Quarterly October 2004

odfjell quarterly 1

C O M P A N Y M A G A Z I N E F O R T H E O D F J E L L G R O U P - O C T O B E R 2 0 0 4

odfjell quarterly 2 odfjell quarterly 3

P.O. Box 6101 Postterminalen

N-5892 Bergen

Norway

Tel: + 47 55 27 00 00

Fax: + 47 55 28 47 41

E-mail: [email protected]

Internett: www.odfjell.com

Editor:

Klaus Walderhaug

Editorial committee:

Tor Johansen

Brit A. Bennett

Ellen Skagen

Tor Jürgensen

Helge Olsen

Geir Mjelde

Correspondents:

Houston:

Petter Maasoe

Singapore:

Atle Knutsen

Manila:

Kjell Johansen

Rotterdam:

Theo Kruithof

Deadline next issue: November 22nd

Design: Feedback AS

Cover: Bow Spring during sea trials (Photo: Tor-Arve Skjerli, Machinery Inspector)The Lady Sponsor Mrs. Lourdes (Lulu) C. Halog (Photo: Tom Haugen)

In this issue:

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25

26

27

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Naming Ceremony of M/T Bow Spring

Odfjell Safety Initiative

Odfjell Ship Officers Conference 2004

Management Development Program

INDIA An emerging Asian superpower

Odfjell enters into new terminal Venture in China

Our Associated South American Terminals

Risk Management News

Vessel of the issue:NCC Baha

Phasing Out Single-hull Tankers

A new Location for Odfjell’s PID Laboratory

The Odfjell Quarterly Brain Teaser

Greetings From Around the World

FR Waring

The Quality Renaissance Project status

Future Ship Management of Odfjell-owned Vessels

The Personnel Corner


During the week September 13th to 17th two important seminars were held in Bergen; the Management Conference and the Ship Officers Conference. The main focus at both these meetings was on safety. Odfjell has been through a tough year with serious events and accidents, and 24 persons have lost their lives in Odfjell’s service. I feel a special responsibility to address this issue, and my message to all of you is that safety is something we shall never compromise on. Remember that safety is not only important on board our ships, but also at our terminals, during container operations and in all parts of our work. As I previously have stated in this column: Safety comes first!

Hence, supported by the Board and the Senior Management Group we have decided to address the whole Odfjell organization through a Safety Initiative. I know that safety is not something that we create solely through a campaign. It has to be embedded in the company culture, and we have to have it under our skin, in our bones so to say. Many accidents happen because people who should know how to do things right, for some reason did it wrong, or made some shortcuts. Bearing in mind we are operating in a risk-exposed industry, handling hazardous and explosive cargoes. We have many skilled and experienced people worldwide with sound attitudes, but we need to be alert and to improve our safety standards, and never get “relaxed” on safety issues. Of course there will always be the commercial pressure, but let there be no misunderstanding: High safety-standards are cost-effective to our business.

Our safety policy shall be founded on the “zero accident” philosophy”. Odfjell shall not accept any accident to happen, and we

shall be recognized as a leading company also within the area of safety. This is indeed ambitious, but I am confident that there simply are no alternatives if we wish to continue in this business. And be certain that we shall! I ask you all to contribute in reaching this goal.

Looking at the 1st half 2004 results, I am happy to recognize that most of our business units are doing well. The revenues from our vessels are increasing, and the market for chemical tankers is developing favourably. The terminals and containers give good and stable income. There are also other positive factors. Recently we took delivery of Bow Spring, the third ship in our new Polish series. These ships are performing very well, and we have decided to increase the series from six to now eight ships. Odfjell has also been awarded a license for doing coastal tanker operations in China, together with a Chinese partner. Further, we have entered into a joint venture with another Chinese partner for building a new tank storage terminal in Jiangyin on the Yangtze River.

However, although our results are better they aren’t that good, and there is definitely room for improvements. Although the markets are turning in our favour, freight rates still do not reflect our real service costs and offer a reasonable return on our long-term investments. It is essential that we all take ownership to our business, and that we work together to strengthen Odfjell’s position.

Finally I wish all of you in the Northern hemisphere a pleasant fall and those of you below the Equator an even nicer spring. Let me also express my recognition and gratitude for your continuous efforts for Odfjell.

Dear Colleagues...

Terje Storeng, President/CEO


As my Board colleague Peter Livanos recently put it, the parcel tanker business is the most complicated segment of the shipping industry. Not that I know too well all the many other shipping segments, but nevertheless, I believe Peter to be absolutely right.

During an all-employee company Christmas dinner some years back, a now retired and spirited Board member gave a speech. He confided that at Board meetings we talked about many things, sometimes even strategy...

Your present Board is very much preoccupied with the evolution of the parcel tanker business, from a long term perspective. There are many technical and regulatory aspects to cope with, and much vetting and varying and arbitrary restrictions of all kinds around the world. New ships are therefore becoming vastly more expensive to build, with delivery far out. Out at sea such big new units are economical. The problem is loading and discharging, and the fact that we spend around 40% of a ship’s time in port. Why? Because we cater to many and difficult products from and to multi-ports, even multi-berths within each port. Something has to give; either we must improve on efficiency (and God knows we try) or else we need to be better paid - - not exactly music to the ears of our clients. But what is the alternative? There will otherwise be insufficient fleet renewal, which to our clients is even worse. Not only will freights increase substantially, but there may not be enough transportation to go around. But our clients do not appear to care to worry that far out.

The Board has looked to the transoceanic container lines, a success story. How do they achieve their impressive efficiency, their competitive costs? Elementary, Dr. Watson: Larger ships, ever more speed, and less than 20% of time spent in port. In other words, time in port is a large part of the answer: The container ships make one-stop and

consolidate all loading and all discharging to one berth. The clients bring (or fetch) the cargoes (the container boxes) alongside large and specialized terminals, where speed is of the essence. Contrast that to our trade where we are shifting around from berth to berth and up many a creek. Not strange that our large ships spend a week or two during a US Gulf pickup, where a container ship would have been in and out in a day or two, and back to sea steaming profitably ahead. With large stainless steel parcel tankers now costing US$ 80 million or more to replace (vastly more than in the past) there is no economy in shifting about. The upshot? Either future freights must reflect true costs of customer imposed inefficiencies, such as shiftings, or else shiftings must be greatly reduced, if not eliminated.

Remember, we are talking the long term perspective, in which context as a company we have already achieved something important: We now own and operate some major, efficient terminals at important junctions around the world. Already we are arguing harder for consolidation, because it makes sense both to our clients and to us. What we strive for is operating excellence; cutting costs without compromising on safety. The risk of something going wrong, incidentally, when navigating in narrow waters to many and, sometimes, to inadequate berths translates into another reason for our becoming, really out of necessity, more discretionary about the business we entertain especially with our larger ships.

At the beginning of this Chairman’s message I talked about developments as an evolution, not as a revolution. But an accelerating evolution is indeed in process and - - in keeping with Darwin’s theory - - it’s all about the survival of the fittest. So be fit for fight also for the many and daily tedious tasks, in keeping up with our overriding strategy; operational excellence and competitiveness.

Chairman´s Message:

Dan Odfjell


The naming ceremony for the world´s largest sophisticated chemical parcel tanker was held at the Stocznia Szczecinska Nowa yard, Szczecin, Poland on August 28th 2004. Lady Sponsor of the ship was Mrs. Lourdes (Lulu) C. Halog, the Administrative Manager of Odfjell Manila. After firmly breaking the bottle on the first go, Lulu held a wonderful speech wishing Bow Spring, with her officers and crew, safe and prosperous journeys on all seas. Lulu’s speech touched the hearts of everyone present. Mr. Andrzej Stachura, President of the Stocznia Szczecinska Nowa, thanked Odfjell for outstanding cooperation in building Bow Spring and her sister vessels, Bow Sun and Bow Star, and looked forward to a long-lasting relationship. Mr. Dan Odfjell, Chairman of the Board of Odfjell, thanked Mr. Stachura for a superior ship, and pointed to the cooperation between the

yard and Odfjell back to the chemical parcel tankers built at the same yard 30 years ago. Bow Spring is actually the 19th ship Odfjell takes delivery of from this yard.

The ceremony was attended by a large number of proud yard employees together with their families. The banks and financial institutions that are facilitating the financing of Bow Spring were specially invited guests, together with representatives from Odfjell in Bergen. Also attending the ceremony were many of the Polish children who had made the many beautiful decorations on board, and they were invited by Captain Odd Mikalsen for a special tour of the ship. The yard’s marching band supplied the music, including a magnificent version of the Bergensian Anthem, “Nystemten”.

Bow Spring is the third in a series of eight ships to be built at the Stocznia Szczecinska Nowa yard. Her deadweight at summer load line is

39,942 Dwt. She has 40 cargo tanks, including 6 deck tanks, with a total tank volume of 52,126m³. Her length overall is 182.9 metres, the beam is 32.2 metres and the height from base to top of antenna is 46.6 metres.

Naming Ceremony of M/T Bow Spring

Terje Storeng addressing the audience

The choice of “Lulu” Halog as

Lady Sponsor was particularly well received by the

Filipino crew.

Visitors admiring the state-of-the-art bridge

√√√

By Tom Haugen


Good evening,

First of all, allow me to thank the people behind why I’m here today;

To Mr. Dan Odfjell for giving me this opportunity and wonderful experience;To Mr. Terje Storeng for sending me the beautiful invitation;To Mr. Andrzej Stachura, President Managing Director of Stocznia Szczecinska Nowa;To Ellen Skagen of course for giving me the details and guide what I supposed to do;To Cap. Haugsand for sending me the invitation and guaranty letter to Poland;To Cap. Tor Johansen for breaking the news that I will be gracing this occasions;Of course to my Boss, our Manager in Odfjell Manila Cap. Kjell Johansen for his moral support and encouragement;To my colleagues from Manila and Head Office;To Officers and Crew of Bow Spring;To my countrymen working in Poland;Honorable Guests;Friends, Ladies and Gentlemen;

Thank you very much for this wonderful opportunity and experience. I will cherish these moments forever.

It is indeed with great pleasure and honor for me and of course for Odfjell Manila to be invited to act as Godmother to this very special occasion, the naming of Bow Spring. I am so blessed and extremely glad to be here among you, to witness this spectacular event. Forces of destiny brought us here together to celebrate this gorgeous occasion.

