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Western CanadaShipbuilding Summit

The role of ClassificationSocieties in Shipbuilding

Marcel LaRoche, Marine ManagerWestern Canada

Lloyds Register Canada Ltd.

May 2nd, 2012

In the context of bothinternational and Canadianshipping this presentation willexamine the relationshipsbetween the key regulatoryplayers related to shipbuildingand seek to clarify their roles.

Introduction

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Ship BuildingDefining Design Criteria

Given the considerable cost of building a ship,three very important criteria must be establishedearly in the design phase.

1. What is the need for the vessel thusestablishing the design intent (ship type,area of operationetc)?

2. To which Flag State will the ship beregistered; hence establishing theregulatory framework to which the ship willbe built and operated?

3. Will the ship be built to the Rules andRegulations of a Classification Society andif so, which one?

Regulatory RegimeFlag States (National Maritime Administrations)

That authority under which a country exercisesregulatory control over the commercial vesselwhich is registered under its flag.

This involves the inspection, certification, andissuance of safety and pollution preventiondocuments.

Responsibilities include:

Development of national law and regulations

Implementation of international conventions

and mandatory codes

Ensure compliance

Exercise control functions

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Regulatory RegimeUnited Nations Convention on the Law of the Sea

Article 94 of UNCLOS the Flag State has certain duties including:

exercises its jurisdiction and control in administrative, technical andsocial matters over ships flying its flag taking such measures forships flying its flag as are necessary to ensure safety at sea withregard, inter alia, to:

the construction, equipment and seaworthiness of ships;

the manning of ships, labour conditions and the training ofcrews, taking into account the applicable internationalinstruments;

the use of signals, the maintenance of communications andthe prevention of collisions

In taking the measures called foreach State is required to conform

to generally accepted international regulations, procedures andpractices and to take any steps which may be necessary to securetheir observance.

Regulatory RegimeInternational Maritime Organization (IMO)

Accepted international regulations fortechnical matters generally refer to thoseproduced by the International MaritimeOrganisation (IMO).

The IMO is well known to those in the marineindustry as a specialized agency of the UnitedNations responsible for measures to improve thesafety and security of international shipping andto prevent marine pollution from ships.

In the context of shipbuilding probably the mostimportant instrument promulgated by the IMO,is the Convention on the Safety of Life at Sea(SOLAS).

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Regulatory RegimeConvention on the Safety of Life at Sea (SOLAS)

SOLAS Chapter II-1 - Part A-1 Regulation 3 specifiesclassification as a statutory requirement.

In addition to the requirements containedelsewhere in the present regulations, ships shall bedesigned, constructed and maintained incompliance with the structural, mechanical andelectrical requirements of a classification societywhich is recognized by the Administration inaccordance with the provisions of regulation XI-1/1,

or with applicable national standards of theAdministration which provide an equivalent levelof safety.

Regulatory RegimeCanada Shipping Act 2001(CSA2001)

Section 6 lists the Objectives of CSA 2001, two of which are noted:others):

(d) develop a regulatory scheme that encourages viable, effectiveand economical marine transportation and commerce;

(g) ensure that Canada can meet its international obligations underbilateral and multilateral agreements with respect to navigationand shipping;

Section 29 refers to Schedule 1 which lists the international

conventions, protocols and resolutions that Canada has signedrelating to matters within the scope of the Act and that the Minister ofTransport has determined should be brought into force, in whole or inpart, in Canada by regulation.

There are currently 31 such instruments listed.

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Regulatory RegimeInternational Association of Classification Societies (IACS)

IACS defines a Classification Society as an organization which:

1. publishes its own classification Rules (including technicalrequirements) in relation to the design, construction and survey ofships, and has the capacity to (a) apply, (b) maintain and (c) updatethose Rules and Regulations with its own resources on a regular basis;

2. verifies compliance with these Rules during construction andperiodically during a classed ship's service life;

3. publishes a register of classed ships;

4. is not controlled by, and does not have interests in, ship-owners,shipbuilders or others engaged commercially in the manufacture,equipping, repair or operation of ships; and

5. is authorized by a Flag Administration as defined in SOLAS Chapter

XI-1, Regulation 1 and listed in the IMO database, Global IntegratedShipping Information System (GISIS).

