odfjell quarterly magazine june 2014

ODFJELL

JunE 2014

www.odfjell.com

Odfjell Quarterly

EDITOR: Margrethe Gudbrandsen

EDITORIAL COMMITTEE:Karin Ryland Blom, Brit A. Bennett, Matt Duke, Geirmund Drivenes, Leif Gunnar Alvær, Henning Løseth, Siri Anne Mjåtvedt

CORRESPONDENTS:HOUSTON: Rebecca SnyderPHILIPPINES: Jennifer Franco

Deadline next issue:22 August 2014

Design: Bruno Blanchard, Cox Graphic production: Bjarte Kvinge Tvedt, CoxPrint: Scanner Grafisk AS

Frontcover: Bow RiyadPhoto by: Captain Ruben Q. HilarioPhoto this page: Preparing for opening of OTCPhoto by: Tumbleston Photography Studios

COnTEnTS

Texts submitted to Quarterly may be subject to editorial adjustments. [email protected]@odfjell.com

HighlightsMeeting the ECA challenges 04

New regulation will force new operation patterns in port 06Preparing for use of 0.10% low sulphur fuel oil in ECAs from 2015 07

LandmarksContinued weak results 08

Naming ceremony of Bow Trident 10 Expansion completed at Noord Natie Terminals 12

Portrait13

QHSEOur corporate core values: Professional 14

Odfjell Terminals QHSE managers meeting 2014 15

Briefings Competitive initiatives 16

Type specific ECDIS courses in Manila and Bergen 17 Dan Odfjell stands down 18

100 Years World War II and the post-war reconstruction 20

Our Odfjell Moments 22

Sea and shoreThe 2014 Holmenkollen Relay Race 26

Showing our Odfjell roots at AFPM in San Antonio 27Bow Clipper rescued three sailors 350 miles off Virginia 28

Personnel 29Fleet and terminals 30-31Offices and addresses 32

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o d fj e l l q u a r t e r ly m a g a z i n e

In connection with our first quarter report we recently announced that we would initiate a process to reduce costs and improve our efficiency. The scope of this process will entail a review of all aspects of our business model, including alternative ownership models and organisational structures. I can appreciate of course, that an announcement of this nature has created uncertainty amongst many of you. I do not think on the other hand, that any of you are surprised by the need to act after so many years of losses, and I can assure you that we are going to handle the process in a professional and structured manner, including engaging many of you in work sessions to find better and smarter ways to do our business.

After a first preliminary review of our cost, we see that over the years we have developed a cost structure that is higher than many of our competitors. We recognize therefore that we need to reduce cost without com-promising on the quality of our services. The process that we now have initiated is under development with detailed scope yet to be finally determined. It is very clear though, that our main objective is to ensure that we can and will produce satisfactory financial results also under prevailing market conditions, which as you all know, is not the case today.

Whilst we work on becoming a more cost effective service provider within our core chemical tanker business, we continue developing our complimentary LPG/Ethylene business, with the ordering in May of four 22,000 cubic metre gas carriers at a total capital expenditure of approximately USD 200 mill. This opportunity has very much grown out of the strength of our customer base. With little improvements for our chemical tanker business, we faced the challenge of how to reach a competitive size. I am very pleased therefore, that we recently reached an agreement with Celsius/Breakwater for them to become an equal partner, thus allowing for continued growth of our gas carrier activities without extending our financial exposure. We are all looking forward to working together with our new JV partner-to-be.

At the time of writing I am on my way to the Netherlands for another meeting concerning our tank terminal business. During recent years, the main issue at these meetings has been the situation at OTR. That will also be the case this time around. Our suffering due to the many and complex challenges at OTR continues. The planned reorganisation including a social plan and a new collective labour agreement for 2015-2018 is painful, yet necessary for survival. After the recent vote, it now seems that OTR will get a much needed new point of departure.

The main topic of this issue of Quarterly is meeting the ECA challenge. This has to do with a maximum allowed sulphur content in the marine fuel consumed in so called Emission Control Areas (ECAs). From January 1st 2015, the maximum allowed sulphur content will be reduced from1.0% to 0.1% within all ECAs, which essentially means all waters around Northern Europe and US/Canada. This will potentially drive our costs further up. I am very pleased therefore, that we have focus on our energy consumption and everything else we can do to meet this particular challenge.

All in all our challenges, both for our chemical tankers and tank terminal business, remain large. But with the process for reduction of costs and improved efficiency, combined with the recent development at OTR, we are about to establish a new platform for our Company, at which we shall be successful, irrespective of market developments. So far this is becoming possible because of your dedication and hard work. I admire you for that, and in fact owe you all a well-deserved 'thank you very much'.

Have a great summer!

Dear Colleagues,

Jan A. Hammer,President/CEO Odfjell SE

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HigHLigHTS odfjell quarterly magazine

Meeting the ECA challengesBy Erik Hjortland, Manager Fleet Performance, Bergen

In order to be compliant with the implementa-tion of the new regulation, we need to replace our current consumption of LSHFO by Low Sulphur Marine Gas Oil (LSMGO). In 2013 the price difference between LSMGO and LSHFO was USD 284 pmt. Our consumption of LSMGO accounted for 5% of our total consumption. With the implementation of the new regulations this may potentially increase to 25% in 2015.