Bow Spring, this elegant ship, is something to love and care for. May this day be the beginning of a perpetually successful voyage. May Bow Spring sail upon smooth

seas and sunny skies that when it touches any ports, an outpouring of blessings abundant would abound upon her. I speak life upon all the parts of the ship, that it may surmount all the challenges it might face asail, and may God’s mantle of protection be upon her all the days of her voyage.

To the officers and crew, health, joy, peace, safety, and peaceful cooperation be upon each of you. That excitement more than sorrows, enthusiasm more than fear, abundance more than lack be with all of you. Fond memories enrich every voyage, knowledge and wisdom be added unto each of you as the days goes by. Most of all, may our Almighty God go before you, and let Him be your rear guard. Let myriads of angels bring you light in all your thoughts.

To my superior and colleagues, I pray that Odfjell remains to be at the zenith of success, in spite of global recession, that it will remain untouched by any obstacles, as it is fully anchored at the very core of its mission and vision for excellence, innovations and sincerity. Odfjell, the company that nurtures and enriches thousands of employees on a global scale, had made me who I am now. I am proud to have become a part of this progressive and loving family.

To everyone, may the road rise to meet you. May the wind be always at your back. May the sun shine warm upon your faces and the rain fall soft upon all of you. And until we meet again, may God hold you all in the palm of his hands.

God bless us all, and have a nice evening!

..and The Lady Sponsor´s speech

With Captain Mikalsen and Dan Odfjell

The picture of the Lady Sponsor will be mounted on board

At the naming ceremony dinner.

odfjell quarterly 6 odfjell quarterly 7Photo: Tom Haugen, Espen Bjelland and Slawomir Borowski, Stocznia Szczecinska Nowa.

Bow Spring Impressions from the naming ceremony


Odfjell Safety Initiative SAFETY COMES FIRST!

Following recent tragic accidents and subsequent investigation, I have concluded that we need to review and further enhance our safety standards. For obvious reasons, accidents, and in particular those with fatal outcome, are not acceptable to Odfjell.

Excellent safety performance does not come by itself, but through hard teamwork and continuous commitment from everyone involved. Hence, we will launch a Corporate Safety Initiative to raise the safety awareness throughout the Odfjell Group, as well as provide means to develop behaviour that improve our safety performance. We want to be recognised by the highest safety standards wherever we operate.

Although we are in the planning stage of the Safety Initiative, there are some important statements I would like to share with you:

• I want you to work safely. Make sure that you are confident with the work you are doing.

• What can happen will happen – Take the necessary time to plan tasks properly prior to doing the job!

• If in doubt – stop and ask!

• Nobody in Odfjell should work in an unsafe way or accept unsafe practises!

• Never compromise on safety – SAFETY COMES FIRST!

I ask you urgently to keep these fundamental guidelines in mind whenever in service for Odfjell.

The Safety Initiative will be further developed in the coming weeks, but we have made some decisions already:

• We will review our Safety Policy to further clarify the priority of safety and the expected safety performance.

• We are reviewing relevant procedures to clarify expected safety standards.

• We will define measures and targets to drive safety improvements.

• Resources and organisation will be reviewed to support the Safety Initiative program.

• Training and tools will be provided enabling us better to learn from accidents and near-misses and enforce safe behaviour.

I expect safety to be a prioritised issue at all relevant meetings within Odfjell, and I will personally follow the Safety Initiative closely. Let us further improve on safety culture and attitudes. Let us all work together to make Odfjell a zero-accident company!

Terje Storeng, President/CEO


By Tor K. Johansen

The annual Odfjell Ship Officers Conference was arranged in Bergen on September 8th to 10th, with some 75 Scandinavian senior shipboard officers (captains, chief engineers and chief officers) participating together with staff of the Ship Management Department.

The main theme on this year’s conference was safety; safety attitudes, safety compliance and critical operations, and the main part of the conference was set up with plenary discussions about these topics. Presentations highlighted the importance of maintaining a high level of safety awareness in all parts of work performance, in accordance with existing procedures. Each session was followed by fruitful discussions, offering a lot of input on how to improve safety on board.

Other topics that were covered included proper cargo handling routines for some selected cargoes, market update and forecasts, tank-cleaning procedures, the Odfjell Commodity Book, and the use of Master’s Verification as a tool to highlighting technical and operational matters. There

was also time allocated to individual fleet meetings, to discuss internal fleet issues including proposal for operational budgets for 2005.

Before the conference concluded the three days were summed up, and the participants expressed their appreciation of the possibilities such gatherings offer for exchanging experiences and views.

Odfjell Ship Officers Conference 2004

During one of the presentations.

By Brit A. Bennett

The annual Management Development Program meeting was arranged in Bergen on September 13th to 14th, gathering representatives of senior and middle management from our worldwide organisation.

President/CEO Terje Storeng opened the conference by presenting current status, focusing on main company challenges. Mr. Storeng stressed the importance of safety attitudes and safety behaviour, as prerequisites to all our activities. He also raised a number of other essential issues, among which are the need for improved operational efficiency, the necessity of clear lines of command to avoid lack of ownership to problems at hand, and the demand for fleet renewal to maintain our market position.

The rest of the first day was spent on leadership and organizational matters. We had several lectures and group sessions focusing on the role and behaviour of the individual manager.

The entire second day was spent on safety. Through presentations and group discussions we focused on how to further enhance the safety culture throughout the Odfjell organization.

Management Development Program

A number of important issues were discussed.


Forget the India you once knew: it is gone! Contemplate instead a new self-confident, resurgent nation, embracing its role as an emerging Asian superpower. With over one billion citizens, India is the second most populous nation and the largest democracy in the world. Within the country more than 36 languages and large number of dialects are spoken, with English being widespread in the major cities. The most common bond is the sport of Cricket, a “religion” followed by 90% of the population.

Currently the Indian Gross Domestic Product (GDP) is growing by 9.4% per year. Agriculture is a very important sector of the economy, on which 62% of the population directly depends and which contributes about 25% of the GDP. Industry & service sectors are growing in importance, and now account for 26%

and 48% of the Indian GDP respectively. Some of the main growth drivers are computer software, science, textiles, arts, movies, nuclear power and other service sectors. India holds the world’s largest middle-class population (about 300 million), expanding at a very steady pace and with an enormous buying power.

Expansions in the chemical/fertilizer/oil industries have definitely placed India in the community of leading nations, on the strength of knowledge rather than size. However, India is not without is share of problems: Over-population, AIDS, unemployment, corruption, pollution and poverty.

The political scenePolitics is an integral part of the national fabric, with general elections being held every five years. In April-May

2004 approximately 58% of India’s 662 million voters cast their ballots for 543 parliamentary constituencies in 35 states and union territories. As a result, by mid May a new coalition government headed by the Congress Party under the leadership of Mrs. Sonia Gandhi, with Mr. Manmohan Singh as the Prime Minister, came to power. It is too early to say what this 100 days-old government holds in store for India. Nevertheless, as is the case in all progressive nations, it is mainly the commercial development and multitude, and not the political processes, that keeps India going and growing.

The market sizeIndia and Pakistan together annually import about 5 million tons of phosphoric acid, about 2.5 million tons of various

INDIA An emerging Asian superpower

The Gateway to India

Downtown Bombay with the Financial District

The Marine Drive

By Sudesh Kamath


(petro-)chemicals and about half a million tons of base oil and lubricants. In addition, albeit of less importance to Odfjell, some 5 million tons of vegetable oils are imported per year. For India, the largest budget expense after defense expenditures are imports of crude oil and clean petroleum products, which amounts

to about 100 million tons per year. Within the next couple of years LNG will be the name of the game.

Slowly but surely over the last five years, India has grown as an exporter of chemicals and petrochemicals. The leading player in this respect is the Reliance group through their massive 27 million tons per year refinery at Jamnagar and their multi-feed gas cracker at Hazira on the West Coast of India. Products like paraxylene, benzene, LAB and glycols, but also castor oil, fatty acids and groundnut oil, are regularly being exported in bulk. In addition there is a huge export and import of speciality chemicals in iso-tanks and dry box containers. India is one of the world leaders in the production and exports of bulk drugs and pharmaceuticals.

Odfjell services to the Indian marketOdfjell has served the Indian market for many years, and continues to have a prominent market presence. We have one vessel each month from the US Gulf via South Africa and one ship from Northwest Europe via the Mediterranean and Suez. Both ships normally go to West Coast India and Pakistan, and continue onwards to the Arabian Gulf. Two-three vessels a month come from North Africa and/or South Africa with phosphoric acid, primarily discharging in one or two ports on the west coast of India. In addition we have one vessel every three weeks from Singapore to India/Pakistan and onwards to the Arabian Gulf. On an average Odfjell makes about 9-15 port calls every month.

Our share of the export market is still lagging behind, but the last 18 months

suggest that we are moving in the right direction. Recently we have been able to load export cargoes on some of our positions. With our total activity level in the sub-continent at about 1.5 million tons per year, we are firmly entrenched in this crucial and interesting market.

We do not expect the Indian import market to grow dramatically, and we have been fairly selective as to how much of the import business we should pursue. There are always more opportunities available, but this would not be the well paying cargoes. However, establishing the proper import business to India is also a question of how many vessels we wish to have open, to take care of our commitments from the Arabian Gulf. With the ever-increasing production and exports of (petro-)chemicals in the Middle East, it is imperative that we maintain our share of the India/Pakistan import market to bring tonnage into the area on a commercially sound basis.

Odfjell India - Our local teamOdfjell India covers the markets of India, Pakistan, Sri Lanka and Bangladesh. The company started in New Delhi in 1987, and moved to Bombay in 1995 to focus more on the growing chemical import business which is primarily located on the West Coast of India. The Odfjell India team currently consists of seven people: Sudesh Kamath (joined the company 1988), Anup Chatterjee (joined 1993), Hetal Vaishnav (joined 1996), Manisha Desai and Sujata Shetty (joined 1999) are taking care of commercial and operational matter, while Mahendra Patne and Suhas Kawale are carrying out various other functions.