The Role of Classification SocietiesOriginsit all started over a cup of coffee

In the second half of the 18th century,marine insurers, based at Lloyd's coffeehouse in London, developed a system forthe independent inspection of the hull andequipment of ships presented to them forinsurance cover.

In 1760 a Committee was formed for thisexpress purpose, the earliest existing result

of their initiative being Lloyd's RegisterBook for the years 1764-65-66.

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The Role of Classification SocietiesClassification

The condition of each ship was classifiedon an annual basis.

Hull condition was classified A, E, I, O or U,according to the excellence of itsconstruction and its perceived continuingsoundness (or otherwise).

Equipment was G, M, or B: simply, good,middling or bad.

In time, G, M and B were replaced by 1, 2or 3, which is the origin of the well-knownexpression 'A1', meaning 'first or highestclass'.

The Role of Classification SocietiesA Global Trend

Lloyd's Register of British andForeign Shipping wasreconstituted as a self-standing'classification society' in 1834

Bureau Veritas (BV) in Antwerp in1828

Registro Italiano Navale (RINA)dates from 1861

American Bureau of Shipping(ABS) established in1862

Det Norske Veritas (DNV) in 1864

Germanischer Lloyd (GL) wasformed in 1867

Nippon Kaiji Kyokai (ClassNK) in1899

Russian Maritime Register ofShipping (RS) 1913

Yugoslav Register of Shipping (nowCroatias CRS) in1949

China Classification Society (CCS),1956

Korean Register (KR), 1960

Indian Register of Shipping (IRS),1975

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The Role of Classification SocietiesKey Points

Promotion of safety of life, property and theenvironment.

Develop technical standards (rules) for design andconstruction of ships.

Approve designs against their standards.

Conduct surveys during construction to satisfy theship is built in accordance with the approved designand to the requirements of the Rules.

Acts as a Recognised Organisation carrying outstatutory surveys & certification as delegated bymaritime administrations.

Regulations for in-service inspection and periodicsurvey during operation.

Research and development programmes. Support international organisations IMO, ISO,IACS.

The Role of Classification SocietiesApplied to all stages throughout the life of a ship

Feasibility stage: appropriate rule set orassessment method selected.

Design stage: ship and its component parts areassessed against the requirements of thenominated standard in a process referred to asdesign appraisal.

Construction: survey to ensure that the originaldesign assumptions are met and that the relevantmanufacturing standards are complied with.

In-service: survey to ensure changes to thecomponent do not compromise the requirementsof classification. Changes result from modification,repair, degradation

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The Role of Classification SocietiesOverview of the Process

Owner contracts shipyard to build ship tomeet international regulations:- Classification Rules;- IMO International Conventions- Administrations Special Requirements

Shipyard/designerprovides design to Classfor approval

Class surveyors inspect, test andapprove materials, components,hull, machinery and statutory items

Ship delivered to owner withclassification and statutorycertification in place.

Ship is subjected to periodic surveysduring ships life to maintainclassification and statutory certification.

Ship reaches end oflife and is recycled.

The Role of Classification SocietiesRule Development & Deployment Cycle

ApprovedPlans Design Approval

In Service Survey

Construction Survey

RuleDevelopment

As BuiltPlans

Feedback

Research

Rules

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The Role of Classification SocietiesCertified Materials, Equipment and Components

Rules for construction of vessels are built oncertain assumptions about the materials fromwhich the vessels are constructed.

Assurance regarding the performance of thesematerials is obtained through certification ofthe individual components against materialspecifications.

In addition the operational performance ofmany machinery components is assured bycertification during construction, for exampleengine crankshafts, steering gear and valves.

A mixture of specific approvals, e.g. engines,and type approvals for repetitive componentsare employed.

The Role of Classification SocietiesKey Points

Promotion of safety of life, property and theenvironment.

Develop technical standards (rules) for design andconstruction of ships.

Approve designs against their standards.

Conduct surveys during construction to satisfy theship is built in accordance with the approved designand to the requirements of the Rules.

Acts as a Recognised Organisation carrying outstatutory surveys & certification as delegated by

maritime administrations. Regulations for in-service inspection and periodic

survey during operation.

Research and development programmes.

Support international organisations IMO, ISO,IACS.