Based on the 2013 consumption and price difference, this will potentially give Odfjell an extra cost of several millions dollars in 2015. As there will be high pressure on LSMGO the cost differential could become even larger if

the price for LSMGO should rise further. And this is only the start of the story.

More ECA regulation to comeIn 2020, less than six years from now, the global sulphur limit in marine fuels will drop to 0.5%. There are several strategies to meet this requirement but all of them will give either significant capital costs or operational costs. The strategy that will give the least capital costs is to replace all our HFO consumption by LSMGO. But that will obvious be very expensive with current conditions.

Energy saving initiative establishedNeedless to say, it has never been more North Sea ECA

Galveston Bay, Houston

There are currently three active Emission Control Areas (ECA) in the world: Baltic Sea, north Sea and one surrounding the uS/Canada (including Hawaii and Puerto Rico). Currently the maximum sulphur content in marine fuels consumed in the ECAs is 1.00% and we meet this regulation by consuming Low Sulphur Heavy Fuel Oil (LSHFO) in these areas. Compared to ordinary Heavy Fuel Oil (HFO), the extra cost is about uSD 50 per metric tonne (pmt). in 2010 the Eu implemented a sulphur regulation which committed ships at berth in any Eu country to burn fuel with a maximum 0.1% sulphur content. The only compliant fuel grade with this low sulphur level is Low Sulphur Marine gas Oil (LSMgO). 1 January 2015 will be a ‘red-letter day’ as the uS/Canada ECA, north Sea ECA and Baltic ECA are following the Eu guidelines and from this date our ships will need to burn fuel with a sulphur content of less than 0.1% within all ECAs. This can potentially have significant impact on our operational costs.

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Meeting the ECA challengesBy Erik Hjortland, Manager Fleet Performance, Bergen

important to control our energy efficiency and fuel consumption. Since 2008 we have managed to reduce the average daily fuel con-sumption on our fleet by about 20%, and our overall fuel consumption in 2014 is estimated to end up 25-30% below 2008 level.

Our fleet’s daily fuel consumption on main engines, auxiliary engines in port and at sea, and boilers in port are currently at all-time low, and our energy efficiency has improved

10% compared to 2008. Translated into saving figures, these reductions represent 110,000 mt fuel and USD 66 million on an annual basis.This is the combined results of our fleet renewal programme, our energy campaigns, speed reduction scheme, hull- and propeller cleaning scheme, establishment of engine- and fuel consumption KPI’s, introduction of our Ship Energy Efficiency Management Plan (SEEMP) and the Energy Efficiency Operational Indicator (EEOI), weather routing

scheme, engine surveys, retrofitting of fuel saving devices and equipment, conferences, routines, reports and speeches, but first and foremost it is the result of hard work both onshore and on board our vessels.

Yet, with the upcoming sulphur regulations in mind, we cannot afford to rest on these results. In the months and years to come we need to improve even more to meet the upcoming fuel regulations.

The Baltic Sea- and North Sea ECA jointly covers the Baltics and North Sea up to 62N and 004W

This ECA includes waters adjacent to the Pacific coast, the Atlantic/Gulf coast and the eight main Hawaiian Islands. It extends up to 200 nautical miles from coasts of the United States, Canada and the French territories, except for marine areas subject to the sovereignty or jurisdiction of other states

Galveston Bay, Houston

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Regarding supply of low sulphur fuel with a sulphur content of 0.1%, the various refineries have not yet taken a firm decision with regards to their strategies following this change in regulation. Blending of a 0.1% sulphur fuel creates high interest from key cargo traders, but also carries a high level of capital exposure and risk.

Supply of bunkerThe signal we have received from various sup-pliers and traders is that there will be enough 0.1% fuel available both inside and outside ECAs (at this stage Low Sulphur Marine Gas Oil). With the sulphur level now being reduced to 0.1% we therefore need to have an even stronger focus on avoiding any port calls for bunkering only prior to entering the ECA zone. Efficient bunker planning will be more important than ever.

More efficient port calls is evidentPortcalls in the US and especially Houston, will

in this respect be challenging from 1 January 2015. With the high LSMGO prices it will be very important to make sure that we cut the numbers of days in port. With ECA-fuel prices exceeding USD 1,000 per metric tonne, steam-ing up and down the Houston Ship Channel will be very costly. In this highly congested ship channel it will be more important than ever to utilize our knowledge and equipment to reduce the numbers of docks. Barging and utilization of lay berths prior to additional steaming in port must always be considered.

