MARAN GAS MARITIME INC. STAVROS HATZIGRIGORIS 28th March 2017 Safe ships - Clean seas - Commercial efficiency
Contents 1 The Angelicoussis Shipping Group (ASG) 2 The World Fleet The World Order Book 3 The Greek Fleet 4 The Makers List 5 Value of Ship Equipment vs Annual Cost of Spare Parts 6 Rough analysis of a VLCC cost 7 Replace or Repair or Overhaul? 8 The experience with the HEMEXPO Members 9 The way forward 2
1. ANGELICOUSSIS SHIPPING GROUP THE FLEETS DRY BULK CARGO average years of age: 8.0 Number Operating 51 On Order 0 Sub-Total 51 CRUDE OIL TANKERS average years of age: 10.4 LNG Carriers average years of age: 3.4 Fleet as on 15 th Mar 2017 7 VLCCs on bareboat charter to Chevron Operating* 42 On Order 8 Sub-Total 50 Operating 26 On Order 7 Sub-Total 33 TOTAL 134 3
2. The World Fleet The World Order Book Source: Clarksons Research Shipping Intelligence Weekly 17Mar2017 4
2. The World Fleet The World Order Book Source: Clarksons Research Shipping Intelligence Weekly 17Mar2017 5
3. The Greek Fleet Source: GSCC Report March 2017 Date Ships DWT GT March 2000 3584 150966324 90227491 March 2001 3618 168434370 100220348 March 2001 3480 164613935 98195100 May 2003 3355 171593487 103807860 March 2004 3370 180140898 108929135 March 2005 3338 182540868 109377819 March 2006 3397 190058534 113603803 February 2007 3699 218229552 129765470 February 2008 4173 260929221 154599274 February 2009 4161 263560741 156214619 February 2010 3996 258121898 152616046 March 2011 3848 261675981 153128919 March 2012 3760 264054167 155904976 March 2013 3677 265336520 155988384 March 2014 3901 290847132 170984684 March 2015 4057 314456451 184063875 February 2016 4092 320597574 188904194 March 2017 4085 328763767 192430519 6
3. The Greek Fleet 2000-2017 GREEK FLEET PROGRESS 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 DWT GT Source: GSCC Report March 2017 7
3. The Greek Fleet Flag analysis of ships owned by Greek Parent Companies Source: GSCC Report March 2017 8
3. The Greek Fleet Ship Type, DWT and Order Book Greek Parent Companies Source: GSCC Report March 2017 9
3. The Greek Fleet CLASS ANALYSIS OF GREEK PARENT COMPANIES CLASS 2017 2016 LR 834 856-22 ABS 768 779-11 CLASS NK 744 732 12 BV 688 681 7 DNV GL 668 702-34 RINA 191 165 26 CLASS ANALYSIS OF GREEK REGISTERED FLEET CLASS 2017 2016 LR 223 261-38 ABS 207 211-4 DNV GL 117 130-13 RINA 80 78 2 BV 66 77-11 CLASS NK 20 25-5 Source: GSCC Report March 2017 10
4. The Makers List ü 59 Makers included in the list by the building Yard. 11
4. The Makers List 12
4. The Makers List 13
4. The Makers List ü 29 Items added during contract negooaoons. 14
4. The Makers List 15
4. The Makers List The standard clause: 1) The Builder may select any of the suppliers named in the "Suppliers List" and shall noofy the Owner of the Builder's proposed supplier who, the Builder warrants, shall be able to supply the relevant item in accordance with the SpecificaOons. 16
4. The Makers List 2) The Owner may request the Builder to apply a supplier from the "Suppliers List" other than that proposed by the Builder provided that the supplier has no impacts on Builder s producoon and the Owner shall bear the difference in cost. In the event that the Owner requests an alternaove supplier, the Owner shall noofy the Builder within ten (10) calendar days from the date of receipt of the Builder's nooce for the proposed supplier and the Builder shall inform the Owner of any cost change and any other changes involved. The Owner shall then noofy the Builder of the choice within ten (10) calendar days from the date of receipt of such Builder s informaoon. In the event of failure of such acoon by the Owner, the supplier proposed by the Builder shall be regarded as accepted by the Owner. In the event of failure of an agreement between the Owner and the Builder within two (2) months from the date of receipt of the Builder s first informaoon about supplier selecoon, the supplier proposed by the Builder shall be regarded as accepted by the Owner. 17
4. The Makers List 3) SelecOon of the suppliers for the items not specified in the "Suppliers List" shall be le[ to the Builder's discreoon. 4) Builder will exercise best effort to maintain same makers as on H2288 series vessel except those makers who do not appear on this list or those with indicaoon for compeooon purpose only. All charges to be mutually agreed between the Owner and the Builder. 18