We have a customer base in the sub-continent counting roughly 300 companies with whom we are in direct contact, and due attention has to be given to all. Four of us, led by Sudesh, are into marketing. We are visiting customers, domestic as well as in the neighbouring countries, keeping them updated of our positions and following up on inbound as well as outbound business. Sujata is concentrating more on the IT sector, which is also a major task. In addition to the marketing, we are closely coordinating with the respective agents on West as well as East Coast of India plus Pakistan, in order to achieve a quick turnaround for our vessels.

The Odfjell India Team (from left: Anup Chatterjee, Suhas Kawale, Manisha Desai, Sudesh Kamath, Hetal Vaishnav, Sujata Shetty, Mahendra Patne)

Rush hour commuting

Cricket, the shared “religion” in India


By Siri-Anne Mjåtvedt

For several years Odfjell has been involved in the Chinese tank storage market, through the terminals in Dalian and Ningbo. On June 24th 2004 Odfjell signed a joint venture agreement with Jiangsu Garson Investment Co. Ltd to establish a new Chinese terminal, Odfjell Terminals (Jiangyin). Garson is a well-known producer of PET, but is also a trader and distributor of petrochemicals. The new company is a 45/55% split between Garson and Odfjell, and has an initial investment of about US$ 30 million. This will be one of two international tank storage companies operating on the Yangtze River.

As the name indicates, the new terminal will be situated in the city of Jiangyin in the Jiangsu Province, on the south riverbank of the Yangtze River between Shanghai and Nanjing. Jiangsu Province is one of the richest regions in China, and is today the most important area of consumption of chemicals and downstream products in China. Main products imported are SM, MEG, Methanol and BTX (mainly toluene), but there are also large volumes of sulphuric acid being imported from Japan and Korea. In addition comes import of smaller quantities of products like DEG, phenol, acetone etc. The local authorities in Jiangyin are providing the necessary infrastructure to the terminal gate; roads, electricity, but also steam and waste water arrangements. Garson’s main contribution to the joint venture includes the rights to an area suitable for a tank terminal with associated berths. The land size is about 40,000 m2, with the possibility for further expansion at a later stage. One of the advantages of the location is the wide shoreline, which can accommodate ships up to 50,000 Dwt.

Construction of the first phase of the terminal will commence already in December 2004/January 2005, and will include erecting a tank farm with approximately 80,000 cbm (around 20 bonded storage tanks) and a berth that can accommodate 2 x 50,000 Dwt ships and three smaller tankers. Of the estimated throughput of 800,000 mts of chemicals, Garson will generate about 200,000 mts. The first phase is estimated to take some 15 months to complete, and the plan is to further develop the terminal in accordance with the market requirements and needs.

Odfjell enters into New Terminal Venture in China

From the signing ceremony in Bergen (from left: Wang, Weicheng (Party Secretay Jiangjin Province), Sun, Biao (Chairman of the Board, Garson Group), Terje Storeng (President/CEO, Odfjell), Svein-Gustav Steimler (Senior Vice President Odfjell Terminals) and Dan Odfjell (Chairman of the Board, Odfjell))

Exchanging gifts with our new Chinese partners.

Preliminary plans for the new tank storage terminal


The first Odfjell terminal ever was built in Buenos Aires in 1968. As amongst our shipping competitors, we were thus ”first off the block” with own dockside tank storage facilities.

In South America ever since there has been a more or less continuous expansion, both in terms of individual terminal capacities and capabilities and in overall number of such efficient ship/shore interfacing units. Headquartered from São Paulo, and dotted along the coasts of Brazil (4), Argentina (2), Chile (1) and Peru (1), the Odfjell family now controls altogether eight tank terminals and two dry-cargo terminals.

Newsworthy perhaps are the two new tank terminal projects in Brazil; one in Santos, in the Alamoa area, and another in Ladario (Corumba) on the Paraguay River, that is, on the Brazilian side of the border with Bolivia, some 250 km up-river by barge from Buenos Aires...

The second terminal in Santos is planned with an initial capacity of 50,000 cbm. The river terminal in Ladario will be smaller, in keeping with local inland demand.

Moreover, excellent dockside land has been acquired for a new terminal at Ventanas (in Chile, within the Quintero Bay, just north of Valparaiso), and we have also secured land for a new terminal in the bay of Mejillones, just north of Antofagasta, North Chile.

Our Chairman’s brother, Carl-Henrik Odfjell is in charge of these privately owned terminals that, between them, employ altogether about 500 people. In addition, incidentally, there is the Odfjell Vineyards in Chile, which employs 50 persons year-around -- and more than double that number during grape harvesting. Thus, south of the border, we very much keep up the age-old slogan of Odfjell, for anything liquid...

Our Associated South American Terminals

The Ladario river terminal, our dry bulk operations to the left and the new tanks under construction to the right.

Truck loading at DQM in Callao, Peru.

The TAGSA Campana terminal in Argentina.

The Way We Are OrganizedThe Way We Are Organized


The Safety Bulletin in the June 2004 issue of Odfjell Quarterly focused on facts surrounding the fatal tank explosions we have had this year. These have caused a hard time for many, in particular those directly affected. Within the Risk Management section, following up towards underwriters and implementation of short and long term preventive measures have taken a lot of time. Risk avoidance and loss prevention have been approached as follows:

1. Potential causes and preventive measures2. External review of our operations3. Potential underlying or root causes

1 Potential causes and preventive measuresThe NCC Mekka and Bow Mariner cases are still under investigation by Flag State Authorities, and no conclusions or reports have yet been issued. On our part, all relevant information we have been able to retrieve has been carefully reviewed. Instructions and Memos to Masters have been issued, to quickly reduce or eliminate the real and potential causes or risk factor we have identified. We have also been in contact with several of our major customers, to report status, discuss facts and loss prevention, and listen to general advice. At the time of writing this article we have completed an in-depth revision of our main shipboard instructions, the Shipboard Management Manual and the Odfjell Seachem Requirements & Guidelines

Manual. The revision has focused on preventive measures related to the recent accidents and the use of nitrogen on our ships. At a later stage we will consider a more editorial and pedagogic revision with main focus on making the manuals more user-friendly.

2 External review of our operationsOdfjell top management has decided that someone from an external entity should review and make an assessment of cargo-related fire and explosion risks on our ships. For this purpose we chose Det Norske Veritas (DNV), a highly recognized independent company with significant knowledge and experience within shipping, both as regards “hardware” and “software”. They have interviewed key personnel in our offices, in particular those with recent seafaring experience, and have reviewed our procedures

and organization. Their “field work” will be closed with a three-day workshop where relevant personnel from DNV and Odfjell will participate. The objective of this project is to make our operations safer by finding potential risk areas, both technical and operational, thereby enabling us to reduce or eliminate these. Their report is expected in October 2004.

3 Potential underlying or root causesThe simple question “why did this accident happen” will almost always lead one behind the direct cause. The last and most challenging issue is therefore to find and do something with underlying causes. Our procedures are based on regulations, industry guidelines and historical data like records, analysis of incidents and near misses. These procedures shall be instrumental in developing safe and good working routines. In most serious accidents one often finds a significant element of procedures that have not been followed. This is referred to as the human element which to a great part is related to attitudes. To change attitudes takes time. One of our major challenges the next couple of years will be to make a visible change towards safer operations, by improving our level of compliance with procedures. The starting point is verification of compliance through increased control. If the controls reveal shortfalls, we must take the necessary time to analyze what caused the shortfall. Was it wrong attitude, lack of knowledge and subsequent need of training or unclear instructions? Whatever is found must be timely and systematically addressed. Increased use of well published or known sanctions will also be considered as a last resort. Odfjell top management expects to see a clear reduction in findings by those controlling us, be it authorities, class societies or customers. The Risk Management Department will spearhead this task, but it is of utmost importance that everyone, on all levels, ashore and aboard, supports us in this task.

Adherence to Procedures

Risk Management NewsRisk Management News

By Toralf Sørenes

Bow Pilot entering Shanghai in smog and dense traffic

Tank cleaning


NCC Baha A Spanish-Arabian beauty

Vessel of the issueVessel of the issue

By Captain Hector Connell

NCC Baha was built at the Astilleros shipyard in Spain, originally as the ‘Portela’ for a Brazilian owner. Although the keel of the vessel was laid in 1982 she did not come into service until 1988, and thus, she is not quite as old as her build date suggests. The vessel has been commercially operated through Odfjell since 1989, first as ‘Fjellanger’ (Westfal-Larsen), then for a few months as ‘Bow Falcon’ (Odfjell) before NCC took ownership in June 1990 and gave her the current name. Since 1999 Mideast Ship Management has been responsible for technical management.

NCC Baha is powered by a 7,890 BHP slow-speed diesel, with a service speed of 14 knots. She has 21 cargo tanks, of which 11 are of stainless steel, fitted with ‘Svanhoj’ hydraulically driven deep-well pumps. For extra commercial flexibility, four of the original ballast tanks have been modified to enable the carriage of cargo.

The current complement of 22 men comprises a truly international team: British Master, Croatian Chief Officer, Australian Chief Engineer, South African Second Engineer, and the balance of officers and rating being Filipino. Several of the crewmembers have served previously on the ship, and the manning stability facilitates maintaining the standard of condition and operation of the vessel.

This year NCC Baha has been operating between North Europe and South America, and she has also completed voyages to the Middle East, India and South Africa. Visits to the Middle East offer the welcomed opportunity for visits on board from the management office, which enhances a closer contact both professionally and socially.

Vessel operations give the officers and crew a variety of seamanship challenges, with diverse cargoes and navigation to small ports in remote countries. The NCC Baha is almost continuously fully loaded, loading and discharging in each port of call, which puts extra demands with regard to normal shipboard maintenance. The weather conditions are adding to the crew’s challenges, as the vessels are running almost continually in a hostile environment to new coating applications. The size of the ship results in seawater being shipped on deck even in moderate seas, and every weather-window of opportunity must be taken to carry on the constant battle against the elements.

Some of the favourite pastimes at sea are watching films and playing computer games. We have a fully equipped gymnasium on board, but it is not used so much. At times the gym could be mistaken for a sauna due to the heat generated by two washing machines and two tumble-driers. Regrettably there is no room for table tennis on board as this is often

a favourite with our Filipino crew. Writing letters seems to be a thing of the past noting the very small amount of mail that is either sent or received. When in port and within cellphone range, the ‘in’ thing is now to talk directly with family and friends or to send SMS messages. E-mail facilities for the crew have also changed the traditional mode of communication with friends and family.