As always the first basics for an efficient port rotation starts with effective planning from the commercial end of our business. To avoid costly steaming days in port we need to reduce the number of scheduled berths, and owners’ bunkers cost should be clearly reflected the bunkers adjustment clauses.

new regulation will force newoperation patterns in portBy Leif Hopland, Bunkering Manager, Bergen

New ECA regulation

•ECA=EmissionControlArea•ThreeactiveECAs:BalticSea, NorthSeaandtheUS/Canada•Currentlymaximumsulphurcontent inECAis1.00%•From1January2015,theECAswill implementamaximumsulphur contentof0.10%.Thisisthesame regulationthathasbeeninforcefor shipsatberthinEUportssince2010•LowSulphurMarineGasOil(LSMGO) istodaytheonlyalternativefuelwitha maximumsulphurcontentof0.10%.•ThepricedifferencebetweenLSMGO andthecurrentlyusedLowSulphur HeavyFuelOil(LSHFO)isabout300USD•Therearebasicallythreeoptionstobe compliantwiththe0.10%regulation: 1.ConsumeLSMGOinsteadof HFO/LSHFO.Highoperationalcosts, limitedcapitalcosts. 2.Installscrubbersonthevesselsto removethesulphurfromthefuel,making itpossibletocontinueconsumingHFO. Highcapitalcosts. 3.ConsumeLNGinsteadofHFO/MGO. Substantialcapitalcosts,noreal alternativeforexistingvessels. Limitedinfrastructureandavailability

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Ship Management (SM) has initiated the following projects to be prepared for the new ECA requirements:

Fuel tank configurationWhen LSMGO starts being used within ECA, the vessels’ tank capacity for this fuel type needs to be increased in order to reach ports within a safe margin and to ensure efficient operations whilst in port. Some fuel tanks will have to be converted for LSMGO to meet this new requirement. Since we are talking of vessels in operation, we are dealing with the vessels current fuel oil capacity and its limitations. It is therefore important to choose a tank size as close as possible to the optimum in order to keep bunkering intervals to a minimum. SM has in cooperation with Odfjell Tankers decided LSMGO capacity for deep sea vessels and for the regional vessels in Europe. SM has established a project to follow up implementation of required LSMGO capacity for vessels that will operate in ECA.

Lubrication oil tanks segregation From 2015 the engines will run on LSMGO for longer periods during trade inside ECAs. When running engines on low sulphur fuel, another type of cylinder lubrication oil with lower base number is required. By introducing another blend, the lube oil storage tanks will have to be segregated in order to have sufficient capacity for both lube oils. SM has established a project to follow up segregation of lubrication oil tanks for vessels that will operate in ECA.

Fuel oil booster pumps and coolersLSMGO has low viscosity, which at high temperature can be a problem for booster pumps and injection pumps. Booster pumps for LSMGO have normally a lower viscosity limit of two centistoke in order to avoid pump break down. To avoid such incidents to occur, coolers have to be installed in the fuel supply line to secure fuel oil temperature to stay within acceptable temperature range. SM has established a project to install coolers in fuel oil line for vessels that will operate in ECA.

Switch to/from LSMg0Vessels scheduled for ECA has to prepare switching to LSMGO in good time before entering the area. A challenge during the change-over is that HFO has to be heated

Preparing for use of 0.10% low sulphur fuel oil in ECAs from 2015By Knut Erik Fredriksen, VP Technology Management, Bergen

and the LSMGO needs to be cooled. The temperature difference between the fuels can be 100 to 120 degrees Celsius, which can cause thermal stress on the fuel system if the change-over goes too fast. A typical thumb rule is to keep temperature change below 2 degrees Celsius/min during change-over. The change-over can be done manually by using a ship specific procedure or installing a fuel-switch system that will control the change-over. SM has installed such automated switch system on board Bow Cecil and Bow Spring to gain experience in using such systems.

Auxiliary boilersWhen the EU requirement to use LSFO below 0.10% in all EU-ports was implemented in 2010, boilers on existing vessels had to be upgraded. Burner safety system and the fuel oil supply system had to be upgraded to meet the new requirements. This means that the boilers are already taken care of.

Vessel operation and energy efficiencyAt present, it is required to use LSMGO within EU-ports, but from January 2015, LSMGO has to be used when entering both EU- and US-ECA. Since the price difference between the blends today is about USD 300, it will be

even more important to operate our vessels efficient and avoid any unnecessary running of consumers. Or to say it differently, each dollar saved on fuel is a dollar gained on the bottom line.

By excellent vessel operation it is possible to obtain the best energy efficiency. It is therefore of vital importance for both shore organisation and officers/crew always strive for optimal operation and to avoid waste of energy. The newly implemented Ship Energy Efficiency Plan (SEEMP) will be a useful tool to moni-tor the effect of measures implemented and inspire all to further improve vessel operation.

Several measures will be implemented in the near future, such as:l Harbour mode electrical balance – optimal use of consumers during harbour stayl Full hull grit blasting will be evaluated and done during sheduled dry-dockl Hull antifouling – testing of low friction and long lasting antifouling

Fuel oil switchCooler with fuel and cooling water connections

The global economy is expected to grow by 3–4% per year over the next few years, which traditionally should indicate an increase in the demand for seaborne chemical transportation of 4–5% per year. Consequently, the supply/demand balance should gradually turn in favour of stronger chemical tanker markets. However, the substantial market slack through slow-steaming, ballasting or part loading, as well as inefficient port operations, need to be recovered before we see any substan-tive tightening of the market. With new private equity entering the market we have seen an immense increase in ordering of medium range product carriers, and recent months also increased ordering of standard stainless steel tonnage. This may very well dampen the much awaited recovery.

