June 2006 page 3 Big day for ‘Smit Kamara’ page 8 Katrina/Rita: work continues to speed recovery page 5 Rotterdam fleet replacement now under way page 11 Installation completed for ‘De Ruyter’ field structures page 4 Rapid progress in SMIT’s fleet renewal page 16 Rotterdam success for ITS 2006 More Buoyant performance boosts SMIT’s results 2 Expanding the geographical spread of harbour towage 4 Rapid progress in SMIT’s fleet renewal 4 SMIT Terminals wins new long-term contracts 5 New tugs commence long-term contract in Egypt 6 ‘Pentow Service’ flies vessel survey award pennant 6 Global spread of SMIT’s salvage operations 7 Preparing to support Caspian oil and gas developments 9 Sheerlegs ‘Taklift 7’ completes German bridge assignment 9 ‘Giant 2’ completes Alcan transport programme 10 SMIT’s lead role in windfarm project 10 SMIT Amandla Marine: full ahead for future growth 12 Caring for the marine environment 12 SMIT Singapore receives honours 13 Asian Lift celebrates 20 years 13 SMIT Transport & Heavy Lift expands fleet 13 URS: new tugs for Zeebrugge expected by year-end 14 Sharing knowledge of casualty response and pollution prevention 14 SmitWijs expands GTA ocean towage pool 15 The ‘SSP Piranema’ was offloaded in Rotterdam Europoort and towed to the Keppel Verolme shipyard in Rotterdam Botlek on May 25 th , 2006. WWW.SMIT.COM
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Transcript
June
200
6
page 3Big day for ‘Smit Kamara’
page 8Katrina/Rita: work continues
to speed recovery
page 5Rotterdam fleet replacement
now under way
page 11Installation completed for‘De Ruyter’ field structures
page 4Rapid progress in
SMIT’s fleet renewal
page 16Rotterdam success for ITS 2006
More Buoyant performance boosts SMIT’s results 2
Expanding the geographical spread of harbour towage 4
Rapid progress in SMIT’s fleet renewal 4
SMIT Terminals wins new long-term contracts 5
New tugs commence long-term contract in Egypt 6
‘Pentow Service’ flies vessel survey award pennant 6
Global spread of SMIT’s salvage operations 7
Preparing to support Caspian oil and gas developments 9
Sheerlegs ‘Taklift 7’ completes German bridge assignment 9
‘Giant 2’ completes Alcan transport programme 10
SMIT’s lead role in windfarm project 10
SMIT Amandla Marine: full ahead for future growth 12
Caring for the marine environment 12
SMIT Singapore receives honours 13
Asian Lift celebrates 20 years 13
SMIT Transport & Heavy Lift expands fleet 13
URS: new tugs for Zeebrugge expected by year-end 14
Sharing knowledge of casualty response and pollution prevention 14
SmitWijs expands GTA ocean towage pool 15
The ‘SSP Piranema’ was offloaded in Rotterdam Europoort and towed
to the Keppel Verolme shipyard in Rotterdam Botlek on May 25th, 2006.
www.smit.com
ColophonFor any information about specific activities,
BUOYANT PERFORMANCE BOOSTS SMIT’S RESULTSIn the last issue of Tug Magazine I forecast that SMIT was on course for a significant increase in net profit.
The strong first half was followed by an encouraging second half. The outcome for 2005 saw net profit
rise from €27.4 million to €38.3 million. This result exceeded the 20 per cent increase sought and is firm
evidence of the effectiveness of SMIT’s strategic programme and the skill and dedication of all employ-
ees based around the world. We all recognise that we are contributing to a successful business and that
exciting times lie ahead!
All SMIT Divisions contributed to 2005’s highly
positive outcome. All four core activities are
performing to target, as the Group continues to
invest heavily in fleet renewal and expansion.
Harbour Towage produced excellent results.
This Division benefited from structural changes
in progress in the shipping industry. It is
heartening to see the steady improvement of
efficiency in this highly competitive market. In
the case of Rotterdam-Europort, for example,
high utilisation levels were achieved in 2005.
Terminals Division also performed beyond
expectation. No profitable contracts were lost,
the scope of a number of existing contracts
was increased and new, long term work was
secured.
Salvage Division also enjoyed a good year,
despite the fact that it proved impossible to
match a truly remarkable 2004, with its long
succession of major Lloyd’s Form operations.
During the second half of 2005, SMIT Salvage
joined other salvors responding in the after-
math of the devastating hurricanes Katrina and
Rita. The Division’s busy US workload will have
a positive effect on results over several years.
Looking further ahead, operational demands
are changing in the salvage sector. The
number of salvage services falls as the ship-
ping industry’s safety record improves. On the
other hand, vessels continue to grow in size
and complexity and their operation imposes
increasing pressures on their crews. SMIT
Salvage is well-positioned to provide services
in large and complex salvage operations. It
also has a very strong focus in the vital area
of environmental care. Service enhancements
here require continuous R&D commitment as
salvage is now knowledge-driven, rather than
asset-driven.
Improved fleet utilisation underpinned
encouraging results from Transport & Heavy
Lift Division. Fleet optimisation and a clear
commercial focus have transformed SMIT
Transport’s performance and prospects. Fleet
renewal has commenced with the construction
of 10 new large anchorhandling/multipurpose
vessels, most of them dedicated to long-term
contracts and three new smaller workvessels.
This reflects SMIT’s core commercial objec-
tive: greater income stability. Transport market
factors in Europe and Asia now have a positive
character.
The position in the heavy lift sector is more
challenging, due to a dearth of large projects.
This climate is not favourable for investment
in new expensive equipment. Therefore, the
present emphasis is on consolidation rather
than expansion. Against this background,
Heavy Lift is seen as a global market and, con-
sequently, the sheerlegs are far more mobile in
the operational sense. At present, for example,
units are working in Venezuela and Brazil.
Future prospectsAs this account demonstrates, SMIT achieved
a great deal last year. There is, however, much
more to be done. In the Harbour Towage
sector, for example, further expansion will be
largely a matter of growth by acquisition or
joint ventures on at least a 50:50 basis. SMIT
is not interested in buying “steel” alone but,
rather, looks for proven expertise and presence
in the local and regional market. Our focus is
on the world’s shipping crossroads – the major
ports where our international clients require
a global standard of excellence. In a geo-
graphical sense, the emphasis is on the former
Eastern Bloc countries, Latin America and the
Far East. Our growth target is 50% over 5 years
(basis 2005).