The implementation of the ISPS Code as from July this year has put an extra burden on the already overloaded duties of the seafarer. It has also severely restricted the chances for shore-leaves. Those on board hope that with some refinement, the system may adapt somewhat to needs of the seafarer’s limited time for recreation. Whenever possible, going ashore is still a preferred pastime. During dry-docking and repair periods, visits to local places of interest are always arranged for the officers and crew. These visits are well received, and the benefits to crew morale and productivity are clearly apparent.

The NCC Baha crew ready for some off-duty fun.


Since last fall there has been a lot of discussion about the agreed phasing out of single-hull tankers and the proposed revision of Marpol Annex II. Both are complicated issues which will impact significantly on the tanker industry in the years to come. In this issue of Quarterly we will discuss the meaning and consequences of the phasing out of single-hull tankers from trading in oil products. In the December issue we will examine the content and importance of a revision of Marpol Annex II.

IntroductionIn November 2002 the oil tanker “Prestige” sunk off the Spanish Northwest Coast with some 77,000 tons of heavy fuel oil, causing a very large oil spill which seriously polluted large parts of the nearby shoreline. To try to avoid similar accidents to happen again, the European Union has decided as from October 2003 to ban crude oil and heavy fuel oil on single-hull oil tankers calling European ports or flying European flag. In this legislation is also a substantially hastened phasing out of single-hull oil tankers and tankers without double hull from carrying oil and oil products (so-called Annex I cargoes) until 2010.

Following this radical change of EU legislation, EU submitted a formal proposal to the International Maritime Organization (IMO) to follow their accelerated phase-out scheme. It was adopted by IMO in December 2003. In line with IMO procedures, this new harmonised out-phasing scheme will be put into force 16 months later, in April 2005. Last June, less than a year before this date, Norway, without any formal notice, decided to adopt EU’s program with immediate effect.

Legislation contentThe main consequence of the new legislation for single-hull tankers is that ships that do not meet the strict double-hull protection requirements imposed on all modern tankers will have to cease carrying mineral oil products. Currently it applies to EU or Norwegian ports, and world-wide for ships flying the flag of a EU member country (also including the EEA flags NIS and NOR). After April 2005, the legislation will be applicable for all tankers world-wide. Note however, that the new scheme only affects the ships’ oil certificate; after the phase-out date they can still trade in other bulk liquids, such as chemicals and vegetable oil.

To identify the phase-out date for the tankers without double-hull, IMO/EU have divided the fleet into three categories. Category 1 tankers, often referred to as “Pre-Marpol” ships, are generally built before June 1982 and do not comply with the requirements for protectively located segregated ballast tanks. Correspondingly, Category 2 tankers, also known as “Marpol” ships, are built after June 1982 but before July 1996 and comply with the requirements for protectively located segregated ballast tanks. Category 1 and 2 tankers are ships of at least 20,000 Dwt for tankers for crude oil and other heavy grades or at least 30,000 Dwt for product carriers. Category 3 tankers are smaller ships of 5,000 to 20,000 Dwt (crude oil) or 30,000 Dwt (oil products), built before July 1996 and which do not meet the double-hull requirements of modern ships. Table 1 below summarizes the criteria for categorisation.

Phasing out single-hull

tankersPresentation and impact

By Svend Foyn-Bruun


Table 2 shows the IMO phase-out of ships from 2004 to 2010, as the delivery date of the ship each year. Please note that before IMO adopts the EU accelerated out-phasing scheme in April 2005, the somewhat more

relaxed IMO out-phasing ruling will apply. Thus, during 2004 and first quarter of 2005 there will apply stricter rules for tankers calling EU ports or flying EU flag than what is the case elsewhere.

Fleet supply impact and possible adaptationsThe phasing out of single-hull tonnage will have a significant impact on the fleet supply. Many tanker-owners will find trading their ships commercially much more difficult, as the ships will be excluded from a considerable share of their current business. In the period to 2010, some 1,100 ships totalling about 30 million Dwt will be affected in the 5-50,000 Dwt range alone. Hence, the question of how to adapt to the new requirements is very interesting.

As the three out-phasing categories are based on delivery date and type of oil cargo the ships can take, it is under certain circumstances possible to re-categorise or upgrade some Category 1 ships to either Category 2 or Category 3 ships. This will prolong the life as oil tankers for these ships. However, this kind of “paper exercise” will either put limitations on the type of oil product they may carry, or exclude some tanks from loading oil products. Another much discussed option is to re-categorize a single-hull tanker as double-hull tanker, by designating all wing-tanks for non-oil cargoes only, e.g. chemicals. Hence, the wing-tanks will provide sufficient protection to the centre tanks, as for a double-hull tanker. However, this alternative may not always be commercially viable for a ship-owner.

Bow Petros, one of Odfjell’s vessels being affected by the out-phasing scheme

Table 1 - Criteria for vessel out-phasing categorisation

Table 2 - Out-phasing scheme for non-double-hull tankers 2004 - 2010.


It has been a while since we have heard from the Petrochemical Industrial Distillation (PID) unit, the processing plant at Odfjell Terminal (Rotterdam). In this issue of the Odfjell Quarterly, we put the light on PID’s laboratory, which only a few weeks ago moved into new premises. We have spoken with Nils Taal, Manager Laboratory, proudly introducing his department.

Research“Before we can distillate a new product, we often have to execute a detailed investigation on how we can carry out the process in the best and most efficient way possible and what the results are likely to be. Such investigations are made at the PID laboratory. After the theoretical approach, the next step is a small-scale trial-distillation that we carry out in our laboratory. In this way we can closely monitor what the results of the process actually will be”, Nils explains. The samples taken during these trial-sessions are being analyzed very minutely. Based on these sample results PID specifies the quality of the end products in the contracts with its customers.

Process and quality controlThe PID laboratory ensures a continuous high quality of the products that are being distilled by the PID. Both the products coming from the feedstock-tanks as well as finished products are analyzed on their specific characteristics. “We also take samples during the distillation process and analyze those on key parameters. In this way we can not only guarantee the quality of the distilled products, but also the continuity of the process”.

Nils continues his story: “In the PID-laboratory we have two very experienced analysts, Anita van den Bulk and Johan de Jong, and myself as manager of the laboratory. The above- mentioned activities are done by Anita and Johan during normal office hours. But distillation is a continuous activity, 24 hours a day – 7 days a week. Outside normal office-hours the quality control is handed over to the PID-operators, working in shifts. Before leaving for the evening or weekend, the analysts make sure that all analysis equipment is ready for use by the operators”. Nils confirms: “By working in this way, the product quality is secured and guaranteed throughout the entire distillation-process”.

Moving the laboratoryWednesday September 8th was an important day for PID’s laboratory-personnel, when they moved into the same building as Saybolt. Saybolt is one of the world’s largest inspection companies, and it has an office and laboratory in OTR’s new office building since the beginning of this year. Nils recalls: “With the help of a removal company, Saybolt-staff and our own people, all equipment, fittings, documents and administration were moved from the old laboratory to the new one. We have our own restricted area within Saybolt’s laboratory, accessible for Odfjell-staff only”. Coincidentally, Odfjell PID is also an important customer for Saybolt, who analyses a lot of samples of finished products at our request. However, Odfjell PID and Saybolt are two different, independent and strictly separated companies. Nils stresses: “The process and research activities are fully in our control and discretion, to protect our customer’s interests by guaranteeing 100% secrecy and independence to them”.

Beneficial for the customer“Operating next door to Saybolt offers substantial benefits”, Nils concludes. “The lines of communication between us are very short and consequently the time for processing of analyses as well. The result is that our customers get the analysis-results and their processed product much sooner. Another big advantage is that we can use equipment from Saybolt, whenever needed.

In short: The relationship with Saybolt leads to an optimal process control”.

Whilst preparing equipment for a next distillation, Nils ends: “If customers or colleagues are interested to see what the PID laboratory is all about, feel free to contact us or just pop-by. Also if you have any question, don’t hesitate to call us”.

A new location for Odfjell’s PID laboratory

The PID laboratory’s new premises

Preparing for a laboratory test distillation


The treasure on Wabble IslandOn the very small and remote Wabble Island live two kinds of people; half the inhabitants are wibblers and the rest are wobblers. They look, move and sound just the same, but for one important difference: the wibblers always tell the truth whilst the wobblers always lie. An ancient myth tells of a grand treasure being buried somewhere on the island, and one day a treasure hunter, Fan Oddbow, arrives on the island to try to find it. However, before starting to excavate Mr. Oddbow wants to know whether there really is a treasure or not, a fact to which the natives are all familiar. The Wabble Chief has allowed him one question only, to whatever person he chooses to ask. The problem for our friend Fan is that although the islanders understand English perfectly, a strict taboo forbids them to use non-native words. Hence, when asking them a yes/no question, they reply ‘Zil’ or ‘Ding’. The trouble is that neither we nor our friend Fan know which of ‘Zil’ or ‘Ding’ means yes and which means no.

And here finally we arrive at this issue’s brainteaser: How can Fan

Oddbow in just one single question establish whether there is a treasure on Wabble Island? Remember that he does not know whether his respondent is a truth-telling wibbler or a lying wobbler, or what ‘Zil’ and ‘Ding’ really means.

We await your solutions, by November 15th at the very latest. And as usual, to qualify you will have to indicate the reasoning behind your answer. Good luck!

Solution to the previous Odfjell Quarterly Brain Teaser:

The Odfjell Quarterly Brain Teaser

In the summer issue the problem was to establish whether Anna or Barbara started serving in the first set, which Anna won 6 - 3. Five of the games were won by the player who didn’t serve. There are several ways to reach to correct solution, and below we offer a somewhat mathematically oriented solution:

Let’s call the player serving in the first set P and her opponent Q. Nine games were played, thus P served in five games and Q in the remaining four. Assume P won x of the games she served and that she won y of the games she didn’t serve. Hence, P lost 5-x of the games she served, and consequently, Q won 5-x of the games she didn’t serve. The sum of games won by the player not serving is y+(5-x), which according to the problem equals 5. Hence: y + (5-x) = 5, which gives x = y. The means that P won x+y = 2x games. This is an even number, and hence, Anna, who were the only player winning an even number (6) of games, must be P. Conclusion: Anna served in the first game.