Even though the overall long-term prospects remain favourable for quality long-term operators, we will need to, in the coming months, review all aspects of our business model, including alternative ownership models and organisational structures, in order to identify areas of improvements in terms of improved economic results through more competitive organisational cost structure.

Further, we will strengthen the focus on increasing the operational efficiency with regards to fuel efficiency, turnaround time in port, ship maintenance, planning and performing of docking operation and various other activities to increase the competitiveness.

LAnDMARkS odfjell quarterly magazine


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first quarter 2014 results:

Continued weak results By Terje Iversen, SVP Finance, Bergen

The time-charter results are in line with last quarter. Chemical tankers EBiTDA of uSD 17 million, compared with uSD 19 million in the fourth quarter of 2013. The tank terminal results remained stable except for our terminal in Rotterdam.

For our chemical tankers, first quarter con-tinued on a slow and disappointing pace as congestion, delays and bad weather caused operational challenges, inefficiencies and increased cost. In general, rates came under pressure during the quarter as tonnage was abundant. Bunker prices were similar to the fourth quarter 2013, offering no relief. Going into the second quarter 2014 we note increased activity and less delays and interruptions.

Odfjell’s shareholding in our tank terminals busi-ness delivered an EBITDA of negative USD 0.2 million in the first quarter. With the exception of Odfjell Terminals (Rotterdam) (OTR), terminal results were mainly in line with our expecta-tions. The overall terminal group, excluding OTR reports a gross occupancy of 92% as at end of March. The process at OTR of re-organisation to improve the cost base to market level continues.

An improving US job market and increasing industry production signals that the pace of the US economic growth is poised to snap back. Growth is projected to reach 2.7% this year. The biggest risk to an optimistic growth forecast for the Euro zone is associated to continued or even worsening unrest in Ukraine. A stronger

Euro is also hurting the competitiveness of the region’s exporters. For China, the economic indicators so far this year have been disap-pointing and debt default repayment risk is rising significantly.

Reducing cost and improving efficiency in the Odfjell groupBy Terje Iversen, SVP Finance, Bergen

Re-organisation process at OTR

There-organisationprocessatOdfjellTerminals(Rotterdam)(OTR),toimprovethecostbasetomarketlevel,continues.Thisincludesareductionofmorethan100positions.AdialoguewiththeUnionshasbeenstartedtosimultaneouslyaddressanewcollective labour agreementfrom 2015. These measuresaredeemednecessaryasthelevelofactivityattheterminalis significantly reduced, andarenecessarytomakepossiblecontinuedoperationsandinvest-mentsinOTR.

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imoS going live! By Tore Vågenes, Manager ERP Systems, Bergen

Odfjell enters into LPg/Ethylene joint venture and exercises options for four newbuildingsBy Terje Iversen, SVP Finance, Bergen

On 20 March, Odfjell Europe became the first Odfjell company to go live with integrated Maritime Operations System (iMOS). iMOS was selected in 2010 to become Odfjell's new ERP system/voyage management tool for Chartering and Operations. Core modules for chartering, operations and financials capture data onshore and on board, process it and distribute it to all stakeholders. By supporting our main workflow iMOS will enable the organisation to work smarter, more efficiently and allow us to focus on the most important aspects of our business.

With the introduction of IMOS in Odfjell, a fully integrated system has been put into produc-tion where voyage information is inserted into the chartering module, copied to operations, shared with our vessels whereupon positions and events are added before replicating it into IMOS via Veslink. This workflow allows all vessels to work in a standardised form and to easily share information with operations.

More than 200 shipping companies use this system everyday - among them many of our main competitors. Veson Nautical, the company

Odfjell SE is pleased to announce that it has entered into an agreement with affili-ates of Breakwater Capital and Oak Hill Advisors to form a liquefied petroleum gas and ethylene (‘LPg/E’) shipping joint venture.

Further, Odfjell announces that it has exer-cised the option for construction of four 22,000 cbm LPG/E gas carriers at Nantong Sinopacific, scheduled for delivery between September 2016 and June 2017. The contract price in total is in the region of USD 200 million.

In the LPG/E gas carrier segment, Odfjell cur-rently owns and operates two 2008-built 9,000 cbm vessels, has four 17,000 cbm vessels under construction at Nantong Sinopacific, scheduled for delivery between October 2015

and May 2016, and the option for four vessels now being exercised.

In accordance with the agreement, Breakwater and Oak Hill Advisors have jointly agreed to invest approximately $50 million as consid-eration for a 50.0% equity interest in Odfjell’s LPG/E business. Further, Odfjell and the Partners have each agreed to commit approxi-mately $50 million to finance the growth of the joint venture.

Completion of the joint venture agreement is subject to customary conditions for closing including execution of the shipbuilding con-tracts related to the vessels. It is expected that completion will occur within third quarter 2014.

Odfjell and the Partners aim through consolida-tion and partnerships with other first-class

operators to build a leading LPG/E shipping platform founded upon second-to-none opera-tional excellence, a modern and eco-friendly fleet and a long-term market perspective.