Operations at Rotterdam-Europort in 2005
were profitable for the second year running,
following many years of losses. Nevertheless,
even greater efficiencies are required if we are
to invest in fleet renewal to the desired extent
in order to ensure our long-term future in this
market. Here, the testing of two-man opera-
tion is an important factor, which is already
having an influence on the design of new
generation tugs. At the same time, profound
changes will not happen overnight. In this
area, we want to go forward in a spirit of coop-
eration with our crews, the Works Councils and
unions.
In reviewing recent events, this February saw
SMIT complete its acquisition of 50 per cent of
the shares in Rebras, Brazil. This joint venture
has a very promising future. New standard
vessels have been ordered. We plan to com-
mence operations with 18 vessels in this coun-
try’s major ports in late 2007. We continue to
regard Brazil as a market of great significance
for SMIT.
In March of this year SMIT sold its 40 per cent
holding in Servicios Mexicanos Remolcadores
(SMR) to the joint venture partner. This deci-
sion complies with our strategic policy of hold-
ing at least 50 per cent in a joint venture.
The main challenge for the growth of the
Terminals Division is to secure new long-term
contracts. By the very nature of the task, this is
a lengthy process. The clients include some of
the world’s largest oil companies and its joint
ventures. It takes time to develop relationships
based on common procedures and standards.
Furthermore, successful bidding is not simply a
function of the competitive process. Many fac-
tors are involved in 21st century deal-making
at this level, not least a strong commitment to
localisation programmes which deliver genu-
ine benefits to local economies combined with
the highest standards on safety, health envi-
ronmental care and quality assurance (SHE-Q).
Terminals Division has a demanding growth
target: a 50 per cent increase in net profit
over a five-year period, commencing 2003.
Everyone involved in this Division’s activities
is fully committed to the drive to achieve this
goal. New contracts will begin to exert a posi-
tive influence on this Division’s results from
2006.
The development of global LNG production,
transport and storage is of first importance
in this sector. There is a growing requirement
for terminal and marine support services, as
evidenced by the recent award to SMIT of the
Damietta contract in Egypt and, in addition,
the deployment of two vessels to serve an
LNG facility in Equatorial Guinea. SMIT intends
to continue to expand the scope of existing
contracts and win new contracts. Substantial
growth in world LNG production and use is
forecast, as LNG increases its market share in
relation to other hydrocarbons. Equally, the
storage and handling of LNG is demanding in
the technical sense and requires terminal and
marine support services of the highest quality.
The “de-bottlenecking” of LNG supply, through
the construction of new and expanded facili-
ties, will continue to generate demand for
SMIT’s terminal and marine support services.
Salvage Division has good prospects, based on
its predominant position in the key disciplines
of environmental care and the strength of its
knowledge management and R&D capabili-
ties. The aims here include a consistent market
share in the 25-30% range and clear recogni-
tion as the leader in environmental protection.
In the Transport Division, the objectives
include the achievement of 10% growth and
firm positioning in the top tier of the market
with the advent of standardized multipurpose
newbuildings. This sector can deliver far more
in terms of income stability.
Looking ahead, the next challenge is to gen-
erate more growth in those business sectors
offering income stability. SMIT’s workforce has
every reason to be proud of the progress made
in recent years. We have increased profitability
at a pace which has outstripped expectations.
SMIT’s engine is running well, on all cylinders!
Most importantly, we have a workforce display-
ing high morale and an appetite for further
success. We all share this enthusiasm for more
progress.
Ben Vree
Chief Executive Officer
The Naming Ceremony for the ‘Smit Kamara’ took place at SMIT’s
quayside in the Waalhaven, Rotterdam, on February 9th. The new
vessel, built by Keppel Singmarine of Singapore, is one of a new
class of three offshore support, anchorhandling and towing vessels.
BIg dAY FOR ‘SMIT KAMARA’
The ceremony was performed by Mrs Kathy
de Weijer, wife of Robert de Weijer, Asset
Leader for the Shell UK/NAM joint venture
known as Onegas. Robert de Weijer has been
closely associated with the long-term contract
awarded to ‘Smit Kamara’. The new vessel’s role
is to act as the marine transfer base for mainte-
nance crews visiting offshore platforms in the
southern North Sea. The vessel operates from
Den Helder and Lowestoft.
Guests attending the Naming Ceremony
were welcomed by SMIT’s CEO Ben Vree. SMIT
Transport & Heavy Lift Managing Director Abel
Dutilh also addressed the gathering. He paid
tribute to the efforts of Hoe Eng Hock and the
newbuilding team at Keppel Singmarine. He
also acknowledged the efforts of SMIT’s own
team, including Fokke Jan Botke, Newbuilding
Supervisor at the yard, and his deputy, Jan
Koper. Fokke Jan Botke is now Account
Manager for the ‘Smit Kamara’ and the contract
with Shell/NAM in the southern North Sea.
The new vessel is commanded by Captain Bill
Haenen.
‘Smit Kamara’ is expected to work in the south-
ern North Sea for five years under the Shell/
NAM contract. Previously, maintenance crews
were transferred to and from the platforms
by helicopter. ‘Smit Kamara’ has an innova-
tive “Offshore Access System”, which permits
the safe transfer of personnel from vessel to
platform. The marine solution is regarded as
more cost-effective and safe than helicopter
transfers.
‘Smit Kamara’ has a length (O/A) of 70.9 m
and has accommodation for 46 persons. The
new vessel has a bollard pull of 80 tonnes
and is equipped with a powerful twin-drum
anchorhandling winch. The main engines are
two 2,460 kW Wartsila 6R32 units. The new-
building has a deck area of 450 m2 and a deck
cargo capacity of 650 tonnes. ‘Smit Kamara’
also has a Class 1 firefighting capability.
Sister vessel ‘Smit Komodo’ has also been deliv-
ered. ‘Smit Komodo’ is now working offshore
Egypt. The third vessel, ‘Smit Nicobar’, is due
for delivery in June. This vessel has a bollard
pull of 120 tonnes. Her first assignment will be
offshore Sakhalin.
