDAN'S TRADE REQUIREMENTS

BY

MOHAMAD SULEIMAN EL-DALABIEH

JORDAN

in particular fulfilment for the requirement of the Masters Science Degree in Port and Shipping Administration, World

^^^itime University, Malmd, Sweden.

M. El-Dalabieh October 1990

„ , r A T I 0 N D E D I C ft '

. dedicated to the spirit

This work IS ^ave loved toof w * ,5 course. Heverthe-see me «as not to be,less, unfortuna > as he passed away

ing MMU.

I

ACKNOWLEDGEMENT

To produce work of this sort, there is no doubt that enormous help

fnust have been solicited from willing, patient and dedicated persons.

I am therefore indebted to all who have in one way or another helped me when help was most needed.

I wish to thank my wife and my sons for their patience and under­standing while I was working on this project.

I am most grateful to mr. Yasir El-Tal, the General Manager of the Jordan National Shipping Lines, who kindly allowed me to be away Trom my job for a period of two years to attend this course.

I wish also to thank the Government of Federal Republic of Germany Tor the award of the CDG fellowship for me to pursue this course.

^ would like to express my sincere thanks to Ur. H. Haralambides and Professor P. Alderton for their guidance in the preparation of this

project.

II

CONTENTS

Page No.

PREFACE ............................................................................................... 1

CHAPTER ONE - INTRODUCTION TO JORDAN

1.1 Area and Population ................................................. 41.2 Physical Features...................................................... 41.3 History ....................................................................... 51.4 Economy ....................................................................... 71.5 Finance ....................................................................... 91.6 Transport .................................................................... 10

CHAPTER TWO - PORT OF AQABA

2.1 Introduction .............................................................. 162.2 Aqaba Port - Location ............................................ 162.3 Historical Background ............................................ 162.4 Development ................................................................ 102.5 Port Facilities ........................................................ 202.6 Port Traffic .............................................................. 232.7 Regular Shipping Lines Calling Aqaba .................... 242.8 Finance ......................................................................... 252.9 Pilotage and Anchorage ........................................... 262.10 Summary and Conclusions ......................................... 31

CHAPTER THREE - TRADE THROUGH AQABA PORT

3.1 Introduction .............................................................. 343.2 Development of Jordan Phosphate Mines Co.......... 34

3.3 Production .................................................................. 353.4 Phosphate Ore Reserves ........................................... 35

3.5 Phosphate Exports .....................................................3.6 Uses of Phosphate..................................................... 2g

III

Page No

3.7 Phosphate Chemical Processing at FC ................... 39

3.8 Development of Arab Potash Company ..................... 43

3.9 Potash Exports.............................................................. 43

3.10 Muriate of Potash Sales .......................................... 44

3.11 Potash Reserves .......................................................... 463.12 The Present Infrastructure .................................... 47

3.13 The Jordan Cement Factories ................................... 523.14 Type and Quality of Produced Cement .................. 533.15 Marketing ..................................................................... 533.16 Comments and Conclusions ........................................ 54

chapter four - SHIPPING

4.1 Jordan National Shipping Line .............................. 56

4.1.1 Year Sailing ................................................ 584.1.2 Fleet of JNSL .............................................. 594.1.3 Contribution of Cargo Imported .............. 604.1.4 Choosing of Suitable Vessel .................. 644.1.5 Activities...................................................... 704.1.6 Far-East Aqaba Service ............................ 724.1.7 Conslusions .................................................. 73

4.2 Arab Bridge Maritime Company ................................ 75

4.2.1 Feasibility Study for Purchasing Second

Hand Ferries ................................................ 76

4.2.2 Conclusion .................................................... 92

4.3 Petra Navigation Group ............................................. 93

4.3.1 Activities .................................................... 93

4.3.2 Fleet .............................................................. ^3

4.3.3 Choice of Suitable Vessel ....................... 94

4.3.4 Comments and Conclusion ................... 95

IV

Page No

CONCLUSION ............................................................................................. 96

appendix one - PROPOSAL FOR PRE-PURCHASE INSPECTION ........... 98

appendix two - DESCRIPTION OF FREEDOM MK II ........................... 137

appendix three - THE FRIENDSHIP VESSEL ..................................... 146

appendix four - THE BALTIMAR SUPERCOASTER MARK II .............. 160

bibliography ........................................................................................ 162

V

LIST OF TABLES

Table 1 Natinal Account 1984 - 1988 12

Table 2 Length of Raod Networks 1985 - 1988 12

Table 3 Number of Operating Vehicles 1976 - 1988 13Table 4 Freight Carried by the Royal Jordanian

Airlines 1978 - 1988 14

Table 5 Total Goods Handled at Port of Aqaba1976 - 1989

15

Table 2.6.a Development of Aqaba Port Traffic1952 - 1989

27

Table 2.6.b Container Imported via Aqaba PortLocal and Transit 1983 - 1989

28

Table 2.6.c Passengers Traffic in Aqaba Port1979-1989

28

Table 2.6.e Kind of Imported and Transit Cargoes of Jordan via Aqaba Port 1985 - 1989

29

Table 2.6.f Exported Cargoes via Aqaba Port1983 - 1989

30

Table 3.3.a Production of Phosphate 1976 - 1988 35

Table 3.4.a Phosphate Reserves in Explored Areas 36

Table 3.5.a World Phosphate Exports for MainExporting Countries

36

Table 3.5.b Yearly Exported of Phosphate 37

Table 3.5.c Consumed Fertilizer in Aqaba 37

Table 3.5.d Geographical Breakdown of ExportedPhosphate

38

Table 3.7.2.a Production from Fertilizer Complex inTons During 1983 - 1988

41

Table 3.7.2.b Total Sale of Fertilizer and Derivatives During 1982 - 1988

41

Table 3.7.2.C JPMC Manpower Productivity 42

VI

I

I

r

i

Page No.

Table 3.9.a Jordan Potash Exports 1983 - 1989 44

Table 3.10.a Typical Market Distribution of Potash 46

Table 3.15.a Cement Sales During 1983 - 1988 53

Table 4.1.a Number of Tonnage Carried and Profit Achieved (1979 - 1989)

58

Table 4.1.B Total Cargo Imported from UK/North Continent

60

Table 4.1.C Total Carried by JNSL 61

Table 4.1.d Total Potash Traffic to Europe 62

Table 4.1.E Number of Ships Attended by JNSL Agency 70

Table 4.2.9 Traffic Between Aqaba - Nuweabeil (1985 - 1989)

75

VII

PREFACE

There is a saying that "the nation that rules the sea, rules the

'^®3lth and the nation that rules the wealth rules the world", in other words, in this modern world no nation can afford to ignore shipping as an essential instrument of overall national development strategy, so the growth of an efficient and viable national shipping industry is of paramount importance.

However, it is also essential to bear in mind that the shipping industry is a capital intensive, high risk venture, that requires oaretul resource allocation decisions, based upon objective economic ‘^f'iteria. This usually requires the collection of data that detail THe types of trade, commodities and their flow, geographical patterns, annual traffic volumes and services.

^He main objective of this study is to show the need to provide the "lost suitable and optimal type of vessel for the trade in Jordan.

Thus, Chapter One is concerned with a general presentation of the country, a brief description of Jordan is given, as well as its geography and economy*

Chapter Two outlines the port of Aqaba, its development, facilities

^od traffic performance, as it is essential to relate the type of vessel to the port facilities that are available in Jordan in order To ensure efficient utilization of the vessel as well as the performance of the cargo handling activities.

^Hapter Three surveys the existing export based industries, its

development, marketing policies, and geographical distribution of the cargo.

Chapter Four surveys and evaluates the present shipping services That are available in Jordan, including the national shipping line.

1

multinational and private shipping concerns. The current performance is analysed, leading to the optimal ship type that provides the most economic proposition, basically for the ABMC which deals with ferry services. This particular aspect has been evaluated in terms of finance as well as from market point of view.

This study provides four appendices three of them (2, 3 and 4) deal with description of suitable vessels needed for each individual company. The first appendix details the proposal of inspection procedures that need to be followed for the purchase of second hand vessels in view of my opinion that shipping companies in Jordan should only invest in second hand ships for the time being.

At the close of each chapter, conclusions are drawn for that chapter which also relates to the basic theme of the need for proper invest- ff>ent in shipping for Jordan in general.

This is followed up at the end with an overall conclusion that

encompass the main analysis as per each chapter, including the approach that must be followed in the choice of suitable vessel for Jordan's trade and shipping.

In carrying out this project I received invaluable assistance and support from many organizations and individuals. It must be admitted that it IS physically impossible to thank every organization and individual who have helped me in one way or another, however, I would like to acknowledge their services as well here even though they are not mentioned.

However, I would like to take this opportunity to thank the manage-

ment and the staff of JNSL, the Arab Potash Co., Jordanian Phosphate in Aqaba, the Port Corportation of Aqaba Port, the Ministry of

Transport, the Central Bank of Jordan, colleagues of WMU for their

assistance, and the Denholm Shipping Management - Glasgow for all assistance and information provided during my on-the-job training.

2

Final ly my deepest appreciation and gratitude goes to Dr. Hercules Haralambides for the day-to-day assistance in guiding me through

this project.

Without the assistance and support from all concerned, i have been easy for me to have this project completed. I

this project would indeed be of service to my country.

M. UalabiehMalmd, 01 October 1990

t would not hope that

3

CHAPTER ONE

INTRODUCTION TO JORDAN

1-1 AREA AND POPULATION

The Hashimite Kingdom of Jordan came officially into existence under its present name in 1947, and was enlarged in 1950 to include the districts of Samaria and part of Judania that had previously formed part of Arab Palestine.

The country is bounded on the north by Syria, on the north­

east by Iraq, on the east and south by Saudi Arabia and on the west by Palestine. Total area of Jordan is 97,740 square kilometres. The territory west of the Jordan River, about 5,600 square kilometres, has been occupied by Israel since June 1967.

Jordan is one of the smaller countries of the Middle East and it situated between latitudes 29 north and 33 north, and longitudes 34 and 39 east.

The population of the east bank was estimated at 3,500,000 in 1989.

1-2 PHYSICAL FEATURES

The greater part of the state of Jordan consists of a plateau lying some 700-1000 m above sea level, which forms the north­western corner of the great plateau of Arabia. There are no natural topographical frontiers between Jordan and Saudi Arabia, and the plateau continues with the artificial frontier boundaries drawn as straight lines between defined points.

The River of Jordan rises just inside the frontiers of Syria and Lebanon. The river is 251 km long and after first flowing

4

for 96 km In Israel it lies within Jordanian Territory for the

remaining 152 km. The river then flows through the barren inhospitable country of its middle and lower valley, very little of which is actually or potentially cultivable, and it finally enters the Dead Sea, This lake has a length of 65 kilometres, a width of 16 kilometres and a maximum depth of 396 metres. Owing to the very high air temperatures at most seasons of the year, evaporation from the lake is intense and has been estimated as equivalent to 8.5 m tons of water per day.

At the surface of the Dead Sea the water contains about 250 grams of dissolved salts per litre, and at the depth of 110 it is chemically saturated. Magnesium chloride is the most abundant mineral, with sodium chloride next in importance, but commercial interest centres in the less abundant potash and promide salts.

Climatically Jordan shows close affinity to its neighbours. Summers are especially hot on the plateau and in the Jordan valley, where temperature has been recorded up to 48 C, Winters are fairly cold and on the plateau frost and some snow are common. The significant element of the climate of Jordan

is rainfall.

Beside the Arabs who have been settled in their present homes for many thousands of years there are also small colonies of Circassians from Caucasus of Russia who settled in Jordan as refugees during the 19th and 20th century AD. Over 80% of the population are Sunni Muslims and King Hussein can trace un­broken descent from the Prophet Muhanmad. There is a Christian minority and a smaller number of Shia Muslims.

1-3 HISTORY

Jordan became an independent state in the 20th century. Before that it was seldom more than a rugged and backward appendage

5

to more powerful kingdoms and empires and indeed never had any

separate existence.

In Biblical times the area was covered roughly by Gilead, Ammon, Moab and Edom, During the 6th century BC the Arabian tribe of the Nabatians established their independence when, during the fourth and third centuries, the northern half was incorporated into the selucid province of Syria, It was under selucid rule that cities like Philadelphia (Rabbath Amon and now modern Amman) and Gerasa (Jerash) rose to prominence. During the first century BC the Nabatians extended their rule

over the greater part of the present-day Jordan and Syria. They then began to recede before the advance of Rome, and in AD 105-6 Petra was incorporated into the Roman Empire,

The lands east of the Jordan River shared in a brief blaze of glory under the Palmyrine sovereings Odenathus and Zenobia in the middle of the third century AD and during the fifth and sixth centuries formed part of the dominion of the Christian Ghassanid dynasty, vassals of the Byzantine Empire, finally, after 50 years of anarchy in which Byzantine, Persian and local rulers intervened, Transjordania was conquered by the Arabs and absorbed into the Islamic Empire,

From the beginning of the 16th century it was included in the Ottoman of Damascus, and remained in a condition of stagnation until the outbreak of the First World War in 1914,

The area was included in the zone of influence allocated to Britain under the Sykes-Picot Treaty of May 1916, and Zionists held that it also came within the area designated as Jewish National Home in the promise contained in the Balfour Declara­tion of November 1917. Apart from these somewhat remote political events the tide of the war did not reach Jordanian territory until the capture of Aqaba by Arab amies under Faisal the Third, son of King Hussein of Hedjaz, in July 1917

6

A year later in September 1918 they shared in the final push north capturing Amman and Deraa. The end of the war thus found a large area which included almost the whole area of

present-day Jordan.

On 15 May 1923 Britain formally recognized Transjordan as an independent constitutional state under the rule of the Amir Abdullah with British tutelage. With the aid of British subsidy it was possible to make some slow progress towards development and modernization. A small but efficient armed force, the Arab Legion was built up under the guidance of the British Glubb Pasha. This force distinguished itself parti­cularly during the Iraqi rebellion in May 1941. It also played e significant role in the fighting with Israel during 1948.

On 31 January 1949 Jordan was at last recognized by the United States of America.

On 02 March 1956 King Hussein announced the dismissal of Glubb Pasha. And from that time Jordan started her own plans for

development.

•4 ECONOMY

The economy of Jordan has been twice disrupted by war, first in 1948 and then in 1967 with Israel.

The loss of the West Bank of Jordan to Israel in the sunmier of 1967 created new problems for the country. Besides the loss of efficiently formed agricultural land, there was also the loss of tourism and large sums in foreign exchange received from people who annually visited the city of Jerusalem.

Some of the problems created by the war of 1967 were met by aid from Arab countries.

Ir. early 1980 Jordan moved closer to Iraq In ootn political

7

and economical terms. War between Iraq and Iran increased the trade for Iraq through Aqaba.

Iraq and Jordan signed an agreement to confirm their closer

economic links and in April 1981 the two countries signed the protocol through which Iraq agreed to give Jordan a grant of Jd 30 million for road constructions.

The economy of Jordan underpinned by foreign aid and by remittance from more than 300,000 Jordanian workers abroad have enjoyed sustained economic growth from the mid-seventies onwards.

In 1984 Jordan had one of the highest growth rates in the world with the East Bank regions gross domestic product (GDP) expanding in real terms at an average annual rate of more than 8%. Inspite of problems brought on by war and conflicts with Israel and uncertainty caused by the Iran/Iraq war, Jordan's economy remained healthy. Real GDP increased by 17.6% in 1980 and 9.8% in 1981. The rate of inflation fell from 12% in 1981 to 7.4% in 1982, 5.5% in 1983, 3.9% in 1984, 3% in 1985, and zero in 1986. (See Table 1)

In 1978 Arab States undertook to pay USD 1,250 million every

year to Jordan.

Since 1984 only Saudi Arabia has continued to honour its commitments to Jordan in full. Jordan received USD 322 million in 1984 from Saudi Arabia while all other Arab countries were forced to suspend their obligations for different reasons.

These reasons forced the government to seek new loans from abroad. The targets of 1981-1985 plan were not met and, owing to lack of funds expenditure on development was cut. Also the reduction in trade with Iraq, reduction of remittances of Jordanians abroad and problems with Israel all caused economic

8

crises by trie middle of 1989 with public debt. In relative terms trie public debt equals 446 percent of GDP. Triis is trie highest in the world. The Jordanian citizens" share is USD 2600 each, so the government managed to agree with banks to reduce the rescheduling fee to one eighth instead of three eighths percent, half of the delayed interest paid in 1989 and the other half which will be paid in March 1990. Furthermore, All principal payments due until June 1991 were rescheduled. The amounts involved USD 550 million, inflation accelerated in November 1989, as measured by cost of living index, to an annualised rate of 21.2%.

The country started to be independent of her own resources and has still to devote most of her own resources to the solution of pressing short-term problems. Basically Jordan is dependent on phosphate, potash, fertilizers for its revenue earning in terms of trade. This combined with tourism is the main source of revenue for the country. Efforts are being made to mine petroleum, and also to generate revenue via shipping and

airline development.

•5 FINANCE

The main exports are phosphates, potash and fertilizers which contribute to the national income, but before 1967 earnings from tourism and incomes from private donations constituted the only important invisible receipts. After 1967 income from tourism and private transfers fell dramatically.

In 1974 the Jordanian government decided to allow its visitors to cross over the West Bank so the number of tourists arriving in the country that year rose by 79%, in 1975 it reached 554,913, nearly regaining the 1966 level of 617,000, and the income from tourism exceeded that amount and has continued to expand, therefore government intends to expand the tourist sector and there are plans to develop the Port of Aqaba as an international tourist resort.

9

Also in 1987 the Royal Jordanian Airlines reached agreement with a Danish tour company to operate package tour flights so feasioility studies have been prepared for major expansion of

hotels in Aqaba.

The main source of foreign exchange is the remittances from Jordanians working abroad; in 1984 remittances from 340,000 Jordanians were worth USD 1,228 million.

The fall in oil prices in the Middle East in 1985, particular­ly in Gulf States affected their economies and this in turn affected the level of remittances as 85% of the 340,000 Jordanians were working in Gulf States. Also the decline in Gulf economics has added to the number of unemployed workers who return from abroad. By 1986 the number of Jordanians abroad droped to 276,000.

Tor many years Jordan's trade deficit has been offset, mainly t>y capital imports and subventions. Before 1967 these came principally from the United Kingdom and the USA, but since 1967 there have been similar payments from Saudi Arabia and other Arab States. In the Baghdad Arab Summit 1978 they agreed to provides USD 35,000 million war chest for parties confronting Israel and one third was allocated to Jordan. From 1979 Jordan was to receive 1,250 million per year. This Figure was never achieved due to the failure of certain Arab countries to fulfil their aid commitments. By 1983 less than one-half of the Baghdad allocation had actually been given to Jordan. This left Saudi Arabia as the only one of the seven Arab countries continuing completely to fulfil its obligations

and was still doing so during 1989.

transport

In the past, the development of the Jordanian economy has been hampered by the difficulty of connnunication.

10

Railway links between Aqaba and phosphate mines (Al-Hasa) have

been built, also a road between the port of Aqaba and the agricultural and mining installation of the southern Ghor is under construction. The lengths of roads in 1988 were 5,527 kilometres all over Jordan. (Table 2)

New Queen Alia International Airport was opened in May 1983 at Zizya, 40 kms. from Amman.

The volume of freight carried on the railways totalled 2,289,524 tons in 1986, 12,329 in 1976. Over the period 1976- 1986 the nubmer of registered motor vehicles increased from 60,455 to 232,361. (Table 3)

Furthermore, freight carried by air rose from 19,067 tons in 1978 to 43,301 in 1986 and reached 49,995 in 1988. (Table 4)

The port of Aqaba being the principal port and the only one in Jordan represents and handles 100% of the maritime traffic of Jordan plus transit and transhipment cargo from Iraq and other Arab neighbouring countries.

The total maritime traffic has increased from 3.1 million tons in 1977 to 18.7 million tons in 1989. (Table 5)

New ferry links between Aqaba and Egypt were opened in April 1985 to take advantage of the improved conditions for trade and tourism between the two countries. About 707,777 passen- gers, 51,914 trucks and cars used the ferry service during 1989, and 718,490 passengers, 43,041 trucks and cars during 1988. Thus, the communication links provided by the road and rail networks are very important for the Jordanian economy and for the country's external trade and tourism.

11

TABLE 1 - NATIONAL ACCOUNT

(a11 amounts in million JDs)

Description 1984 1985 1986 1987 1988

Cost of Living Index (1986=100) 97.1 100.0 100.0 99.8 106.4Cost of Living Index % Change 3.9 3.0 0.0 -2.0 6.6

Wholesale Price Index (1979=100) 136.7 138.8 138.4 139.7 152.8

Source: Central Bank of Jordan

TABLE 2

LENGTH OF ROAD NETWORKS DURING 1985-1988 (KILOMETER)

Year Highway Secondary Road Village Road Total

1985 1928 869 2088 48841986 2005 879 2134 50181987 2352 1533 1428 53141988 2396 1606 1525 5527

Source: Ministry of Puolic Works and Housing

12

TABLE 3

NUMBER OF OPERATING VEHICLES AND ANNUAL PERCENTAGES

DURING 1976-1988

Year Annual Percentage Increase Number of Vehicles

1976 27.79 604551977 31.49 794931978 22.53 974021979 20.37 1172501980 15.37 1352711981 16.00 1569241982 13.33 1778491983 11.20 1977831984 7.01 2116571985 4.63 2214541986 4.93 2323611987 4.24 2422161988 3.04 249590

Source: Traffic Department

13

TABLE 4

FREIGHT CARRIED BY THE ROYAL JORDANIAN AIRLINES

DURING 1978-1988

Year Freight in Tons

1978 190671979 270121980 289591981 373861982 392881983 400961984 378791985 430951986 433011987 485621988 49995

Source: The Royal Jordanian Air Lines

14

TABLE 5

TOTAL GOODS HANDLED DURING 1976-1989 AT PORT OF AQABA

Year Total Goods Handled (Tons)

1976 3,000,5031977 3,111,6731978 3,659,0541979 5,010,1001980 6,598,5911981 9,334,7481982 11,672,7031983 11,157,8631984 13,606,4511985 14,547,7111986 16,850,6281987 20,015,3711988 20,096,1381989 18,680,649

Source: The Port Corporation

15

Note: D

ifferent scales have been used for these drawings. Both berths are the sam

e size.

CHAPTER TWO

PORT OF AQABA

2-1 INTRODUCTION

Ports may encourago tho developmant of economy or they may respond to the exploitation needs of local resources. There are three types of ports which are located in areas remote from population and industrial and commercial national centers. The first type of ports may specialise in exporting local natural resources like East African ports. The second type of ports have outstanding locational advantage, such as Halifax. The third type of ports are developed for geopolitical considera­tions, such as the port of Aqaba, the only Jordanian port.