Jan A. Hammer, President and CEO of Odfjell, says: - Odfjell is delighted to have Breakwater Capital and Oak Hill Advisors as its partner in the shipping segment of LPG and ethylene. Together, we will enhance our growth oppor-tunities and broaden our capabilities.

Jeppe Jensen of Breakwater Capital says: - We are pleased to be an integral part of a strong platform within the LPG/Ethylene segment. The combination of a modern fuel efficient fleet and two first class partners such as Odfjell and Oak Hill Advisors represented the perfect entry opportunity in a sector we have been and are excited about.

behind IMOS, releases three major new system updates every year. This way IMOS continues to develop each year and provides the option to add new features alone or in cooperation with other users.

Implementing a new ERP system like IMOS is a demanding process for any organisation and we will invest time and resources into training the users in the months to come. Users in all of

Odfjell's offices will receive training on the new system and with the introduction of Veslink, training will also be included for top officers on board.

At the time of writing, we are implementing IMOS into our Odfjell Asia regional fleet and expect the implementation in Odfjell Tankers worldwide to be completed by the end of 2014.

Stian Sandnes Mensvik (midle) working for Odfjell Europe, is one of the first people to be working with the IMOS system in Odfjell. Here together with (from left) May Brit Christiansen, Senior Ship Broker and Tone R. Ekman from Veson

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delivery of Bow trajectory:- First vessel outBy Geir Almestad, VP Project/Newbuilding, Bergen

On 9 April 2014 Bow Trajectory was delivered from Hyundai Mipo Dockyard to Odfjell. The vessel is the first in a series of four 49,000 dwt ships with eco design for reduced emissions and fuel consumption. The 22 cargo tanks are all iMO ii type with variable sizes, where six tanks are coated with zinc and 16 tanks coated with phenolic epoxy.

The ship is highly flexible with one cargo manifold used for traditional chemicals, and one aft-ward located common cargo manifold for discharge of homogeneous cargoes. The common manifold is fully OCIMF compliant,

which in particular makes the vessel suitable for efficient operation at oil terminals.

After successfully completing the hot curing of the cargo tanks, the vessel loaded in Ulsan and commenced its maiden voyage with destina-tion Rotterdam.

Particulars of the vessel:• Length overall: 182.60 m

• Length between perpendiculars: 174.00 m

• Breadth: 32.20 m

• Draught to summer load line:13,22 m

• Summer dwt: 49,622 MT

• Design dwt @ 12.5 m draught: abt 46,000 MT

• Cargo cubic @ 98%: 53,188 cbm

• Flag: Norwegian (NIS)

• Class: DNV

• Service speed with 15% sea margin at design draught: 14 knots

• Main engine consumption corresponding to service speed: abt. 26 MT/24hr of LSHFO

Spring brings new life in Korea:- naming ceremony of Bow TridentBy Ian Shaw, Assistant Site Manager, HMD Shipyard, Ulsan, South Korea

The naming ceremony for Bow Trident took place at Hyundai Mipo Dockyard (HMD) in ulsan, korea, on a bright and sunny morning on the 30 April 2014. Bow Trident was named by her godmother, Mary Anne Ellis. After the traditional champagne breaking ceremony all the guests were given a guided tour of the bridge, Captain’s cabin and cargo control room.

The ‘Anniversary Series’Bow Trident is the third in the series of four vessels and she will be delivered in August 2014. The Hyundai ships are an important series for Odfjell. Designed to Odfjell specifications, these eco ships will define the standard for our coated vessels as ambassadors for the Odfjell fleet as well as for their builders HMD. They have been built to serve Odfjell into the future and the significance of their delivery in Odfjell’s history has already seen them bestowed with the title ‘Anniversary Series’.

interesting facts about Bow Trident

Godmother Mary Anne Ellis together with Captain Rofil Villamero on the bridge of Bow Trident

• The weight of steel in the vessel is greater than 48 fully loaded Boeing 787 Dreamliners.

• There are 22 coated cargo tanks with a total capacity of 54,000 cubic meters which is equivalent to 72 million bottles of Odfjell wine.

• The vessel has a fuel capacity of 1,928 cubic meters. If filled with petrol, this would be enough to drive a Mini Cooper 1.6 approximately 890 times around the world.

• The vessel has a ballast capacity of 19,724

cubic meters which is enough to fill eight olympic sized swimming pools.

• The vessel has a drinking water capacity of 331 cubic meters equivalent to one million bottles of water.

Bow Trident is the third vessel in the ‘Anniversary Series’

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grand opening of Odfjell Terminals (Charleston) By Mel Pinks, Commercial Manager, OTC

On 12 March Odfjell Terminals (Charleston) (OTC) had its grand opening ceremony. Dignitaries from far and wide gathered in Charleston to enjoy our prestigious event. We were particularly honoured to have Dan Odfjell, previous Director of the Board, present whose initial visions led the way to realisation of this amazing facility that now graces the banks of the Cooper River.