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The Role of Classification SocietiesAssurance

At delivery certification assures that:

The ship has been designed to aprescribed standard that reflects theoperational requirement.

The ship has been constructed to thosestandards, using traceable materials andcomponents.

A baseline is available establishing recordsfor in-service phase of the shipsoperational life.

The Role of Classification SocietiesBenefits

Classification is a system for controlling orregulating the materiel state of the ship.

Rules for design / construction are extensiveand under continual development.

Procedures for manufacture, testing andcertification of materials are well established.

Survey and reporting procedures fromconstruction to disposal are well established.

Surveyors are well trained and experienced.

Provides access to an significant depth ofknowledge and experience (250 years).

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The Role of Classification SocietiesThe Statutory Role

Statutory Regulations

International Conventions

Class Society Rules &Regulations Recognised International

Standards for Ship Safety andMarine Pollution Prevention

The Rules published by Classification Societies, together with therequirements set down in the various International Conventionsof the International Maritime Organisation (IMO) and the marinelegislation of the flag states, form a comprehensive andcoherent set of standards for design, construction andmaintenance in operation of ships.

The Role of Classification SocietiesThe Statutory Role

Implementationof standards for:Strength

Propelling machinery

Electrical systems

Control systemsAnchoring equipment

Strength

Fire & lifesaving

Communications

Damage stability

Propelling machinery,electrical and controlsystems

Strength

Freeboard

Intactstability

Damagestability

Accidental

Operational

IMO Conventions

Safety(SOLAS)

Floatability(Loadline)

Pollution(MARPOL)

Damagestability

Statutory certification

Classification

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The Role of Classification SocietiesDelegated Inspection Authority

Shipping is a global industry requiring authorities tomaintain offices worldwide to ensure inspectionregimes are employed.

Many Administrations have opted to take advantageof Classification Societies global coverage andexperienced surveyor network.

Result has been delegation of work to ClassificationSocieties.

Scope of delegated work is outlined in a DelegationAgreement between the Flag State and theClassification Society.

There are currently five Recognised Organisations inCanada; Germanischer Lloyd, American Bureau ofShipping, Bureau Veritas, Det Norske Veritas and

Lloyds Register.

The Role of Classification SocietiesTruly Global Organizations

For example, LR employs over 8,000 people at offices in 250 cities andtowns covering all parts of the world.

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The Role of Classification SocietiesDelegated Inspection Authority

Delegated functions pertain to:

International Conventions.

Special Certificates for non-convention vessels.

National Maritime Regulations.

Delegated Functions Include:

Review/approval of procedures, plans, manuals anddocumentation

Approval of material and equipment (statutory typeapproval).

Conduct of surveys

Issuance/endorsement/extension of validity of

inspection certificates.

The Role of Classification SocietiesClass Rules vs. Statutory Regulations

Classification

Rules for classification andconstruction

Recognized technical standards

Applied and interpreted by theclass society

Statutory

IMO Conventions, codes &resolutions

National Law and additionalnational requirements

Administrations: responsiblehowever may authorize class to acton their behalf

Statutory regulation applied by class

on behalf of the administrationInterpretation by the administration

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The Role of Classification SocietiesClass Rules vs. Statutory Regulations

Construction Rules

Conventions, Codes,Resolutions

Laws, Regulations, etc.

Unified Requirements,Recommendations, etc.

IMO

Class

IACS

Administration

Authorize

Surveys & Certificates

Consult

Consult

In Summary

The ships specified within the NSPS are being designed and built toa modern and proven international regulatory regime in line withCanadas maritime regulatory objectives.

The Classification Societies acknowledged by Transport Canada asRecognised Organisations will be there to support the NSPS inproviding support to Canada, the shipbuilding community and alllevels of business working within and beyond the NSPS program.

Safe ships, clean oceans.

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Lloyds Register is a trading name of the Lloyds Register Group of

entities. Services are provided by members of the Lloyd's Register

Group. For further information visit www.lr.org/entities

For more information, please contact:

Marcel LaRocheMarine Manager Western Canada

Lloyds Register Canada Ltd.

502 - 221 West Esplanade

North Vancouver, BC Canada V7M 3J3

Tel: +1 604 985 0477

Email: marcel.laroche@lr.org

Web: www.lr.org/marine