Prior to the Naming Ceremony, a traditional Chinese
‘Lion Dance’ was performed for luck and prosperity.
www.smit.com3
tug magazine
SMIT Harbour Towage has made major
progress over the past half-year. During this
period SMIT completed the acquisition of 50
per cent of Rebras (Rebocadores do Brasil
SA), owners of three 55 tonnes bollard pull
ASD tugs chartered out on a bareboat basis.
Loek Kullberg, Managing Director of SMIT
Harbour Towage & Terminals, says: “The com-
pany is now known as SMIT Rebocadores do
Brasil SA and has a future based on the opera-
tion of at least 20 tugs in the 45-65 tonnes bol-
lard pull range. So far, orders have been placed
for 18 newbuildings and the first of the new
units will join the fleet in January of next year.
We plan to provide harbour towage services in
several of the larger Brazilian ports.
“The key to our strategy is to ‘follow our cli-
ents worldwide’. We expect to operate at five
Brazilian ports initially. Broadly speaking, the
harbour towage market in Brazil is similar to
that in Europe and elsewhere in the world.
Typically, there is a home operator and a
number of competitors. In essence, this is the
free market pattern. One strategy, of course,
is to acquire an existing player. If no suitable
candidate is available, the alternative is to join
together and build the necessary infrastruc-
ture. In the case of Brazil, all 18 newbuilds will
be constructed in Brazilian yards.”
SMIT Harbour Towage is also preparing to com-
mence harbour towage services at yet another
port in Argentina. Operations will commence
with three tugs, one of which is already busy
with spot work in the area. A full harbour
towage service at an important container
port will commence over the next couple of
months, in addition to services already pro-
vided at La Plata.
Looking ahead, SMIT Harbour Towage contin-
ues to explore future potential in China. Loek
Kullberg says: “In this market, once again, the
choice is the acquisition of a regional operator
or the establishment of an operation similar
to that in Brazil. In the Chinese context both
options would be challenging, as circum-
stances are so different between China and
South America.
“We are also seeking to
establish a foothold in
India, where the acquisi-
tion route may be a pos-
sibility. We see strong
potential in India and,
accordingly, we have
already started to open
an Indian entity. We plan
to begin in the terminals
sector and then expand
into harbour towage
services. This is an inter-
esting prospect as the country has many large
ports and there is strong growth in shipping
traffic.
“We believe that our future development in
India will depend heavily on achieving suc-
cessful synergies between terminal operations
and harbour towage services, based around
the deployment of highly flexible types such
as Damen 2810s, 3111s and 3112s and similar
Robert Allan designs. These tugs are equally
suited to long-term service for one client, in
the terminal context, and the provision of har-
bour towage services for many clients. In the
case of India we believe that there are interest-
ing opportunities in both sectors.”
SMIT’s strategy focuses on extending the geo-
graphical scope of harbour towage by means
of acquisitions and partnerships. One area of
good potential is northern Canada. In Prince
Rupert, for example, a new container port is to
be constructed.
Loek Kullberg adds: “South Africa is another
priority. We already have strong links with port
authorities and provide a wide range of marine
services, from terminal support to bunkering
operations. It would be natural to expand into
harbour towage. This will not be easy but there
are signs that a more positive attitude towards
competition is developing.
“In future years the efficiency of two-man
operation will be crucial to competitive per-
formance. The system is already a success in
Canada and there are plans to do trials with
two-man operation in Rotterdam during next
year. Two of the new 2810s will be equipped
for two-man operation. This whole question
is a sensitive labour relations issue but a new
spirit of partnership is beginning to emerge.”
EXPANdINg THE gEOgRAPHICAL SPREAd OF HARBOUR TOWAgE
In the two years to March 2006 SMIT and its
subsidiaries and joint ventures placed firm
orders for a total of 80 vessels. SMIT itself
was responsible for 42 orders. Eighteen of
the remainder were accounted for by the
SMIT/Rebras combination, with KST (Keppel
SMIT Towage) and URS ordering another 12
and six vessels respectively.
During the six months to this March alone,
15 tugs were ordered from Damen. They con-
sisted of 13 2810 tugs (length 28 m) and two
3211 tugs (with an option for a further two).
These units will be delivered over the 2006
- early 2008 period. SMIT’s fleet renewal pro-
gramme continues to focus on the construc-
tion of standardised multirole vessels offering
a high degree of operational flexibility.
In Singapore, KST ordered a total of six tugs
from Keppel Singmarine over the past six
months. All are in the 45-65 tonnes bollard pull
range. All eleven are ASD tugs.
During the December 2005 - January 2006
period, SMIT also completed its acquisition of
50 per cent of the shares of Rebras in Brazil.
Orders for 18 new tugs for this operation were
placed with the Detroit Brazil yard. Twelve of
the units are 45 tonnes bollard pull tugs, based
on the Robert Allan 2500 series design. The
remaining six are 65 tonnes bollard pull units
- a Robert Allan 3000 design. The first of these
new tugs will be delivered early next year. The
last of the 18 will join the Rebras fleet in late
2008. All the tugs will be dedicated to work in
Brazilian waters.
The past six months also saw the delivery of
the ‘Smit Damietta’ and ‘Smit Port Said’. These
3030 firefighting tugs were purchased during
their construction in a Turkish yard. In addition,
a gravel barge and chip barge were delivered
for SMIT Canada.
Looking ahead, it is likely that SMIT and its
subsidiaries and joint ventures will order more
new tugs. In all probability, the orders will
involve around 20 vessels in the 60 - 80 tonnes
bollard pull range - for service at various loca-
tions around the world. There are also plans
to order more anchorhandlers in the 80 - 100
tonnes bollard pull class.
SMIT has already reached agreement to pur-
chase seven newly-built multipurpose work
vessels from Hadi H. Al-Hamman Est. of Saudi
Arabia. These vessels, of 75 tonnes bollard pull,
are a modified version of the ‘Smit Kamara’
and ‘Smit Komodo’. The first two vessels in the
series will join the fleet this year and the final
unit will be delivered in May 2008.
RAPId PROgRESS IN SMIT’S FLEET RENEWAL
The ‘Tiger Sun’ assisting a vessel in Canada.