Our partners Lindsay Goldberg supported Dan Odfjell’s early visions for this project and they were well represented at the opening with the presence of VP Krishna Agrawal, Partner Lance Hirt and Analyst Ryan MacIntyre. It was through their combined efforts that delivered OTC, a facility ready to serve the bulk liquid across the spectrum. Perhaps it is only when viewed from 30,000 feet that you are able to see the true craftsmanship of OTC.

‘We’ at our grand opening event referred to not only our colleagues from Norway, China, Holland and even as far away as Houston, but also to members of the local community. We wanted to say a special thank you to Mayor Keith Summey whose tireless efforts have borne the fruit of a revived and continually reviving business community. We also wished to show our thanks to Councillor Bob King who has played such a key role in guiding

Odfjell into the local community. Teddy Pryor, Chairman of Charleston County helped put his county on the map not only because of business development, but also by achieving the accolade of the top United States and global tourist destination. From the office of the Governor we were also very pleased to welcome Allison Skipper, Director of Marketing and Communications. We are aware that in order to accomplish such an amazing achievement, it is a collaboration of many. From the United States Coastguard; Captain Ric Rodriguez and Commander Scot Higman. From Charleston Pilots; Captain Whit Smith and Captain John Cameron. From Norfolk Southern Rail Road; Director Steve Evans, Roger Norman and Chris Bailey from the Roberts Company & PPS, Jack Smith from Nelson Mullins and many more. It is impossible to mention everyone who has helped us achieve this amazing facility and sadly not everyone was able to join in the celebrations but we are very thankful for all your support.

The grand opening was brilliantly organised. Our guests arrived early in the afternoon and we all assembled at a marquee just to the east of the truck tower. Inspirational speeches were delivered from Chairman Laurence Odfjell, the President of Odfjell Terminals Dave Ellis, OTC Terminal Manager Drew Wharton, Charleston

Our brand new tank terminal….

Hard hats and scissors ready for the official cutting of the ribbon

The cutting of the ribbon. From left: Charleston County Chairman Teddy Pryor, Mayor of North Charleston Keith Summey, previous Director of the Board Dan Odfjell, Director of Marketing and Communications (State Govenors Office) Allison Skipper, Chairman of the Board Laurence Odfjell and President Odfjell Terminals Dave Ellis

County Chairman Teddy Pryor, Mayor Keith Summey and Allison Skipper from the State Governors Office. The cutting of the ribbon fol-lowed and the terminal was officially opened. On leaving OTC we went to the River Front Park to the Quarters K, a magnificent building harping back to the navy days and recently fully restored by the City of North Charleston where we enjoyed an equally well organised and spectacular reception where it was difficult to decide whether the wine, the food or the ice statue was the best received.

The magnificent celebrations continued into the next day as we welcomed our personnel and their families, our neighbours and friends to a barbecue followed by tours of the terminal. Thankfully the weather was amazing again which made the event even more enjoyable.

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Expansion completed at noord natie TerminalsBy Martine Teeuwens, Managing Director, Noord Natie Terminals

The expansion of the noord natie Terminals (nnT), with two new tankpits with a total of 50,000 cbm, has been completed on sched-ule. With the new tankpits now in use, the terminal can offer a total storage capacity of 350,000 cbm.

Of the two new tankpits, one has five tanks of 5,000 cbm. Each tank is insulated and equipped with heating coils. The other tankpit consists of four tanks of 5,000 cbm and two of 2,500 cbm, and are equipped with high viscosity pumps in order to pump products without heating. One tank is insulated as some customers want the product delivered to them heated. This gives the greatest flexibility to the customer as he can store all the grades combined in all the tankpits.

One of the new tankpits also has rail connec-tion on a combined truck and rail weighbridge.

A total of five extra truck loading stations are operational for these new tankpits, and two new manifolds for vessels and barges. The tankpits are both connected to the rest of the terminal.

new office buildingThe next project we are working on is a new office building at the entrance of the terminal. The start of the construction work is planned for the second half of 2014. This will be a welcomed change for our employees as we are now spread over the terminal in small offices or container offices and do not have enough workspace for everybody. New changing rooms, showers and a refectory will also be included in the expansion plans.

Meanwhile the commercialisation of the next project has started. The new expansion plans

for four new tankpits with a total capacity of 90,000 cbm extra tank storage space are further being developed.

The four new tankpits can be built as a whole or split into different phases depending on contracts that can be concluded. Tank sizes have been determined to 1,300 cbm, 2,500 cbm and 5,000 cbm but tank types are still open and can be determined depending on demand. Most probably a combination of mild and stainless steel tanks will be built. Construction can start from 2015. Meanwhile the port will start building new quay walls to bring the draft to 14 metres followed by dredging works. This will allow us to have the new generation of ships to berth at this new part or the terminal.

A total of five extra truck loading stations are operational for these new tankpits and two new manifolds for vessels and barges

Noord Natie Terminals

Sale of Vopak terminal ningbo in May Odfjell sold its 12.5% holding in Vopak Terminal ningbo Ltd, China, for uSD 3.2 million.

The terminal in Ningbo was Odfjell’s first

terminal venture in Asia. Vopak Terminal Ningbo has been considered a non-strategic asset and has been held by Odfjell SE, outside of the terminal structure in Odfjell Terminals AS.