We have received eleven suggestions for solutions, which perhaps may not seem too bad. However, seen in context with the total number of readers (4,000 copies, each read by on average 1.6 (or so) persons) the response rate is ridiculously low. Nevertheless, praise and honour to the six persons who submitted correct solutions. We also send somewhat more limited applause to the two (both from Houston) who sent the correct answer (Anna), but failed to provide a reasonable explanation why. Again we had to draw the winner, and this time the prize and praise go to Ronaldo Gimenes, Odfjell Brasil in São Paulo. Parabéns, Ronaldo!


Greetings From Around the WorldGreetings From Around the WorldHere Comes the Sun ...

...and to South Africa

By Mel Pinks

On July 30th 2004 a function was held aboard Bow Sun for our long-term client F. R. Waring. Some 36 guests from FR Waring and the local edible oil industry were entertained to a buffet style luncheon on board the vessel at Durban’s Maydon Wharf, where Bow Sun was discharging palm oil products for FR Waring to the tanks at the Indian Ocean Terminals. After lunch the vessel’s master, Captain Kvalvåg, organised various tours of the vessel for the guests, covering both deck and engine room. This was the first call for one of the new Poland class vessels in South Africa and without doubt, Odfjell’s commitment to providing the parcel tanker industry with ”state of the art” tonnage is more than adequately demonstrated by the quality and sophistication of this vessel.

At Odfjell Seachem South Africa we would like to thank FR Waring for their support over the past ten years, and we look forward to providing many more years of service to them. We would also like to

thank Captain Kvalvåg and his crew for their hospitality on board which resulted in a very enjoyable afternoon for all.

Bow Sun at Maydon Wharf in Durban

...to Singapore

By Gareth Williams

July heralded the inaugural visit of the Bow Sun to Singapore, and her arrival was keenly anticipated by more than a few. The closest that most of us here in Asia have come to seeing one of the new Polish ships is Jan Hammer’s article in the June 2003 Quarterly.

With ISPS and general security considerations in Singapore it is not always possible to visit our vessels. Fortunately though, the Bow Sun was alongside at Oiltanking to coincide with a logistics meeting scheduled there with our sister company for the afternoon of July 8th. This presented an ideal opportunity for Atle Knutsen, Port Captain Frode Jusnes, Chin Hao Bay (Oiltanking), and myself to visit the ship and accept Captain Kvalvåg’s kind invitation to dinner.

The new Polish class ships undoubtedly have a commanding presence. The manifold platform area is substantially larger than on the Kvaerners, which immediately creates an impression of size. In addition to this, the cargo control room is of course housed in the main superstructure, which affords an unobstructed view forwards to the forecastle mast. For someone involved in the CPP sector of the industry, it’s good to see those 10 ton SWL cranes.

Inside, Captain Kvalvåg gave us a guided tour of the bridge. The main cluster of

controls and the overall layout is not dissimilar in design to that a flight deck, with the notable exception of course that flight decks do not have bridge wings...

Over dinner it transpired that Port Captain Frode Jusnes and Chief Officer Roy Johansen had previously shared a post on the NCC Najran, so there was an easy atmosphere and plenty of time to catch up. A very enjoyable evening and our thanks to everyone on board the Bow Sun. We look forward to seeing you back here in September/October.

Bow Sun at berth in Singapore (Photo: Julie Thong)

ØØØ


By Peter van Kessel (Photos: Peter Krens)

On Saturday September 4th, Odfjell Terminals (Rotterdam) held its second “Odfjell Family Day”, following up on last year’s success. This one-day event, with games, sports, playful attractions and live entertainment, is meant for the entire OTR personnel, their partners and (grand)children. The motto is “Just relax and no musts”. A lot of people took advantage of the nice weather by sitting on the terrace with a cool drink and something to eat. For some of us, this was already sufficient.

Some attractions were more in favour than the others, like for instance the Power-jump; jumping on a trampoline whilst connected to elastic

cords and fly like a bird. Or the trike, with its 150 bhp 6-cylinder Porsche engine. Wow, the power when you opened the throttle!

After a tasteful BBQ, our CEO Mr. Zeger van Asch van Wijck thanked the social committee for organizing this nice day. Then he drew the winning numbers of a lottery, where the two winners each received two tickets for the musical “The Lion King”, currently the musical-hit in The Netherlands. Around 22.30 hrs the party came to end, but a lot of people didn’t want to go home that early. To conclude: A great and successful event. Thanks to the social committee and some 20 volunteers, and of course to the 350 merry people turning up.

From time to time Odfjell Quarterly receives some nice pictures showing some of the impressive fish catch while at sea. This time we are happy to present two such photos.

To the left we see crewmembers Sherwin Samudio, Regalado Geronimi, Herwin Agotilla and Mike Salamngkit of Bow Cardinal

with their huge ray, caught while at anchor off Balboa, Panama. As in any decent fishing tale, according to Capt. Jan Antonsen they lost an even larger one only a yard from the railing.

To the right we see Ray Ramos and Joeffrey Barrientos on NCC Jubail, with the 20 pound dorado which ended up on deck off Oman. It probably mistook the ship as a too large catch, and instead it ended up in the galley. Bon apetit!

Family Day at OTR

Left: Plenty of good food and drink at the BBQ

Big fishin’ on board

The Power-jump was really a flying experience.


By Frank van Schaijik

Once again a highly motivated team from Odfjell Terminals (Rotterdam) has participated in the RoPa-Run, the “Rotterdam to Paris Run” (although this time we ran the opposite way, thus home from Paris). The RoPa-Run is the world’s largest non-stop running relay race; a unique sports-event with an equally unique objective, that each team should try to raise as much money as possible for the RoPa Foundation to fund projects for cancer-patients. Alltogether, this year the 188 teams raised Euro 2.7 million!

During the event two groups consisting of four runners take it in turns to run, passing the “baton” to each other approx. every 50 km. The four in each group run in intervals of about 1 km. This goes on day and night, under all weather-conditions (and yes, we had a lot of rain this year), all the way from Paris to Rotterdam, some 520 km in total. Each team of runners is followed by two cyclists to keep up the pace, and is backed by a logistics support crew (catering people, masseurs, touringcar-drivers and the team-

captain). Out of the 188 teams we finished as number 53, with an average speed of 13.2 km/h. More important is that the Odfjell team raised around Euro 30,000 by selling lottery-tickets, sponsorships and other activities, all under the RoPa motto: “Trying to add life to days where days cannot be added to life”.

In 2005 we hope to participate again. It would be nice to have an international Odfjell team. If other Odfjell colleagues, from whatever unit, want to be part of the team or to help us support the fund-raise, do not hesitate to contact us.

RoPa-Run: Adding life to days where days cannot be added to life

Greetings From Around the WorldGreetings From Around the World

By Ju-yeon Kim

It may be hard for people outside Korea to understand why Koreans in general have difficulties communicating in English. An important reason is that the construction of the Korean language is fundamentally dissimilar to that of English, and thus, the whole grammar structure is totally different. Therefore, grammar has traditionally been the focus of English teaching in Korea whilst conversation was neglected. Systematic changes are now being implemented to the educational systems, but it will take time before we will see a significant improvement.

“Onsan Tank Terminal”, before becoming Odfjell Terminals (Korea), was more domestically than internationally oriented, and all documents, procedures and forms were in the Korean language only. After the merger, the language barriers caused considerable internal communication problems between the new foreign top management and the terminal crew. At internal meetings a translator was always required, making sessions very time-consuming. Language barriers were also a problem with external contacts.

To improve communications, in January 2003 OTK started offering English classes during

lunch breaks for the Korean managers and the office crew. For the shift leaders and their operational teams, an external institute was chosen so that everybody could attend before or after their work hours. Other methods were also implemented, such as audio courses to accommodate studying at home too. English language skills became an important criterion for all new hires to the terminal.

To further improve the English skills at the Operations Department, three of the staff girls, Tiffany Kwon, Keun- ae Youn and Ju-yeon Kim, has taken the initiative to arrange an internal English course for the department. The three organizers hold the course themselves, daily during their own lunch break. This course has now lasted for seven months, with daily progress. For the shift leaders even private lessons are offered. The operators are really serious about learning English. Some of them are even spotted in the classroom on their free days, which means they are really motivated to learn English, a necessity for further communications.

Improving the English skills at Odfjell Terminals (Korea)

Some of the eager English course participants during a lunch break session.

The team of runners and cyclists


By Dennis Butler

On the tranquil Saturday evening of August 28th, Odfjell Singapore held its annual Family Barbeque Party at the “Costa Sands Resort” on Singapore’s eastern foreshore. In addition to office staff members and their families, the attendance was swelled - to a total of around 80 souls at the height of proceedings - by a hungry, thirsty and appreciative contingent from Bow Century (in port but anchored awaiting an ExxonMobil loadberth) comprising Captain Anders Oekland plus 18 of his sporting and ultimately prize-winning mate-lots.

Full credit for the success of this event must go to the organising committee - Eileen Lim, Susan Chong and Jack Yu - and also to Khalil for his efficient stewardship of the various innovative games for those prepared to sacrifice energy and dignity. The quality of the catering was also very commendable; the cook on Bow Century became especially keen to try and emulate such dishes as barbequed stingray for the ship’s future menus.

Some stalwarts - without young offspring to take home - lingered long into the tropical night to ensure that very little of the beverages on offer (which included some commendable products of Odfjell’s Chilean vineyards) were lost to evaporation amongst the breeze-swayed palm trees along the shoreline. The objective of promoting family participation and team spirit in such convivial surroundings (and kind weather, thankfully) was surely achieved - and next year’s event is already being contemplated with enthusiasm.

By Svein Aage Daae

Arizona Chemical is a leading, global supplier of pine chemicals for the adhesives, inks and coatings and oleochemicals markets. Its

products, including fatty acids, rosins and terpene, are used in the manufacturing of fragrances, personal care items, adhesives, plastics, household cleaners, soaps, inks, paints, rubber products, hydraulic fluids,

roofing material and much more. The company has been a customer of Odfjell since the late 1970s.