The ‘Smit Clyde’ assisting one of the world’s biggest
containerships, the ‘Cosco Guangzhou’, in Rotterdam.
‘Smit Damietta’ and ‘Smit Port Said’
provide terminal assistances in Egypt.
31st March 2006 - Contract Signing2 x DAMEN ASD Tug 3211 + 9 x DAMEN ASD Tug 2810
SMIT Terminals has had encouraging results
over the past 12 months in its drive to win
new long-term contracts and extend the
scope of existing activities. The successes
include the Damietta LNG carrier assistance
contract in Egypt, a new offshore support
programme in Russian waters and a winning
tender in Equatorial Guinea, together with a
number of extensions, including the termi-
nal assistance contract in the Bahamas.
Loek Kullberg, SMIT Harbour Towage &
Terminals’ Managing Director, says: “We are
especially pleased at our successful bid for
vessel assistance work at the Damietta LNG
terminal. This is an important breakthrough in
Egypt. We look forward to working closely with
our Egyptian partners.
During September of last year SMIT was
awarded a contract from ExxonMobil concern-
ing the oil port of DeKastri, near Sakhalin. Loek
Kullberg says: “This contract is for five years,
with options for extension. The main task is
SPM support with a newbuild Damen 2208
ice class tug, which will be delivered in July/
August 2006. The contract will be serviced in
association with Femco, our Russian partners.
“We are already working on the north east
coast of Sakhalin with three icebreaking ves-
sels, the ‘Smit Sibu’,
‘Smit Sakhalin’ and
‘Talagy’. Their main role
is to assist tankers call-
ing at large offshore
loading terminals.”
SMIT’s successful
tender in Equatorial
Guinea requires two
newly built tugs. These
Damen-built 3211 units
are required to support
a Marathon LNG opera-
tion, which has British
Gas as the major ship-
ping client. The contract
duration is 10 years and the tugs begin work
in January 2007. Marathon is a long-standing
client, with SMIT providing a variety of marine
support services in West African waters.
Two Damen 3111 newbuildings were on their
way to Nigeria at the time of writing, to rein-
force the four tugs currently assisting vessels
calling at the NLNG Bonny Island terminal. The
‘Smit Diare’ and ‘Smit Owena’ left Rotterdam for
Bonny Island recently. This NLNG contract com-
menced in 1999.
Other recent successes in Nigeria include the
extension of the Melbourne Marine contract
for support of the FSO Jamestown, stationed
offshore Warri. The ‘Smit Siberia’ began this
assignment in early 2005.
The extensive SMIT newbuilding programme
also has consequences for the four-tug opera-
tion at Port Gentil’s oil export terminal. This
contract commenced in 1992. A Damen 3509
newbuilding is due to replace the chartered
tug ‘Ievoli Green’, now operating in Gabon
under this TotalFinaElf contract. The newbuild-
ing is a sister vessel to ‘Smit Mandji’, which
entered service in early 2005 and is currently
operating in Gabon. The new vessel is expected
to enter service at Port Gentil during the first
quarter of next year.
Loek Kullberg adds: “In the Bahamas we have
been active since 1997, assisting tankers and
providing barge-based bunkering services.
This contract requires three Japanese-built
tugs delivered during the early 1990s. In
January we succeeded in obtaining a con-
tract extension of three years from our client
BORCO. The intention is to replace two of the
existing vessels with the higher bollard pull
tugs ‘Smit Mississippi’ and ‘Smit Missouri’,
which will move to the Bahamas prior to March
2007.
“Looking ahead, we have some demanding
commercial targets to meet. Our teams con-
tinue to work vigorously on new tenders for
projects across the world, from Africa and the
Middle East to South America.
“We explore every possibility for viable long-
term terminal service contracts. As can be
seen from our achievements to date, the rapid
expansion of global LNG infrastructures is a big
factor in our future prospects. We will continue
to display great flexibility in devising solutions
meeting the exact needs of clients and pro-
spective clients.”
SMIT TERMINALS WINS NEW LONg-TERM CONTRACTS
Traffic levels at Rotterdam-Europoort con-
tinue to increase. The growth in vessel calls
over the past six months was spread over all
vessel types, from containerships and bulk
carriers to tankers carrying crude oil and
products.
Joost Lameijer, SMIT Harbour Towage General
Manager for Rotterdam, says: “We are now at
a very important stage in the development
of SMIT’s harbour towage services in the
Rotterdam-Europoort area. Positive factors,
including the increase in vessel calls and rea-
sonable rates for tug assistance, have allowed
us to operate profitably. This, in turn, has cre-
ated a favourable climate for investment in a
new generation of tugs.
“We expect to order a total of six newbuildings
over the next 12 months. Four of the six - 2810
ASD types - have already been ordered from
Damen. We expect to place orders for an addi-
tional two later this year or early in 2007. This
means the new tugs for Rotterdam service
will join the fleet in the mid 2007 - 2009 period.
Significantly, all the newbuildings will be
designed for two-man operation.”
The extent of fleet renewal investments
depends on further increases in traffic at
Rotterdam-Europoort. Under current projec-
tions (and assuming that the current steady
increase in vessel calls is sustained), SMIT
Harbour Towage will require a fleet of 15 - 17
tugs to meet demand at the Group’s home
port.
Joost Lameijer adds: “The priority is replace-
ment rather than enlargement of the
Rotterdam fleet. The current fleet totals 16
tugs. The units now being replaced are the
1800 types, conventional tugs built during the
late 1970s.
“SMIT Harbour Towage’s future at Rotterdam
does not depend exclusively on traffic
increases and new tugs. The human ele-
ment remains crucial to greater efficiency. We
already know the extent to which two-man
operation increases productivity and can alle-
viate the expected shortages in crews in the
forthcoming years. This will take time to intro-
duce, however, as this is a matter of training
and qualifications. In essence, we need both
individuals on board the tug to be capable of
assuming a Captain’s responsibilities.”
SMIT’s Rotterdam-Europoort tugs performed
a number of salvage tasks over the past six
months. They included the response to the
heavy lift vessel ‘Svanen’, which broke free of
her moorings during a vicious storm in late
November. The vessel began to drift and then
struck a drydock. Three tugs were mobilised;
they connected up and returned this vessel to
the berth.