2-2 AQABA PORT - LOCATION

It is the only port which has access to the sea in Jordan and it is located in the southern part of Jordan on the right narrow northern arm of the Red Sea, on latitude 29.31 north and longitude 35.01 east. The Gulf of Aqaba extends from Teiran Straights to the north east for 98 miles, with a width of 6 to

10 miles.

The gulf is protected by relatively high mountains from the east and west sides. The bay is quite as winds normally blow from north to south.

Only in winter winds sometimes change and heavy southerly storms occasionally occur, but not more than 4 times a year, lasting one or two days each time. The bay is very deep, about 100 fathoms at a distance of 1 mile from the shore and the sea bottom has a steep slope.

2-3 HISTORICAL BACKGROUND

Until 1984 the port of Haifa on the Mediterranean was a

16

Jordanian natural port. As a result of the Arab-Israel war Jordan's access to Haifa and the older port of Jaffa was cut off. For this reason necessity for development of an indepen­dent port became clear. In 1950 Aqaba was not more than a fish­ing vil lage with war-built facilities for unloading military supplies for the Arab Legion on anchorage through lighters. There was no commercial cargo traffic. Port administration, port tariffs and cargo handling equipment were non-existing.

But due to the necessity for Jordan to obtain an efficient access to the sea from her own territory, so that country would

be independent economically and would save foreign currency on imports and have reliable export of her mineral products. The Jordanian government through systematic efforts made it possible to develop the port and to establish an efficient administration. The government has been assisted by several factors. Firstly, facilities built in Aqaba during the war made it possible to have a good start in port operation on a small scale without waiting for the construction of a new port.

Secondly, the financial aid from British Development Loan and the United NationrT^hnical Assistance supplied the government an international jort expert, whose advice has been available for several years, to th^port^u^ority.

Inspite—oi-4nany_dltttciil-t.ie.s and del ays, res ul-tS—abLta-ined_.have been almost spectacular. From 50,000 ton^ of cargo handled in 1952 rose to 410,00Q.J;on in 1958 and 600,000 in 1959 after the completion of a modern fully automatic phosphate handling plant in early 1959.

The development of Aqaba port is not interesting from the tech­nical point of view only, but the port has been intermittently used for maritime traffic since Solomon's time.

The development included the creation of everything such as administration installation, tariffs, regulations, staff and

17

labour. These have been built up and now Aqaba has earned the reputation of one of the best organized ports in the Middle

East.

In 1978 to facilitate the new and fast development, the impor­tant merger between the port department and the maritime estab­lishment has taken place initiating the port corporation (TPC).

Traffic in the port increased drastically from 1.2 to 3.0, 5.1, 20, and 20.1 million tons in 1972, 76, 79, 87, 88 reduced to 18.7 million tons in 1989 due to the economical measurement taken by the government of Jordan to reduce the imports in

order to face the economic crisis.

2.4 DEVELOPMENT

The decision in 1953 to build the road Amman-Aqaba in order to develop phosphate mines near Amman and to direct all cargo imported from the United Kingdom through Aqaba port marked the turning point for the port development and by the end of 1960 the following projects costing JD 2 million were completed:

A deep dock for phosphate, 210jnei^rsjr^lengjth, 33 meters draught witiTconveyor belt and a ship-loader of 500 tons/hour 2 phosphate jtoj^^ 20 _tons^c^acity and jd^ep dock for cargo with length of 160 jnete^, 33 metefs^raught. During the last

five yeTrs (1952-1959) five sheds were built and a new paved area wit’h^~total capacity of 20,000 tons were acquired, then Jordan signed a land-exchange treaty with Saudi Arabia in which Jordan received 10 km along the eastern shoreline of the gulf of Aqaba, so Jordan could allow further expansion of the port. By the end 0^1970^another deep.dock for phosphate, 180 meters in length 45 meters in draught accommodate 100,goo DWT ships were built with shiploader 1500 ton/hour. Another 2 stores for phosphate capacity of 70 tons were established. Also a new infrastructure was established such as fTre7~station, wireless station, generator tanks for bunkers with three general^cTrgo

18

berths and 2 phsphate-loadiag-tiecths^. The annual throughput

capacity of _ cargo_jwas . less thanX iml.ljo,n,J;P.n

From 197i)-rd.9.75. there were no constructions, in,. the. .port of Aqaba. They limited their.activities by supplying equipment to the port as the Suez Canal was closed^

By the re-opening of the Suez Canal in June 1979 and with the outbreak-of-Xhe- XcAn,T.T.caa„.waj:—1 n_.198gL.cargo _di scharged a^Aqaba increased _drafnatjcajjy...„.Ihere_were sexious delays and^ heavy congestion caused, by .-the..~~tacc.em.ent of cargo the port had to.

handle.-

Twq floatlos_.b.er_ths. 150 met.ers_ in Tenth each with a width of 31... meters ..-iuid_..a draught pf .45 met.ers were installed in order-t.o. handle, 15,000 tons general cargo vessels and container RO/.RO traffiC--and.-buTk cement. Also a mobile shiploader was e.rect.ecL.<».., on the phosphate berth with a capacity of 2100 tons/hour and the first shiploader was modified ^be same capacity. Another 2 stores for phosphate were built in a capacity of 115 tons each. The mobile shiploader and the stores for phosphate cost 11 million JD (JD = 2.9 USD). AlscLthree_n^w pe^ were added in 1980 bringing the total of conventional berths to six with an annual throughput of 4 million tons; also in the south of the main port, new berths were built to handle phosphate and fertilizer and are now operated by the Jordan Fertilizer Industrial Company. A new potash terminal was put in operation in 1982. Also the container terminal w^s put in operation_by the end of 1985.

For the future the port is considering a new berth for cement to be constructed as Jordan started exporting cement to neighbouring countries. A new terminal for passengers will be in operation this year. Currently the main port provides 2,050 meters of quay in 12 berths draught 5.8-15 meters, a container terminal with 2 gantry cranes, 540 quay and 40 tons lifting

19

capacity, attached to the berth a RO/RO berth of 40 meters in length and 10 meters depth. Also 2 phosphate rock loading berths 11 and 14 meters draught and 2 berths fertilizer loading terminal, mute crude oil terminal for Iraqi export 15 meters and 24 meters draught respectively.

The main dependence of the port of Aqaba is because of politi­cal and not economic reasons. Jordan, to reduce its dependence on imports transhipped through Syria and Lebanon provides economic inducements for the use of Aqaba, October 1978 the government called for all containers imported to Jordan to use Aqaba as their port of entry, and this was to ensure that flow of goods to and from Jordan would be continuous and not subject to interruptions such as the closure of the Jordan!an-Syrian borders in 1971 and the civil war in Lebanon in 1972.

2.5 PORT FACILITTF-S - BERTHS. STORAGE AREAS, CARGO Hawni twc

2.5.1 Berths

The Main PortThis port is very close to the city of Aqaba and in­cludes 9 berths for general cargo handling, one lighters berth and two bulk cargo berths for phosphate. The length of quay is 2050 meters and is divided as follows:

Berth NumberLength of

Berth in Meter-?Draught

in Meters

No. 1 160 11No. 2 180 10No. 3 and No. 4 180 12.5No. 5 180 10.5No. 6 180 10No. 7 150 8No. 9 and No. 10 150 5.8Lighters Berth 150 5.8Phosphate Berth No. A 210 11Phosphate Berth No. B 180 15

20

Both phosphate berths are provided by conveyor builts and shiploaders. Berth A has shiploader of 1000 tons/ hour and Berth B has two shiploaders of 2200 tons/hour each.

The Container PortThis port is located 5 kms to the south of the main port with a 1000 meters quay and has the following:

1. Container Berth:The length of this berth is 540 meters and the maxi­mum draught is 14 meters, equipped with two gantry cranes of 40 tons lifting capacity. This berth is attached to a Roll-on, Roll-off berth with a length of 40 meters and a draught of 10 meters.

2. Passenger Terminal/Yarmouk Floating Berth:This berth is specialized in passengers and their vehicles. The length is 150 meters and the draught is 15 meters so it is sometimes used for Roll-on/ Roll-off ships and container ships as well.

3. Motah Floating Berth:This berth with a length of 150 meters and draught of 15 meters is used for bagged cement exports. The berth receives ships up to 20,000 DWT.

4. The Moshterek Berth:This berth is used for oil products and consists of two dolphins 120 meters apart from each other. The berth can receive vessels up to 120,000 DWT.

The Industrial PortIt is located about 18 kms to the wouth of the main port and includes the following:

21

1. The New Oil Exporting Jetty:This berth which started function in early 1986 has 150 meters length and 25 meters draught and the monthly exporting capacity of 300,000 tons.

2. Dry Bulk Berth:This berth is used for the handling of chemical fertilizer, potash and sulpher and can receive vessels up to 50,000 DWT on seaward ships, and 40,000 DWT on landward ships. Seaward is 219 meters long and 15 meters wide and landward is 190 meters long

and 11 meters wide.

Storage Facilities

Consist of,. 726,600 square meters and 711,000 tons

divided as follows:

Faci1ity Area/Tons

Transit Sheds 46000 sqmCovered Storage 34500 sqmOpen Storage 245000 sqmContainer Terminal 299000 sqmPetrol Refinery 83100 sqmFree Zone 19000 sqmPotash Stores 150000 tonsGrain Silos 150000 tonsPhosphate Storage 410500 tonsCold Store 500 tons

2.5.3 Cargo Handling Equipment

Fork Lifts: 108 capacity 1.5 - 22Mobile Cranes: 62 capacity 2-90Top Lifts: 15 capacity 5-30.5Towing Tractors: 49Saddle Carriers: 9

tonstonstons

22

Gantry Cranes: Trailers:RT Cranes:Tug Masters:

2 capacity 40 tons

12027 capacity 10 - 45 tons

19

The average rate of discharging, compared to other neighbouring ports in 1987 shows the high efficiency of

the port of Aqaba.

1---------------------------------------- Import Discharged (mi 11 ion

tons)

No. of Berths Available for

PortDischarge Average

8.7 16 0.543Aqaba/Jordan

51 0.272Jeddah/Saudi Arabia 13.9

7.1 35 0.202Mina Rashid/U.A.E.

62 0.337A1exandria/Egypt 20.9

23 0.182Mersin/Turkey 4.2

18 0.166Shuwaikh/Kuwait 3.0

__________________

2.6 PORT TRAFFIC

handles 100% of the mari- As the port of Aqaba represents and handtime traffic of Jordan plus transit and transhipment cargo forirag and other neighbouring countires, there has been a igh

^ in the following tabTinrr#»m#»nt of the port traffic

Table 2.6.a shows development of Aqaba port traffic in the

years 1952-1989.Table 2.6.b shows traffic of containers imported via Aqaba port

(local and transit) during the years of 1983-1989.

Table 2.6.C shows the passenger traffic during the years 1979-

1989.Table 2.6.e shows the kinds of imported cargoes via Aqaba port

during the years 1983-1989.Table 2.6.f shows exported cargoes via Aqaba port during the

years 1983-1989.

23

2.7 REGULAR SHIPPING LINES CALLING AQABA

In 1952 Aqaba port could handle only 12 ships a year, this number increased to reach 2,446 ships a year in 1989. And from 6,672 tons of cargo carried in 1952 to 18,680,649 tons in 1989. The cargo throughout includes transhipment cargoes from Jordan and Iraq and exports which are mainly Jordanian phosphate. National lines carry not more than 3% of the total cargo, while well-known foreign shipping lines represented by local private and national agents carry the rest of 97%. These lines are:

Routes From Shipping Line Frequency

North Continent J.N.S.L. Once monthly

Falcon Falcon LineCMACamelDSRSCIGearbulkUASCSudan LineNorasiaEuraciaHappag LloydIraqi LineMaersk Line

Every 21 days Twice monthly Twice monthly Twice monthly Twice monthly Once monthly Once monthly Once monthly Once monthly Once monthly Once monthly Once monthly Once monthly

N.C. + W. Medit MessinaMerzarioR.M.S.N.C.H.P.

Once monthly Once monthly Once monthly Once monthly

Far East N.Y.KMitsui - O.S.K.C.H. LineU.A.S.C.J.F.E.L.ContshipScan DutchP.I.L.

Once monthly Once monthly Once monthly Once monthly Once monthly Once monthly Once monthly Once monthly

U.S. A. W.S.A.S.C.I.C.M.I.Maersk Line

Once monthly Once monthly Once monthly Once monthly

24

Shipping Agencies

..onic+pred in Jordan out of which There are 48 shipping agents registethere are twelve active shipping agents.

The major shipping agents are:

•V - Jordan National Shipping Lines

- Amin Kawar & Sons- Arab Shipping company- Petra Navigation- Telestar Shipping Agencies- Tawfiq Gargour & Sons- National Shipping Services- United Arab Shipping Company

- Maltrans- Philadelphia Shipping Co.

- Arab Gulf Agency- Red Sea Shipping Agencies

2-8 FINANCE

a. Port Revenues:

• irton ..ac 34.5 million JD in spite the The total revenue in 1989 was of.aeconomic crisis the country was facing.

The revenue in 1988 was 40.6 million OD which Is threetimes more than In 1980 (12.6 million). Until 1980 the

port was using external and internal loans and direct government subsidies for financing projects. By the year

1982 the port managed to pay all the delayed Installments debts and to support the givernment by annual contribution

as shown In the following table.

25

Year

Total Revenuein Million JD

1980 12.6

1981 20.3

1982 25.9

1983 27.5

1984 27.3

1985 33.7

1986 37.9

1987 36.9

1988 40.6

1989 34.5

Contribution to the Government

00.000.009.008.0 08.6 12.0 16.7 12.3 12.1 11.0

b. Port Fixed Assets

These include all kinds of cargo handling

areas, store areas, residential areas bachelor employees, and port headquarters

, berths, storage for married and

Due to the development of Aqaba port during the past years, the value of port assets has grown from 35.9 million JD in 1980 to 95 milliof’ JD in 1987.

PILOTAGE AND ANCHORAGE

Pilotage is compulsory for all kinds of ships above 150 N.R.T. for berthing and unberthing and also for entering the near anchorage area which is about 0.6 miles from the main port berths. The anchorage area accoiranodates 11 vessels. It should be noted that vessels leaving the anchorage area to the sea can proceed without taking a pilot. But if ships are leaving the berths alongside, pilotage is compulsory and sound signals prohibited. The use of the tugs is compulsory for the berthing. Charges are according to Aqaba port official tarrifs.

26

TABLE 2.6.a - DEVELOPMENT OF AQABA PORT TRAFFIC (1952-1989)

Year No. of Ships Imports in Tons Exports in Tons

1952 12 6,588 841953 117 56,178 4,0101954 173 80,142 12,3391955 219 134,625 66,2511956 138 76,795 67,3361957 95 47,604 99,1721958 305 272,405 137,8121959 370 453,672 136,6341960 407 461,303 223,6171961 440 420,295 311,4361962 435 368,642 286,4931963 500 451,695 275,1891964 542 340,333 493,1271965 470 408,201 521,6341966 666 590,281 657,2181967 452 535,793 650,9291968 275 161,415 694,7491969 269 205,007 538,5421970 220 195,567 186,3281971 254 278,059 387,1641972 327 518,614 704,9391973 304 433,794 811,2371974 299 367,423 1,116,1741975 416 682,795 870,6131976 1064 1,368,661 1,631,8421977 944 1,389,390 1,722,2831978 1197 1,550,781 2,108,2731979 1238 2,301,369 2,708,7311980 1466 3,024,135 3,574,4561981 1744 5,804,686 3,530,0621982 2599 7,837,244 3,835,4591983 2454 6,098,755 5,059,1081984 2329 6,448,343 7,158,1081985 2671 6,370,104 8,177,6071986 2677 7,153,240 9,697,3881987 2555 8,743,749 11,271,6221988 2583 9,143,165 10,952,9731989 2446 _ 8.694.675 9.985 .974 __

1 ‘111.2, tlULha___ __________ 1................. . ............------------ ..................... .......... -------------------------------- i._ —-7^-.If'it- 1-Uld> £aQ./7o3 '9/?6/y?F

Source: The Port Corporation

27

table 2.6.b - CONTAINERS IMPORTED VIA AQABA PORT/LOCAL AND TRANSIT

FROM 1983 TO 1989

YearLocal Transit T<3tal

TEU Weight(Tons)

TEU Weight(Tons)

TEU Weight(Tons)

1983 36161 377,768 9199 112,216 45360 489,984

1984 38119 400,739 14101 158,820 52220 559,559

1985 37399 393,163 16720 180,474 54119 573,637

1986 33677 356,952 26634 235,922 60311 592,874

1987 35559 389,142 15040 150,653 50599 539,795

1988 36411 397,849 24071 238,605 60482 636,454

1989 27098 302,626 22815 226,068 49913L12I2.. / lo^o ____

Source: The Port Corporation . /

table 2.6.C - PASSENGERS TRAFFIC IN AQABA PORT FROM 1979 TO 1989

Year Arrivals Departures Total

1979 32,806 4,873 37,679

1980 30,151 17,309 47,460

1981 74,668 12,331 86,9991982 273,551 99,262 372,813

1983 261,761 262,020 523,7811984 344,648 176,550 521,1981985 444,661 213,356 658,0171986 435,605 404,050 839,6551987 437,451 211,224 648,6751988 583,828 239,624 823,4521989 448,689 321,212 769,9011/-r \l o. T,%o

/2/' T i1 fSbUrcefi'il

U n 1 -)V ^ ^ 6 f 1>:AnnuaT statistic Report - Jordan

S^/2^7!

28

table 2.6.eKINDS OF IMPORTED AND TRANSIT CARGOES OF JORDAN

'vw AQMA PORT FROM 1985 TO 1989 /All AliniiMTC IN TONS)

Description 198b 1986 1987 1988 1989

General CargoFrozen CargoFlourGov. GoodsRiceSugarcoffeeSesameBroad BeansGrainsPotatoesTeaVegetable OilCattleForagesFerti1izersCar/VehiclesTyresSteel/IronTimberSulpherCementMineral OilLiquid Ammonia Const. Materials

66108210947105032435451528

11257768115165

732613877

96674525

25566555

85059116141788310865

37724867975663251041316170

10167759316

6232549382

118231891776030

15726434568852

829742148

59815816

383631101

1656779954

1092910U56

40258521420

162084139

56712131448

16507

61432512043165373815971903

140747359688521428

68778781144420

34692746

1066356327

1022212758

33873221850

12766610

33069418399520136

4693978965

191851789392496

106941573495891881

33105457368051

3434013

861756183

1333216255

3101235886289610

154333155181841

6035

57592730269133001614061408

143211403049224617

66737424574070

33372498

7060350451843

13379265577

2294765315

570342778176308

5867

total JORDAN CARGO 2352434 2690727 2802374 2213000 2531827

Transit Cargo for:- Iraq- Syria- Saudi Arabia- Lebanon- Kuwait- North Yemen- U.A.E.- Others

3969212

24358428

6770

43752527

4434162192

12811452

7360

56191917

5882183272

3374325

13838118

62164980

6852688260

321709

194051271

1126813094

608712535

34798232

1964721717860

10980

total 4007670 4462513 5941375 6930165 6162848

GRAND TOTAL 6370104 7153240 8743749 9143165 8694675

Source: The Port Corporation

29

TABLE

2.6

.f - E

XPO

RTE

D CA

RG

OES

VIA A

QAB

A PO

RT D

UR

ING

THE P

ERIO

D OF

1983

TO 19

89

11

---------i

C. 1O 1 GO 00 00 CM COQ. 1 CO o o 00 CMX 1 o r-H VO CO VO as asLU 1 cn 00 fH CM m1 00 D as ITS 00

1 f—4 f-H f-H VO CM as as1 LO 00 as fH o as•4-3 1 fH fHO 1H- 1

111

4-> 1 VOCZ 1 oa; 1 1 1 1 1 1 o asB 1 C7i VOO) 1 CM VOO 1

1fH CO

• 11

C 1O 1 ID ITS CM o1 O as CO VO as as1 as f-H o as as asi o fH CM as4-> 1 as f-H rH CO o fH asCL 1 rH fH fH fH fHE 1LU 1

i•M 1 CM 00 o as as1 00 CO rv. VO rHCO 1 00 CO VO VO o asC 1 fH o CJS otvs 1 o CO 1— f-H in1 ID CO CT» in o as fHH- 1

■f-H fH CM CO CM fH

1•M 1L. 1O 1 ir> VO VO as VOOl 1 CO as O CO p^ cr> COX 1 t-H o CO m m CO

LU 1 CM <ys VO 00 00 m1 1 VO m CO fH CO(V 1 f-Ha: 11

i4-3 1C 1O) 1E 1CL 1•r- 1^ 1 CO CM in 00CO 1 f-H cn m 001 1 CO m D 00 o CMCO 1 i-H CM fH VO p^C 1tvs 11H- 1

1111 ID CO CM o fH CO CM• 1 CO ITS o m in VO1 00 00 CM VO 00 VO

• 1 CO ITS CM CO as CO 00CJD 1 D CO D 00 fH VO o11

r-H rH11

0) 14-> 1 CO VO rH ID in o otvs 1 ITS fH VO 00 inf 1 o as ITS VO CO CM p*>-Q. 1 o as CO fH o«/> 1 f-H o as 'Si" fH fHO 1 VO r- VO fH m 00jCZ 1O. 1

1CO in in ID VO

11

o ITS VO CO O inCO 1 00 CO CM fH CM CM p^to 1 as as CM CM CO CM4-> 1 CM 00 m m mO 1 r-H as as CM o 00 COCL 1 CM 00 fH CM CM CM1

1 fH rH fH rH1

C- 1O) 1M 1 cn CM CO fH 'Cj- CO•r“ 1 f-H 00 CM VO 00 00r-~ 1 D oo in CO CO o VO1 f-H r-. as CM m o CM4-> 1 CO rH in oL- • VO in in in VO in0) •Li. 1

t1

L. 1 CO in VO 00 asto 1 00 OO 00 00 00 00 00(D 1 CTi as as as as>- 1

1— f-H rH fH fH rH fH fH

CO•r—<o

oo-Mc.oO-O)

oooo

2.10 SU>tlARY AND CONCLUSIONS

I. Aqaba is Jordan's only gateway to the sea. Political events have played a very important role in the develop­ment of the port of Aqaba. Geopolitics is responsible for the sharp and sudden fluctuation of cargo flows through the port, and in several cases political events in the region had an opposite effect on the port. Also the Suez Canal has played a major role in the develop­ment process of the port of Aqaba; even small changes in the status of the canal have had a drastic effect on the port. Shippers and shipping companies abandoned the port of Aqaba for other alternative routes during the closure of the Suez. This is due to the fact that Aqaba s geographical location, has made it disadvantaged with regard to transportation cost.

