BRIDGE VIEW Operational realities: Vasant Nair, General Manager, Eagle Ship Management

1. BRIDGE VIEW • Operational realities: • Vasant Nair, General Manager, Eagle Ship Management Corporate Risk ManagementBridging the Environment and the Bottom Line

2. Environmental Protection • AIR POLLUTION – CO2 EMISSIONS • BALLAST WATER MANAGEMENT – 2012 • OIL POLLUTION – ONGOING ISSUES • WASTE DISPOSAL – HOLD CLEANING RESIDUES AND MARPOL CHANGES • MARPOL/SECA/CARB/NEW YORK HARBOR – WHO’S IN CHARGE HERE?

3. AIR POLLUTION – CO2 Emissions • EXTERNAL FACTORS • WORLDWIDE DECLINE IN BUNKER QUALITY • LIMITED STORAGE AND SEGREGATION OPTIONS ON BOARD • DIFFERENT RULES FOR DIFFERENT AREAS • OPTIONS • Increased spending on analysis and testing of fuels • Slow streaming to reduce consumption – the longer voyage with less consumption? • Increased voyage planning for optimal tank wise storage

4. Ballast Water Management - 2012 • USA : 33 CFR 151 The draft Ballast Water Discharge Standard (BWDS) rulemaking package is currently in review.   The Coast Guard has entered the final rule stage, and is pending final approval by the White House’s Office of Management and Budget. Also, EPA expects to release the VGP for public comment in November 2011. • Worldwide : Implementation of MARPOL 73/78

5. Ballast Water Treatment Systems • DEOXYGENATION AND CAVITATION • ULTRAVIOLET & FILTRATION • OXIDATION WITH AND W/O FILTRATION • ELECTRO-CHLORINATION WITH AND W/O FILTRATION • OZONE & OTHER ACTIVE SUBSTANCES WITH AND W/O FILTRATION • 17 BWTS technologies have received Type Approval- Are any of these the solution?

6. BWTS – PROBLEMS AND CONSIDERATIONS • COST • RATED TREATMENT CAPACITY M3/HR • EFFECTIVENESS OVER TIME • MAINTENANCE • RETROFITTING • SALINITY • POWER REQUIREMENTS • FUEL CONSUMPTION • UNIFIED WORLDWIDE STANDARDS? • TECHNICAL SUPPORT • PSC INSPECTION CRITERIA

7. Marpol 73/78 is the International Convention for the Prevention of Pollution From Ships, 1973 as modified by the Protocol of 1978. • All ships flagged under countries that are signatories to MARPOL are subject to its requirements, regardless of where they sail and member nations are responsible for vessels registered under their respective nationalities

8. MARPOL ANNEX I EXPERIENCE TO DATE.... … • Signs of tampering with pipelines e.g. Fresh paint, signs of opening of nut/bolts of flanges. • Inconsistencies in ORB entries and Crew statements. • Suspicious temporary arrangements of transfers. • Signs of oil in OWS Overboard line (internally). • Signs of tampering with OCM including flushing connections ,wires etc. • Bilge condition poor and Oily. • Malfunctioning equipment/controls. EAGLE SHIP MANAGEMENT

9. Common Issues • OWS – malfunction, full with oil/sludge when opened, • filters torn, no spare filters –very common finding as per USCG inspectors. • 15 ppm monitor – alarm with automatic stopping/3 way valve inoperative, no calibration record of monitor. • Standard Discharge connection blind flange bolts frozen • Bilges filled with oil, Portable pumps, hoses and cleaning products in Engine room-raises suspicion of wrong doing. • OWS overboard valve not locked in port . • Overboard discharge piping/stub-piece found internally coated with Oil. EAGLE SHIP MANAGEMENT

10. COMMON ISSUES • Changes to sludge/bilge lines/OWS from original approved drawing, presence of magic pipe/illegal pipe • Evidence of loose bolts, blanked flanges, dead end valves on OWS and its piping OR chipped paint, oily hand prints against hull or piping – raises suspicion of wrong doing. • Removal of overboard pipe/valve for maintenance purposes OR for inspection by PSC/external authority, --Always record the same in Engine Log book . • Entries in ORB – Falsification, errors are most • common violations –invites legal action/prosecution.

11. C/V “RENA” Astrolabe Reef Tauranga NZ 05 2011 • Officers in Rena grounding face further charges • Further charges have been laid by Maritime New Zealand (MNZ) against the Master and Second Officer of the of the Costamare-owned 3,032 TEU containership Rena, following the ship's grounding on Astrolabe Reef off Tauranga on October 5.Both officers now face one charge under section 338 (1B) and (15B) of the Resource Management Act 1991 (RMA) relating to the "discharge of harmful substances from ships or offshore installations."The RMA charge carries a maximum penalty of a fine of NZ $300,000, or two years' imprisonment, and $10,000 for every day the offending continues.The Master and Second Officer (Navigation) had earlier been charged by Maritime New Zealand (MNZ) under section 65 of the Maritime Transport Act 1994 (MTA), "for operating a vessel in a manner causing unnecessary danger or risk."They have been remanded on bail without plea to reappear in the Tauranga District Court today (Wednesday, November 2) on that charge and will face the RMA charge at the same appearance. Their names and identities are suppressed.The MTA charge carries a maximum penalty of  NZ$10,000 or a maximum term of imprisonment of 12 months.MNZ says it will make no further comment while the matter is before the courts.November 2, 2011

13. CONCLUSIONS • THE MARITIME INDUSTRY IS GEARING UP FOR THE MANY NEW REGULATIONS THAT WILL COME INTO FORCE SOON • INDUSTRY HAS GENERALLY BEEN VERY RECEPTIVE TO THESE REGULATIONS • CONCERNS REMAIN REGARDING COSTS, PRACTICALITY OF APPLICATION, TRAINING OF SEAFARERS, ETC • BIGGEST CONCERN IS IN EFFECTIVE ENFORCEMENT AND THE NEED FOR A LEVEL PLAYING FIELD • ENVIRONMENTAL BENEFITS OF THESE NEW MEASURES WILL PROBABLY NOT BE SEEN IMMEDIATELY BUT IF PROPERLY IMPLEMENTD, THE BENEFITS WILL BE THERE!