An additional two salvage operations were
performed during early March of this year.
The first, on March 5, concerned the container
vessel ‘California Luna’. The vessel suffered
engine problems whilst off the New Waterway
and ’Smit Polen’ assisted.
Three days later the bulk carrier ‘Waterman N’
suffered a blackout when close to the Hook of
Holland breakwaters. Once again, ‘Smit Polen’
responded and towed the vessel to a safe
anchorage.
The first quarter of this year also saw four of
SMIT’s Rotterdam-Europoort tugs carry out a
rig move. The jack-up ‘Ensco 102’ was towed
from Europoort to Botlek Verolme for a mainte-
nance programme.
ROTTERdAM FLEET REPLACEMENT NOW UNdER WAY
The ‘Smit Clyde’ assisting a vessel in Europoort, Rotterdam.
The Nigerian crew members who sailed the ‘Smit Diare’ to Bonny Island.
The ‘Smit Diare’ demonstrating her fifi-equipment.
www.smit.com5
tug magazine
Captain Mike Skinner, Master of the termi-
nal tug ‘Pentow Service’, proudly accepted
the Corporate Vessel Survey Award pennant,
for outstanding performance, at a ceremony
in Durban on February 23rd.
The pennant was presented by SMIT Transport
& Heavy Lift Managing Director Abel Dutilh. He
offered his warmest congratulations to Captain
Skinner, his crew and shore-based personnel
closely involved in the operation of this vessel.
Their individual contributions were acknowl-
edged: they received special, hand-made
jerseys emblazoned with the text “Corporate
Vessel Survey Award 2005”.
The Corporate Vessel Survey Award is newly
introduced and will be presented each year to
the vessel with the best overall operational and
maintenance condition. SMIT’s SHE-Q General
Manager, Aart de Glopper, says: “The award is
made on the basis of vessel survey outcomes.
The operational and maintenance condition
during the year is expressed as a rating. In this
way, the top three vessels in the SMIT fleet
are identified. In 2005, these vessels were the
‘Pentow Service’, the Cape Town-based ocean-
going tug ‘Smit Amandla’ and, in addition, the
Vancouver harbour tug ‘Westminster Hunter’.
“All three vessels had a truly outstanding
record in 2005. It fell to SMIT’s Chief Executive,
Ben Vree, to make the difficult choice. After
due consideration, he named ‘Pentow Service’
as the winner in his New Year’s message to the
Group. This vessel may now fly the coveted
pennant throughout 2006.”
Tributes to the crew of ‘Pentow Service’ were
expressed by Abel Dutilh, together with
Vessel Manager Sean Raath, Corporate Vessel
Surveyor Cor Fontaine and Captain George
Franklin, representing the clients, SAPREF.
Captain Skinner replied on behalf of his crew.
Aart de Glopper adds: “The Corporate Vessel
Survey Award was introduced in 2005. Our
Corporate Vessel Surveyor regularly visits
units in the fleet of over 500 vessels operated
by SMIT and its associated companies and
joint ventures. The Vessel Surveyor applies a
checklist-based audit system. The results are
reported quarterly to SMIT’s Executive Board
and the Division Managing Directors. This
system provides for effective follow-up, where
remedial action is required. The idea behind
this award is to acknowledge positive achieve-
ment within the fleet. Flying that pennant is a
genuine mark of excellence.”
‘PENTOW SERvICE’ FLIES vESSEL SURvEY AWARd PENNANT
Newbuild tugs ‘Smit Port Said’ and ‘Smit
Damietta’ have commenced a long-term
contract in Egypt, assisting large LNG
carriers calling at the Damietta terminal.
This LNG terminal came on stream in 2004.
It is situated on the north bank of the Suez
Canal, around 60km west of Port Said. Its
initial production rate is 5.5 million t/yr.
The vessel assistance project was awarded
to a joint venture with a few local partners
amongst which the Damietta Port Authority.
The contract was awarded by shippers calling
at the SEGAS terminal, which is owned and
operated by SEGAS (Spanish Egyptian Gas
Company)- 80% owned by Union Fenosa GAS,
10% by EGAS and 10% by EGPC.
EGAS signed agreements with BP and BG to process gas from their operated fields, through EGAS’
share of capacity at the LNG facility and then to lift the produced LNG. The two tugs began working
at Damietta in December, under a contract with a duration of two years with possible extensions.
The new tugs are both Robert Allan designs. They are broadly similar to Damen’s 3111 tugs. These
RA 3060 units were constructed by Uzmar Shipping of Istanbul. They were purchased by SMIT as
they were nearing completion. These tugs have a length of 30.25 m a bollard pull of 62 tonnes.
They have tanks accommodating 177 cu m of fuel oil, 27 cu m of freshwater and 8 cu m of foam.
There is also capacity for some 35 cu m of recovered oil.
SMIT was already very active in Egypt prior to the commencement of the Damietta contract. The
newbuild anchorhandler ‘Smit Komodo’, for example, recently commenced a six-month assign-
ment for the support of Egyptian offshore oil and gas installations.
Terminals Division Managing Director Loek Kullberg says: “Damietta represents a significant break-
through for SMIT in Egypt. It is not easy to secure a first terminal support contract in any market!
This contract was awarded in recognition of the quality of the combination with our partners. We
look forward to developing activities in Egypt in association with our partners.”
NEW TUgS COMMENCE LONg-TERM CONTRACT IN EgYPT
The ‘Smit Port Said’ assisting the ‘Galica Spirit’ in Damietta, Egypt.
Harbour Towage Division Managing Director
Loek Kullberg and Vessel Surveyor Cor Fontaine
present the Corporate Survey Award pennant.
The crew of the award-winning ‘Pentow Service’ in Cape Town.
Many salvage operations were undertaken
during the first three months of this year.
Work also continued on wreck and debris
clearance in the US Gulf following the dev-
astation of hurricanes Katrina and Rita.
During this period work also continued on
the preparation of tenders for a number of
substantial wreck removal projects around
the world.
Salvage operations during the first quarter of
2006 included the February 4th response to the
LNG carrier ‘Höegh Gandria’, which required
assistance whilst off Singapore, after flooding
in the engineroom. A salvage team from SMIT’s
Singapore base soon reached this casualty.