II. As the increase in Iraqi transit traffic due to the war has lead to very costly investments of port facilities, it has also contributed to the growth of revenues. As Iraqi cargoes were diverted from Aqaba due to cease-fire with Iran this resulted in a considerable loss in reve­nues and consequently reduction in port profitability. Consequently, the port should concentrate on operating at minimum cost and maximum efficiency

Finally the port should identify the additional needs and execute projects to this end.

III. The main problem of the port of Aqaba is that the steve­doring company belongs to the port of Aqaba, so in case

31

of any damage to vessels caused by stevedores, it is impossible to be compensated. Furthermore, shipowners cannot choose the gang and labour, but have to accept what the port offers as well as the damage. On the other hand in private companies the situation of the stevedores is different and more efficient.

IV. Steps should be taken to improve the maintenance of the port and all associated structures in good operational condition. Engineers in charge should have considerable port experience so the mechanical section can handle all the equipment at the right time.

V. Slipways should be expanded to cover main repairs for vessels in the Gulf of Aqaba, as private companies are taking advantage of inadequate personnel and shortage of equipment in the port to improve their business.

VI. It should be noted that vessels should use their own gears due to shortage of equipment in the port. Also heavy lift cranes should be arranged with private compa­nies, as no heavy lift cranes are available at the port.

VII. One of the measures that can substantially improve the the performance of the port in respect of the future handling of cargo, is by improving the documentation process. The latest development in this area is the Standardization of documentation and procedures for import and export of cargo, and also the introduction of computer and telecommunication systems for this purpose.

It is therefore necessary for the port of Aqaba to implement the standardized documentation system based on UN recommendation so that the system can be integrated with that of the international development taking place especially with the developed countries.

32

This win facilitate the growth of trade In Jordan and a1 so reduce the cost of documentation both for external trade as well as the port and transport costs.

33

CHAPTER THREE

TRADE THROUGH AQABA PORT

3.1 INTRODUCTION

Jordan has attempted to utilize human and natural resources to the best of its abilities by implementing ambitious social and economic three- and five-year development plans, i.e.:

1965-19721973-19751976-19801980-19851985-1990

Now Jordan is realising the significant progress in the achievement and reaching sustained social and economic development. The major industries of Jordan contributing to the national income and export through the port of Aqaba are: rock phosphate, refined fertilizer and potash.

3-2 DEVELOPMENT OF JORDAN PHOSPHATE MINES CO.

During the construction of the Hijaz Railway in the year 1908 phosphate deposits were discovered in Jordan, and at the later part of the thirties of this century, company was formed to exploit these phosphate deposits. It started as a private company to exploit the phosphate deposits at Rusaifa (15 km. north-east of the capital city, Amman). By 1953 the company became a public shareholding company under the name JORDAN PHOSPHATE MINES COMPANY (JPMC) and in 1962 started production from Al-Hassa, 136 km. south of Amman and 200 km. from Aqaba

Port.

The company continued to increase its production capacity and to exploit phosphate deposits in new locations. Production from Al-Abiad mines started in 1979.

34

Eshidiya Mine is located about 120 km. to the north-east of Aqaba port and the first production from that mine started in the second half of 1988 with a production of 100,000 tons and is expected to reach 3 million tons per year from the year

1990/ 1991.

OPMC by May 1986 bought the Jordan fertilizer industry company at Aqaba and it was added to its production units and since then has been called the fertilizer complex. Capital of the company was increased several times and reached 34.2 million

JD, 1988:

38.38% owned by the Government of Jordan20.46% owned by the Government of Kuwait20.28% owned by the Social SecurityIO. 32% owned by pension fund1.67% owned by Arab Mining Company1.67% owned by Arab Petroleum Investment Co.1.34% owned by JPMC Employees Saving Fund5.19% owned by Jordanian or Arab Foreign Shareholders

-3 PRODUCTION

Jordan is considered to be the 5th largest producer of rock phosphate after the USA, the USSR, Morocco and China increased gradually in the last thirteen years as shown below:

Table 3.3.a

Year Production (000 tons)

Year Production (000 tons)

1976 1683 1983 47481977 1771 1984 62601978 2493 1985 59201979 2845 1986 62491980 3907 1987 680119811982

42444390

1988 5620

35

It was planned to reduce the production in 1988 to decrease the quantity of stocks to the minimum strategical level. JMPC produces at present several grades of phosphate rock from both Al-Hassa and Al-Abiad mines.

Grades 70-72% TCP, 71-73% TCP, 72-74% TCP, and 73-75% TCP.

PHOSPHATE ORE RESERVES

Sixty percent of the total area of Jordan is covered by upper Cretaceous and Eocene formations where phosphate occurs at varying depth.

Table 3.4.a - PHOSPHATE RESERVES IN EXPLORED AREAS (IN MILLION TONS)

Area Proved Indicated Inferred Total

Rusaifa 65 3 • 68

A1-Hassa 98 9 9 116Al-Abiad & Datjana 57 24 73 154Eshidiya Mine 790 246 200 1236

TOTAL 1010 282 282 1574

3.5 PHOSPHATE EXPORTS

Jordan is considered the third largest phosphate exporter as shown in the following table.

Table 3.5.a - WORLD PHOSPHATE EXPORTS FOR MAIN EXPORTING COUNTRIES

(in million)

COUNTRY 1983 1984 1985 1986 1987 1988

Moroco 14.65 14.98 14.78 13.69 13.06 14.26USA 10.65 10.44 9.41 8.29 8.85 9.05Jordan 3.70 4.69 4.60 5.20 5.54 5.81Togo 7.00 2.76 2.44 2.27 2,51 2.87

36

Phosphate rock is exported from Jordan to 31 countries as i^ollows: India, Pakistan, Bangladesh, Sri-Lanka, China, South Korea, North Korea, Japan, Taiwan, the Philippines, Indonesia, Australia, Malaysia, New Zeland, Romania, Poland, Yugoslavia, Bulgaria, Czechoslovakia, France, Italy, Turkey, Austria, Greece, Cyprus, Norway, West Germany, Sweden, Albania, Canada

and Mexico.

Jordan exports have Increased rapidly during the last ten years as shown In the following table. As a result of higher demand and need for ore fertllizer In the world In order to generate more food to meet the high growth In world popula-

tion.

Table 3.5.b

Year Export (000) Year Export (000)

1976197719781979198019811982

1653179421592728361235233562

198319841985198619871988

369746954609519855445810

In addition to the above, the following table shows the quan­tities which were used in the fertilizer complex in Aqaba.

Table 3.5.c

Year Consumed (tons) Year Consumed (tons)

1982 239,000 1986 940,7081983 615,719 1987 904,8511984 975,333 1988 102.0001985 840,919

37

The geographical breakdown of Jordan Phosphate Mines Company's exports reflect the breakdown of shipping costs of the world market and shows Asia and the Far East to be the most important market for Jordanian rock, while Eastern Europe occupies the second place followed by Western Europe and other countries like Australia, New Zealand, Canada and Mexico, as

shown in the table below:

Table 3.5.d (in million tons)

Year Total Asia &Far East

EasternEurope

WesternEurope

Others LocalIndustries

1974 i.47 1.33 0.14 0.00 0.00 -

197b 1.11 0.60 0.35 0.13 0.03 —

1976 1.65 0.75 0.63 0.21 0.06 —1977 1.79 1.22 0.45 0.10 0.02 —1978 2.16 1.33 0.65 0.13 0.05 -1979 2.73 2.10 0.49 0.10 0.04 -

1980 3.61 2.40 1.02 0.14 0.05 —

1981 3.52 2.08 1.24 0.17 0.04 -1982 3.80 1.82 1.50 0.19 0.05 0.24

1983 4.33 1.83 1.39 0.39 0.10 0.62

1984 5.67 2.52 1.61 0.45 0.11 0.98

1985 5.45 2.73 1.48 0.33 0.07 0.84

1986 6.14 2.89 1.80 0.40 0.11 0.94

1987 6.45 3.17 2.02 0.28 0.08 0.90

1988 6.83 3.54 1.96 0.28 0.03 1.02

USES OF PHOSPHATE ROCK

Phosphate in general is used in the fertilizer and chemical industries. Ninety percent of the phosphate mined in the world is used in agriculture, primarily in the production of soluble fertilizers for the cultivation of the world's crops

38

as phosphoric acid, single superphosphate (SSP), triple super­phosphate (TSP), monarranonium phosphate (MAP), diammonium phosphate (DAP), and complex fesoilizers (NPK) indifferent formulas. Small quantities of phosphate rock in the form of fine phosphate is used for direct application in acid soils. The other 10% is used in the medical and chemical industries and some of its common uses, include;

- livestock feed supplement- detergents, pesticides, mineral supplement- soft drinks, water softeners- aluminum polish, flame resistant- photographic films, tooth pastes, shaving creams and soaps,

light filaments- textile dyes, gasoline and oil additives- bone china dishes, optical glass- cosmetics

3.7 PHOSPHATE CHEMICAL PROCESSING AT THE FERTILIZER COMPLEX IN

AQABA

The Fertilizer Complex was established at Aqaba as a public shareholding company (Jordan Fertilizer Industry Company) for the purpose of producing fertilizers, especially fertilizers to benefit from the natural mineral resources available and its added value.

The company started in June 1982 but because the fertilizer industry was facing economic difficulties during the period of 1983-85 and due to the hardships the Jordan Fertilizer Company was entangled in, a decision was agreed upon with the Govern­ment of Jordan that JPMC would purchase the Jordan Fertilizer Industry Co. (JFI) to preserve this industry and to support the national economy. The Fertilizer Complex became one of theproduction units owned by JPMC on May 1986 and was named the Fertilizer Complex.

39

.7.1 The Fertilizer Complex Located 17 Kms. South of

Aqaba Consists of the Following

i. Two units of sulphuric acid each with a produc­tion capacity of 1800 metric tons per day using

the heurtey-double absorption process.

ii. One unit for phosphoric acid with a production capacity of 1250 metric tons per day of P205

using Rhone-Poulenc Process.

iii. Two units for fertilizer granulation each with a production capacity of 1100 metric tons per day of mono or diammonium phosphate, using GULF

design.

iv. Two bagging units each with a capacity of 30

metric ton/hr.

V. Warehouses and storage tanks for products and raw materials.

vi. A thermal power station of about 44 MW capacity.

vii. A marine terminal which is owned by the Jordanian Government for the uses of JPMC as well as the Arab Potash Company (APC) to export the products and import raw materials.

viii. Adequate measures were taken in the design and construction stages to prevent air and sea pollution during operation of the complex.

Complex utilizes 1.3 million tons per year of rock phosphate from Al-Hassa and Al-Abiad mines. The other two major raw materials used, sulphur and ammonia, are imported from Arab international sources.

40

3.7.2 Production of Fertilizers and Derivatives

The production of the Fertilizer Complex and the total sale of fertilizer and derivatives are shown in the following tables.

Table 3.7.2.aPRODUCTION FRON FERTILIZER COMPLEX IN TONS DURING 1983-1988

Product 1982 1983 1984 1985 1986 1987 1988

Diammoniurn Phosphate (DAP) 117702 337426 568968 494600 508880 605000 615100

Phosphoric Acid (PA) 65350 188452 294089 259612 281944 284791 302298

Sulphuric Acid (SA) 191420 453444 819980 729729 792421 799803 853580

Aluminum Fluoride - - 2243 5992 9543 11208 14701

Table 3.7.2.btotal sale OF FERTILIZER AND DERIVATIVES DURING 1982-1988

Product 1982 1983 1984 1985 1986 1987 1988Diammoniurn Phosphate (DAP)

70250 365122 548422 508761 558890 566000 627000

Phosphoric Acid - - - 18000 16000 5000 8000

Aluminum Fluoride - - - 6403 12539 11000 16000

Diammonium phosphate from Jordan is exported to 20 countries as follows: India, China, Italy, Ethiopia, Saudi Arabia, West Germany, France, Algeria, Lebanon, Belgium, Nicaragua, Cyprus, Kenya, Portugal, Greece, Bourundi, Madagascar, Japan, Austria and Reunion Island.

41

JPMC will develop the Fertilizer Complex and will try to increase the production capacity of about 200 tons from

phosphate acid (PA).

Research shows that the Fertilizer Complex should concentrate on promotion of its productions in southern Asian countries due to the strategic location of Jordan and because the very cheap freight rate from Aqaba port to India, Pakistan and Australia will allow the company to be more competitive. IAlso have to mention that since the JPMC started its opera­tion, they are aware of building up the know-how of mining workers, taking into consideration that this industry was new to Jordan's labour force. Therefore, in the beginning of its operation a number of foreigners of different nationalities were employed to start the operations and to train Jordanians due to the lack of suitable and qualified personnel at that

time.

Today jPMC employees are Jordanian and they are running the operations successfully. The following table shows the productivities over the period 1976-1988.

Table 3.7.2.C - JPMC MANPOWER PRODUCTIVITY

Year Total Production Total Employees ProductivityTon/Person

1976 1,701,7522,866 593.7

1977 1,771,141 2,849 621.61978 2,302,660 3,058 703.01979 2,845,488 3,355 848.11980 3,906,824 3,656 1068.61981 4,243,653 4,046 1048.91982 4,396,361 3,884 1130.31983 4,748,465 3,540 1341.31984 6,263,144 3,358 1865.11985 5,918,825 3,297 1795.21986 6,249,223 3,297 1882.01987 6,800,950 3,321 2103.01988 5,668,227 3,234 1707.0

Source: JPMC Annual Report

42

3.8 DEVELOPMENT OF ARAB POTASH COMPANY

The potash industry started in 1930 from the Dead Sea with a Palestinian potash company and went on until 1947 when Israel occupied part of the project land.

In 1956 the Arab Potash Company was established as an Arab- supported venture. It was laid down for years but wasreactivated in 1975. It cost more than 480 million dollars to complete the project for the extraction of potash from the rich minerals of the Dead Sea and this was supported by western countries and Arab development lending and completed by an international team of contractors.

A capital cost of 72.45 million Jordan Dinars as follows:

The Government of Jordan Arab Mining Company The Islamic Development Bank/Jeddah The Iraqi Government The Libyan Arab Foreign Investment The Kuwait Investment Authority The Saudi Government Other Shareholders

TOTAL

was distributed

56.659%22.826%

5.521%5.187%4.348%4.438%0.345%0.766%

100.000%

The foreign loans which amounted to the total of USD 200,000,000 were contributed by the Austrian Government, the United States Agency for International Development, Kuwait Fund, International Bank for Reconstruction and Development, the United Kingdom Government, The Iraqi Fund, The Foreign Libyan Bank, and from OPEC Special Fund.

3.9 POTASH EXPORTS

The Arab Potash Company started its production in 1983 and by the first year of production achieved to export 211,211 tons

43

and made significant progress in the years which followed as shown in the table below:

Table 3.9.a - JORDAN POTASH EXPORTS 1983-1989 (NT)

Year Amount Exported in Million Tons

1983 211,2111984 449,6081985 932,9991986 1,123,0981987 1,222,3911988 1,305,4661989 1,258,858

Besides the office in Amman (the capital city), for coordina­tion with finance and shipping services of the world, there is another office in the port of Aqaba with complete facilities to ensure proper loading procedures.

APC plans to produce over 1.8 million in 1993 and to reach 2.2 million by the year 2000 and that cargo will be marketed in more than 20 countries.

3.10 HURIATE OF POTASH SALES

The geographical position of Jordan gives the Jordanian potash an attractive advantage in distance and logistics; consequent­ly, reducing the time between order and delivery if compared with other potash suppliers like Canada, the USA, the USSR, etc. especially for major customers in the Asian market.

Therefore, potash is having the greatest ocean freight advan­tage over Canadian potash in the Indian sub-continent. East

44

Africa, and Middle East. While it has very small advantage (35% of the freight) in Western Australia and 10% in the

Southest Asia and Southeast United States.

In fact Jordan muriate of potash is directed to the following

markets:

i. Asian MarketIndia, China, Taiwan, Malaysia, Indonisia, South Korea, Japan, Burma, Philippines, Bangladesh and Pakistan were the major importers of Jordanian potash during 1989,

which was 82% of Jordan s export.

ii. North and Latin AmericaAPC has marketing agreement with a specialist American company to sell and promote the Jordanian potash company which managed to sell 22,000 tons in 1989. The American company succeeded to penetrate the Latin American market and sold a considerable quantity of potash to Brazil and

Venezuela.

iii. European and African MarketFrance, Italy, Belgium, Greece, Turkey, Holland, and Africa were the main importing countries of Jordanian potash in Europe which was equal to 12.6% of the total

Jordanian potash export.

iv. Arab MarketThe Arab market's demand is too low. APC managed to sell a small quantity to Iraq, Syria, UAE, Qatar, Egypt, Mauritius, Oman and Tunisia which was about 2% of the total Jordanian potash export.

APC aims to sell most of its products through a marketing plan with a long term agreement, and with well-known international organizations. The marketing strategy of APC emphasises on the following:

45

A.

B.

D.

Sell and distribute potash all over the world when it is

possible.

-.iqc ‘^owards countries which have Increase the company sales towaros uuthp Asian market.higher sales revenue; mainly tne msi

Ensure longer and firm sales positions with buyers by maintaining tight and strong relation to avo,d any

catastrophe in these markets.

Try to maintain with other producers an effective policy

to stablize prices.

E. The typical market distribution is.

Table 3.10.b

India Malaysia 4%

ChinafZ2% Taiwan 4%South Korea^ Japan 3%

Italy 6% Brazi1 5%

France 6%Others 12%

POTASH RESERVES

Chemical characters of the Dead Sea brine holds a unique assemblage of salts in comparison with brines having a marine origin. It is rich in calcium, magnesium, potassium, sodium

and bromine.

The typical composition is:7.80% sodium chloride1.21% potassium chloride10.48% magnesium chloride0.48% magnesium bromide3.75% calcium chloride72.28% water

46

The estimated total amount of these salts is over 43 billion

tons. The exact origin has been disputed by different scien­tists throughout the years. But the most logical explanation is that throughout the ages these salts have leacked from surrounding mountains and valleys.

The final product of potash after processing can either sound to the plant product storage warehouse of 60,000 tons capacity or it can be conveyed to shipping bins from which it can be loaded into specially made bottom-dump trucks for delivery to the storage warehouse at the port of Aqaba.

A fleet of about sixty trucks, with 50-ton capacity each, daily transport potash via Safi-Aqaba road (200 km.) to the storage and loading facilities at Aqaba for ocean shipments.

3-12 THE PRESENT INFRASTRUCTURE

JPMC produces several grades of phosphate for export purposes and for domestic consumption by the Fertilizer Complex at Aqaba. Exported phosphate is delivered to Aqaba port while phosphate for domestic consumption is delivered to the Fertilizer Complex directly at the plant.

Most of the phosphate is transported by 42-ton railway wagons and some of the phosphate is transported by 15-35 ton capacity trucks. The rock phosphate export facilities consist of two berths. Berth A and Berth B, fully equipped with mechanised covered stores, ship loader intakes and handling system.

Berth "A"

This berth for loading phosphate was built by the end of 1959. It is 210 meters long and capable of accommodating vessels up to 20,000 D.W. with a maximum draught of 35 feet. This Berth is provided with the following facilities:

47

i. Stores No. 1 and 2, equipped with:

- normal capacity of 20.000 tons each while 50-60% are

dvdil3bl6 for rocldiming- four reclaiming conveyor belts running in tunnels

beneath the floor of a capacity of 500 m/t each

ii. Truck Intake No. 1 and 2 with the following

specifications:

- designed and constructed to feed store No. 1 and 2

respectively- designed to tip 30 tons gross weight rigid body trucks

while draw bar trailers can be unloaded by hand labour- 6 trucks can be tipped to reach 120 TPH total intake

capacity

iii. Stationed Ship Loader

- loading capacity of 1000 tons/h

- out reach 22 m.- equipped with telescopic chute with luff unit

The annual capacity is 1.5 million tons.

Berth ”B“

The first stage commenced in 1969 and the second expansion started 1978. It has larger loading facilities and better equipment than Berth A. This Berth is equipped with the

following:

i. Store No. 3 and 4, equipped with:

- normal capacity of 70,000 ton each, 80-85% are avail­able for reclaiming

48 I

- each store has four reclaiming conveyor belt running in tunnels beneath the floor with a capacity of 750

tons each

Store No. 5 and 6, are equipped with a high standard evacuating system which is able to evacuate the stores to 99% of its contents. Each store has a complete reclaiming system with side conveyor belts running alongside the floor of a capacity of 2100 t/h normal.

Three Truck Intakes No. 3, 4 and 5, are equipped with:

- 60 ton capacity tipping platforms and a dust collec­tion plant, evacuating phosphate at a rate of 2 x 500 TPH, which is equipped at No. 3 and 4 while No. 5 is equipped with twin 66 T capacity tipping platforms

- evacuation of phosphate at the rate of 2 x 500 TPH

from two receiving hoppers

Rail Intakes No. 1 and 2

- Rail Intake No. 1 is equipped to discharge 6 wagons atthe same time into receiving hoppers at the same time at the rate of 700 TPH to any of the four stores (No. 3, 4, 5 and 6) or by passing the stores to any of the

three shiploaders.

Rail Intake No. 2 can discharge two wagons at the same time. A conveyor system is able to evacuate the phosphate at a rate of 1000/1500 TPH to the same destination previously described with Rail Intake No. 1.

Shiploaders

Two travelling shiploader equipped at Berth B with the following specifications:

49

- a capacity of 2 x 2100 MTH- an out-reach of 26 meters- a retract clearance of 5 meters

Each shipholder is equipped with a shuttle conveyor, a telescopic chute and luffing facilities.

Due to the fact that the handling system is flexible, any of the four stores can be fed from several intakes. Furthermore, phosphate reclaimed from any of the stores can be delivered to any of the two shiploaders alongside Berth B. Direct connec­tion between the intakes and the ship loaders have been

provided.

Berth B can handle vessels up to 60,000 DWT with a maximum draught of 55 ft. The annual loading capacity of Berth B is

7.0 million tons per year.

The following table shows the overall storing and loading

capacity of Aqaba loading facilities.

Berth Store No. Storing Capacity (ton)

Loading Capacity (ton/year)

A 1 & 2 (2 X 20000)=40,000 1.5 million

B 3 & 4 (2 X 70000)=140,000 7.0 million

5 & 6 (2 X 80000)=160,000

A & B 1 to 6 340,000 8.5 million

3»12.l Fertilizer and Potash Transport, Storage and Shipping

Potash transfered from the plant site at Safi to Aqaba by a company owned truck fleet of 60 trucks are under

50

service for this purpose. A 200-km. road from Safi to the storing and loading facilities at Awaba industrial berth was specially constructed to transport potash

products.

