4th Germanischer Lloyd Korean Industry Committee

Gyeongju / Busan, 16 June 2008 – More than 40 members of the Korean maritime supply industry met for Germanischer Lloyd’s 4th Korean Industry Committee in Gyeongju, South Korea. Committee Chairman Mr. Seung-Nam Yoo welcomed representatives from the industry manufacturing engines, anchor chains, insulation material and rudders. Germanischer Lloyd presented a program focussing on the industry’s current challenges: Environmental requirements, quality assurance, ship recycling and inspections for the offshore industry were on the agenda.

In 2007, new orders secured by Korean shipbuilders recorded a historic high of 707 ships with 23.6 million CGT, which is a huge share surge of 45.2% in 2006. In addition, Korean shipbuilders increased their market share for new orders to 40% from 38% a year earlier. This is due to their comparative advantage in technology as well as the continued boom in the shipping market. In 2007, 12.8 Million GT were delivered with GL class from Korean shipyards. This makes Korea the country with the largest number of GL classed deliveries in the past year.

The supply industry benefits especially from the fact that Korean shipyards in view of strong Chinese competition increasingly shift to the production of higher value ships. In turn, materials and components with technologically, environmentally and qualitatively advanced features are in high demand. The Korean shipbuilding supply industry ranks third in the world, but is the preferred partner for Korean shipyards. The 165 companies that are organized in the Korea Marine Equipment Association represent roughly 80 % of the entire industry. In 2006, they produced components valuing 7.4 bn Won. Most important components are engines and machinery, equipment (Ausstattung), electronic parts and components for hull structures.

Environmental Challenges for Shipping

Reducing CO2 emissions from ships has a high environmental priority for the shipping industry. Dr. Hermann J. Klein, Member of the Executive Board presented the “CO2-index and New Emission Limits”. Germanischer Lloyd demonstrates the availability and functionality of an operational CO2-index for shipping: The classification society has launched this CO2-index based on MEPC/Circ.471, which is available for all GL classed ships.

Five large containerships – built at HHI in Korea – of Greek shipping company Costamare will be the first worldwide to operate in full compliance with MEPC / circ. 471 of IMO regarding operational CO2 indexing. Costamare has registered the vessels COSCO Guangzhou, COSCO, Ningbo, COSCO Yantian, COSCO Beijing and COSCO Hellas with Germanischer Lloyd’s operational CO2 indexing program. On the basis of consumed fuel, transported cargo and distance sailed, CO2 emissions are to be determined using Carbon emission factors. Computed index values can be compared to sister ships’ indices and eventually be used to minimise emissions from transport. The agreement was signed last week at the Posidonia exhibition in Greece.

How the manufacturers of components need to prepare for the new IMO convention on safe and environmentally sound recycling of ships was presented by Henning Graman, GL’s recycling expert. The core element of the convention for shipyards and ship owners will be a compendium of the potentially hazardous materials present in ship structure and equipment, called the “Inventory of Hazardous Materials” (IHM). The suppliers will have to prepare a so-called “Suppliers Declaration of Conformity” and Materials Declarations providing details of the hazardous materials contained in their products. These documents will form the basis for the ship specific Inventory of Hazardous Materials which will be developed by the shipyard.

Certification for Safety and Quality

The new modular certification system for maritime components and assemblies was explained from Peter Leveringhaus, Head of Division Maritime Systems and Components. In mid-March an agreement for alternative product certification between CENTA Transmissions and GL was signed. The company is one of the first partners in a pilot project to test the new system.

The ability to handle large installed electrical powers, the high level of installation safety and the availability after faults are the main reasons for medium voltage installation onboard large container ships. In regard to this ship type, the electrical characteristics, the ship’s network and the medium voltage switchboard installations were presented by Christoph Kutzner, GL plan approval expert, in his speech about “Medium voltage installations onboard large container ships”.

Recently analyst issued the problems in regard to such like cracks and rust on the Stainless steel welding. Stainless steel welding specially in SUS 304 is required that base metal and welding consumable are should selected wisely matching their characteristics. Otherwise, cracks and/or rust on the welding area for the vessel or Industrial are shall following in a short periods. Wise selection of both base metal and welding consumables was presented by Dr. Dong-Hwan, Park, Professor of Ulsan University, in his speech about “Characteristics of Stainless Steel Welding”.

Maritime and Offshore Components

The industrial services of Germanischer Lloyd provide third party certification and inspection, independent design verification, as well as risk-based inspections and condition surveys to the oil and gas and wind energy industries. How Germanischer Lloyd supports the manufacturing industry with regard to the inspection and certification for large scale industrial projects was presented by Germanischer Lloyd Regional Manager Asia/Pacific for the Industrial Services, Bruno Solinas.

The network of services to the oil and gas industry in Asia has been complemented with the acquisition of engineering company Trident Consultants in Kuala Lumpur, Malaysia in May. The scope of Trident Consultants’ capabilities comprises application in areas such as oil & gas operation and production, petrochemical, utilities, and environmental sectors. The company specialises in the management of risks to operations and from operating systems to people, the environment, asset revenue and reputation. The 80 engineers have extensive experience with regard to Floating, Production, Storage and Offloading facilities (FPSO). Since their formation in 1982, Trident Consultants have provided services for more than 30 FPSO’s.

Germanischer Lloyd in Korea

The Korean Industry Committee was founded on Jeju Island in August 2005 in order to promote the exchange of information between the shipbuilding supply industry, engine manufactures, producers of steel, cast and forged metal components, and Germanischer Lloyd.

GL’s first Korean base was opened in Busan in 1977, further stations followed in Ulsan and on Geoje Island. Today, a total of 150 people are employed by Germanischer Lloyd in Korea, including surveyors and plan approvers. The focus lies on newbuilding classification and certification of materials and components.

Germanischer Lloyd press release