They dewatered the engineroom and carried
out a programme of machinery preservation.
The ‘Höegh Gandria’ was discharged and was
then taken to a repair yard. Salvage services
concluded on February 14th, bringing to an end
an operation which was rare in the sense that
very few LNG carriers feature in the salvage
track record.
SMIT Salvage also responded when the fully
laden 158,000 DWT crude carrier ‘Kim Jacob’
grounded on January 30th on a sandbank at
Puerto la Cruz, Venezuela, whilst proceeding
to the US port of St. Croix for discharge. This
was a significant operation as very few casualty
salvage tasks today now involve large laden
tankers.
The vessel sustained some hull damage but
there was no leakage. SMIT Salvage obtained
a Lloyd’s Form contract to refloat the casualty.
This required the ship-to-ship transfer of some
22,000 tonnes of Venezuelan heavy crude.
The salvage team achieved a refloating on
February 6th. ‘Kim Jacob’ was taken to a safe
anchorage, where a full inspection took place.
Subsequently, the balance of the tanker’s
cargo was transferred to the lightering vessel
‘Endless’. The latter then delivered the cargo to
St. Croix.
First quarter operations also included the
response to the January 27th collision between
the 23,701 DWT bulk carrier ‘Twin Star’, laden
with steel coils, and the Cypriot vessel ‘Pintail’.
The accident occurred in dense fog conditions
at a position off the port of Callao, Peru. A third
vessel, the ‘Alice’, was also involved but sus-
tained no damage.
The ‘Twin Star’, however, was severely mauled.
She began to sink and eventually broke in
two, leaving only her antenna above water. A
number of fuel tanks ruptured, causing local-
ised pollution. SMIT Salvage was contracted by
the P&I Club to remove the remaining bunkers
and other pollutants.
All fuel oil, a total of 250 tonnes, was recov-
ered. The remains of this vessel, meanwhile,
have almost completely settled into the soft
ooze of the wreck site. A decision on a wreck
removal has yet to be taken.
Work continued into the New Year at La Spezia,
Italy, following the sinking of the vessel
‘Margaret’ off the breakwater on December 3rd.
A SMIT salvage team carried out a diving
survey. Subsequently, a contract was awarded
for the removal of some 90 tonnes of oil from
the wreck’s double bottom tanks. This task was
performed by means of a pollution-free hot-
tap system, used to penetrate each tank at two
locations - an upper station for pumping to the
surface and a lower station allowing seawater
to enter the space, to replace the oil recov-
ered from the tank. The oil recovery operation
was completed on January 7th, with the team
having pumped all the bunkers to a receiving
barge.
An accident in August of last year resulted
in a major salvage operation which was still
in progress at the end of the third quarter.
The complex project to refloat and recover
the sunken vessel ‘Michelle’ arose following a
collision off the Dutch coast with the vessel
‘Kiefernwald’. The latter was able to continue
her voyage to Cuxhaven. The ‘Michelle’, how-
ever, was left in a part-submerged condition,
within a busy traffic zone.
There was some outflow of bunkers from the
‘Michelle’ immediately after the collision. The
remaining oil was subsequently removed. The
cargo of coal posed no threat to the environ-
ment. The Directorate-General for Public Works
and Water Management ordered that the casu-
alty should be taken to a safe position outside
the main traffic lanes. The ‘Michelle’ eventually
sank at a position around 100 km north-west
of Den Helder.
SMIT’s team began salvage operations on
December 8th. A diving survey was performed
and a plan devised for the recovery. This was
based on an “upside-down” refloating by pres-
surisation, a tow to Rotterdam and righting
with the assistance of a floating sheerlegs. The
‘Michelle’ could then be towed to a breakers’
yard.
This operation is to be undertaken by the float-
ing sheerlegs ‘Taklift 7’, which arrived from the
Baltic during April. The sheerlegs will begin
work off Den Helder in June. One challenge
to be faced by the salvage team is the com-
prehensive filling of this wreck by sand. This
sand has to be pumped from inter-
nal spaces, in order to lighten the
vessel.
Salvage operations performed
worldwide in the final quarter of
2005 included the refloating of the
container vessel ‘SITC Bangkok’,
which ran aground on Depond
Reef, Cambodia, during November.
This vessel had 530 containers on
board.
The grounding site was hit by bad
weather. Several of her ballast
tanks and two fuel tanks ruptured,
causing some local pollution. The
vessel’s owners contracted SMIT
Salvage on LOF 2000 terms. The
8,200 bhp tug ‘Pacific Champion’ was mobilised
and work began to minimise the environmen-
tal impact of this accident.
The offshore workbarge ‘Smit Ibis’ arrived on
site and work began to discharge a total of 168
containers. These containers were transferred
via the ‘Smit Ibis’ to the vessel ‘Korfoer’. The
tug then succeeded in refloating the vessel,
following lightering, dewatering and pres-
surisation of the damaged tanks. Further tem-
porary repairs were then carried out and ‘SITC
Bangkok’ was redelivered at Ho Chi Minh City,
Vietnam, in early December.
Operations last October included the suc-
cessful refloating of the 53,000 DWT bulk
carrier ‘Bulgaria’, laden with a cargo of soya
beans. This vessel grounded in the Amazon
on October 7th. A Salvage Officer/Naval
Architect was mobilised from Belem, Brazil
and he was reinforced by a Salvage Master
from Rotterdam. SMIT’s Brazilian partners
contributed two tugs. The casualty’s bunkers
were removed as preparations for the refloat-
ing progressed. The vessel was pulled free on
October 10th.
Meanwhile, SMIT salvage teams were engaged
in the major response to the devastation
caused by hurricanes Katrina and Rita in the
US Gulf. Rita came hard on the heels of Katrina
and SMIT Salvage provided assistance for two
jack-up rigs, the ‘Adriatic VII’ and the ‘High
Island III’. The rigs suffered significant damage
and these operations continued into the New
Year. In both cases the scope of work involved
the removal of fuel and drilling mud, ballast-
ing down, removal of the remnants of the legs,
deballasting and refloating. November saw the
commencement of another such assignment,
involving the jack-up rig ‘High Island II’.