In addition to the 60,000 M/T storage at the plant site 200 km. north of Aqaba, the Aqaba terminal has storage for 160,000 M/T of potash. All these stores are quipped with complete reclaiming system. In addi­tion the Fertlizer Complex has several stores for storing the raw material and products as follows.

Material Capacity

DAP 60,000 MTSulphur 35,000 MTAluminium Oxide 7,000 MT

These stores are connected with other facilities and loading terminals by a flexible handling system which

allows loading and unloading.

3.12.2 The Industrial Jetty/Shipping Facilities

This jetty is designed for loading 1.7 million tons per year of potash and 740,000 tons per year of diammonium phosphate and loading 105,000 phosphoric acid and to discharge annually 375,000 tons sulphur, 170,000 tons ammonia and 38000 tons fuel oil. Thejetty consists of 2 berths.

i. The seaside berth with a length of 230 m. and a draught of 16 m. which can accommodate vessels up to 50,000 DWT. It has a ship unloader for sulphur and a loader for potash or drammoniom phosphate.

51

ii. The shoreside berth with a length of 190 m. and a maximuni draught of 11 »4 m., which can accommodate vessels up to 30,000 DW« It has a ship loader for potash or diaimnonium phosphate and ship-to-shore flow boom ring for handling liquids.

3.13 THE JORDAN CEMENT FACTORIES

Brief History of the Company

This company was established in 1951 as a public shareholding company; thus, an agreement with the Government has been concluded under which the Jordan Cement Factories Company is the only enterprise authorised to establish and to operate cement in Jordan for the period of 50 years.

Prices of cement are fixed by the Government and adjusted from time to time. The capital started with one million JDs but has been raised in 1980 to 22.5 million. After the merging of the South Cement Company in 1985 the capital was increased to

50 million JDs.

Works Site

i. Fuhais WorksThe site of the plant is chosen near the town of Fuhais, about 20 km. from Amman and 360 km. from Aqaba. The area is about 180 hectars, of which 25% of the area is alloca­ted to the plant building and infrastructures. The rest which are hilly areas form the main deposits of raw

material.

ii. Rashadiya WorksThe plant is situated near the town Rashadiya, about 25 km. to the south of Tafila city. The total area for the

project is 60 hectars.

52

3.14 TYPE AND QUALITY OF PRODUCED CEMENT

i. Fuhais WorksAs from December 1983 only one type of cement PPC has been produced. Pozzolana Portland cement has improved characteristics with respect to ultimate strength and durability.

ii. Rashadiya WorksOrdinary Portland cement is produced according to different standard specification for export purposes, such as: ASTM C150 Type American

BS-12 Type British Other types can be produced upon request.

3.15 MARKETING

As from 1983 imports of cement were stopped, the company after having stabalized the new production line number 6 was in a position to meet the local demand and after merging with South Cement in 1985 was able to export part of surplus quantities of cement to Saudi Arabia, Egypt, and other neighbouring countries.

On the other hand the cement consumption per capital started to decrease as from 1984 until it reached 580 kgs. in 1987. Sales of cement during the last six years are shown in the following table.;

Table 3.15.a - CEMENT SALES DURING 1983-1988 (IN TONS)

Year Production Imports Total Export

1983 1271332 19138351984 1693556 — 1693556 1867951985 1677779 1677779 3802041986 1582363 • 1582363 1602171987 1633871 1633871 7389201988 1583953 - 1583953 206916

53

Since 1987 when the export of cement started through Aqaba port, the company has been looking for markets in other countries. There has been plans made for the construction of

a special berth for cement.

A new contract with Asian countries for the export of 1.5 million tons of cement through Aqaba has been signed recently.

3-16 COriENTS AND CONCLUSIONS

1. Phosphate, fertilizer, potash and cement are the main exported cargoes via Aqaba port as they represent 80% of the total exported cargo. Due to the present economic crisis in Jordan more cargo will be exported while imported cargo will be reduced to the minimum.

2. Most of the bulk cargo moves east and the main market for Jordanian bulk cargo is Asian and Far Eastern countries. Also a very high tonnage has been observed to be imported

from these countries.

3. No bulk cargo is carried by the national fleet due to the fact that the only 2 bulk carriers owned by the national

line are on time chartered.

4. It is very difficult to ask phosphate potash and cement companies to sell on GIF basis with the absence of national fleet. It is worth mentioning that although the GIF basis will positively affect the balance of payments which the country has been concerned about resently, it has also made the country manage to organize the trans­portation process to minimize transport costs and increase the competitive position for its products in the international market.

5. Phosphate rock is mainly shipped by small vessels. Less

54

' '• ......"...r -'

than 7 million tons in 1988 or about 16% of the total sea borne phosphate trade were carried by vessels over 50.000 DWT against almost 20% in 1987. A trend towards the use of large vessels in the phosphate trade is therefore reversed. Over 50,000 DWT are most commonly utilized in the trade from the USA. where 44% of the trade was carried on ships of this size in 1988. while Moroco recorded a share of 13% by bulk vessels over 50.000 DWT. The size distribution for bulk vessels employed in phosphate rock trading shows that 84% of the total sea borne trade was carried by vessels below 50,000 DWT, 6% by vessels, 50,000-60,000 DWT and 10% by vessels over

60,000 DWT.

6. 326 vessels used in 1988 to export Jordanian phosphate with an average shipment of 17,826 MT/vessel.

72 vessels at Berth A - 649190 ton 254 vessels at Berth B ~ 5162160 tonFertilizer and phosphoric acids were exported from industrial ports, using 44 vessels, with an average

shipment of 11,000 tons.

7. The need for appropriate national carriers is of vital

importance for a country like Jordan.

55

CHAPTER FOUR

SHIPPING

Jordan's interest in the shipping business is considerably recent. Many of the new international conventions have not had any priority of relevance to the country's interest in the maritime field. At the time the main interest was aimed at having a viable and strong national port capable of facing the fierce competition in the

region.

The first national carrier was officially established only in 1979.

Generally there are three main shipping companies existing in

Jordan.

4.1 Jordan National Shipping Line - JNSL - the National Carrier 80% owned by the Governments Agencies.

4.2 The Arab Bridge Maritime Company - ABMC - established under the Maritime Convention for Cooperation Signed by the Governments of Jordan, Iraq and Egypt, equally

owned by the three countries.

4.3 Petra Navigation Group - PNG - which belongs to the

private sector.

4-1 JORDAN NATIONAL SHIPPING LINE (JNSL)

The company was founded in 1976 with a capital of JD 2,000,000 which was subsequently increased to JO 7,000,000 in 1981 with the following shareholders:

56

Shareholder No. of Shares Percentage

Jordanian Government 1,300,000 18.57Social Security 1,195,000 17.07Jordan Phosphate Mines Co. 1,400,000 20.00

Port Authority 700,000 10.00

Arab Potash Company 700,000 10.00

Private Sector 1,750,000 24.36TOTAL 7,000,000 100.00

It was In 1979 when JNSL commenced regular liner services to meet the Jordanian importing need by bringing their tonnage from the UK/continent to Aqaba. The company started with charter vessel then JNSL purchased two conventional vessels to provide services to importers on regular trade from Antwerp, Zeebrugee, Rotterdam, Bremen, Hamburg and Sheerness to Aqaba. These vessels were suitable only for carrying general cargo without any facilities for bulk cargo.

Consequently they used to do the north voyage from Aqaba to the north continent on ballast which was not economical. It soon became apparent that the two owned general cargo vessels tended to make substantial losses on the round voyage and since they were reaching 15 years of age they could become a cargo insurance problem and they were in poor state of maintenance as wel 1.

It was decided that they should be sold for scrap and JNSL should depend on one-way trip chartered tonnage to Aqaba. At that time and due to the depressed state of the time charter market, ships could be chartered in at a rate well below the daily running cost. So the two general cargo vessels were sold hy the end of 1986. Furthermore JNSL purchased two bulk carrier vessels in 1982 but were managed, operated, time chartered, by Jebsens - Norway. In 1989 JNSL purchased one multi-purpose vessel for the Far East - Aqaba trade.

57

4.1.1 Year Sailing - Tonnage and Profit

The JNSL operation very soon became well known in shipping exporting and importing circles due to the regular sailing and the safe handling. This encouraged the management to explore possibilities of horizontal expansion and this eventually led to the recent introduction of the Far East - Red Sea service.

Table 4.1.a shows the number of tonnage carried and profit achieved since the company established her liner

services.

Table 4.1.a

Year Profit in JD (Loss) Tonnage Carried

197y 14.445 23,000

1980 (82,875) 90,000

1981 590,21b 277,000

1982 1,121,980 142,000

1983 442,411 285,000

1984 499,295 250,000

198b 414,781 200,000

1986 772,906 150,000

1987 751,742 151,000

1988 1,478,147 152,000

1989 2,989,151 142,000

TOTAL 8,992,198 1,862.000

Beside profits the other main objectives for the establishment of national carriers were achieved, such

as:

58

1. national prestige and strategy,2. training and providing employment for nationals

ashore and afloat3. saving foreign exchange4. controlling freight rates

The main policy of the company is to purchase more ships and to increase the volume of trade between Jordan and

Other countries.

Based on past experiences it has been observed that the purchase of vessels like MOTAH and M.V. BADSE was

unsuitable for this type of trade and therefore uneconomic. Secondly the joint venture arrangement with Jebsens proved to be unsuitable and unviable for t

trade.

4.1.2 Fleet of JNSL

Name: Flag; Built: Builders: GRT

JNSL fleet comprises 3 ships as follows:Two sister vessels bulk carrier of 21,000 DWT.

Alkarameh / Hitteen Jordanian 1973Nippon Kokan Shimizu 12,631 T 7,490 T 21,916 T 155.5 M 9.8 M LR 15/5

NET DWT L.O.A.:Draft;Class:Decks:HO/HA:Grain Capacity: Bale Capacity: B.H.P.:

26,892 m 2

25852 m 9,000

One multipurpose vessel of 16,271 DWT:

59

Name: Jordan Ibuilt: 1980GRT: 9,815 TUWT: 16,270 T

O

Grain Capacity: 22,304 m2

Bale Capacity: 20,406 mNo. of Holds: 5Capacity of Crains: 2 X 16 T

2 X 20 T2 Derricks 1.0 T

Draft: 9.258 mMaximum permitted load: - 2.0U T /SQM upper deck abrest hatches

- 1.20 T /SQM upper deck hatches- 2.60 T /SQM tween deck inclusive hatches- y.25 T /SQM tank top

Speed: 15 knots on 28 metric tonsContainer Capacity: 185 TEU hold / tween deck

62 TEU hatch / upper deck 247 TEU TOTAL

In addition to these three vessels JNSL has on long/ short time charteres a large number of vessels.

^•1*3 Contribution of Cargo Imported to Jordan from UK/North Continent

The total cargo imported through the port of Aqaba was as follows: (all amounts in tons)

Table 4.1.B

Country 1987 1988 1989

BelgiumGermanyEngland

294,12685,04794,041

371,45566,82781,298

250,13776,83756,056

TOTAL 1 473,214 519,580 383,030

60

Table 4.1.C - The Total Carried by JNSL

Country 1987 % 1988 % 1989 %

Belgiurn 105967 36 112096 30 105558 42.2Germany 15729 18.4 22060 33 24599 32England 29305 31.2 18294 27.5 7478 3.3

TOTAL 151001 31.9 152450 29.3 137635 35.9

The JNSL trade with the principal trading countries in Europe reflects a positive growth based on the above data for the years 1987-1989. However, in the case of England between 1987-1989 this was due to the voluntary decision taken by the JNSL Management in favour of container joint venture line with Yemen (FALCON). It was aimed at ensuring that the joint venture company would be able to earn more revenue and therefore be more viable.

Nevertheless, JNSL has been badly affected by this move. As a result the JNSL vessels are unable to carry con­tainers on deck during the return leg from Europe. This reduced the profitabi 1 ity and operational effectiveness of JNSL vessels since the deck remains vacant.

Based on the previous performance approximately 458,608 tons of cargo is flowing from Europe to Aqaba. Assuming that on average basis JNSL can handle about 40% of this trade, i.e. 183,000 tons per annum. Then JNSL can secure 12 voyages with an average lifting of 15,250 per voyage per vessel including the containers. This will ensure optimal utilization of JNSL vessels and maintain monthly sailings to Aqaba from the table provided below:

61

Table 4.1.d

Country 1986 1987 1988 1989

France 87320 63970 31450 65130Italy 46815 84535 91270 411950Turkey - 6050 2500 11000

Greece 6815 4200 6850 5000

TOTAL 140950 158755 132070 123080

The total bulk potash traffic to Europe from Aqaba is around 138,000 ton/year and when bulk phosphate is included, as shown in Table 3.5.d, an additional 300,000 tons of bulk exports also originate from Aqaba.

Taken together about 438000 tons is exported annually. As such if 40% is carried by JNSL vessels i.e. approxi­mately 175,200 tons. Each vessel would be able to carry 14,600 tons, which means that it would secure 12 voyages per annum. This clearly reflects the positive situation for JNSL Line operations.

As it provides optimal employment for the vessels for the two-way traffic, this would also enable JNSL to play an effective role as a national carrier and also resolve the problem of imbalance in the cargo carriage as experienced at present.

Taking into account that the round voyage Europe-Aqaba- Europe would be approximately as follows:

A. Average performance for loading operations in Europe;

62

- Antwerp- Bremen- Sheerness

2,75U tons/day 3,000 tons/day

400 tons/day

3-4 gangs 2 shifts 3-4 gangs 2 shifts 2-4 gangs 2 shifts

B. Average voyage durations:SteamingSteamingSteamingSteaming

Aqaba-AntwerpAntwerp-BremenBremen-SheernessSheerness-Aqaba

TOTAL

12.5 days 1.5 days 1.5 days

12.5 days

28.0 days

Other steaming days for deviations for bulk cargo 5.0 days

33.0 days

in Port:Antwerp 2 days

Bremen 2 daysSheerness 3 daysAqaba 9 daysReserve non-working day 3 daysLoading bulk 2 daysDischarging bulk 3 days

TOTAL 26 days

33+26 = 59 days

The working days for the vessel:365 - 11 (for offhire - dry dock) = 354 days 354 divided by 59 = 6 voyages per ship per yearwhich is equal to 12 voyages for two vessels.

Currently JNSL is dependent on charter vessels to carry out these services. So JNSL to maintain on monthly sailing from both ends would reserve two multipurpose vessels.

63

This position can be further improved by securing more cargo via potash and phosphate exporters from Jordan by way of long term agreements with these firms. Taking into consideration that both these firms are a major shareholders in JNSL, it would be beneficial for both sides and furthermore it would be beneficial for the economy of Jordan as wel 1.

4.1.4 Choosing the Suitable Vessel for This Trade:

Taking into consideration the nature of cargo to be handled in this trade, i.e.:

Bulk - (outward) - Aqaba —♦EuropeGeneral cargo/conainers - (inward) - Europe —♦Aqaba

The most suitable type of vessel based on the current practise and experience is the FREEDOM MK-11 TYPES. (See Appendix 2) The advantage and suitability of this class of ship is due to the following technical factors.

1. Design Basis:

Freedom MK-11 Types were designed to achieve the following targets:

- Capabilities to transport at high efficiency all types of cargo, including containers, the use of which has been growing in recent years.

- Capabilities to ensure safe navigation with medium crew as there is every sign that crew costs will keep going up.

- Capabilities to save fuel costs.

For the purpose of putting these into shape, the following engineering consideration were given:

64

A. Wide hatch and simple hold design to permit efficient and safe handling and loading of all general goods and dry bulk cargo, including containers and length of materials, and also to permit the self-trimming of bulk cargoes.

B. Optimum arrangement of cargo gear for wide opening of the hatch for efficient loading and unloading operations using the horizontal

slewing cargo gear (HSC).

C. No-camber and no-shear upper deck free of fixed stationary obstacles in order to use it fully

for cargo stowing.

D. Use of the Integrated Propulsion System in which a controllable pitch propeller and a medium- speed geared diesel engine are combined for high -reliability operations and for fuel economy.

E. Selection of high-reliability machinery to mini­mize the number of installations and to improve the overall ship”s reliability as well as main

tainability and serviceability.

F. Simplification of mechanisms so that even a minimum force of unskilled crew can upgrade and

maintain them with ease.

G. Upgrading of engineering standards to meet the latest issues of the Marine Pollution Prevention Regulations Harbor Rules, Canals and Seaway Regulations, and other relevant laws, regula­

tions, rules and codes.

H. Use of box girders which are longitudinal

65

strength members 3S sdfety eisles in rough seas as well as hold ventilation ducts and install a™ tion spaces for safe access to the hold.

I. Complete separation of private rooms and office accommodations and installation of recreation rooms for comfortable life on board.

2. Cargo Hatch:

Freedom MK-11 features hatches and holds that are made spacious for ease of container stowing. The space above the wide hatch cover is also available for carrying cargo as the hatch cover is reinforced in anticipation of such use. The electrohydraulic hatch covers, which are combined with automatic hydraulic clears can be cover-controlled by one man with great ease in a very short time. In MK-11 the folding-type cover is hinged up by a hydraulic

cylinder.

Also the hydraulically-operated retractable tween deck which permits use as either a single decker or a twin decker depending on the type of cargo to be

carried.

3. Cargo Gear:

MK-11 has 5 sets of HSC. The HSC is a cargo gear developed for the Freedom MK-11. The boom accoirmio- dated in the top of the hatch cover is hydraulically topped up by simple lever operations.

Two levers alone are used to perform three modes of operation - hoisting, slewing and trolley traversing - simultaneously. For the purpose of minimizing the maintenance work, the topping and slewing drives are

66

of the hydraulic type with the number of wire and sh63V6S r6duc6cl to th6 minlmuni.

The hoisting speed is changed in five steps automa­tical ly to meet a given load, for improved cargo handling efficiency. The line-up of HSCs includes in capacity 10, 22, 25, and 50 LT (25 LT x 2), covering a variety of the owner s needs concerning cargo handling work. The 50 LT HSC usually operates in the form of 25 LT 2-gang system, and only in case of need serves as a 50 LT 1-gang system. As a result, the dead weight loss is minimized. The cost is reduced to less than half of the independent 50 LT heavy gear, and the maintenance requirements are

held to the same as the 25 LT HSC.

4. Engine Part:

The engine part has been designed to permit easy operation by a minimum number of engineers. The engine system has been simplified and integrated to a high degree with propulsion equipment turned into a black box. The prime mover is a medium-speed geared diesel engine whose performance has been proven. The performance of the engine has been corroborated by trial runs including at full load condition of the first of the respective series (MK-11). Its follow-up survey is still going on.

- Integrated Propulsion System (IP System):Machinery for propulsion is integrated into one unit in which the prime mover drives the auxilia­ries and the main generator. The IP system serves as if it were an automobile drive system with a torque converter, realising the unmanned control of the engine room. As this is combined with CPP (controllable pitch propeller) the

67

navigator at the wheel house has only to handle a single control lever to guide her into or out of the port or to cross a confined waterway without troublesome frequent starts and stops of the

prime mover.

The main diesel generator engine can also be employed for the ship's propulsion as it can propel the ship at a speed of 7 knots. All these features have met with general applause as they have greatly improved the safety and reliability

of navigation.

The auxiliaries driven by the prime mover include the freshwater pump, seawater pump, lubricating oil pump, and control air compressor. The cooling system is of the centralised fresh water cooling type, unferrering the crew from much labor which otherwise would be needed for the maintenance

work of the seawater cooling system.

- Steam Generator:The type of steam generator which has been newly developed is a combination of a smoke-tube type exhaust gas heater and a water-tube type oil- fired boiler, when the oil-fired boiler is in service. The boiler water is naturally circulated without the circulating pump. It is designed to limit the steam generation rate to a necessary minimum and to incinerate slop oil.

- Generator:The electric power generating system consists of one main generator and one auxiliary generator unless at rest in port, the main generator supplies all the electric power. When at sea.

the main generator is driven by the main engine. Rarely is the main generator run by the back-up diesel. Namely, the maintenance work relating to the back-up diesel is cut down sharply. The normal change-over of the prime mover of the main generator is carried out without blackout, the switchover of the generator from the maingenerator to the auxiliary generator is carried out automatically. The auxiliary generator is able to take the place of the main generator in almost every power service condition. Although its power availability is somewhat limited under

certain cargo handling conditions.

The investment in pure container ships should not be considered by the management as the number of containers imported and exported does notencourage investment of container ships in the Europe-Aqaba trade and the possibility of Aqaba becoming a feeder port for the Middle-East area as well as for the East Africa coast, the following constraints should be considered:

A. The overcapacity in port facilities in the Gulf.

B. The Biggest importing country in the Middle- East which is Saudi Arabia does not accept that its imports have to be transhipped.

C. Port installations and substantial invest­ments in Saudi Arabia, Kuwait, the Emirates, would be idle if Aqaba becomes the general transhipment port for the area.

Increasing the number of container carriers on the conventional vessels will give more profit to the line where JNSL should go ahead.

69

4.1.5 Activities

one of toe ^ost successful activities of ONSL is the

---nt Which

::i::L:e ;"1. Fonowm, is ............... .. Of Ships

attended by this Agency.

Table 4.1.E

Year No. of Ships Tonnage

1984 4b 310430

198b 63 629281

1986 90 1139937

1987 103 1850323

1988 122 2247397

1989 114 2095234

In 1987:

12 cargo ships discharged

3 ships discharged

2 ships discharged

5 ships discharged

9 ships discharged

4 ships discharged

1 ship discharged

1 ship discharged

50 ships 1oaded24 ships loaded

2 ships loaded

1 ship loaded

16b437 tons 60255 sulphur 15909 gas oil 28408 alumina/bulk

28196b F. oil 136434 wheat

1266 apple 4344 flour

107465b phosphate 197032 M.O.P.38020 OAP

31b0 cement

70

In 1988:

- 10 ships discharged

- 2 ships discharged

- 3 ships discharged

- 3 ships discharged

- 11 ships discharged

- 1 ship loaded

- 6 ships loaded

- 24 ships loaded

- 69 ships 1oaded

In 1989:

- 1 ship loaded

- 4 ships loaded

- 4 ships loaded

- 7 ships loaded

- 13 ships loaded

- 60 ships loaded

- 2 ships discharged

- 4 ships discharged

- 1 ship discharged

- 3 ships discharged

- 13 ships discharged

- 11 ships discharged

Container Discharged:

Container Loaded:

Container Emptied:

Container Transhipped:

140966 G. Cargo 32978 Bags(Rice)

22405 Aluminium Hydro­oxide Bulk

71441 Bulk Solphore 315164 F. Oil

3150 Bagged(cement) 90380 Fertilizer

178420 Bulk Potash 1478555 Bulk Phosphate

400 Sulphur 41436 Phos. Acid 55457 UAP/Bags 80820 DAP/Bulk

158950 MOP/Bulk 1153460 Phos. Bulk

4014 Amm. Nitrate 142500 Sorghom/Bulk

7502 Fertil izer/Bags 65243 Sulphor/Bulk

363004 F. Oil 1514910 General

805 X 20 428 X 40

174 X 20 31 X 40

746 X 20 394 X 40

67 X 2022 X 40

71

From these tables it can be observed that this Agency can handle all kinds of cargoes and all kinds of

vessels.