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PORTRAiT odfjell quarterly magazine

- A long time ago, i was an 'unwanted visi-tor' trying to board a domestic passenger ship. The first person i saw manning the gangway on that ship impressed me. He was wearing the class 'A' uniform then. i asked some questions and the answers were very encouraging. it was at that moment that i decided to become a seafarer, narrates Captain Dario Dolina, Odfjell’s first Filipino Captain, on how he first got anchored on the seafaring dream.

Captain Dolina’s journey with Odfjell began on 18 December 1985 on board old Bow Fortune as a Second Officer. He was 31 years old when he joined the first group of Filipino sailors manning Odfjell vessels under the Panama flag. – The Company took good care of all the crew, and my life at sea has been with Odfjell since then, he shares.

His climb to the Master’s ladder was not swift or easy. It took 13 years and 15 vessel assignments before he was promoted to Chief Officer and another four years and six sailing contracts before he was given the position of Captain. But the long road to the top did not bother Captain Dolina. To him, it was an opportunity to gain the experience and knowledge required to beome a remarkable sailor. When it was his time to lead, he was experienced and ready for the big waves.

- It took seventeen years of patience and hard work before I became a Captain. I made a num-ber of mistakes, corrected them and learned a lot along the way. I got into constructive arguments, stood my ground, and gained more knowledge in the process. Most importantly, I followed my leaders and supported the goals of the Company, he says.

When asked about his advice to young Odfjell sailors, Captain Dolina summarised the secret of his seafaring success in four words: loyalty, honesty, competence and respect. To theyoung sailors and prospective future officers of Odfjell, be loyal and true. Combine that with positive attitude about your job and respect for your colleagues, the Master explains.

His fervor and passion for seafaring has not waned even after three decades at sea. Now at 59, he still views seafaring with the same awe of his younger self, who boarded a domestic passenger ship a long time ago.

- I thank Odfjell for their continued support to all personnel involved. Looking back, I think I have served well. How I wish I could serve another 30 years! Thank you Odfjell! Captain Dolina says.

the Pioneer: captain dario dolina Odfjell’s first Filipino MasterBy Jennifer Franco, Information Officer, Manila

Captain Dario Dolina has previously been Captain on Bow Asia and Bow Singapore. Here from on board Bow Asia

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QHSE odfjell quarterly magazine

our corporate core values:

that being professional has been a key value for Odfjell´s past success and also will be key in our future performance.

What is Professional in Odfjell?To be Professional is at least two things; Firstly; it implies that we know what we are doing. We must have sufficient insight in our tasks, the Company, the handling of chemicals, the busi-ness and not least – the risks involved. Some examples of what it means to be professional with respect to safety are listed below:

Professional employee1. Know your tasks, duties, roles, responsibilities, processes 2. Comply with the procedures, routines, and what risks they rectify3. Familiarise yourself with equipment, surroundings and systems that are relevant for your job4. Take exercises, training sessions and drills seriously

Professional colleague1. Treat your colleagues professionally2. Strive to understand our organisation, our strategy, our history, our customers, our industry3. Understand how you contribute to Odfjell´s success. Who do you need to cooperate with and what are their roles and responsibilities 4. Make your colleagues even more Professional; contribute with insight and care

Secondly; we must have the right mind-set. All the above listed examples improve the quality of our work. In that respect, being professional is key for safety. But, it is also worth noting that making a mistake does not imply that someone is unpro-fessional. Anyone can make a mistake. But the mind-set of a professional ensures that he or she treats a mistake differently from someone who is unprofessional. The Professional minds take an objective view of their own job and performance. Instead of protecting their own back, they take a broader view; they see their own limitations, report their own failures, they involve others and are open to their opinions. We have all seen people who strive to be perceived as Professional but ignore that the mind-set must follow. Such people often tend to be perceived as arrogant

and stubborn, they speak ill about others and try to promote their personal interests. These are all signs of misunderstood professionalism.

How can we be even more Professional?A good thing about being Professional is that everybody can always become more Professional. A certificate, age, experience, rank or student degree may be a good start, but it does not neces-sarily make you Professional in the long run. Being Professional is a process. An easy exercise is to challenge yourself to find three areas where you can start being even more Professional:

• Be a more Professional employee examples 1-4• Be a more Professional colleague examples 1-4• Use a more Professional mind-set

When you have done this first step, you may challenge yourself even further: Do you dare to share your improvement areas with your close colleagues? In doing so you may also help broaden their view. If you are so trustworthy that a colleague shares her/his improvement areas with you, remember to use your Professional mind-set and appreciate that he or she does so. A third step is to recognise that your colleagues are Professional. Show them that you see it and appreciate it. The last and maybe most difficult step is to also give feedback to colleagues that in your opinion are not Professional in a given situation. If you do this the right way, giving direct feedback combined with respect and humbleness, it might actually be that you both become more Professional in that process.