During November, SMIT Salvage completed
two major wreck removals, both in the Far East.
On November 1st the final section of the wreck
of the ‘Everise Glory’ was landed on a barge.
Work had begun in August.
This 23,000 DWT bulk carrier was lost close
to the Malaysian/Singaporean boundary. The
large floating sheerlegs ‘Asian Hercules II’ and
the diving/work platform ‘Smit Ibis’ were mobi-
lised for this operation. This wreck was cut into
three sections, each with a weight of around
2,000 tonnes.
On November 11th the last section of the wreck
of the cruise vessel ‘Royal Pacific’ was cleared
at the Korean port of Kaohsiung. ‘Royal Pacific’
capsized in July of last year - fortunately with
no loss of life. In August SMIT was contracted
for the wreck removal, involving the 1,000
tonnes lift capacity sheerlegs ‘Smit Cyclone’.
This wreck was cut into nine sections.
gLOBAL SPREAd OF SMIT’S SALvAgE OPERATIONS
The severely damaged bulk carrier
‘Twin Star’ collided with a Cypriot vessel.
Container carrier ‘SITC Bangkok’ ran aground in Cambodia.
www.smit.com�
tug magazine
SMIT’s role in assisting the efforts to recover
from the devastating effects of hurricanes
Katrina and Rita were reported in the last
issue of Tug Magazine. This extensive pro-
gramme of work continued into the first
quarter of 2006.
SMIT Salvage Director Hans van Rooij says:
“Perhaps 3,000 vessels of all sizes became
casualties to some degree in the wake of
these disastrous storms. Much of our work has
focused on the damaged offshore oil and gas
infrastructure in the US Gulf.
“Many platforms and rigs were ripped away
from their legs by the violent winds and 20ft
storm surge. Some were driven ashore. Others
were secured and taken to safe locations for
inspection and repair, or to scrapyards. We
refloated a number of rigs in the final quarter
of last year. Many of these operations were
challenging, with extensive patching required,
together with complex stability calculations
and the removal of broken leg sections, in
some cases fouling the wrecks. The remains of
many legs in the seabed had to be removed in
order to free the wells.
SMIT mobilised two large floating sheerlegs
to tackle these assignments. The 1,000 tonnes
‘Smit Cyclone’ arrived in the US Gulf from
Singapore. In addition, ‘Taklift 1’ was mobilised
from Venezuela. Some broken leg sections
had to be removed from water depths of up
to 150 m. A technique was developed which
involved breaking into lines and injecting air
and water, to put pressure on the spud cans, so
helping to break the powerful suction forces.
The tasks dealt with by SMIT’s teams in the first
quarter of 2006 included engineering prepara-
tions for the operation to recover the tension
leg platform (TLP) ‘Typhoon’. This installation,
with a length of 100 m, capsized when struck
by the hurricane. This TLP is now sitting on its
accommodation, in some 100 m of water, with
its floats still above the surface.
SMIT Salvage’s Commercial Director Geert
Koffeman says: “This project requires some
complex engineering. The preparations on site
began with test drilling, to check pressures
in a range of tanks. The TLP will be refloated
and righted by a combination of techniques
- mainly pressurisation.”
New Year’s Day saw the completion of one of
SMIT’s major rig salvage operations - with the
three-leg jack-up ‘High Island ll’ returned to a
normal operating environment by an innova-
tive recovery method.
This work began in early November. The
project was the fourth rig salvage undertaken
by SMIT in the aftermath of Katrina and Rita.
The jack-up had been hit hard. The legs were
misaligned and the main deck had a trim dif-
ferential of 5 deg. To aggravate matters, ‘High
Island ll’ was close to a Chevron production
platform. Furthermore, the extensive work
programme had to be carried out in Winter
conditions.
SMIT’s brief was to provide and install a pull-
barge on location with a capacity to exert a
pull-force of 1,200 tonnes to the rig. This was
the first use of the pull-barge method. There
were many advantages: lower costs, no further
damage to the rig and the opportunity for
a timely resumption of the jack-up’s drilling
programme.
The main operation commenced on December
30th , when pressure on the bow leg was
achieved. All legs were then correctly aligned
and the rig was then free to commence a
normal jack-down.
Zero cost OPA 90 coverDonjon-SMIT has now announced a new
arrangement providing free cover for salvage,
firefighting and lightering under the US Oil
Pollution Act 1990 (OPA 90).
Donjon-SMIT’s Commercial Manager, Dick
Fredricks, says: “We are very pleased to offer
this no cost standby coverage to our clients
and prospective customers.”
Most OPA 90 emergency service providers
charge fees for this coverage, especially for
tank vessels. Donjon-SMIT now offers free
standby coverage for all ship types - both tank
vessels and non-tank vessels.
The joint venture Donjon-SMIT was estab-
lished in 2004 by New Jersey-based Donjon
Marine Co, Inc and Texas-based SMIT Salvage
Americas, with the specific purpose of provid-
ing OPA 90 compliance services.
KATRINA/RITA: WORK CONTINUES TO SPEEd RECOvERY
A salvage team sets foot on the capsized TLP ‘Typhoon’.
SMIT Salvage aligned the legs of jack-up rig
‘High Island II’ by use of the pull-barge method.
SMIT’s preparations are well advanced
for the establishment of a joint venture in
Kazakhstan to offer a wide range of trans-
port and associated services to the coun-
try’s rapidly expanding oil and gas sector.
Abel Dutilh, Managing Director of SMIT
Transport & Heavy Lift, says: “The prospects
in this market are very lively and we need the
structure in place to make the most of promis-
ing opportunities. The key factor here is the
development of the Caspian’s extensive hydro-
carbon reserves. The Caspian is said to hold the
world’s second largest reserves of oil and gas.”
“We are already responding to requests for ten-
ders in Kazakhstan. The immediate prospects
centre on the provision of small to medium ice
class tugs and ice-strengthened barges.”
The division is making a growing contribu-
tion to SMIT’s drive for greater income stabil-
ity. In the transport sector, for example, the
introduction into service of the three Keppel
Singmarine-built vessels ‘Smit Kamara’, ‘Smit
Nicobar’ and ‘Smit Komodo’ will open up new
prospects for long-term employment.