^•1*6 Far-East - Aqaba Service

The Far-East region has been selected due to the fact that this region is the first and largets market for the Jordanian phosphate and potash, as 80% of potash and 60% of phosphate, which is more than 3 million tons per year, (See Table 3.5.d) are exported to Asia and Far-East countries every year in 15,000 to 25,000 tonne parcel lots with a freight rate of USD 19 to 22.

Also the Far-East is the 2nd or 3rd largest market to the Red Sea for containers and general cargo. The addi­tional distances involved in this trade is in comparison with Europe compensated for by the high Suez Canal charges.

The advantage in this convential bias is that JNSL through their principal export of phosphate and potash can secure bulk cargo which results in vessels having very high levels of utilisation. The service will load general cargo and containers from the Far-East and return with bulk phosphate and fertilizers to the Far- East, as contract of affreightment to the Far-East can be offered by fertilizer companies in Jordan.

Two similar vessels with Freedom Mark-11 are needed but with bigger capacity than the Freedom Mark-11 Type due to the larger lots of cargo shipped to the Far-East.

The new FRIENUSHIP IHI Type (See Appendix 2) is the most suitable vessel for this trade with 22,400 MT UWT and also suitable to the port of Aqaba.

72

The replacement of the two existing bulk carriers should be considered for this trade as no investment in specia­lised vessels should be considered as the type of trade in Jordan does not help investment in this specific type of vessels, i.e. bulk carrier, geeneral cargo, contai­ner, etc.

One of the main considerations to be taken into account is the problem of imbalanced trade that exists in this area. Thus, the only solution is to opt for open deck multipurpose type vessels which have the capacity to handle general and dry bulk cargoes and possession of trimming facilities to facilitate efficient utilization of vessels and maximise productivity.

4.1.7 Conclusion

1. Based on the various factors considered in relation to the National Shipping Line the primary conclusion that can be drawn is that the JNSL should invest only in the multipurpose type of vessel for the two major trade routes, i.e. North Continent - Aqaba and Far-East - Aqaba. In this respect the Far-East route should be provided with a bigger tonnage in view of its shipping potential.

2. In terms of its future development and expansionplans the JNSL should liaise with the government and clarify the position of the government as regards to the future route of the company and to what extent the government will support the enterprise, i.e.

- whether the government expects the company to be profitable and economically viable, in which case government financial assistance will be required during the development stage in view of the need to train the manpower and develop the fleet, or

73

■— ........... .....——,

- whether the government wishes to have a national shipping line as service to the nation's trade and thus for national interests only, and profit­ability is not the primary consideration.

In this respect the government must endorse and back the JNSL according to the various objectives adopted by the National Line.

3. As a result of the effort taken by the ManagingDirector to upgrade the training of the personnel, the company will be in a position to have a skilled management team to operate the business. Thus the training programme must be continued on this basis as part of the company's long term development policy.

4. One of the areas that needs to be beefed up andimproved is the shipping insurance sector of the company's operations/activities. This would increase the overall management capacity in conduct­ing its business.

!I

74

4-2 ARAB BRIDGE MARITIME COMPANY

The Arab Bridge Maritime Company was established in November 1985 in accordance with the convention of maritime cooperation signed by the Governments of Jordan, Iraq, and Egypt. With a six-million dollar capital equally shared by the three countries, the main objectives of the company were to provide all maritime operations and shipping services. The company commenced its operation on 1 March 1987 as a reg^ai^fer^ connection between Aqaba (Jordan) and Nweibeh (Egypt) with two vessels doing shuttl^ traffice twice a day (3 hours) with a

capacity of 1,2U0 passengers, 2U0 cars or 20 trucks

L> , . t iicpd to run theserreviously Jordan National Shipping Line useuservices with the Egyptian company on the basis that eachcompany was responsible for operating her own vessel and forsharing the profit at the end of the year. So clearly there wasa well established infrastructure of shipping servicesexpanded services may be built very easily by other companies

However, A.B.M. Company chartered two ferries to do these services. The following table shows the movements

1 ine.

Table 4.2.a

Year No. ofPassengers

No. ofCars

No. ofBuses

No. of Trucks

1985 298304 12158 1274 891

1986 666190 23271 2474 2923

1987 559752 30293 2309 6449

1988 717869 32966 2575 10075

1989 697197 40231 2807 11683

75

The freights are as follows:

- passenger 12.5 USD- car up 4m 44 USD- car more than 4 m 75 USD- micro bus (17) 113 USD- container 20 63 USD- container 40 125 USD

Taken into consideration the nature of shipping growth the t-ompany should consider using only one ferry of a capacity of 1»800 passengers, 3UU cars or 40 trucks to do only one round voyage every day, which can increase to 2 voyages in the high Seasons only. The reason why 2 ferries are on operation is t^ecause when the Jordan-Egypt company started these services it was agreed that the two companies would operate one vessel each.

The situation now is different and only one company uses the line. Therefore the company can maximise the profit and expand in other activities of shipping and trade.

4.2.1 Feasibility Study for Purchasing Second-Hand Ferries

Costs for Operation:

A. Operating costs or running costs can be defined as all costs incurred on day-to-day basis which are necessary for the proper operation and maintenance of the vessels.

B. Voyage costs are related to all costs incurred in the undertaking of the actual voyage of the vessel and consist of fuel costs, port charges, and tolls on international waterways.

C. Capital costs relate to the value of the asset and are incurred regardless of whether the ship is employed or not. They are the fixed cost component where voyage and operating costs are variable costs

76

A. Operating Costs for Ferries10 years: (in USD)

Crew:Officers' wages and leave Rating wages and leave

Crew travel Manning Expenses p & I medical irrecoverable

TOTAL

282,074120,90932,40013,8003,000

482,183

Stores:Provisions Stores Lub oils TOTAL

57,20355,00041,306

153,509

Maintenance:Maintenance and Repair SparesNavigation Equipment TOTAL

65.00070.00010,000

145,000

Insurance:Marine Insurance p & 1 Insuracne TOTAL

68,00042,000

110,000

Communication Charges SundriesOwner Port ChargesManagement FeeTOTAL General CostsTOTAL Recurring CostsDaily Recurring CostsExceptional CostsTOTAL Exceptional A RecurringDaily Exeptional A Recurr'g Costs

15.000 13,50016.000 80,000

124,500985,192

2,69965,000

1,050,192 USD

2,877 USD

77

Officers

-Master -Chief Off. -2nd Officer -3rd Officer -Radio Off. -Cadet-Chief Engr. -2nd Engr.-3rd Engr.-4th Engr. -Electrician total OFFICERS

Ratings

-Bosun-AB-fitter -Oi1er -Cook/stwd -2nd Cook -Messman total ratings

Nationality US Dollars

British 67922Fi1ipino 19484Fi1ipino 16039Fi1ipino 14515Fi1ipino 14693Jordanian 2400Fi1ipino 64684Filipino 19484Filipino 16039Fi1ipino 14515Filipino 16039

Nationality US Dollars

Fi1ipino 8832Fi1ipino 7104Fi 1 ipino 7104Fi1ipino 8832Fi1ipino 12330Fi1ipino 7104Filipino 6042Fi1ipino

No. Total Crew Supp.

1 67922 71318

1 19484 29166

1 16039 16600

1 14515 15023

1 14693 152073 240U 7452

1 64684 67918

1 19484 20166

1 16039 16600

1 14515 15023

1 16039 16600

13 270614 282074

No. Total Crew Supp.

1 8832 91415 3552U 36763

1 7104 7353

3 26496 27423

1 12330 12762

1 12330 12762

2 14208 1470514 116820 120909

Provisions: Total Crew Extra Meal TOTAL

27 X 5.5 USD = 54,2033,000

57,203

Manning Exp.:

Nationality No. Cost/man TTL/man Add'l British 2 300 600 900 Filipino 22 510 11220 lOBO

TOTAL1500

12300

78

Crew:British Officers Filipino Officers

Master Chief Off. 3rd Officer Radio Off. Cadet X 3

Chief Engineer 3rd Engineer 4th Engineer Electrician

Fi1ipi no Ratings: Bosun AB X 5Motorman x 3 Fitter

Cook/Steward 2nd Cook Messman x 2

TOTAL crew employment: 27

I have Chosen this particular combination as 1 feelit provides the most cost effective operation forMS particular ship. The use of a Huropean oo

despite the cost is well worthwhile since apoint in using men who are familiar with the mode o operation and who can quickly identify any problem

areas and thus can take steps to deal with them on board. Philipino officers can be replaced y

Crew Salaries: .British senior officers salaries are paSterling and have been converted to US Dollars at

e-v. 1 f-RP = 1.60 USD. Filipinoan exchange rate of 1 faUF -officers'* and ratings salaries are paid in USD. An allowance for travel overlap, sick pay and

standby pay is included.

Overtime payment:British and Filipino officers receive consolidated salaries and no overtime is payable. Filipino ratings receive salaries which incorporate an element of guaranteed overtime of 9U hours per month.

79

Mannincf Expenses;This section covers the costs of Manning Agent s Fees and the costs of local interview recruitment, certification, endorsement of medical expenses, uniforms, etc. for seafarers joining the vessel.

Provisions;Based on a daily allowance of US 5.50/person there is also an allowance covering extra meals for customs and other visiting officials on board the

vessel.Ship Stores: It is assumed the vessel is well

maintained with an adequate stock of

equipment on board.

Routine M & R:This cost is to allow for routine up keep overhaul and maintenance of all machinery in accordance with a planned maintenance schedule. It is assumed that the vessel has been properly maintained with all

surveys up to date.

Spare Gear;This covers the cost of replacement parts as required for scheduled and breakdown maintenance necessary in the normal operation of the vessel. It is assumed that reasonable stocks of major machinery spare gear are held on board and that at least the minimum spares required by the classifi­cation society are available for the ship s use. This does not cover the cost of replacing major machinery parts where the damage is of an unusual or unexpected nature and would normally be the

subject of an insurance claim.

Navigation Equipment:The above is based on repair, maintenance and

80

service costs assuming that all navigation and radar equipment is on an outright purchase basis.

Insurance:These costs are estimated of what could realisti­cally be achieved on the market. The premiums

cover:- war risks- H & M insurance for insured valve of 7 million

war risk- projection and indemnity- crew travel cover

Communication Charges:These cover the costs of all communications to and from the ship concerning the technical management

of the ship.

Sundries:Allowance for exchange rate differences, bank charges, crew welfare onboard and cost of superin­tendent's travel and accomodation costs, postage,

ship stationary and sundry items.

Management Fee:This is based on providing full crewing, technical management and insurance services covering al I aspects of a vessel's operation with exception of commercial operations. This is due to lack of experience in the ABMC in upgrading ships, further­more, has to use ship management company to run the vessels. All figures are based on 1990 figures.

81

B. Voyage Costs:

Port Charges;USD lOUU cash and as per agreement 365 days x 2U0U x 2 calls = USD 730,000

3 months additional voyages3 months x 30 days x 1000 x 2 calls = USD 180,000

TOTAL port charges

Water 35 tons per day 36b days x 3b x 4

Fuel Oil 3.5 ton F.U.F. Oil 3.5 X 200 X (365 + 90)

3.5 X 200 X 455 = USD 318,500

D. Oil 2 T / Day USD 225/ton 2 X 225 X 455 = 204,750 TOTAL Bunker = USD 523,250

Total Voyage Costs:- Port Dues- F. Oil- D. Oil- Water- Others

TOTAL

C. Administration Cost:

Wages + Rents + Cars + All Other = USD 1,000,000

TOTAL Cost = 2,534,450 per year

The price of a second hand ferry 10 years old is

about USD 12,000,000.

With 8.5% interest and a 5-years loan, the life of a vessel is 20 years:

= 910,000 = 318,500 = 204,750 = 51,100 = 50,000 = 1,534,450

= 910,000 USD

USD 4/Ton = USD 51,100

price USD 200

82

Interest Calculation;Tne interest calculation uses 8.5% over the total

period of loan (5 years).

Interest

1st year2nd year3rd year4th year5th year

12,000,0009.600.0007.200.0004.800.0002.400.000

2,400,0002,400,0002,400,0002,400,0002,400,000

1,020,000816,000612,000408.000204.000

TOTAL 12,000,000 3,060,000

Interest = Annually Daily

USU 612,000 USD 1,677

Depreciation:Cost of VesselLess Scrap Value

USD 12,000,000 USU 1,000,000

Amount to be depreciated USU 11,000,000Life of vessel 20 - 10 = 10 years Yearly USU 1,100,000Daily USD 3,014

Major Assumptions;

A. Daily running cost is 2,877 USD. As this is the present cost figure (1990) thereafter 5%

cumulative increaseing every year.

1st = 2877 X 365 = USU 1,050,105 / year

2nd = 3021 X 365 = USD 1,102,665 / year3rd = 3172 X 365 = USD 1,157,780 / year4th = 3331 X 365 = USD 1,215,815 / year5th = 3498 X 365 = USD 1,276,770 / year6th = 3673 X 365 = USU 1,340,645 / year7th = 3857 X 365 = USU 1,407,805 / year

83

8th = 4050 X 365 = USD 1,478.250 / year 9th = 4252 X 365 = USD 1,551,980 / year 10th = 4465 X 365 = USD 1,629,725 / year

B. Bunker cost increasing by 2% every year.

1st 523,250 6th 577,709

2nd 533 715 7th 589,263

3rd 544,389 8th 601,048

4th 555,277 9th 613,069

5th 566,382 10th 625,330

Other Costs:Administration = 1,

000,000

Port Dues = 910,000

Water = 51,100

Miscellaneous = 50,000

TOTAL = 2, 011,100 USD

Increasing 5% every three years.

1st 2,011,100 6th 2.111.655

2nd 2,011,100 7th 2,217,238

3rd 2,011,100 8th 2.217,238

4th 2,111,655 9th 2,217,238

5th 2,111,655 10th 2,328,100

Revenue:The revenue figures have been taken from past historical results of the traffic and I estimate 2%

as a growth factor every three years.

360 days have been used to calculate, the total income instead of 365; this allows for 5 days per year for off-hire and repairs.

84

Passengers = Cars = Trucks = Buses =

700,000 X USD 12.540.000 X USD 4411.000 X (.63 ^ 125)

2,SOU X USD 50TOTAL

USD 8,750,000

USD 1,760,000

USD 1,380,500USD 140,000

USD 12,030,500

1st 12,030,500

2nd 12,030,500

3rd 12,030,500

4th 12,271,110

5th 12,271,110

6th 12,271,110 7th 12,516,532 8th 12,516,532 9th 12,516,532 10th 12,766,863

85

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CASH FLOWincreases

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5 % 21.34 48.10%10% 22.93 50.30%15% 35.63 67.30%

DECREASES- 5% 18.16 43.70%- 10% 16.58 41.44%- 15% 14.99 39.17%- 20% 13.40 36.87%- 25% 11.81 34.55%

DISCOUNT RATE N.P.VMILLION USD

5% 39.6210% 27.9215% 19.7520% 13.8825% 9.5630% 6.3035% 3.7940% 1.8345% 0.25

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.2.2 Conclusion

Based on the above calculation the following comments,

and conclusion can be drawn.

1. The A.B.M. Co. is supported by three Governments with a long term agreement of 50 years. As such the management should maximise the benefit to be derived from this arrangement and expand its activities in other shipping activities as well.

2. From past experience and based on the efficiency of operation it is apparent that purchase of one ferry and the use of only one ferry is of vital importance

for this company.

3. It is vital to invest in human resources by training the existing personnel abroad at suitable maritime centers in order to upgrade the quality of skill and

service for better performance.

4. Priority must be given to the building up of proper

fleet and agency departments.

5. The current practise of changing the top management every two years in accordance with the terms of agreement of the establishment should be revised in order to provide better accountability to the management and allow for continuity in terms of management decisions and its implementations.

92

♦•3 PETRA NAVIGATION GROUP (PNG)

This is the only Jordanian private company which operates its own vessels. It has a fleet of three vessels, which by Jordanian perspective is a highly capital intensive venture, and also a high risk operation in view of the fact that the

funding is based on loan and personal equity.

As a commercial venture the capital out-lay must have a satis­

factory return on the investment.

This enterprise is therefore different from the government investment as the source of finance is private and the risk is also borne by the private inventor, which unlike the government is more concerned with profits than with other objectives such as national prestige or national service consideration. This coupled with the fact that the company is involved in a high risk venture, is a great challenge for the private operator with offices in Jordan, Iraq and Egypt operating tramp charters

and other shipping activities.

4.3.1 Activities

The PN(a is divided in two companies:

A. Petra Navigation and International Trading Co. Ltd. whose main activities are the Agency services, business travel and freight forwarding through their

office in the port of Aqaba.

B. Arab Orient Trading Services Company deals with all shipping administration activities, ship owners, managers, chartering and cruising.

4.3.2 Fleet

The company owns three old ships, one flying the

93

national flag and the other two flying foreign flags.

1. One Ferry boatTime chartered to the Arab Bridge Maritime Company, making its daily voyage between Aqaba and Nuweibeh.

2. One Bulk Carrier, 22.500 MT DWTBuilt 1969, operates in the open market as a tramp vessel.

3. One Container VesselOperates as feeder ship in the Red Sea area.

4.3.3 Choice of Suitable Vessel for This Company

It is very difficult for this Company to venture into the liner trade due to the fact that it will involve a high infrastructure cost for this type of services. Furthermore the present fleet of old vessels will have to face insurance problems in terms of handling Jordanian cargoes.

For these reasons this Company should take advantage of the present buoyant market and sell the existing container and bulk cargo vessels and replace them with one small BALTIMAR SUPERCOSTER MARK-11 (see Appendix 4).

This vessel can be utilised to provide tramp services in the Red Sea and in the Mediterranean.

The advantage of this type of vessel is that it is suited to handle the following types of cargo:

1. Project cargo with heavy lifts up to 100 MT over postside.

2. General/break bulk cargo, pipes, bagged, bulk cargo, cars, grain.

94 I

3. Ventilated cargo, potatoes, citrus fruit, paper and

wood pulp.

4. Bulk/grain cargo, wheat, phosphate, potash, cement.

These types of cargo are readily available in this area and the Ked Sea area. From the operational point of view this type of vessel is very appropriate for this type of trade because of its low daily running/operation cost.

4.3.4 Comments and Conclusion

1. The above strategy will work very well with this company in view of the fact that it already posseses a very long standing experience in ferry services where it does not face any competition. This is a strong position for the company which can back up its expansion into the multipurpose vessel operation.

Thus, the BALTIMUR type of vessel could also be used for feeder services beside the tramp services mentioned earlier and is therefore flexible and can be adapted to changing market conditions.

2. From the management point of view this Company has the necessary expertise and therefore only needs to reorganise and establish an appropriate department to reflect the new management requirements for both types of operations.

3. As this Company has expanded without any form of government assistance or subsidy in the open market, it has the necessary skill and expertise to venture into these new shipping activities and build up a good reputation regionally and worldwide.

95

CONCLUSION

The basic issue of this study is to ascertain the most appropriate type of vessels that could be deployed for the different types of trade and maritime transport requirements of Jordan, to derive the •nost satisfactory solution to the type of ship that the shipowner should order.

It is not an easy task to build up a market based on ships, in fact ships are built based on the market conditions. The problem is even greater for the Jordanian market as there is imbalanced trade.

Thus the only option is to choose the multipurpose type vessels. In the case of the North Europe Trade, the FREEDOM MARK II is the most suitable, whilst for the Far East Trade the FRIENDSHIP IHI Type, which is similar to the Freedom Type but bigger in size is the most suitable choice.

However, for the ARAB BRIDGE COMPANY the immediate purchase of one ferry is of vital importance, since the usage of only one big ferry is very important from a commercial point of view, as reflected in the investment appraisal - Chapter 4.2. As for the private company PETRA the BALTIMAR SUPERCOASTER MARK II is the most suitable vessel beside the ferry which they already operate. This must be tied up with the divestment of a container and bulk carrier which is currently managed by this company. Based on the current economic position of the country it is most desirable for investment to be carried out with the purchase of second hand vessels rather than new building.

In addition to this the purchase must follow the most appropriate procedure as high-lighted in Appendix I, whereby the technical personnel will carry out and fill in reports to be submitted to the fleet manager for evaluation. The final evaluation will be submitted to the managing director for further consideration.

96

It must be emphasised that for the pure Jordanian market, no investment in container, bulk or any other specialized vessel should be considered, since the only suitable vessel for this market is the multipurpose type as mentioned above.

It is also vital that there is good cooperation between the main exporting industries and the national carrier in order to ensure the success of this venture.

Taking the overall situation into consideration including the development of the port of Aqaba, the Jordanian Trade and the economy of the country, the decision for the purchase of the most optimal vessel was arrived at.

In the shipping business the ships tend to occupy the center of the stage, in economic terms the product in demand is not a ship but transport service, in this sense the demand for ships is derived from the demand of transport, and the shipowner will use whatever ships enable him to provide the service most profitably.

97

appendix 1

PROPOSAL FOR PRE-PURCHASE OR GENERAL INSPECTION REPORT TO BE USED BY SUPERINTENDENT OF

THE JORDAN NATIONAL SHIPPING LINE

98

I N DEX

!• Principal Particulars2. Capacities3. Certificates and Survey Dates4. Cargo Handling Equipment5. Radio Communication and Navigation Equipment

6. Hull7. Rudder and Steering Gear8. Propellers, Shafts, Sterntubes9* Anchors and Cables

Windlass and Mooring WinchesMasts, Derricks, Derrickwinches, Cranes

12. Hatches, Holds, Tanks13. Internal Communication Office and Entertainment Equipment

14. Machinery15. Accommodation and GalleyIS* Main Engine17. Boilers18. Electrical Generation19. Switchboards and Wiring20. Auxiliary Motors and Starters21. Heat Exchangers22. Auxiliary Machinery23. Domestic Service Equipment24. Engine Room Piping25. Instrumentation and Automatic Control26. Engine Room General27. Surveys in Progress28. Safety Equipment29. Stores Spaces30. Documentation - Deck31. Documentation - Engine Room32. Ballast Tanks33. Ships Paper Work34. Performance Data35o Financial/General36. Overall Impression of Condition

99

GENERAL INSPECTION REPORT

Vessel:

Written by:

Date Vessel Visited:

Port Vessel Visited:

Date Report Written:

Master: Chief Engineer:

Chief Officer: 2nd Engineer:

Representative:

100

PRINCIPAL PARTICULARS

Name:Flag:Port of Registry:Official No.:Call Sign:Radio Telex No.:Maritex No.:Satcom No.:

L.O.A.:L.B.P.:Breadth (Extreme):Depth (Extreme):Depth (Moulded):

National/International Tonnage: GrossDraught (Summer):Deadweight (Summer Dr):

Vessel with Tonnage Mark: Tonnage: GrossTonnage Draught:Tonnage Deadweight:

Suez Tonnage: GrossPanama Tonnage: Gross

Contract Data:Keel Laid:Delivered (Built):Builder:Hull No.:Previous Names:Previous Flag:

metresmetresmetresmetresmetres

Netmetresmetric tonnes

Yes/No Netmetresmetric tonnes

NetNet ID No.

