S-1 Effective Risk Management, A necessary Tool for Surviving in Difficult Times Toshitomo MATSUI Managing Director Nippon Kaiji Kyokai, ClassNK INTERTANKO.

S-1

Effective Risk Management, A necessary Tool for Surviving

in Difficult Times

Toshitomo MATSUI Managing Director

Nippon Kaiji Kyokai, ClassNK

INTERTANKO TOKYO 2009INTERTANKO TOKYO 2009

15th May 200915th May 2009

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1. Understanding of Difficult Times

2. ClassNK Activities related to Risk Management / Assessment

A)Training Course on Risk Management

(e.g. ClassNK Academy)

A)R&D Projects – Risk Assessment

3. Classification Services – Rules for Lay up

TOPICS

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1. Understanding of Difficult Times

2. ClassNK Activities related to Risk Management / Assessment

A)Training Course on Risk Management

(e.g. ClassNK Academy)

A)R&D Projects – Risk Assessment

3. Classification Services – Rules for Lay up

TOPICS

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Global Financial Crisis & Credit Crunch Started primarily from the subprime problem in USA

Newbuilding Cancellations reached 1,000 ships Cancellations mainly at Greenfield shipyards in China and Korea

Drop in steel prices 　 Recent trend in declining steel prices

Understandings of Difficult Times

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Numbers of containerships on standby are growing

485 container ships (1.42 million TEUs) anchored in the world (Source : AXS-Alphaliner as of the 16th Mar.)

New scrapping boom started at end of last year. Demolitions expected to peak in 2010-2011

Understandings of Difficult Times

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Greenfield Shipyards Face Bankruptcy Some shipyards have already gone bankrupt

Increased Piracy along the coast of Somalia and Gulf of Aden Increase in the number and intensity of pirate attacks

Understandings of Difficult Times

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Rising & Falling Oil Prices Bunker prices showed similar movement to oil prices

Shipyard & Maker are developing a number of projects aimed at protection of environment. ・ Ecological Ship ・ Ballast water treatment system ・ Low air pollution diesel engine

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Solar Battery Panels

Cited from NYK Website

Understandings of Difficult Times

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AFS Convention entered into force on 17 Sep. 2008 International convention on the control of harmful anti-

fouling systems on ships LRIT requirements entered into force on 1 Jan. 2009 Ships are to be fitted with a system to automatically

transmit Long Range Identification and Tracking (LRIT) information.

BWM Convention will probably take effect * More and more ballast water treatment systems are being approved * Current status of ratification as of Feb. 2009 - Ratification: 18 states [30 states] - World shipping tonnage : 15.36 % [35%]

Understandings of Difficult Times

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1. Understanding of Difficult Times

2. ClassNK Activities related to Risk Management / Assessment

A)Training Course on Risk Management

(e.g. ClassNK Academy)

A)R&D Projects – Risk Assessment

3. Classification Services – Rules for Lay up

TOPICS

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Risk Management/Assessment

DDooDDooCCheckheck 　　CCheckheck 　　

AActct　AActct　

Continuous Continuous ImprovementImprovement of Systemof System　

PPlanlan　　Risk AssessmentRisk Assessment

PPlanlan　　Risk AssessmentRisk Assessment

• Risk Management (RM) & Risk Assessment (RA): A tool for Surviving in Difficult Times:

Tool for improving Safety (Pro-Active) Tool for improving Ship Management System Tool for facilitating innovative design (Feasibility Study) …

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Training Course on Risk Management

PPlanlan

AActctMMeasureeasure

IImprovemprove

Tanker OwnersTanker OwnersOperatorsOperators

TTMMSSAA

TTMMSSAA

•ClassNK Academy will be lunched shortly.•TMSA Course covers Risk Management

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Do　実施　

Check　パフォーマンス・　　有効性の評価　

Act　是正・改善　

システム　の継続的改善　

Plan

　 Risk Assessment

Hazard IdentificationHazard Identification

Scenario DefinitionScenario Definition

Frequency AnalysisFrequency AnalysisConsequence AnalysisConsequence Analysis

Risk Controlled?Risk Controlled?

Options to DecreaseOptions to DecreaseFrequenciesFrequencies

Options to MitigateOptions to MitigateConsequencesConsequences

Cost Effectiveness AssessmentCost Effectiveness Assessment

nono nono

yesyes

Policy and CriteriaPolicy and Criteria

Decision MakingDecision Making

Example of Training Materials

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1. RA on Engine Room Fire

2. RA on Bulk Carrier Safety

3. RA on Oil Spills from Tankers

4. Feasibility Study (FS) on Offloading System of Natural Gas Hydrate (NGH) FPSO (Application of HAZID Technique)

5. FS on NGH Carriers

6. RA on Hull Structure &

Propulsion System

of LNG Carriers

R&D Projects – Risk Assessment (RA) -

(Provided by MES)

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1. Understanding of Difficult Times

2. ClassNK Activities related to Risk Management / Assessment

A)Training Course on Risk Management

(e.g. ClassNK Academy)

A)R&D Projects – Risk Assessment

3. Classification Services – Rules for Lay up

TOPICS

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Classification Service: Lay-upClassification Service: Lay-up

(i) (i) Rules and Guidance for the survey Rules and Guidance for the survey and construction of steel ships, 1.1.and construction of steel ships, 1.1.8 of Part B 8 of Part B

(ii) Internal Instruction for NK (ii) Internal Instruction for NK surveyorssurveyors

In case ship owners intend that their ships to be In case ship owners intend that their ships to be laid-up, contact NK Survey Department or local laid-up, contact NK Survey Department or local survey office close to the lay-up place.survey office close to the lay-up place.

Relevant NK’s Provisions

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Thank you for Attention

Nippon Kaiji Kyokai