On September 15th 2004, Curtis Siver of Arizona Chemical presented to Odfjell Seachem a very nice gift, a beautiful clock, as a token of their appreciation for our excellent work, cooperation and good performance for the transportation of their products in the Transatlantic trade. Mr. Siver acknowledged the fact that the two companies have been doing business together the last 25 years, and he expressed his belief that this good cooperation will continue.

Odfjell Singapore Barbeque

The enthusiastic Bow Cardinal crew during competitions

Odfjell Seachem - 25 years of service to Arizona Chemical

Preparing the food (from left: Eileen Lim, Allyson Peh, Angie Tan, Zaidi Mohd and Luo Feng (of Odfjell Shanghai))

From left: Anne Liv Røstøen, Kjell M. Færestrand, Hans Erik Sæther, Curtis Siver (Arizona Chemical), Svein Aage Daae, Henning Werner Nielsen, Richard Whittet (Plowright).


By Ronaldo Gimenes

On August 26th Odfjell received the “Rhodia Brazil Excellence in Logistics Award 2004” under the category “Logistics Distinction”, which is given in recognition for the quality and safety of the transportation services provided.

The ceremony took place in Sao Paulo, at “Rhodia’s House” and it was attended by about 100 people, amongst them Rhodia Executives Mr. Patrick Koller (Worldwide Supply Chain Vice President), Mr. Olivier Seignovert (responsible for Worldwide Purchasing, Logistics Projects and Maritime transportation), Mr. Jose Borges Matias and Mr. Walter Cirillo (Vice President and President of Rhodia Latin America, respectively).

We are very proud to have received this award and we thank and congratulate all our colleagues for making this possible. Let’s keep up the good work!

Knut Øvrebø with the Rhodia award.

By Brian Kim, Odfjell Korea

On July 16th 2004, Odfjell Korea hosted a dinner in Seoul, to celebrate with SK Corporation Odfjell Seachem’s first shipment of Yubase from Ulsan to the US. The day before M/T NCC Riyad had completed loading a cargo of 5,000 tons of SK’s respectable Yubase brand base-oil, all destined for Houston, TX. Having been a regular shipper of SK Corporation’s products to other destinations for years already, this event marked the first shipment bound for the US. Thanks to the good support of SK Corporation’s Yubase team, we expect many more shipments to follow.

Coincidentally, this July also marked Odfjell Korea’s one year anniversary, which caused for celebration as well. The dinner was complimented with bottles of perfectly temperate Odfjell Vineyards Armador, already a popular and favourite brand amongst our Korean clients.

BP Petronas Kerteh acetyls plant reaches milestoneBy Gregg Plunkett

On August 30th BP Petronas Acetyls held a ceremony in Kerteh, Malaysia, to recognize the 500th vessel safely loaded at Kerteh Terminals. BP Acetyls and Odfjell Singapore have enjoyed a commercial relationship since the plant’s inception in October 2000. The Kerteh plant produces about 500,000 tons annually of acetic acid and is a joint venture with BP Chemicals and the Malaysian Petronas Chemicals. Most of the acetic acid shipped is used in the production of purified teraphthalic acid (PTA), which in turn is used to manufacture polyethylene terephthalate (PET). PET finds applications in the packaging, photographic film, polyester fibres, bottles for beverages, etc. Mr. Ronan O’Neill, BP Kerteh Plant General Manager presented the Award. On behalf of all the shore-side personnel here in Singapore, we would like to give a big “Thank You!” to all the crew members that made this achievement possible.

Y.K. Ha of Odfjell Korea presenting a memorial tablet to SK Corporation’s J.W. Park

Rhodia award to Odfjell

Gregg Plunkett and Ronan O’Neill during the ceremony.

SK Corporation/Odfjell Seachem celebrates first Yubase shipment to USA


FR Waring was founded in 1929, and is after 75 years one of the oldest trading houses in South Africa. The original aim of the company was to trade and broke agricultural produce on the local market. Soon government restrictions in local trade made the company focus on international markets, specifically the export of grain. This activity remained the principle activity of the company until the 1980s.

From the early 1980s a series of poor summer crops prompted a demand for the import of products that were previously produced locally, and the company started importing oilseeds, grains, oilcakes and vegetable oils. These activities have more or less continued since then, with volumes fluctuating according to the size of the local crops. During this period the company also targeted regional trade in Southern Africa, principally with Zimbabwe, Malawi, Zambia and the BLSN countries.

From 1990 onwards the domestic market opened up again, and the focus of the business switched to re-establishing the company as a major domestic player in the grain and oilseeds markets, at the same time maintaining it’s position in the import market for oils and fats, especially palm and lauric oils from Malaysia and the soft-oils from South America.

The palm oil productsToday FR Waring offers the full range of standard palm products, and together with major Malaysian refiners we have introduced several tailor-made palm products to this market. The products imported have several uses, and are often key ingredients in a wide range of finished goods which include laundry and toilet soaps, margarines, high spec bakery fats and shortenings, coffee creamers as well as other specialty fats. The positive health and nutritional properties of palm oil for frying and cooking purposes, as well as the versatile use of laurics in oleo-chemical applications make palm products increasingly popular with South African manufacturers across the various palm-processing industries.

The South African MarketThe South African market has evolved over the years to become competitive,

with consumers demanding good quality materials, at best market prices, shipped on time to meet their operational needs. To this end, the core relationships enjoyed by FR Waring, with first class suppliers of palm products and service providers, like Odfjell, ensure that we offer a seamless and competitive door-to-door service. Warings in their pursuit for service excellence remains a critical component of the supply chain for palm imports to Southern Africa.

Relationship with OdfjellThe relationship between Odfjell and Waring commenced more than ten years ago, when Odfjell approached Warings to see if by working together they could obtain a significant share of the palm and lauric oil freight business to Southern Africa from Malaysia and Indonesia. A strong working relationship was established, which has ultimately resulted in both Odfjell and Warings becoming significant players within

the markets they serve. The business of supplying palm products to any destination around the globe is fairly reliant on suitable freight from source to destination. The freight component is especially important as ships need to be fully compliant in all aspects to handle the various grades of products.

A South African trader in vegetable oils

Bow Chain calling Durban to discharge palm oil products for the account of FR Waring.

Waring staff, from left: Derrick Francis, Rachelle Beukes, Christopher Berry

Rigging the shorelines for discharging the Waring cargoes.

By Derrick Francis, Senior Trader, FR Waring


Up and running again after a nice summer holiday period, the Quality Renaissance Project is now concluding its second phase. The various business units have identified and described their business processes at an overall level, likewise the process risks involved have been reviewed. Based on the Phase II business unit input, the priorities for the next phase are revealed. We have noted that the second phase was conducted with various grades of organisational involvement.

Highlights and learning points

Within our commercial operations, the tanker chartering and operation processes will benefit from scrutiny, mainly due to its commercial criticality and value adding. It is also a fact that these processes historically have been subject to limited quality assurance efforts. To drive the dive a dedicated project team facilitated by external consultant Ragnar Tysland has been established involving key OS people, all under the command and supervision of Jan Hammer and Freddie Fosse.

The major terminals are familiar with the process approach. A model consisting of six main processes has been identified. The Terminal Management’s intention for the third phase is to define global standard business processes based on best practise assessments.

The process - a conceptual view

Although the term “process” is widely used, some will probably ask what it really is. A process is a set of activities which taken together from a known starting point achieves an output to satisfy an agreed customer need.

The quality of our business processes becomes visible through the output, i.e. the performance results, profits and level of claims and problems. Well-performing business processes are characterised by high-level interaction, well-developed procedures and specifications as well as skilled and well-motivated employees.

Non-Conformance

In our daily work most of us realise that things often don’t go as we planned. The reasons vary, but from time to time this will be due to a non-conformance situation. A non-conformance is by definition a “non-fulfilment of a requirement or expressed expectation”. We all make mistakes - it is even allowed to make mistakes, but we are not allowed to say no to learning from our mistakes.

Having reviewed the capability within Odfjell to deal with non-conformances, we still have some distance to go until we reach the level of a well-developed learning organisation. In order to start our move towards a better position there are some general “guidelines” we all should take note of:

• Non-conformances should be notified when realised.

• Non-conformances all have a reason behind (root cause), they never just happen.

• Non-conformances require real action before being considered closed.

• Actions we make shall be assessed and confirmed effective prior to closing a non-conformance item.

• In well-developed organisations human error is not accepted as a root cause.

We know for sure that in parts of Odfjell these rules are well known and complied to, but in spite of this it will be beneficial to review the practise with all business units.

In order to improve our capability to learn from non-conformances, we have initiated a two-day event in close cooperation with DNV. This course will improve our root cause analysis skills in order to make better corrective and preventive actions. The initial course is scheduled to take place in October, with semi-annual repetitions.

By Freddie Fosse

Quality SectionQuality Section

The Quality Renaissance Project status


Odfjell has always had a majority of owned vessel under own management, but also a significant share of the tonnage placed under external ship management. To increase our focus on safety and performance, Odfjell has defined enhanced support and control of the ships as a strategic area. As a result we will increase the number of Odfjell-owned ships under own management.

In Bergen ship management will continue with the current three fleet units, and all the deep-sea stainless steel vessels will be managed from there. The management of some of the coated ships previously on external management will be transferred to one of the Bergen fleet units. Surveillance of ships on external management will also continue from Bergen.

Expansion in SingaporeOdfjell Ship Management participates in Odfjell’s expansion in East Asia. Our ship management activities started in Singapore a year ago with some of our

regional vessels. Now Odfjell is establishing a complete unit in Singapore for a fleet of 10-18 ships. The unit will comprise technical and maritime superintendents as well as purchasers, who will manage regional ships and a number of deep-sea

ships with coated tanks. They will get support from the Maritime Section, Risk Management Section, Technology Section and Purchasing in Bergen. The branch fleet unit in Singapore is organized as a section of Odfjell Ship Management and shall operate under the same Safety and Quality Management System.

Helge Olsen has been appointed Vice President Fleet Management, and he will be responsible for developing the new unit. Having qualified and experienced ships crew will be one of the most important challenges. Another challenge, of course, will be to put together a well qualified team of superintendents and purchasers.

External managementAlthough we will take many ships back on own management, we will continue with some ships on external management to have flexibility, for benchmarking purposes and to secure availability of competent seafarers.