101

Previous Owner

Classification Society:Classification No.:Class:

Ice Class:Previous Class:

Machinery Survey System: Periodic/Continuous Machinery SurveyHull Survey System: Periodic Special/Continuous Hull Survey

No. of Containers (TEU): In Holds: On Deck: Total:No. of Reefer Container Sockets:

Seaway Fitted: Yes/No

Present Complement: Officers CrewNationality: Officers Crew

Planned Maintenance System: Used/Not Used.Computer Based/Manual

Vessel Operating UMS: Yes/No/Not UMS design

BUNKER MANIFOLDS

Located: Midships/Fwd/Aft

DECK STRENGTHS (M. Tonne/M^)

Tank Top Tween Deck Hatch Cover Main Deck123456

102

Weight that can be supported on open hatch cover:

Hold Dimensions Length (m) Breadth (m)

1 23456

Hatch Cover Dimensions Length (m) Breadth (m)

12345

M.Tonnes

Area

103

CAPACITIES

Ballast

Tanks (M3)

12345

Topside/Wing P S

DB_________P C S

Forepeak Aft Peak Deep Tanks

mmm

333

3m

3Segregated Ballast in Holds (M~)

3m

3Hold Capacity (M~)

Hold No.Hold No.Hold No.Total Segregated Ballast

______Grain_________S P___ C S

12345

104

6

TOTAL ======

3,Fresh Water Tanks (M~)

Tank3

IT*

TOTAL

Fuel Tanks

Heavy Fuel (98%)

Tank3

vr

TOTAL

Uiesel Fuel (98%)

Tank

TOTAL

Other Tanks

L.O. System Tank

ME L.O.ME L.O.Cyl. Oil Cyl. Oil

105

Genr. Oil Genr. Oil

Kamewa Oil L.O. Sep Tk

FW Tank Piston Cooling Bilge Water Tk Sludge Tank

3. CERTIFICATES AND SURVEY DATES

Survey Due/ Last Cert. Expires Survey

Register:Loading Certificate:Loadline Annual Inspection:

Safety Construction Cert.: Safcon Intermediate Insp.: Safcon Annual Inspection:

Safety Equip. Cert. (Persons): Safety Equipment Annual Insp.:

lOPP Certificate:lOPP Intermediate Survey:lOPP Annual Inspection:

Safety Radio Certificate: Passenger Ship Safety Cert.:

Hull Special Survey: Intermediate Hull Survey:

Cert.Issued

106

3. CERTIFICATES AND SURVEY DATES (Continued)

Survey Due/ Last Cert. Cert. Expires Survey Issued

Annual Hull Survey:Gauging of Hull Plate Thickness;

Continuous Machinery Survey:Annual Machinery Survey:

Drydocking:Tail shaft (full survey):Tail shaft (partial survey):Tail shaft Monit. Annual Survey;

Annual Class:

Non Canadian Compliance:

Deratification:

Refrigeration Machinery Cert.:Refrig. Machinery Annual Insp.:

Boilers P;S:Exhaust/Composite;

Steam Pipes;

Automated Mach. Spaces 5 Years; Automated Machinery Space

Annual:

Liferafts:Portable Fire Extinguishers;Fixed C02/Foam/Halon System:Bulk Foam Analysis:Breathing Apparatus:

107

3- CERTIFICATES AND SURVEY DATES (Continued)

Survey Due/ Last Cert. Cert. Expires Survey Issued

Cargo Gear Quadrennial:Cargo Gear Annual:

Planned Maintenance Ann. Surevy:

USCG Inspection:Port State Control Inspection:Inspection by Flag Authority:

Radio Licence:

Compass Calibration:RDF Calibration:Gyro Compass Overhaul:

Medical Locker Checked:

4. CARGO HANDLING EQUIPMENT

Cranes/Derricks No. Capacity/Radius Locations

Container Spreader carried )Fork Lifts, Tugmasters carried) Details Overpage Cargo Lashing Gear )

Cranes

Maker:Type:Minimum Radius: mMaximum Radius: m

108

Outreach Beyond Shipside:

Lifting Height: mm

Slewing Speed:

Luffing Speed

Hoisting Speed: Load mPters/minute

Lowering Speed: meters/minute

RADIO COMMUNICATION AND NAVIGATION EQUIPMENT

Radio Equipment:

Main Transmitter:Aux. Transmitter:Main Receiver:Aux. Receiver:Auto Key:Auto Alarm Receiver:Satcom:Radio Telex:Communication Fax:Weather Fax:Lifeboat Transmitter:Walkie Talkies:EPIRB:Defects/Condition:

Radio Batteries Type/Condition:

Navigational Equipment;

Gyro Compass:Auto Pilot:R.0.Fo:

109

Kadar:

ARPA:Sat. Nav.Decca Nav.:Loran C:Omega:VHP:Speed Log:Wind Speed:Wind Direction:Echo Sounder:

2182 Receiver:Weather Fax:Nav. Tex:Telegraph Logger:Chronometer:Course Recorder:Talkback:Walkie Talkies:

Chart Folio: British/American Worldwide/Restricted

Chart Correction:

Publications: Quantities/Up to Date

Other Navigational Equpment, Flags, etc.:

Navigational Equipment Condition:

HULL

Hull Plating:

Indents/Damages:Hull: Propeller: Rudder:

110

Paint Condition/corrosion:

Topside Boottop Vert Side Flat Bottom

2Area (m )Colour Paint Type:Condition:

Last Painted:% Blasting Required

at Drydock/Port:

Main Deck

Plating condition:Paint Type:Last Painted:% Blasting Required:

Deck Fittings:Walkways:Ladders:HandraiIs:External Doors & Dogs:Access Hatches:Vent, Vent Gauges, Vent

Cowls:Accommodation & Pilot

Access Ladders:Drip Trays/Vent Savealls:Panamax Pilot Platforms:

Greasing Programme:

Bilge Keel Condition:

111

Painting/Preparation

Equipment:Forecastle & Other Storage

Spaces & Lockers:

Yokohama Fenders, Davits,

etc.:

Superstructure (Accommodation, Funds, etc.)

Paint Type/Condition:

Ladders:Handrails:Ports and Windows:Venti1ators:External Doors:

Funnel Condition:Owners Mark:

Stern Ramp:

Structural Condition:Operating & Securing Mechanism:Indicator Lights for Door Latch Position:

Row Ramp:

Structural Condition:Operating & Securing Mechanism:Indicator Lights for Door Latch Position:

Shell Doors:

Structural Condition:Operating & Securing Mechanism:Indicator Lights for Door Latch Position: Television Cameras:

112

Watertight Doors (Internal Doors):

Condition:Alarms:

Stabilisers:

RUDDER AND STEERING GEARRudder Type: spade/skeg/semibalanced/with ice knife

Steering Gear Make:Steering Gear Type: 2/4 ram/rotary vane/electro hydraulic

Rudder Structure/Stock/Palm/Pintle Condition:

Rudder Carrier Lubrication Arrangement:

Steering Gear Condition:Ram Scoring/Leakages:IMO Mods/Compliance:Oil Sample Analysis Results:

8- PROPELLERS. SHAFTS. STERNTUBES

Working Propeller Material:Diameter:Pitch:No. of Blades:

Spare Propeller/Blade Stowage Position:Material:

Spare Tail shaft Stowage Position:

113

Fixed/Controllable Pitch/Keyed/Keyless/Water/Oil Lubricated

SterntubePropeller Condition:Shaft Condition;

Shaft Earthing Fitted:Sterntube Condition:

Sterntube Oil Cons/Water Leakge:

Sternseals/Sterngland Last Overhaul:

Oil Sample Analysis Results:

Thrusters:

Make/Type:Power:Thrust:Condition:

ANCHORS AND CABLES

Anchor Type:Anchor Chain:Spare Anchor: Yes/NoStern Anchor: Yes/NoCondition:

WINDLASS AND MOORING WINCHES

Make:Type: Electric/Hydraulic/Steam

No. Location Wire/Rope Drums Warping End Power

114

Condition/Brake Linings/Bearings:Wires & Mooring Ropes - Nos/Conditon:

Towing Wires:Smit Bracket/AKD Bracket/Ocimf Status:Bollards, Rollers, Fairleads:Hydraulic System Oil Sample Analysis Results:

11. MASTS. DERRICKS. DERRICK WINCHES. CRANES

Crane/Derrick Winch Make:Type: Elec./Hydraul ic/Electro-HydraulicAustralian Ladders on Cranes: Yes/NoCondition:

Hydraulic Oil Sample Analysis Results:Foundation Fractures:Fixed and Running Wire Rigging Condition:

Spare Crane/Derrick Wires Onboard:

Container Spreaders Carried:

Cargo Lashing Gear Onboard:

Fork Lifts, Tugmasters, etc. onboard:

Engine Room Crane Type:Engine Room Crane Condition:

Stores Crane Type:Store Crane Condition:

12. HATCHES. HOLDS. TANKS

Cargo Hatches

Hatch Cover Tween Deck Covers

hi

115

Make;Type:Material;Operating Method:

If side rolling can both covers roll to one side: Yes/No

Can covers roll beyond "normal'' position toposition for cross joint seal maintenance: Yes/No

Cover Condition:

Coaming/Seal Condition: corrosion/permanent set/hardnessor rubber

Compression Bar Condition;

Hatch Sealing Type Used: Yes/NoNo. of Tarpaulins on Each Hatch;Type of Cleating:Dog/Cleat Condition/Pin & Link Condition:

Hatch Coaming Condition/Fractures:

Hydraulic Piping/Valve Condition:

Covers Container Fitted/Lashing Points:Cover Top Surface Flat/Combered:

Vents:

Cargo Holds:

Tweendeck/general arrgt. e.g. topside tanks/ stools/corrugated bulkheads/lower hoppers/ centre line bulkhead:

Fractures/damages/steel condition:Pipework/pipe casings condition:

116

coating type/condition;

Suitability for grain cargo:

rarao Holds:

Cargo Batten Condition:

Australian Ladders: Yes/No Condition:

Holds Container Fitted/Lashing Points:Fixed/Portable Hold Lighting Condition:

Ventilation Fans: Yes/No Condition:

Ballast Tanks:Tank Coating Condition

Anodes:Pipework Condition:Ladder Condition:Tank Lid/Vent. Condition:

13. INTERNAL COMMUNICATION. OFFICE & ENTERTAINHENT EQUIPMENT

Telephone Exchange: to som/all cabinsCrew Cal 1:Public Address:Talkback:Loadicator:Ships Computer: typewriter/Calculators:Photocopier:TV/Videos:Radio/Cassettes:

117

14. MACHINERY

Main Engine:Make/Type:Power/RPM:

GeneratorsDiesel Drive: Make/Type:

Power/RPM:No. of Units Fitted:

Turbine Drive: Make/Type:Power/RPM:No. of Units Fitted:

Shaft Driven: Make/Type:Power/RPM:No. of Units Fitted:

Boilers:Oil Fired:Exhaust:

Propeller:Fixed Pitch/Controllable Pitch:

Bowthruster:Make/Type:Power:Thrust:

Major Spare Parts Onboard:Propeller: Yes/NoCP Propeller Blade: Yes/NoTail shaft: Yes/No

118

15. ACCOMMODATION AND GALLEY

Internal:

No. Cabins No. Berths Toilet Facilities

Officer:Petty Officer:Crew:Cadets:Owner:Pilot:Hospital:Suez Crew:Repair Men:

TOTAL ======= ========= ==========

Arrangement/Furnishing Standard:Public Rooms/Pantries:Toilets FW/SW:Air Conditioning Working: Yes/No Effectiveness:

Condition - Bulkheads/Deck Covering/Furnishing, etc.:

Cleanliness:

Gal ley/Pantries: LPG/ElectricEquipment Fitted: Garbage Macerator/Compactor:

condition/Cleanliness:

Provision/Store Room: (No. & Type)

Condition/Cleanliness:

Laundries Equipment:

119

Condition:

Ships Laundry Done on Board/Ashore:

Quantitites of Linen Onboard:

16. HAIW ENGINE

Maine Engine Make/Type.Builder:No. of Cylinders:MCR/RPM:MCR/RPM:Min. Power/RPM:Engine No.:Slow Steaming Nozzles:Barred Speed Range: Yes/No

Turbocharger Make/Type:No. Fitted:

Leakages/General Appearance:

Fuel Pipe Sheathing Condition:Crankcase Internal Condition:

Holding Down Bolts/Chocks:Fractures/Fretting:

Maintenance in Progress:

Crankshaft Deflections: Date/Max Deflection

Bearing Clearances:

Oil Consumption: Crankcase Cylinders

120

L

Oil Analysis/Date:

Turbocharger Air Filter/Oil Condition;

Turbocharger Casings: Thickness Records/Renewals:Turbocharger Washing System/Air Cooler Cleaning System:Air Filter/Air Cooler/Crankcase/Exhaust Manometer:Comment on Air Cooler Manometer Readings:

Cylinder Liner & Piston Ring Groove Records:

Max Liner Piston Ring/GrooveCylinder Date Running Hours Wear (iron) Clearnce (mm)

Running Hours Since Overhaul;

Date: Total Hours for Engine:

Cylinder Exhaust Valve Piston Fuel Injector

Performance Data;

Major M.E. Spares;

Cylinder Liner: Cylinder Cover; Piston With Rod: Piston Crown:

121

Piston Rod Stuffing Box: Exhaust Valve Complete: Exhaust Valve Spindle: Exhaust Valve Seat:Euel Injector:Main, B/E, Xhd, Bearing Set: Turbocharger Rotor: Turbocharger Casings:

17. BOILERS

Oil Fired ExhaustBuilder:Make/Type:Max Evaporation:Press/Temp.:Superheat:Heating Surface:No. of Boilers:Max Fuel Cons/Day:

Oil Fired Boiler:

Appearance/Leakages:Combustion Quality:Internal Condition/Tube Cleanliness:

Tube Repairs/Known Defects:

Automatic/Manual Operation:Hotwell Cleanliness:Chemical Treatment/Hydrazine & SLCCA Dosing/Treatment Logs:

Exhaust Boiler:

Appearance/Leakages:Tube Cleanliness/Internal Condition:Steam Production Control: exhaust bypass/dump condenser

122

Auto/Manual Operation:

Incinerator:

Make/Type:Waste Oi1/Sludge/Garbage: Condition:Usage:

18. ELECTRICAL GENERATION

Main Generators:

Prime Mover Make/Type: Builder:No. of Cylinders: Power/RPM:Turbocharger Make/Type: Alternator Make/Type: KW:KVA:Volts:Amps:Hertz:No. of Machines:

Diesel Turbine/Shaft

General Condition/Leakages:Ability of Engine/Turbine to Carry Diesel Load: Fuel Pipe Sheathing:

L.O. Consumption:L.O. Sample Analysis:

Alternator: totally enclosed/EVDP/cleanliness:

Generator Engine is also used for driving:

123

General Running Hours Since Overhaul;

Generator:

Cylinder Cover: Piston:Bottom End bearing: Main Bearings: Turbocharger Bearings: Total Hours:Date:

1 2

Major Spare Parts for Generators:

Cylinder Liner:Cylinder Covers:Piston:Connecting Rod:Fuel Pump:Fuel Injectors:Turbochargers:Air Cooler:L.O. Cooler:

Emergency Generator:

Make/Type:Power (KW):Location:Grade of Fuel Used:Starting Methods/Autostart Working: Emergency Generator Supplies:

Condition/Leakages:

1iQhting/power/steering gear/air compressor, etc.

124

19. SWITCHBOARDS & WIRING

Main & Emergency Switchboard;Make:Primary Voltage:Secondary Voltage:Frequency:

Fitted with load sharing/autostart on blackout/ remote start/manual start generators:

Open/closed back:Normal sea load/port load idle/working cargo: Cleanliness/condition:

Stability of meters/frequency, etc.:

Earths:

Pistribution Boxes:

Condition:

Wiring:

General Condition:Condition Deck Conduits and Cable Trays:

Manning:

Vessel Carries Electrician/ECO/ETO:

20. AUXILIARY MOTORS AND STARTERS

Motors:Typical Motor Type: EVUP/TEMake:Condition:

125

Recent Megger Readings:Bearing Conditions Monitoring System;

Starters:

General Condition:Instrument/Running Light Condition: Spare Motors:

21. HEAT EXCHANGERS

Tubular/Plate: Horizontal/Vertical: Make

Central FW Cooling System: Yes/NoCondition/Leakages/Waterbox Renewals:

FW Generator - make/type:FW Generator Chemical Treatment/Usage:FW Production - plant rating: T/Day Actual Production: T/DayFW Consumption - Domestic; T/Day, Plant: D/Day, Total: T/Day Condition;Dorn. Water Calorifier: Steam/Electric

22- AUXILIARY MACHINERY

Pumps;

Horizontal/Vertical/Mechanical Seal/Packing Gland Typical Makes:Condition:

Purifiers:

Make No. of Machines Model Auto Sludging/Cleaning Method

HODOLO

126

Condition:

Air Compressors;No. of Machines

Condition:

Bilge Separator;

Make/Type:15 ppm Separator/filter/alarm unit: Condition/usage:

Other Machinery:

Maintenance in progress:

DOMESTIC SERVICE EQUIPMENT

Domestic Water Systems:

Condition:

Sewage Plant:

Make/type:USCG Approved: Yes/NoCondition/Usage:

Fridge Rooms:

Funciton

Room Type of Cooling Unit

Condition/Cleanliness

Fridge Compressors:

No./Make/Type:Refrigerant: Freon 12/Freon 22Condition:

Air Conditioning Plant:

Compressor No./Make/Type:Refrigerant: Freon 12/Freon 22Condition:

Ventilation Fans/Units:

No./Make/Type: Condition:

Engine Room Vent. Fans:

Condition/Usage:

Galley Vent. Fans:

Condition/Usage:

ENGINE ROOM PIPING

General Condition Pipes:General Condition Valves: Leakages: Steam/Water/LO/Fuel/Air: SW Pipe Material:Recent Renewals:

128

25. INSTRUMENTATION AND AUTOMATIC CONTROL

Equipped: UMS/Semi Automatic/Basic:Engine Control Room: Yes/No Air Conditioned: Yes/No/UsageContents and Condition:

Pneumatic/Electric Controllers Make:Control Valves Make:Condition:

Alarm System Make:Condition:

Bridge Control of ME: Fitted/used/not used/make:Control Room Control of ME: Fitted/used/not used

General Instrumentation Condition:Thermometers:Pressure Gauges:

Dessicant/Refrigerant Type Control Air Drier Make:Condition:

Ullage Gauge System: Remote/LocalCondition:

Cargo Control Room/Console and System for ballast and cargo valves:Condition:

26. ENGINE ROOM GENERAL

Spacious/cramped/fire risk/dirty/clean/well painted/poorly painted/well lit/poorly lit.

PI atforms/gratings: BiIges:Workshop:

129

Stocks of tools: Spares: Stores: Packing/jointing:Quality/condition of drawings and manuals:Access for heavy/light spares to E.R.:E.R. Lift: Yes/NoDehumidifiers on board: Yes/NoMaintenance chemical supplier:Lubricant supplier:

27. SURVEYS IN PROGRESS

Surveys carried out:

28. SAFETY EQUIPMENTE.R. Holds Main Deck

Halon/C02/Foam flooding System Hi pe/val ve/pump/tanks etc. condition

Lifeboat make/size:No./Type: Motor/Sail/Oar/Fleming/open/self righting/partially/ totally enclosed:Last in water:Condition:Rescue boat condition:Davit make:Condition:Liferaft make/size:Condition (incl. hydrostatic releases):Lifejacket make:Condition:Immersion suits: non/compliance with lifejacket requirementsTherman protective aids: quantity/condition Main firefighting system type:Condition (including hozes, nozzles valves, piping, etc. on deck and elsewhere):Emergency fire pump location/make/type:Condition:

130

Holds E.R. Accom.Fire Detection System Mke:In Use:Condition:

Portable Fire Extinguishers Make: Condition:

Fire Flaps Condition:

Breathing Apparatus: No./Make/TypeCondition:

Resuscitator:ELSA Sets:IMO Survival Craft Notices: Yes/NoEmergency Batteries:Lifebelts, Firemans outfits & other safety equipment condition:Weekly safety routines:

29- STORES SPACES

Comment on general condition of deck stores spaces throughout vessel.

30. DOCUMENTATION - DECK

Comment on general condition/availability of records/log books, etc. covering vessel's operation to date.

31- DOCUMENTATION - ENGINE ROOM

Comment on general condition/availability of records/log books, etc. covering vessel's operation to date.

131

32. ballast tanks

Ballast Tanks:Tank Coating Steel Condition

Anodes:Pipework Condition:Ladder Condition:Tank Lid/Vent Condition:

33- SHIP PAPERWORKSatisfactory Unsatisfactory

Official Log Book Deck Log Book Engine Log Book

Trading and Other Ship Certif. Classification Suryey File Chart Correction Status Moyements Book Oi1 Record Book

Spares and Stores Order Forms Planned Maintenance Records LO Statements Cylinder Performance and

Operational Data

Engine Cooling Water Treatment Log Sheets

Boilet Water Treatment Log Sheets Impressed Current Cathodic Protection

Log Sheets

Weekly Safety Routing Checks Records Safety: Enyironmental Health and

Safety Inspections Book

132

34. PERFORMANCE DATA (estimated from onboard records)

Fuel on Cons, (t/24 hrs.)Speed Slip RPM ME BLR« D»A. Draught Stm»Time Hrs.

12345678

Design:Trial:Minimum Speed/Cons for T/A to be self sustaining

Other Cons (T/Day) Sea Port

HOBoiler Generator Cargo Discharge Cargo Heating Inerting Tank Cleaning Idle

DOBoi1erGeneratorReefer CargoCargo Discharge (cranes)

Date

133

Fuel Grades Design Used

M.E.Generator Boiler

reefer containers reefer containers Yes/No.Yes/No.Yes/No with whom?