4. The Makers List The addioonal recommended clause: Legends #) To be considered subject to mutual agreement at the maker selecoon stage or if there is no problem on H2288. ##) To be considered for compeooon purpose only. ###) To be discussed based on the cost menooned in LOI base at the later stage. 19
5. Value of Ship Equipment vs Annual Cost of Spare Parts v Air Compressors VLCC Selling price of: - 2 x Main StarOng & 1 x Topping Up & 1 x Service Piston Compressors à 46.000 USD - the 2.000 hrs spare parts for the main starong compressor (needed every 1,5 years if the use of the main compressor is not controlled) à 4.000 EUR Cost of parts for the 4 compressors per year circa 15% of the selling price to the Yard. ü The MTM soluoon, install a rotary compressor and isolate the main air compressors, average yearly hours for the two main compressors less than 500 EUR. 20
5. Value of Ship Equipment vs Annual Cost of Spare Parts v Purifiers VLCC Selling price of: - 2 x HFO & 2 x Main Engine LO & 1 x Diesel Generator LO Purifier Price list cost of spare overhaul kits for the: - HFO Purifiers - LO Purifiers (1 for M/E & 1 for D/G) à 105.000 USD à 11.000 USD à 8.500 USD Total cost : 18% of the selling cost per year. 21
6. Rough analysis of a VLCC cost MAIN ENGINE 7.1 DIESEL GENERATORS 0.9 ALL OTHER EQUIPMENT 18 STEEL 30.4 OUTFITTING 2 PIPING 5 PAINTS 1.8 LABOR 8.8 OVERHEAD 4.5 DIESIGN / MARKETING 1.5 TOTAL 80 M USD [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] [CATEGORY NAME] [VALUE] M USD [PERCENTAGE] 22
7. Replace or Repair or Overhaul? 1. A diesel generator engine was purchased as a unit at newbuilding price to replace a damaged crankshaft / engine block. A vast quantity of parts was made available to the trading fleet. 2. Several times air compressors and purifiers have been replaced instead of buying parts for repairing an extensive kind of damage. 3. Certain types of equipment on Korean built ships become uneconomical to repair and have to be replaced close to the second Special Survey of ships. 4. Even recently produced / installed equipment has to be replaced due to changes in regulation. ECDIS is a recent and profound example. 23
8. The experience with the HEMEXPO Members Have up to now uolized (for NBs or exisong ships): Ø KORONAKIS Ø EPE Ø FARAD Ø KLEEMAN Ø ALUNIXOX Ø VALIADIS Ø RAYCAP The response of several makers was excellent and have managed to develop with them (90% them 10% us) new breeds of equipment. 24
8. The experience with the HEMEXPO Members The main negaove remarks are: 1. A bureaucraoc approach of their sales people. 2. Some of the foreign makers have been visiong us more o[en than the HEMEXPO Members. 3. Some Members seem to be deeply absorbed by their problems. 4. The development / ceroficaoon of new products that we need is preoy slow. 5. As in many sectors of the Greek Economy cooperaoon between the various departments seems to be problemaoc. We have many Omes received a response: We have passed your enquiry to the Service or Forwarding dept., please contact them. 6. One Member said: We have miscalculated our offer to the Yard. We prefer to withdraw. 7. Our involvement in the drawings that were to be submioed to the Yards was minimal. 25
9. The way forward ü The main argument that we used with the Koreans was There has been an agreement between Mrs. Park and President Papoulias to uolize Greek makers on the Greek Korean newbuildings. When is the new Greek President going to visit his new Korean counterpart? ü The development of new products is a must. ü There is a number of Greek workshops that manufacture parts for the account of major European and Japanese equipment manufacturers. Cannot see why all the copy parts (many of them substandard products) are manufactured in other European countries and not in Greece. Perfect quality control is a must. ü The current orderbook is low. (shown in the first part of the presentaoon). The NB Market will re- bounce. Are the Hemexpo Members ready to face the new challenges? ü Based on the fact that the prices offered by Hemexpo in Korea are compeoove and that the European manufacturers are selling their equipment at higher prices, the representaoon of Hemexpo in Korea and in China is a must. 26
Thank you 27