Hanseatic Shipping Company Ltd has carried out ship management for Odfjell for several years, and currently manages four ships for Odfjell. OSM Norway AS is a well-reputed ship management company with main office in Kristiansand. They will manage three vessels recently bought by Odfjell.

Odfjell will also increase the focus regarding supervision of all vessels operated, as a general corporate approach, to further improve vessel performance within all relevant areas.

Bow Panther, one of the Odfjell ships taken back on own management

Future Ship Management of Odfjell-owned vessels

By Jan Didrik Lorentz and Helge Olsen

From the Ship Management Department


The Personnel CornerThe Personnel CornerNEW HIRES

IN SERVICE FOR ODFJELLRELOCATIONS

Jan Kåre StrønenShip Broker, Odfjell SeachemRelocated from Houston to Bergen 01.07.2004

Nils O. LekvenShip Broker, Odfjell SeachemRelocated from Houston to Bergen 01.07.2004

Siri Anne MjåtvedtTerminal Controller, Odfjell TerminalsRelocated from Singapore to Bergen 15.09.2004

Marc BoelhouwerProject Engineer17.05.2004

Frans ZalluPurchaser01.06.2004

René StreeflandC2-Operator01.07.2004

Odfjell Terminals (Rotterdam):

Theo van WissenManager Engineering01.08.2004

Paul van Niekerk KootenProject Engineer01.08.2004

J.H KimOperation Manager01.12.2003

Sylvia KimPort Coordinator01.06.2003

Y.T. KwonPort Operator26.03.2004

Odfjell Korea Ltd.:

Danny KwonPort Operator01.02.2004

D.H KimPort Operator Assistant26.03.2004

Y.J ParkAccounting/Secretary01.03.2004

W.J LeeAccounting/Secretary01.03.2004

Y.K ParkAccounting/Secretary16.02.2004

Sylvia Peng Siew LowManager Accounts and Finance03.06.2004

Chee Leong CheahIT Coordinator01.07.2004

Odfjell Singapore:

35 yearsRoald GravdalSenior SurveyorBergen05.09.1969

30 yearsBas Kleinjan Supply CoordinatorOdfjell Netherlands BV01.04.74Retired 01.06.04

25 years

Jan Van der GaardenCo-operator Stock AdministrationOdfjell Terminals (Rotterdam)01.07.1979

Paul GordenManager ICTOdfjell Terminals (Rotterdam)01.08.1979

Jan de LegeManipulation Co-ordinatorOdfjell Terminals (Rotterdam)01.09.1979


Editor´s Corner

Helge Olsen has been appointed Vice President Fleet Management in Singapore. Helge has been with Odfjell since October 2000, holding the position as Head of Technology Section. He has previously been employed as Director

of the Maintenence Division of the Royal Norwegian Navy and has a Master of Management degree. He will take up his new position November 15th 2004.

Svend Foyn-Bruun has been appointed Vice

President Operational Support, as from September 1st. Svend holds a degree from the Royal Norwegian Naval Academy and has taken a Master at the Norwegian School of Management. He has been with Odfjell since 1996, and has experience from ship operations and as Manager at Hoyer-Odfjell. His last position was Manager Cargo Handling and Rules & Regulations.

We wish both of them all the best in their new positions.

Early September I had the undiluted pleasure of attending the Ship Officers Conference dinner. It is always very nice to have a chance

to meet our seafaring colleagues in such amiable circumstances, and man, do these guys know how to tell a story! As the editor of this newsletter, however, I was a bit perturbed by hearing complaints from some of the sailors that Odfjell Quarterly contains too little coverage of the vessels and life at sea. Although I have to admit it felt a bit unfair there and then, we still have to face the challenge.

It is and has always been our definite intention that the magazine should reflect what’s going on in our entire organization, at sea and on land. However, we are fully depending on the material that we receive from all our contributors throughout Odfjell. Hence, let me pass the challenge back to you. If you want more coverage from your arena you simply have to supply text and pictures that portray it. Be it from a vessel, a tank terminal, a container outfit or some administrative/marketing unit. And when you do, please send both text and pictures. If you have a story that you feel is relevant to the magazine, try to add a picture or three as illustrations. And if you have a couple of nice pictures, we also need some text that explains the situation and provides names to the people appearing on the shots. The quality of the pictures is another important issue. To be able to print them at all, these need to be sharp, well lit and with a reasonably high resolution. Although pictures below 100-200 kb may look OK on a computer screen, they’re too small to be printed in any size larger than that of an average postage stamp. So please send original and uncompressed picture files or paper copies.

You may feel that nothing particular is happening at your place, and thus, that there is nothing to report. Nevertheless, what you consider everyday routine may still be interesting for someone that does not live and breath in the same habitat. As an example, I am sure that many of our readers, I for starters, would love to read a story with some pictures portraying life and work on a ship during really rough weather. Or to be even more specific: in our December issue we would like to present how you celebrate Christmas on board, and I ask all ships to supply words and pictures that tell of yuletide festivities and traditions at sea. Do you accept my challenge?

This is the last issue of Odfjell Quarterly being produced by Mr. Jan Ellingsen and his company Feedback AS, at least for now. Jan has produced a total of 48 issues for us, and has played an important role in the development of Quarterly, from the four page “folder” that appeared back in 1992 to the magazine we know today. We really appreciate his excellent work for us, and we wish him all the best and much success.

Regards,

Klaus

On September 9th, at the Ship Officers Conference dinner for conference participants and invited personnel from the Bergen Office, our Chairman Dan Odfjell had the pleasure of presenting gold medals and/or gold watches to long-faithful employees of Odfjell, both shipboard and shore-based personnel. The gold medal is awarded by the Norwegian

Shipowners’ Association to seafaring employees having completed 30 years of service, of which at least half the time with the same company. The gold watch is for 25 years of service with Odfjell. In his speech, Mr. Odfjell expressed his appreciation and gratitude to the award receivers for their outstanding and loyal service to the company.

New positions

Service Awards to Odfjell Employees

Back from left: Knut Henrik Kristiansen (medal and watch), Dan Odfjell, Jan Einar Nikolaisen (medal), Bjørn Hovland (medal), Idar Åge Remman (medal and watch), Sten Arild Pedersen (watch). Front from left: Lars Tjore (medal), Atle Bækken (medal), Bjørn-Åge Veivåg (medal).


Bow Spring 2004 39 942 52 126 52 126 40 Bow Star * 2004 39 832 52 126 52 126 40 Bow Sun 2003 39 842 52 126 52 126 40 Bow Firda * 2003 37 427 40 515 40 515 47 Bow Chain * 2002 37 518 40 515 40 515 47 Bow Favour 2001 37 438 40 515 40 515 47 Bow Century 2000 37 438 40 515 40 515 47 Bow Fortune 1999 37 395 40 515 40 515 47 Bow Cecil * 1998 37 345 40 515 33 236 47 Bow Flora 1998 37 369 40 515 33 236 47 Bow Cardinal 1997 37 446 41 487 34 208 52 Bow Faith 1997 37 479 41 487 34 208 52 Bow Cedar 1996 37 455 41 608 34 329 52 Bow Fagus 1995 37 375 41 608 34 329 52 Bow Clipper 1995 37 166 41 492 34 213 52 Bow Flower 1994 37 221 41 492 34 213 52 Bow Sea 1978 27 950 34 656 21 035 43 Bow Hunter 1983 23 002 25 026 21 031 28 Bow Pioneer 1982 23 016 25 965 20 969 28 Bow Eagle 1988 24 728 32 458 19 662 25 Bow Viking 1981 33 590 40 956 21 745 36 Bow Fighter 1982 34 982 41 184 6 299 34 Bow Lancer 1980 35 100 42 468 6 252 34 Bow Heron 1979 35 289 42 109 5 882 31 Bow Cheetah 1988 40 258 47 604 - 29 Bow Leopard 1988 40 249 47 604 - 29 Bow Lion 1988 40 272 47 604 - 29 Bow Panther 1986 40 263 47 604 - 29 Bow Puma 1986 40 092 47 604 - 29 Bow Petros 1984 39 722 47 963 - 28 Bow Transporter 1983 39 738 47 963 - 28 Bow Lady 1978 32 225 41 354 3 077 42 Bow Princess 1976 32 362 42 480 1 400 42 Bow Peace 1987 45 655 52 173 2 167 23 Bow Power 1987 45 655 52 173 2 167 23 Bow Pride 1987 45 655 52 173 2 167 23 Bow Prima 1987 45 655 52 173 2 167 23 Bow Prosper 1987 45 655 52 173 2 167 23 Bow Fertility 1987 45 507 52 173 2 167 23 Bow Fraternity 1987 45 507 52 173 2 167 23 Bow Maasstad 1983 38 039 48 866 - 22 Bow Maasstroom 1983 38 039 48 866 - 22 Bow Maasslot 1982 38 039 48 866 - 22 NCC Jubail 1996 37 499 41 488 34 209 52 NCC Mekka 1995 37 272 41 588 34 257 52 NCC Riyad 1995 37 274 41 492 34 213 52 NCC Yamamah 1977 28 053 34 656 21 035 43 NCC Jizan 1976 28 024 34 656 21 035 43 NCC Jouf 1976 28 026 34 656 21 035 43 NCC Madinah 1976 28 053 34 656 21 035 43 NCC Asir 1983 23 001 24 965 20 969 28 NCC Arar 1982 23 002 24 965 20 969 28 NCC Baha 1988 24 728 32 458 19 662 25 Bow Sky 1977 28 083 34 656 21 035 43 Bow Neptun 1976 28 060 34 656 21 035 43 Bow Saturn 1976 28 030 34 656 21 035 43 Bow Merkur 1975 27 952 34 656 21 035 43 Bow Americas 2004 19 707 22 050 22 050 36 Brage Pacific 1997 17 460 18 620 18 620 24 Brage Atlantic 1995 17 460 19 587 19 587 22 Isola Blue 2001 26 660 28 115 28 115 27 Bow Andino 2000 16 121 17 270 17 270 30 Hibiya Park 1990 13 921 16 053 10 721 24

Number of ships: 63 2 140 318 2 509 467 1 222 368

YEAR BUILT CBMSTAINLESS

STEEL, CBMNUMBER

OF TANKSSHIP DWT

Fleet, terminal and container overview Fleet, terminal and container overview

OWNED:

T/C:

GLOBAL TRADE


OWNED: Bow Master 1999 6 046 6 878 6 878 14 Bow Mate 1999 6 001 6 864 6 864 14 Bow Pilot 1999 6 000 6 865 6 865 14 Bow Sailor 1999 6 000 6 870 6 870 14 Bow Marino 1988 11 289 11 445 6 386 17 Bow Giovanni 1987 11 290 11 445 6 386 17 Bow Antisana 1989 8 192 9 899 5 777 22 Bow Gorgonilla 1989 8 192 9 899 5 777 22 Bow Andes (50 %) 1977 28 060 34 756 21 136 43 Bow Pacifico (50%) 1982 18 657 22 929 10 849 31 Owl Trader 1982 12 450 14 482 8 070 22 Angelim (50 %) 1985 10 259 10 136 6 500 18 Araucaria (50 %) 1984 10 259 10 159 6 500 18 Jatai (50 %, LPG) 1979 4 452 4 031 - 3T/C: Bow de Rich 2003 12 452 13 300 13 300 22 Bow Wallaby 2003 11 951 13 486 13 486 22 Bow de Feng 2002 12 514 13 289 13 289 22 Bow West 2002 12 503 13 299 13 299 22 Bow de Silver 2000 11 747 12 296 12 296 20 Bow de Jin 1999 11 752 12 296 12 296 20 Bow Asia 2004 9 901 10 866 10 866 20 Bow Singapore 2004 9 888 10 867 10 867 20 Bow Wave 1999 8 594 9 225 9 225 20 Bow Wind 1999 8 587 9 226 9 226 20 Jacaranda (50%) 1978 9 970 9 924 5 877 17 Aragas (50 %, LPG) 1983 9 300 8 026 - 5 Multitank Balearia 1998 5 870 5 941 5 941 20 Multitank Batavia 1998 5 870 5 941 5 941 20 Multitank Badenia 1997 5 870 5 941 5 941 20 Multitank Bolognia 1997 5 870 5 941 5 941 20 Multitank Bracaria 1997 5 870 5 941 5 941 20 Multitank Brasilia 1997 5 870 5 941 5 941 20 Multitank Bahia 1996 5 870 5 941 5 941 20 Multitank Britannia 1996 5 870 5 941 5 941 20 Number of ships: 34 323 266 350 285 276 412

YARD DELIVERY DWT OWNER STATUS

ON ORDER: NB Szczecin - B588/III/4 1/2005 39 500 Odfjell NB Szczecin - B588/III/5 6/2005 39 500 Odfjell NB Szczecin - B588/III/6 12/2005 39 500 Odfjell NB Szczecin - B588/III/7 6/2006 39 500 Odfjell NB Szczecin - B588/III/8 12/2006 39 500 Odfjell NB Shin Kurushima (Bow Santos) 11/2004 19 990 Time-charter NB Fukuoka 10/2005 19 700 Time-charter NB Shin-Kurushima 12/2005 19 990 Time-charter NB Kitanihon 8/2005 30 000 Time-charter NB Kitanihon 5/2006 30 000 Time-charter NB Kitanihon 9/2006 19 800 Time-charter NB Kitanihon 11/2006 19 800 Time-charter Number of newbuildings: 12 356 780

* - Vessel beneficially owned through financial lease.

STAINLESS NUMBER

TERMINAL LOCATION SHARE CBM STEEL, CBM OF TANKS

Odfjell Terminals (Rotterdam) BV Rotterdam, NL 100 % 1 540 000 31 000 300Odfjell Terminals (Houston) LP Houston, USA 100 % 270 563 81 902 92Odfjell Terminals (Dalian) Ltd Dalian, China 64 % 59 700 5 750 35Odfjell Terminals (Korea) Co Ltd Onsan, Korea 50 % 109 500 2 850 39Oiltanking Odfjell Terminal Singapore Ltd Singapore 50 % 213 000 5 700 51VOTTN Ltd (Ningbo) Ningbo, China 12.5 % 63 500 7 900 36Total capacity 2 256 263 135 552 553

TANK CONTAINERS 7 990 units operated as per September 30th, 2004.

REGIONAL TRADE

YEAR BUILT CBMSTAINLESS

STEEL, CBMNUMBER

OF TANKSSHIP DWT

TANK TERMINALS

odfjell quarterly 32odfjell quarterly 4

OFFICES AND ADDRESSES

www.odfjell.com

MAIN OFFICE

Odfjell ASA - Odfjell Seachem ASConrad Mohrs veg 29, P.O. Box 6101 Postterminalen5892 Bergen, NORWAYTel: +47 5527 0000Fax: +47 5528 4741Fax: +47 5527 9070 (Chartering/Operations)

INTERNATIONAL OFFICES

Odfjell USA LP12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2200Fax: +1 713 844 2211

Odfjell Singapore Pte Ltd6 Shenton Way, # 27-08/09 DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285

Odfjell Japan LtdOgawa Bldg. 8F2-2 Uchikanda 1-ChomeChiyoda-ku, Tokyo 101-0047, JAPANTel: +81 3 3259 8555Fax: +81 3 3259 8558

Odfjell Netherlands BVOude Maasweg 6, P.O. Box 50103197 XC Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 666Fax: +31 102 953 668

Odfjell Brasil LtdaAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5808

Odfjell ShanghaiUnit 2309 23/F CITIC Square1168 Nanjing Road WestShanghai, 200041 P.R. CHINATel: +86 21 5298 4068Fax: +86 21 5261 0288

Odfjell Argentina SAAlicia Moreau de Justo 1960Office no. 202 - Puerto Madero1107 Buenos Aires, ARGENTINATel: +54 114 313 7837Fax: +54 114 313 4619

Odfjell Australia Pty LimitedSuite 4, Level 1443 Little Collins StreetP.O.Box 1279Melbourne VIC 3001 AUSTRALIATel: +61 3 9642 2210Fax: +61 3 9642 2214

Odfjell IndiaA-26, Nandbhuvan Industrial EstateMahakali Caves Road, Andheri (East)Mumbai 400093, INDIATel: +91 22 5695 4701Fax: +91 22 5695 4707

Odfjell Seachem South Africa Pty LtdB & P House84 Armstrong AvenueLa Lucia RidgeDurban 4051, SOUTH AFRICATel: +27 31 572 8180Fax: +27 31 572 8188

National Chemical Carriers Ltd CoRoom 301, 3rd Floor, Al-Akariyah Bldg No 1Sitteen Street, Malaz AreaP.O. Box 8931Riyadh 11492, SAUDI ARABIATel: +966 1 477 3934Fax: +966 1 476 4328

Odfjell Korea Co LtdRoom 1301, Dongbu-Dadong Bldg.#103, Da-Dong, Jung-GuSeoul, KOREATel: +82 2 775 9760Fax: +82 2 775 9761

Odfjell Manilac/o Magsaysay Maritime Corp.5th floor, 520 t.m. Kalaw StreetErmitaManila, PHILIPPINESTel: 63 2 526 9773Fax: 63 2 525 7720

Odfjell Dubaic/o Sharaf Shipping AgencySharaf Building, Al Mina RoadP.O. Box 576,Dubai, UNITED ARAB EMIRATESTel: +971 4 351 9785Fax: +971 4 351 9756

Terquim SAMolo Sur s/n, Casilla 148San Antonio, CHILETel: +56 35 211 050Fax: +56 35 211 161

Odfjell (UK) Ltd14 Headfort PlaceLondon SW1X 7DHUNITED KINGDOMTel: +44 207 823 0605Fax: +44 207 823 0606

REGIONAL OFFICES

Odfjell Asia Pte Ltd6 Shenton Way, # 27-08/09 DBS Tower 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285

Odfjell Ahrenkiel Europe GmbHGurlittstrasse 11Postfach 100 22020001 Hamburg, GERMANYTel: +49 40 24838 307Fax: +49 40 24838 319

Flumar Transportes Fluviais e Maritimos LtdaAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5807

TANK TERMINALS

Odfjell Terminals (Houston) LP12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2300Fax: +1 713 844 2355

Odfjell Terminals (Rotterdam) BVOude Maasweg 6, P.O. Box 5010 Harbour number 40403197 KJ Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 400Fax: +31 104 384 679

Odfjell Terminals (Dalian) LtdNo. 3 Binhai North RoadZhongshan DistrictDalian 116001, P.R. CHINATel: +86 411 8262 9701Fax: +86 411 8262 3707

Odfjell Terminals (Korea) Co, Ltd136, Cheongyong-RiOnsan-Eup, Ulju-GunUlsan, KOREATel: +82 522 311 600Fax: +82 522 376 636

Oiltanking Odfjell Terminal Singapore Pte Ltd1 Seraya AvenueSINGAPORE 628208Tel: +65 6473 1700Tel: +65 6479 4500

VOTTN, Ningbo LtdJetty No. 16 Zhenhai Port AreaNo. 1 Zhaobao Shan Road, Zhenhai DistrictNingbo 315200, P.R. CHINA Tel: +86 574 627 5929Fax: +86 574 627 5931

TANK CONTAINERS

Hoyer-Odfjell BVOude Maasweg 6, P.O. Box 5025Harbour Number 40403197 XG Rotterdam-BotlekThe NETHERLANDSTel: +31 102 631 600Fax: +31 102 631 699

Hoyer-Odfjell BrazilAv. Paulista 460 - 18 andarCEP 01310-904 Sao Paulo-SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5839

Hoyer-Odfjell China21C East Ocean Centre588 Yan An Road EastShanghai 200001, P.R. CHINA Tel: +86 21 6351 9641Fax: +86 21 6351 9747

Hoyer-Odfjell Dubaic/o Sharaf Shipping AgencySharaf Building, Al Mina RoadP.O. Box 576,Dubai, UNITED ARAB EMIRATESTel: +971 4 3520 555Fax: +971 4 3511 467

Hoyer-Odfjell Singapore6 Shenton Way, # 27-10, DBS Tower 2SINGAPORE 068809Tel: +65 6223 4073Fax: +65 6225 6798

Hoyer-Odfjell Inc16055 Space Center Blvd.Suite 500Houston, Texas 77062 USATel: +1 281 853 1000Fax: +1 281 853 1199

Documents

Quarterly October 2004