35. FINANCIAL/GENERAL

1 Generator can provide sea load plusNo. of Generators required for full load ( )Turbo alternator fitted;Shaft alternative fitted:Vessel entered in bunker analysis agreement

Wages paid:Cash advances:Last drydock/major repair period: Date/port/contractorRecent trading pattern/cargoes/port:

Vessel busy/awaiting cargoes: Charters; Time/Voyage:Sub Charters:Off Hire;

Spares: onboard quantities/how ordered and paid/storinginterval/received this port/collected at central point/air freighted/local purchases/emergency purchases.

Stores; onboard quantities/how ordered and paid/storinginterval/received this port/collected at centralpoint/air freighted/local purchases/emergency

purchases.

Provisions: onboard quantities/how ordered and paid/storinginterval/received this port/collected at centralpoint/air freighted/local purchases/emergency purchases.

134

Quality of feeding:Quality of personnel on board; Relief of personnel when due: Lubricant supplier: Chemical/Gas supplier:

SIGNATURE:

36. OVERALL IMPRESSION OF CONDITION

Vessel: Date:

SHIP CONDITION SUMMARY

GradingDescription 123456789 10

Immediate Impression - quayside Immediate Impression - on boarding Immediate Impression - entering E/R Accommodation block - cosmetic cond.Deck - Cosmetic Condition Hull - Cosmetic Condition Steering GearWindlass and Mooring Winches Masts/Derricks/Winches/Cranes Hatches/Holds/Cargo/Ballast/Tanks Cargo Heating/Refrigeration Systems Stores SpacesCargo/Ballast/Stripping Pump/Valves Internal Communication/Office Equip.Navigation Radio Equipment Safety Equipment AccoirenodationGalley Equip./Catering/Hotel Services Engine Room - Cosmetic Condition

135

DescriptionGrading

1 2 3 4 5 6 7 8 9 10

Service TanksMain Propulsion PlantMain Boiler/Aux BoilersElectrical Generating PlantSwitchboards and WiringMotors and StartersHeat ExchangersAux Machinery/Pumps Etc.Domestic Service PlantER Pipework and ValvesInstrumentation/AutomationHull StructureHull Underwater CoatingsSea Valves/InletsRudderPropellerShaftingSterntubesAnchors and CablesSurvey StatusDocumentation DeckDocumentation E.R.

Superintendent:

Master:

Gradings:1. Unacceptable2. Very Poor3. Poor4. Unsatisfactory5. Acceptable6. Satisfactory7. Fair8. Good9. Very Good10. Excellent

136

APPENDIX TWO

IHI FREEDOM ttC 11 TYPE

DESCRIPTION

MULTIPURPOSE OPEN TYPE TWEEN DECK DRY CARGO VESSEL OF 17.069 MT DEADWEIGHT ON 0/489 M/31'-01 0/16" SUMMER DRAUGHT 762.607/766.276 CUBIC FEET OALE/GRAIN.

5 HOLDS 5 HATCHES OF WIDE TYPE NOS. 1. 2, 4 & 5. 15.000 MTRS.AND N0.3 12.75 MTRS LONG BY N0.1 10.000 MTRS AND NOS. 2, 3. 4 & 5 15.600 MTRS WIDE.

**OOUBLE SKIN" TWEENDECKS. DUE TO RECTANGULAR P&S PIPE PASSAGES FROM SHELL SIDE TO HATCHCOAMING AND ALSO ALONG FULL LENGTH OF TWEENDECK.

5 HORIZONTAL SLEWING CRANES EACH WITH LIFTING RANGE FROM 25 LTONS AT 7.7M/MIN.TO 2 LTONS AT 45 M/MIN. NOS. 4 & 5 ABLE TO WORK IN TANDEM LIFTING 50 LTONS <48 LT CARGO).ABOUT 14 KNOTS ON ABOUT 2^.5 TONS/DAY IFO AND ZERO DIESEL OIL CONSUMPTION AT SEA IN GOOD WEATHER & CALM SEA. DUE TO SHAFT GENERATOR.

ABOUT 3 TONS/DAY DIESEL OIL IN PORT WITH CARGO GEAR WORKING AND ABOUT 1 TON/DAY WITH NO CARGO GEAR WORKING.

FORCED CARGO HOLD VENTILATION GIVING 0.5 AIRCHANGES PER HOUR BASIS ON EMPTY hold in HOLDS 1. 2. 4 & 5 AND 1.0 AIRCHANGES PER HOUR IN N0.3 HOLD.

grain fitted in ACCORDANCE WITH GRAIN RULE OF SOLAS 1974.

SUEZ PANAMA & ST. LAWRENCE FITTED.

AUSTRALIAN RULES LADDERS FITTED IN ALL CARGO HOLDS.

REMOVABLE CARGO BATTENS 6c CLEATS IN ALL LOWER HOLDS. (TWEENDECKS ARE DOUBLE SKINNED).

CONTAINER FITTED IN CARGO HOLD TANK TOPS AND UPPER DECK HATCH COVERS.

CONVER CONTAINER SECURING SYSTEM IN NOS. 2. 4 & 5 CARGO HOLDS.

NOS. 4 & 5 HATCH COVERS FITTED FOR REF. CONTAINERS.

FLi^H TANK TOPS & TWEEN DECKS. UPPER DECK CONTINUOUS.

UPPER DECK STEEL HATCH COVERS. TWO PANELS PER HOLD. TWEEN DECK STEEL HATCH COVERS four PANELS PER HOLD. RETRACTABLE TYPE STOWING TWO PANELS IN FORE & TWO IN AFTTween deck spaces, flush s grain tight, all covers hydraulically operated.

CARGO HOLD STEEL TANK TOPS STIFFENED FOR HEAVY CARGOES AND GRAB DISCHARGE.

tween decks Bi hatch covers CONSTRUCTED FOR OPERATION OF FORK LIFT TRUCKS WITH ACCESS BULKHEAD DOORS BETWEEN HOLDS 1/2 8t 4^.

fitted FOR DECK PACKAGED LIRMBER CARGOES.

N0.3 HOLD IS FLOODED WHEN SHIP IS IN HEAVY BALLAST OR WHEN CARRYING VEHICLES OR empty CONTAINERS OR OTHER FULL LOADS OF VERY LIGHT CARGO.

SMOKE DETECTION SYSTEM AND COj FIRE EXTINGUISHING SYSTEM IN CARGO SPACES & ENG. ROC

engine and BRIDGE LOCATED AFT.

ACCOMMODATION AFT FOR 24 PERSONS.

137

PRINCIPAL DIMENSIONS

LENGTH O.A. 477.36 FT 145.50 M

LENGTH B.P. 449.47 FT 137.00 M

BREADTH MLD. 68.90 FT 21.00 M

DEPTH MLD. 42.98 FT 13.10 M

SUMMER DRAUGHT, EXT. 31.132 FT 9.489 M

DEADWEIGHT ON SUMMER DRAUGHT 16,799 LT 17,069 MT

CAPACITY : GRAIN' 766,275 FT® 21,698.5 M®

: BALE (NO SPARRING) 762,607 FT® 21.594.6 M®

: BALE (WITH SPARRING) 745,235 FT® 21,102.7 M®

FREEBOARD. DRAUGHT, DISPLACEMENT. DEADWEIGHT

ITEM

LOAD LINE'""^FREEBOARD DRAUGHT DISPLACEMENT DEADWEIGHT

SUMMER 3.652M 11-11 3/4 9.489M 31-1 9/16 21.579MT 21.238LT 17.069MT 16.799LTTROPICAL

FRESH W. 3.245M 10- 7 3/4 9.896M 32-5 5/8 22.083MT 21.734LT 17.S73MT 17.295LT

FRESH WATER 3.442M 11- 3 1/2 9.699M 31-9 7/8 21.582MT 2I.241LT 17.072MT 16.802LT

TROPICAL 3.455M 11- 4 9.686M 31-9 5/16 22.089MT 21.741LT 17.579MT 17.031LT

WINTER 3.849M 12-7 9/16 9.292M 30-5 13/16 21.074MT 20.740LT 16.563MT 16.301LT

TONNAGE

REGULATION GROSS NET

GREEK 10,520.47 T 7,738 T

PANAMA CANAL 11,186.75 T 9,019.29 T

SUEZ CANAL 11,118.64 T 9,181.57 T

138

DECK EQUIPMENT

5 X 25 LT. HORIZONTAL SLEWING CRANES (IHI) OPERATED BY ELECTRO-HYDRAULIC HIGH PRESSURE TYPE WINCHES & SLEWING & TOPPING CYLINDERS, OUTREACH MAX.6.10 M FROM SHIP'S SIDE OPERATING ANGLE 180 DEG. HOISTING CAPACITY 25/15/6/2 LT. HOISTING SPEED 7.7/12/24/45 M/MIN. LOWERING SPEED 55 M/MIN. - AV. SLEWING SPEED 0.8 R.P.M. - AV. traversing SPEED 40 M/MIN. NOS. 4 & 5 HSCS OPERABLE IN TANDEM LIFTING 48 LT CARGO HOISTING CAPACITY 50 LT. HOISTING SPEED 7.7 M/MIN - LOWERING SPEED 11.5 M/MIN. - AV. SLEWING SPEED 0.25 R.P.M. AV. TRAVERSING SPEED 10 M/MIN.

5 X UPPER DECK AND 5 x TWEEN DECK HATCH COVERS HYDRAULICALLY OPERATED BY 2 PUMP UNITS. UPPER DECK HATCH COVERS CLEATS HYDRAULICALLY OPERATED.

3 X CARGO HOLD VENTILATION FANS. CAPACITY 2 SETS x 80 M^/MIN. & 1 SET x 40 M^/MIN.

1 X electro-hydraulic 1-RAM/2-CYLINDER STEERING GEAR OPERATED BY 2 PUMP UNITS. TORQUE ABT. 36 T-M.

1 X ELECTRO-HYDRAULIC WINDLASS. 18 TON x 6 M/MIN. LIFTING C/1J»ACITY WITH (6 TON x 10 M/MIN) WARPING SPEED. OPERATED BY 1 PUMP UNIT.

1 X electro-hydraulic STERN MOORING WINCH / ST. LAWRENCE STERN WINDL/»iSS CAPACITY6 TONS X 14 M/MIN. WITH AUTOTENSIONINQ DEVICE AND OPERATED BY 2 PUMP UNITS.

4 X electro-hydraulic ST. LAWRENCE SEAWAY MOORING WINCHES PROVIDED WITH AUTO­TENSIONING DEVICES AND OPERATED BY 4 PUMP UNITS.

1 X ACCOMMODATION AIR-CONDITIONING SYSTEM WITH ONE COMPRESSOR AND TWO CENTRAL UNITS. FAN CAPACITIES 1 SET x 130 M®/MIN. 1 SET x 40 M®/MIN.

1 X SHIP'S SERVICE AIR COMPRESSOR CAPACITY 0.77 M^/MIN. FREE AIR x 7 KG/CM*.

1 X DIESEL ENGINE PROPELLED AND 1 x HAND PROPELLED LIFEBOATS, FOR 27 PERSONS EACH. GRAVITY TYPE DAVITS. 1 x INFLATABLE LIFERAFT FOR 15 PERSONS.

NAVIGATION & RADIO equipment

1 X ELECTRIC gyro-compass SYSTEM (TOKYO KEIKI GYLOT PR-2502)1 X ECHO SOUNDER WITH RECORDER (FURUNO ELECTRIC F-851T)1 X UNDERWATER LOG (HOKUSHIN EML-12)1 X SATELLITE NAVIGATOR (JAPAN RADIO JLE-3300)1 X RADIO TELEGRAPH (MAIN S.S.B. 1.2KW) (JAPAN RADIO JSS-210)2 X V.H.F. TELEPHONE (20W, B7 CHANNEL) (JAPAN RADIO JHV-212)1 X RADIO DIRECTION FINDER (KODEN KS-252E1)2 X RADARS, RELATIVE MOTION TYPE 1/4-120 MILES (TOKYO KEIKI MR-1200E-27) 1 X TELEX SYSTEM ARQ TYPE (J/VPAN RADIO NCL-501B)1 X FACSIMILE SYSTEM (KYORITSU RADIO FXH-874)1 X PUBLIC ADDRESSOR (JAPAN RADIO NVA-1036-B)

139

MAIN ENGINE & AUXILIARIES

1 X MAIN ENGINE (IHI-SEMI PIELSTICK 12PC2-2V). 12CYL x 400MM BORE x 460MM STROKE.4 CYCLE. SINGLE ACTING. NON-REVERSING. CONSTANT R. P. M., TRUNK PISTON, TURBOCHARGED, medium SPEED. MARINE DIESEL ENGINE. MCR 6000BHP AT 520 R. P. M. BURNING MARINE DIESEL OR HEAVY FUEL OIL WITH REMOTE BRIDGE AND EMERGENCY ENGINE ROOM CONTROLS FOR NON­WATCH keeping operation. DRIVING:

NORMALLY : THE CONTROLLABLE PICTCH PROPELLER FOR MAIN PROPULSIONand the MAIN GENERATOR FOR FULL ELECTRIC POWER AT SEA.

ALTERNATIVELY : THE MAIN GENERATOR FOR FULL ELECTRIC POWER IN PORT.

1 X AUXILIARY ENGINE (YANMAR 6UAL-ST) 6 CYL x 200MM BORE x 240MM STROKE. 4 CYCLE, turbocharged. MARINE DIESEL ENGINE. 830 BHP AT 900 R. P. M.. DRIVING:

NORMALLY : THE MAIN GENERATOR FOR FULL ELECTRIC POWER IN PORT.ALTERNATIVELY : THE MAIN GENERATOR FOR FULL ELECTRIC POWER AT SEA AND

THE CONTROLLABLE PITCH PROPELLER FOR EMERGENCY PROPULSION.

1 X PROPELLER (IHI-LIPS CPP). CONTROLLABLE PITCH. 4 BLADE.

1 X MAIN ELECTRIC GENERATOR (NISHISHIBA NTAKS-VC) SYNCHRONOUS. AC, SELF-EXCITED,500KW X 450V x BOHz x 30. P. F. 0.8. AC. 900 R. P. M.

1 X AUXILIARY ENGINE (YANMAR 6RL-HT). 4 CYCLE, TURBOCHARGED. MARINE DIESEL ENGINE.300 BHP AT 900 R. P. M.. DRIVING.

1 X AUXILIARY ELECTRIC GENERATOR (NISHISHIBA NTAKS-VC), 190KW x 450V x 30 AC.

1 X SLUDGE TYPE OIL FIRED BOILER WORKING (IHI FV) IN CONJUNCTION WITH EXHAUSTGAS HEATER WORKING PRESSURE 7 KG/CM* SATURATED STEAM. EVAPORATION RATE BOILER MAX.0.6 T/HR. COMBINED BOILER & EX. GAS HTR NORMAL 1.1 T/HR, WATER CAPACITY 2.6M®.

1 X BALLAST PUMP, MOTOR DRIVEN. VERTICAL CENTER. 400 M®/H x 20M HEAD.

2 X FIRE GEN. SERVICE, MOTOR DRIVEN: VERT. CENTER. 200/90M®/H x 25/60M HEAD.

1 x BILGE PUMP MOTOR DRIVEN. VERT. PISTON. 10M®/H x 25M HEAD.

1 x BILGE EDUCTOR S. W. DRIVEN. 60M^/H x 10M HEAD.

1 X 3 STAGE AUTO BILGE SEPARATOR CAPACITY 2T/TH. MAX. 15PPM O/B DISCHARGE.

1 X DISTILLING PLANT M.E. COOLING WATER/STEAM OPERATED CAPACITY 15T/DAY.

1 X SEWAGE TREATMENT SYSTEM WITH HOLDING TANK.

140

CARGO HOLDS & HATCHES

No. lowerLxBxH

UPPER (TWEEN)L X B X H

HATCHESLxBxH

1 21.0 X (SEE SECTION) X 7.8 21.0 x (SEE SECTION) X 4.98 15.0 X 10.0x1.4

2 21.0x20.3x7.8 21.0 X 15.6x4.98 15.0 X 15.6x1.4

3 18.0x20.2x7.8 18.0 X 15.6x4.98 12.75 X 15.6 X 1.4

4 21.0 X 20.3 X 7.8 21.0x15.6x4.98 15.0 X 15.6x1.4

5 21.0 X (SEE SECTION) x 7.8 21.0 X 15.6x4.98 15.0 X 15.6 X 1.4

— CLEAR LENGTHS (L), BREADTHS (B) AND HEIGHTS (H) GIVEN IN METRES.— FOR UPPER (TWEEN) HOLDS CLEAR HEIGHTS GIVEN ARE IN WAY OF HATCH._ CLEAR HEIGHT OF LOWER AND UPPER HOLDS COMBINED, WHEN RETRACTABLE TWEEN DECK

HATCHES OPEN : 13M IN WAY OF HATCH.— MAIN AND TWEEN DECK HATCHES SAME SIZE.— FOR ALL DIMENSIONS SEE TYPICAL MIDDLE SECTIONS.

CARGO HOLD

ITEM

VOLUME LCG KGPOSITION FR. NO. BALE GRAIN

M FT M FTFT® M® FT®

NO.l CARGO HOLD 144-172 2,555.8 90,293 2,801.7 98,941 -46.93 -153.97 5.48 17.98NO.l TDK C.SP. 147-167 1,038.4 36,671 858.6 30,321 -46.52 -152.62 11.20 36.75

NO.l CARGO HATCH 147-167 209.8 7,409 209.8 7,409 -47.45 -155.67 13.80 45.28(SUB TOTAL) (3,805.0) (134,373) (3,870.1) (136,671) (-46.87) (-153.77) (7.20) (23.62)

NO.2 CARGO HOLD 116-144 3,218.1 113,646 3,527.3 124,565 -26.81 - 87.96 5.30 17.39N0.2 TDK C.SP. 120-140 1,178.3 41,611 888.0 31,359 -27.20 - 89.24 11.20 36.75

N0.2 CARGO HATCH 120-140 327.3 11,559 327.3 11,559 -27.20 - 89.24 13.80 45.28(SUB TOTAL) (4,723.7) (166,816) (4,742.6) (167,483) (-26.91) (-88.29) (6.99) (22.93)

N0.3 CARGO HOLD 92-116 2,756.6 97,348 3,025.1 106,830 - 7.25 - 23.79 5.29 17.36N0.3 TDK CSP. 95-112 1,025.7 36,222 754.7 26,652 - 7.33 - 24.05 11.20 36.75NO.3 CARGO HATCH 95-112 278.2 9,825 278,2 9,825 - 7.33 - 24.05 13.80 45.28(SUB TOTAL) (4,060.5) (143,395) (4,058.0) (143,307) (-7.27) (-23.85) (6.97) (22.87)

N0.4 CARGO HOLD 64-92 3,176.0 112.159 3,481.0 122,930 12.16 39.90 5.30 17.39N0.4 TDK C.SP. 67-87 1,181.8 41.735 888.0 31,359 12.55 41.17 11.20 36.75

N0.4 CARGO HATCH 67-87 327.3 11,559 327.3 11,559 12.55 41.17 13.80 45.28(SUB TOTAL) (4,685.1) (165.453) (4,696.3) (165,848) (12.26) (40.22) (7.01) (23.00)N0.5 CARGO HOLD 36-64 2,822.0 99,658 3,116.2 110,048 32.45 106.46 5.49 18.01N0.5 TDK C.SP. 40-60 1,171.0 41,353 888.0 31,359 32.80 107.61 11.20 36.75N0.5 CARGO HATCH 40-60 327.3 11,559 327.3 11,559 32.80 107.61 13.80 45.28(SUB TOTAL) (4,320.3) (152,570) (4,331.5) (152,966) (32.55) (106.79) (7.29) (23.92)

TOTAL HOLD 20,124.7 710,696 20.228.6 714,364HATCH 1,469.9 51,911 1,469.9 51,911

GRAND TOTAL 21,594.6 762,607 21,698.5 766,275

NOTE 1. FIGURES SHOW WHEN PORTABLE CARGO BATTENS ARE NOT USED.2. BALE CUBIC OF EACH LOWER HOLD SHALL BE DEDUCTED BY FOLLOWING VOLUMES

WHEN PORTABLE CARGO BATTENS ARE USED.HOLD NO. 1 2 3 4 5 TOTALBALE VOL (M^)TO BE DEDUCTED 102.5 101.8 91.4 90.2 100.0 491.9

Ml

TYPICAL MIDDLE SECTIONS

HOLD No. 1

- PERMISSIBLE LOAD *1

LOCATIONUNIFORM CENlPRAL 20* CONTAINER STACK

MT/M LT/FT MT LT MT LTNO. 1 12.3 1.12 10 9.84 101.6 100NO. 2 13.4 1.23 10 9.84 101.6 100

TANK TOP NO. 3 12.8 1.17 10*2 9.84 101.6 100NO. 4 13.4 1.23 10 9.84 101.6 100NO. 5 12.3 1.12 10 9.84 101.6 100

TWEEN DEC 2.13 0.19

2.3 0.217 6.89

urrJDK2.4 *3 2.36

UPPER DECK 2.3 . 0.21 4.5 4.43 20.3 20HATCH COVERS 1.85 0.17

NOTE

*1 THE DUNNAGE WHICH HAS ENOUGH THICKNESS AND ENOUGH AREA SHOULD BE LAID FOR CONCENTRATED LOAD.DETAIL EXPLANATION IS SHOWN ON PAGE 21 OF OPERATIONAL INFORMATION.

•2 THIS FIGURE MAY BE DECREASED IN ACCORDANCE WITH LOAD DISTRIBUTION.*3 THIS FIGURE SHOWS THE MAXIMUM CONCENTRATED LOAD AT NO. 1 HATCH SIDE.

AREA ON RET. TWEEN DECK

COMPARTMENT AREAFt2

NO. 1 RET. T/D 284.0 3,057NO. 2 RET. T/D 315.9 3,400NO. 3 RET. T/D 269.1 2,897NO. 4 RET. T/D 315.9 3,400NO. 5 RET. T/D 315.9 3,400

TOTAL 1,500.8 16,154

AREA ON TANK TOP

COMPARTMENTAREA

M* Ft2

NO. 1 C/H 241.1 2,595NO. 2 C/H 387.9 4,175NO. 3 C/H 340.9 3,669NO. 4 C/H 391.9 4,218 'NO. 5 C/H 268.0 2,885

TOTAL 1,629.8 17,542

NOT^: AREA ON TANK TOP & ON RET. TWEEN DECK DOES NOT INCLUDE AREA WITHIN BULKHEAD CORRUGATIONS.

CONTAINERS***

HOLD & HATCH NO.8' X 8)4* X 20’ 8* X 8)4'X 40*

HOLD* DECK* TOTAL HOLD* DECK* TOTAL1 38 28 66 18 12 302 60 32 92 30 16 463 60 32 92 30 16 464 60 32 ** 92 30 16 465 56 32 ** 88 28 16 44

grand total 274 156 430 . 136 76 212

max. WT/CONT 20LT lOLT 25LT 15LT

* 2 TIERS ON DECK AND 5 TI^RS IN HOLDS •• ELECTRIC SOCKETS FOR 24 REFRIGERATED CONTAINERS TOTAL.