‘Smit Kamara’, one of this new class offshore
support, anchorhandling and towing vessels,
is already working under a long-term charter
to the Shell UK/NAM partnership in the North
Sea.
‘Smit Kamara’ features an
innovative Offshore Access
System, a special access
bridge allowing maintenance
crews to transfer safely to
platforms in the southern
North Sea. ‘Smit Kamara’
commenced this charter
on January 1st. The vessel is
based at Den Helder when
operating on the Dutch Shelf
and out of Lowestoft when
working in the UK sector.
Abel Dutilh adds: “The con-
cept here is the provision of a
cost-effective and safe alter-
native to helicopter transpor-
tation of maintenance crews.
The ‘Smit Kamara’ and her
Offshore Access System offers
an attractive alternative.”
Meanwhile, ‘Smit Komodo’
commenced a two-year plus
one contract with Petrobel,
Egypt, during February of this year. The vessel
is working in the anchorhandling, towage and
supply role, supporting a number of offshore
production installations.
In addition, ‘Smit Nicobar’ will commence
an initial six-month contract with Consafe in
June - immediately upon her delivery from
Singapore. The task is to support offshore facil-
ities in the waters off Sakhalin. Consafe’s client
is Sakhalin Energy Investment Co.
A new phase of fleet expansion was marked by
the acquisition of seven new multipurpose
work vessels. These newbuildings, in the 75
tonnes bollard pull class, are of the ‘Smit
Kamara’/’Smit Komodo’ type and were pur-
chased from Hadi H. Al-Hamman Est of Saudi
Arabia. Two of the vessels will join the fleet this
year. The remainder will follow in the period to
May 2008. Three of the newbuilds have already
secured long-term offshore employment, for
Saudi Aramco in Saudi waters, through Hadi H.
Al-Hamman Est.
In the heavy lift sector, the fleet restructur-
ing process has been completed. The smaller
floating sheerlegs ‘Ajax’ and ‘Taklift 3’ have
been sold. ‘Taklift 1’ was also earmarked for
sale but action on this front has been deferred.
This sheerlegs found profitable employment
in Venezuela and will be redeployed subse-
quently to the Gulf of Mexico to participate in
a range of salvage-related projects associated
with clearance work following the 2005 hur-
ricanes. It appears likely that ‘Taklift 1’ will con-
tinue in service with SMIT Transport &Heavy
Lift for at least another year.
Abel Dutilh concludes: “Non-performing assets
in the Transport & Heavy Lift fleet have now
been sold. We are now on the verge of embark-
ing on a newbuilding programme. The main
aim is fleet replacement but there is also scope
for gradual expansion, with the focus on long
term employment opportunities.”
SMIT’s 1,200 tonnes sheerlegs ‘Taklift 7’ completed a major German
bridge building programme during April. The crane had spent
several months at the new Stralsund Bridge, on the German Baltic
coast. This suspension bridge links the mainland with the island of
Rügen.
‘Taklift 7’s recent career has focused on bridge projects, including a long
series of heavy lifts for the Rion-Antirion Bridge in Greece. In the case of
Stralsund, the sheerlegs lifted a total of 13 pylon sections and 16 bridge
sections, with maximum weights in the 800 tonnes range.
The lifting programme was completed successfully despite heavy ice
and prolonged periods of poor weather.
‘Taklift 7’ made a valuable contribution to the construction of this
box girder road bridge, which allows the B96 city bypass to cross the
Greifswalder Chaussee. Construction of the four-lane Stralsund bypass
began in 1997. The new bypass had reached the ferry check-in area at
Sassnitz Port by the following year.
The construction of the highest section of the Stralsund Bridge involved
the lift and positioning of the top unit of a 127 m pylon, with a weight of
84 tonnes. ‘Taklift 7’ employed its 175 m long boom for this task.
On completion of the Stralsund project, ‘Taklift 7’ will proceed to
Rotterdam to carry out a number of assignments in the area. During its
demobilization from Stralsund to Rotterdam, it will launch the hull of MV
Magnus at Mützelfeldtwerft in Cuxhaven. Assignments in the Rotterdam
area include participation in the Michelle wreck removal operation. Later
this year the sheerlegs will lift into position the living quarters for the
‘Terra Nova’ FPSO at Keppel Verolme, Rotterdam. This project involves
two contracts. The first calls for the transport of the accommodation
module from Newfoundland. ‘Smit Anambas’ and a large barge will be
deployed for this assignment. Later in July, ‘Taklift 7’ together with the
‘Matador 3’ will lift the living quarters into place.
During August ‘Taklift 7’ will proceed to Rouen, where the
sheerlegs will resume its bridge-building duties. The Rouen
bridge forms part of a scheme to reduce city traffic conges-
tion. The main lifts involve two bridge sections with maxi-
mum dimensions of 80 m and 120 m, together with various
other elements. The sheerlegs will be rigged with the long
boom for some of the lifts.
Elsewhere in the world, SMIT’s sheerlegs remain busy in
Brazil. ‘Taklift 4’ is in the Rio area, lifting modules for the
‘P52’ FPSO at Keppel Fels. This 1,600 tonnes sheerlegs
arrived in Brazil during late January and will stay in the
area until June. At that point the ‘P52’ heavy lift work pro-
gramme will have been completed. It is likely that ‘Taklift
4’ will then mobilise to the Gulf of Mexico to join the long-
running wreck and debris clearance programmes still under
way following the devastating hurricanes of last year.
‘Taklift 6’, with a 1,200 tonnes lift capacity, has been based
in Brazil for some years. This sheerlegs has provided heavy
lift support for a number of FPSO projects, including
Barracuda/Caratinga. ‘Taklift 6’ is also involved in the ‘P52’
project at BrasFels’ Angra Dos Reis integration yard. FPSO-
related work is likely to keep ‘Taklift 6’ in the area for the
foreseeable future.
‘Taklift 1’, with a lift capacity of 800 tonnes, has been lifting
modules for offshore fabricators Jantesa. This work is under
way in the Maracaibo area, Venezuela. The sheerlegs is lift-
ing modules requiring refurbishment. During August the
crane will reinstall these modules. During the intervening
months, ‘Taklift 1’ will proceed to the US Gulf, to assist in the