CONTAINER WEIGHTS SUBJECT TO ADEQUATE STABILITY.(FOR FULL CARGO OF EMPTY CONTAINERS OR FULL CARGO OF VEHICLES N0.3 HOLD MUST BE BALLASTED.)WHEN CLOSED TWEEN DECK HATCHES. 1 TIER OF CONTAINERS CAN BE TAKEN ON THEM

20' : N0.1 - 8 NOS. 2-5-12 EACH TOTAL 56 40' : NO.l - 4 NOS. 2 -v 5 _ 6 EACH TOTAL 28

D0=>

N0.4 HOLD

XXXX XX "-7' yVf ^X X X XXX

V 1XXXXXX

/J

XXXXXXXXXXXX

HEIGHTS & DISTANCED

HEIGHT OF MAST : FROM BOTTOM OF KEEL TO HIGHEST POINT OFR.D.F. ANTENNA 37.5M 123.1 FT

DISTANCE FROM SUMMER LOAD LINE TO TOP OF HATCH COAMING AT EVEN KEEL5.1 M 16.8 FT

MAX. DISTANCE FROM WATER LINE TO TOP OF HATCH COAMINGIN BALLAST ARRIVAL CONDITION WITH N0.3 CARGO HOLD EMPTY (PORT SHUTTLING & EMERG. CONDITION)12.9 M 42.3 FT

MAXIMUM CARGO HOOK OUTREACH 6.10 M 20.013 FTDISTANCE FROM TWO COAMING OF NO.l HOLD TO FO'C'SLE AFT-BULKHEAT 3.75 MDISTANCE FROM FWD COAMING OF NO.l HOLD TO FWD EXTREME POINT 17.55 MDISTANCE FROM AFT. COAMING OF N0.5 HOLD TO BRIDGE HOUSE FWD BHD 3.00 MDISTANCE FROM AFT COAMING OF N0.5 HOLD TO AFT. EXTREME POINT 32.70 M

WATER BALLAST TANKS S.W. (S.GR: 1.025)

ITEM POSITION FR. NO.

CAPACITY (100% FULL) LCG KGM* FT^ MT LT M FT M FT

FORE PEAK TK 178-FE 294.1 10387 301 297 -66.32 -21738 7.13 23.39NO.I D.B.TK (C) 143-178 383.7 13,549 393 387 -47.23 -154.95 0.76 2.49N0.2 D.B.TK (P) 115-143 243.4 8394 249 246 -26.27 - 86.19 0.66 2.17N0.2 D.B.TK (S) 115-143 243.4 8.594 249 246 -26.27 - 86.19 0.66 2.17N0.3 D.B.TK (P) 91-115 215.0 7,592 220 217 - 6.97 - 22.87 0.65 2.13N0.3 D.B.TK (S) 91-115 215.0 7,592 220 217 - 6.97 - 22.87 0.65 2.13N0.4 D.B.TK (P) 80-91 98.8 3,488 101 100 6.18 20.28 0.65 2.13NO.4 D.B.TK (S) 80-91 98.8 3,488 101 100 6.18 20.28 0.65 2.13AFT PEAK TK AE-12 167.6 5,920 172 169 64.71 212.30 8.53 27.99DUCT KEEL 34-143 160.1 5,655 164 162 5.92 19.42 0.63 2.07N0.3 HOLD (WB) 92-116 4,2223 149,709 4328 4,260 - 7.26 - 23.82 7.09 -23.26TOTAL 6.441.5 227,475 6,600 6,501

FRESH WATER TANKS (S.GR; 1.000)

ITEM POSITION FR. NO.

CAPACITY (100% FULL) LCG KGM* FT^ MT LT M FT M FT

WASH WATER TK 21-34 57.3 2,025 57 56 49.29 161.71 0.83 2.72POTABLE WATER TK 12-16 34.8 1,230 35 34 59.75 196.03 11.70 38.39DISTILLED WATER TK 12-16 34.8 1330 35 34 59.75 196.03 11.70 38.39TOTAL 126.9 4,485 127 124

D.O. (S.GR: 0.870) FUEL OIL TANKS H.F.O. (S.GR: 0.935)

ITEM POSITION CAPACITY (100% FULL) LCG KGFR. NO. M^ FT^ MT LT M FT M FT

FUEL OIL TANK 172-178 467.9 16,523 437 431 -60.77 -199.38 7.75 24.43N0.5 D.B.TK (P) 63-80 145.8 5,150 136 134 16.52 54.20 0.67 2.20N0.5 D.B.TK (S) 63-80 145.8 5,150 136 134 16.52 54.20 0.67 220N0.6 D.B.TK (P) 36-63 166.4 5,875 156 153 32.00 104.99 0.77 2.53N0.6 D.B.TK (S) 36-63 166.4 5,875 156 153 32.00 104.99 0.77 2.53H.F.O. SET.T. (P) 31-35 15.5 548 14 14 45.56 149.48 9.87 32.38H.F.O. SER.T. (P) 31-35 15.0 530 14 14 45.55 149.44 9.92 32.55(H.F.O. SUB T) (1,122.8) (39,651) (1.049) (1,033)D.O.T. (P) 36-64 83.6 2,952 73 72 32.78 107.55 12.35 40.52D.O.T. (S) 36-64 83.6 2,952 73 72 32.78 107.55 12.35 40.52(D.O. SUB T) ( 1672) ( 5,906) ( 146) ( 144)GRAND TOTAL 1,290.0 45.557 1,195 1,177

LUBRICATING OIL TANKS (S.GR: 0.870)

ITEM POSITION FR. NO.

CAPACITY (100% FULL) LCG KGM" FT^ MT LT M FT M FT

L.O. STOR. TK (P) 19-21 22.3 788 19 19 54.93 180.22 9.82 32.22L.O. SETT. TK (P) 22-23 10.6 373 9 9 53.47 175.43 9.78 32.09L.O. SUMP. TK (P) 21-31 9.1 321 8 8 49.30 161.75 1.99 6.53TOTAL 42.0 1,482 36 36

OTHER TANKS

ITEM POSITION FR. NO.

CAPACITY (100% FULL) LCG KGM" FT^ MT LT M FT M FT

BILGE TK 12-17 7.7 272 8 8 59.08 193.83 0.75 2.46SEP. BLG. O. TK 25-33 22.2 782 22 22 48.59 159.42 0.79 2.59SEWAGE HOLD. TK 17-21 12.8 452 13 13 55.96 183.60 0.85 2.79TOTAL 42.7 1,506 43 43

144

2U>*

|

appendix three

“THE FRINDSHIP“ VESSEL

OUTLINE SPECIFICATIONS

OF

22,400 KTDH OPEN DECK MULTIPURPOSE GENERAL AND DRY BULK CARGO SELF-TRI»#<ING VESSEL

equipped with RETRACTABLE THEEN DECK AND HORIZONTAL SLEWING CARGO GEARS PROPELLED

BY SINGLE SCREW DIESEL

146

(Metric units and approximate figures)

dimensions

dead weight

cargo hold

CUBIC CAPACITY

CONTAINER LOAD­ING CAPACITY

Length, o.a.Length, b.p. Breadth, mid.Depth, mid.Full load draft, mid

164.330 m (abt. 539"-l 5/8") 155.448 m (abt. 510'-0“ ) 22.860 m (abt. 75'-0")14.150 m (46'-5 1/16")10.070 m (33"0 7/16")

Deadweight at Full abt. 22,400 metric tons load draft

Deadweight at St. abt. 15,200 metric tons Lawrence Seaway draft (fresh water 26')

3Cargo hold cubic abt. 28,800 mcapacity (grain) (abt. 1,017,100 ft )

Grain volume is based upon condition when retractable tween decks are opened and the spaces between these decks and bulkheads in tween deck space are void.

Stowage factor for homogeneously loaded grain cargo based on deadweight at full load draft including 800 metric tons allowance for fuel oi, store, etc.

3abt. 47.9 ft /ton

8'x8'(or 8'-6") x20' (based on 2-tier loading onhatch cover and on upper deck)

Standard: abt. 588 TEU (phisical possible maximum number)

Option: abt. 116 TEU additional (When optionalremovable stools in No.s 1 and 5 hold and on upper deck are applied.)

147

Load:

tank capacity

REGISTORY

classification

20 long tons per 20" stack on deck and hatch

20 long tons per 20' stack on retract­able tween deck hatch cover with wooden chock liner under the longi­tudinal bottom beam of container.

100 long tons per 20" stack on tank top of cargo hold

20 long tons per 40" stack on deck and upper deck hatch

150 long tons per 40" stack on tank top of cargo hold

Ballast water tanks (100% full)

(No. 3 cargo hold included)Heavy fuel oil tanks (100% full)Diesel fuel oil tanks (100% full)Potable water tanks (100% full)Wash water tanks (100% full)Distilled water tanks (100% full)

Aqaba

American Bureau of +A1(E) and recorded asGeneral and Dry Bulk Cargo Carrier strengthened for heavy cargoes (No.l and 3 holds or No. 2 and 4 holds or alternatively No. 3 hold may be empty) for Hull and +AMS, +ABCU plus special notation of "Navigating Bridge Operated Integrated Main Propulsion Engine" for machinery, (without Classi­fication special notation for carrying containers).

3,(abt. 8,490 m )

3(abt. 1,180 m )(abt. 160 m”^)

3(abt. 32 m )(abt. 80 m )

3,(abt. 32 m )

148

SPEED, FUEL CONSUMPTION ANDcruising range

Cargo gear and hatch cover

Service speed at full load draft on maximum continuous rating of main engine without sea margin, main engine driven generator engaged.

abt. 14.8 knots

Design fuel rate at maximum continuous rating of main engine based on lower calorifc value of 10,200 Kcal/kg at shop test.

abt. 131 g/BHP/hr

(Daily fuel consumption of main engine based on lower calorific value of 9,800 Kcal/kg.)

abt. 23.0 MT

The crusing range of the vessel at maximum conti­nuous rating of main engine.

abt. 12,000 sea miles

Five (5) sets of 25 long tons capacity electro- hydraulic Horizontal Slewing Cargo Gear (HSC) with automatic hoisting speed setting by cargo weight.

Maximum out reach No. 1 gang:

No. 3 gang:

Nos. 2, 4 & 5 gangs:

Clear hook height:

abt. 5.3m from outside shell 0

at 90 swing angle.

abt. 6.9m from outside shell at 90° swing angle.

abt. 8.5m from outside shell 0

at 90 swing angle.

abt. 12.8 m above upper deck

Upper Deck Hatch CoverTwo (2) sets of hydraulic operated two panel self stowing jacknife type hatch cover for Nos. 1 and 3

149

hold and three (3) sets of four panel self stowing Jacknife type hatch cover for Nos. 2, 4 and 5 hold. (All covers reinforced for stowage of 20" x 8' and 40' x 8" containers.)

All cargo hatch covers clamped to coamings by hydraulic operate auto cleats.

No. 1 hold: abt. 12.80 m x 17.80 m No. 2 hold: abt. 19.20 m x 17.80 m No. 3 hold: abt. 12.80 m x 17.80 m No. 4 hold: abt. 19.20 m x 17.80 m No. 6 hold: abt. 19.20 m x 17.80 m

2 panels 4 panels 2 panels 4 panels 4 panels

Tween Deck Hatch CoverTween decks of retractable hydraulic operated type for No. 1, 2, 4 and 5 cargo holds. Tween deck in No. 3 hold shall be provided within design limit.

For carrying grain cargoes, lumber cargoes and the likes, tween deck hatch cover shall be retracted to give a complete single decker feature for No. 2, 3, 4 and 5 cargo holds.

No. 1 Hold: abtNo. 2 Hold: abtNo. 3 Hold: abtNo. 4 Hold: abtNo. 5 Hold: abt

12.80 m X 12.80 m 19.20 m X 17.80 m 12.80 m X 12.80 m 19.20 m X 17.80 m 19.20 m X 17.80 m

DECK MACHINERY One (1) set of 25 tons capacity IHI electro-hydraulic windlass incorporating two (2) wire drums and two (2) warping heads.

One (1) set of 8 tons capacity IHI electro-hydrau­lic aft mooring winch incorporating two (2) wire drums and two (2) warping heads.

150

HOLD VENTILATION

ACCOMMODATION

Three (3) sets of 5 tons capacity IHI electro- hydraulic mooring winch for St. Lawrence Seaway passing each with one wire drum, and two winches having each one warping head.

Mechanically exhausted and naturally supplied at the rate of half time (0.5) per hour for Nos. 1, 2, 4 and 5 hold and one time (1.0) per hour for No. 3 hold.

Officer's cabin 10Rating's cabin\z Total: 22

Two (2) captain class cabins with day room, bed room and private toilet.

Eight (8) officer class cabins with private toilet, including pilot cabin.

Eleven (11) rating class cabins.

All single berth cabin.

N.B. The vessel is equipped for non-watch keeping in the engne room and reliable performance to Internationally recognized standards with a 15 person crew complement.

Public rooms: Officer's mess room and loungeCrew's mess room and lounge area Recreation room Administration office

Air-conditioning system for living quarters:By one (1) set of high velocity, single duct system.

151

COKKOSIUNprotection

Main propulsionUNIT

Bottom: CR anti-corrosive paint x 2 coatsCR anti-fouling paint x 2 coats

Boot-top: CR anti-corrosive paint x 2 coatsCR boot-top paint x 2 coats

Top side: CR anti-corrosive paint x 2 coatsCR top side paint x 2 coats

Inside of cargo Bleached tar epoxy x 1 coatholds except tank top and No. 3 cargo hold:

F.P.T., A.P.T. Tar epoxy high build x 1and double skin coattanks:

Duck keel: Tar epoxy x 2 coats

Double bottom Tar epoxy high build x 1ballast tanks and coat double skin tanks:

No. 3 cargo hold Bleached tar epoxy x 1 coatexcept tank top: high build

External hull: Impressed current cathodic protec­tion system (Owner supply)*

Integrated Marine Propulsion System with constant RPM and emergency take-home features.

IHI-SEMT Pielstick Model 12PC2-6V non-reversing diesel engine, a controllable pitch propeller and a single reduction gearbox which also incorporates power drives for main generator and engine asso­ciated pumps.

152

Max continuous rating: Overload rating (max.):

7,020 PS X 520/130 rpm 7,800 PS X 520/130 rpm

AUX. MACHINERY

generator

CONTROL SYSTEM

nautical and

RADIO equipment

One (1) Steam generatorUnder exhaust gas operation: abt. 0.86 t/h, saturated at 6 kg/sq.cm.g., at M.C.R. of main engine Under oil fired furnace operation: abt. 0.42 t/h, saturated at 6 kg/sq.cm.g.

One (1) Incinerator

One (1) Sewage treatment system

One (1) Nickel aluminum bronze four (4) bladed, controllable pitch propeller

One (1) main generator capacity of 550 KW x 900 rpm, 450 V. a.c., 3-phase and 60 Hz with main engine and alternative diesel engne drive, with generator diesel engine emergency take-home feature.

One (1) aux. diesel generator, capacity of 190 KW X 900 rpm, 450 V. a.c., 3-phase and 60 Hz.

Complete control of vessel by the Navigating Officer under all seagoing and manoeuvring conditions including the control of all associated propulsion equipment including the supply of electric power, without engine room watchkeeping.

Gyro compass and auto-pilot, echo sounder, electro-magnetic type log, two (2) sets of 12 inch PPI relative motion radars, radio direction finder, Loran-C receiver, radio telegraph consist

153

of synthesized main transmitter, emergency trans­mitter, main synthesized receiver, emergency receiver, auto alarm and auto keyer, VHF radion telephone.

Construction Standards:

Specification except otherwise mentioned above to be in accord- ence with Builder's standard and practice.

All materials and equipment to be of Japanese make.

tirain cargo self trimming feature to be provided.

154

OPTIONAL FEATURES

(0 MARK SHOWS THE APPLIED ITEM)

The following Items may at Buyer's option be applied to the vessel in association with the appropriate adjustments in deadweight, speed, contract price, etc. applicable thereto.

■£) assi f ication

Construction under Lloyd's Register of Shipping and engine room control with certification of “IP, UMS" symbol instead Of A.B.S.

p • Application of other flag instead of Jordanian flag.

2. Hul_L

Container loading fittings, (total 588 TEU) (without class special notation)

A. Cargo Hatches: The permanently attached socketsnecessary for Owner supply removable twist-lock cones.

Cargo Holds: Container stowage markings of punchand paint on tank tops.

Cargo Hatches: The permanently attached socketsnecessary for Owner supply removable twist-lock cones.

Cargo Holds: Portable cone Retainer System.

C. Cargo Hatches: Permanent flush type sockets on tanktops including plugs, for Owner supply removalbe cones.

155

2. Container loading fittings on tween deck.The permanently attached sockets necessary for Owner supply removable twist-lock cones.

Additional container loading fittings on upper deck.(84 TEU on basis of 2-tier)(without class special notation)

Portable and/or fixed type container pillars on upper deck P & S, adjacent to cargo hatches.

Additional sockets on cargo hatch covers for Owner supply removable twistlock cones.

Additional container stowage fittings for Nos. 1 and 5 ^^rgo holds. (32 TEU) Portable container pillars in way of sloped areas of tank tops.

Electric power receptacles and switchgear for reefer con­tainers stowed on upper deck cargo hatch covers.

3. 21 TEU (without increase of auxiliary generatorcapacity)42 TEU (auxiliary generator capacity shall be dealt with separately)

Twenty five (25) long tons capacity Horizontal Slewing Cargo Gear (HSC) for No. 1, 2, 3, 4 and 5 gangs instead of fifteen (15) long tons opacity.

tty (50) long tons lift feature which utilise two booms mounted on the post located between No. 2 and 3 holds and/ or No. 4 and 5 holds.

Deletion of all tween deck.

9. Cargo gear attachments

a- Spreader for container loading (20') (manual)

156

10. co^ fire extinguishing system for all cargo holds (local application).

9. without smoke detector b. with smoke detector

11. Builder supplied impressed current external cathodic pro­tection system (Morgan Berkely or equal).

12. Vinyl flooring for all living quarters including wheel- house, chart table area and public rooms.

13. Builder supplied loading calculator (IHI SEAMATE-G).

14. Builder supplied copy machine for administration office.

13- One (1) set of 1.0 m^ capacity additional deep freezer.

16. Spare anchor with stowage.

17. Small ref. cabinets of about 50 litres for officer class cabins. (Total 6 units)

18. One (1) set of meat cutting machine (Washio NSO-10-3 or equal).

19. Ship's model.

^iACHINERY PART

!• One (1) set of fuel oil valve lapping machine.

electric part

1- Builder supplied Suez Canal search light with plastic cover.

157

Fixed cargo hold lights in Nos. 1, 2, 4 and 5 hold (150 watt halogen lamps to serve when handling non explosive cargoes).

One (1) set of combined type gyro compass and auto-pilot (T.k.C. PR-5507L or equal) instead of standard one (T.K.C.PR-2507 L or equal).

One (1) set of Doppler speed log (FURUNO MF-220 or equal) instead of electro magnetic speed log. (HOKUSHIN EML-12 or equal).

One (1) set of OMEGA receiver with computer (JRC JLA-104 or equal).

Each one (1) set of 16 inch, S-band radar (T.K.C. MR-1600S or equal) and 16 inch, X-band radar (T.K.C. MR-1600 X or equal) instead of 2 sets of 12 inch, X-band radar (T.K.C. MR-1200 E or equal).

One (1) set of ARPA (T.K.C./SPERRY CAS-II or JRC JAS-800 or equal).

One (1) set of satellite navigator (NNSS) receiver (FURUNO FSN-70 or equal).

One (1) set of LORAN-C navigator (JRC JNA-760 or equal) instead of LORAN-C receiver (JRC JNA-770 or equal).

10. One (1) set of telex machine (JRC NCL-501 or equal).

11. One (1) set of INMARSAT ship's terminal (NAVIOYNE ESZ-8000 or JRC JUE-15A or equal).

12. One (1) set of facsimile recorder (KYORITSU FXH-874 or equal).

158

13.Each one (1) set of television receiver_(OVC 7808 NEM or equal) for recreation room and officers lounge.

14. Each one (1) set of television equal) for captain's day room, and crew's lounge space.

receiver (JVC 7808 MEM or chief engineer's day room

15. One (1) set of video tape player of 1/2-incl. tape VHS-type (JVC HR-3330 TR or equal) or 1/2-inch tape BETAMAX-type(SONY SL-5400 equal).

16. Each one (1) stereo set (SONY KHK-MA or equal) tion room and officer's lounge instead of receiver.

for recrea- B.C. radio

159

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CONTAINERIZED CARGO

BULK-/GRAIN CARGO

BIBLIOGRAPHY

Hoyle B.S., Hilling D., Seaport Systems and Spatial Change.

National Transport Study. Volume 7. 1983. by Dorsch Consult Ingenieurgesel Ischaft MBH. Germany. Hughes Economic Planning. United Kingdom. Deutsche Eisenbahn Consulting GMBH. Germany.

Alderton. P.M.. Sea Transport Operations and Economics. 1984.

Jordan National Lines Annual Report. 1989.

Jordan Phosphate Mines Company Annual Report. 1988.

Jordan Cement Company Annual Report. 1988.

The Development of Mining and Fertilizer and Industries of Jordan, thesis written by Mr. Safik Mohmoud.

Yearly Statistical Series (1964-1989) issued by the Department oT Research and Studies of the Central Bank of Jordan.

Study of Liner Services from Northern Europe to Aqaba. 1987. by Mr. F.K. Crawford.

Financing Ships, the Challenge of the 1990. Drewry.

Baudelaire. J.G.. Port Administration and Management.

Stopford. M.. Maritime Economics.

Economic Planning and Statistics - Jordan, by the Port of Corporation of Aqaba.

Jordan Economic Monitor. January 1990. by Dr. Fahed Fanek.

162

15. Aldastor Newspaper 15.1.1990 issue.

16. Oordan National Lines Reports.

17. Thirty Years of Development 1952-1981. by Port Corporation of

Aqaba.

18. The Middle East and North Africa, 1989. by Europe Publication

Linited, 1988.

19. Fearnleys, World Bulk Trades. 1988, published by Fearn

Research.

20. Shipping Transactions in the Balance of Payments Statistics:

A Tdbular Approach by Ur. H* Haralambidas.

21- Ishikawajima Harima Engineering Review, Vol. 12, No. 2,

2 July 1979.

22. Denholm Ship Management Company Glasgow Reports, Instructions,

Leaflets.

23. Petra Navigation Company s Leaflet.

163