Our future success also depends on being Professional Will professionalism continue to play such an important role in Odfjell’s future successes? The answer is yes. The need for Professionalism will continue to increase. Our industry is becom-ing more complex and demanding, which in combination with the zero tolerance for underperformance make professionalism a ticket to trade. By knowing more about what we are doing, combined with the right mind-set, we will differentiate ourselves from our competitors and at the same time improve safety.

Professional By Harald Fotland, SVP Corporate Services and Support, Bergen

Corporate core values can be described as important and lasting beliefs or ideals that can help create a common understanding of what is good and desirable within a company. The values shall also serve as common guide-lines for what is considered to be the right behaviour and attitude. in February this year a process was completed where Odfjell´s core values were defined. in Odfjell we shall be:

• Professional • Pro-active • Sustainable • innovative

This is the first out of four articles describing each core value and what it means for us in practice.

Professional Being Professional is the basis for what we do in Odfjell and has also been a core foundation throughout our history. It was professionalism that made Fredrik and Abraham Odfjell start up as ship-owners one hundred years ago and it was professionalism that enabled Odfjell to become one of only a handful of operators in the world-wide chemical trade during the 1960s. Therefore, it came as no surprise that Professional was among the four core values that the employees mean represent Odfjell also today. It has always been there, and now we have decided to publicly express it. I will try to explain what it means to be Professional in Odfjell and in particular how it is linked to safety.

Why is being Professional one of Odfjell´s core values?We pride ourselves in beeing a leading company in shipping and storing of bulk liquid chemicals. This is a highly specialised and very demand-ing business. The fact that being professional has supported Odfjell in creating value can be exemplified through many of our slogans; ‘For Anything Liquid’, ‘From sensitive wines to cor-rosive chemicals’ and ‘The Everything Carrier’. Very few companies are professional enough to justify such bold slogans. Chemicals are among the most demanding cargoes you can ship or store. We saw the business potential in it, we understood the risks and we had the right mind-set to carry it out. It is beyond any doubt

A good thing about being Professional is that everybody can always become more Professional

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QHSE odfjell quarterly magazine

Communication on Progress (COP) 2014By Bjørn Ydse, HSE Manager, Bergen

Odfjell Terminals QHSE managers meeting 2014 By Pierre Houben, Global QHSE Manager, Rotterdam

From left: Dave Ellis (President Odfjell Terminals), Pierre Houben (Global QHSE Manager Odfjell Terminals), Hussain Ahmad (QHSSE Manager Oiltanking Odfjell Terminals (Oman)), Ran Qin (QHSE Manager Odfjell Terminals (Jiangyin)), Marcio Vicente dos Santos (QHSE Manager Odfjell South America), Nan (Serena) Zhao (QHSE Manager Odfjell Terminals (Dalian)), John Heil (QHSE Manager Odfjell Terminals (Houston)), Hongquan Yang (QHSE Manager Odfjell Nangang Terminals (Tianjin)), Clarence Harmon (Terminal Manager (Odfjell Terminal (Houston)), Chester Lee (SVP Region Asia), Yong Chan Gill (QHSE Manager (Odfjell Terminals (Korea)) and Mahbod Ahmad (Operations Manager (Odfjell Terminals Asia))

Odfjell Terminals held their annual QHSE meeting in Houston in March 2014. This three-day event is the third time the QHSE managers meet this way.

QHSE managers from Europe, Asia, the Middle East, the US and South America attended the meeting to discuss relevant topics and to gain alignment on issues such as: incident notifica-tion, investigation and reporting; a standard QHSE reporting format; ICT requirements; training and audits. Presentations were given on risk management, personal safety equip-ment (PPE), safety observation rounds and static electricity.

The meeting was hosted by Odfjell Terminals (Houston) and we would like to give special thanks to John Heil for the smooth organisa-tion of this event. A visit to the Houston Rodeo was organised for the Asian participants who were visiting the US for the first time so they could experience a taste of the ’wild west’. The three-day meeting ended with a visit to the terminal in Houston. As well as having a tour of the terminal, the participants also had the opportunity to talk to terminal personnel and meet with Dave Ellis, President Odfjell

Odfjell became an official participant to the world’s largest corporate citizen-ship initiative, the united nations global Compact, in March 2011. This is a strategic policy initiative for businesses that com-mit themselves to aligning strategies and operations to ten lead principles within four different areas; human rights, labour, environment and anti-corruption.

The Global Compact expects participating companies to take necessary action in line with their commitment, and requires this to be verified through submission of an annual Communication on Progress (COP) report showing status and actions. Odfjell has already published this report for three years, the latest in March 2014. It is a public document that is open to all stakeholders

and shows the progress we have made on implementing the ten principles.

Below are some of the activities from 2013:

• Revised and harmonised the Code of Conduct with the UNGC principles• Launching of Corporate Supplier Conduct Principles• Established corporate core values within Odfjell • Introduction of an annual safety day for all employees. First held 6 November 2013 and will be held the first week in November every year• Continuation of a safety culture programme within Ship Management and the establishment of a Leadership and Followership programme

• Implementation of several environmental projects• Joined the Maritime Anti-Corruption Network (MACN) in August 2013

The COP can be found at www.odfjell.com and on Insite.

Terminals, Chester Lee, SVP Odfjell Terminals, Region Asia and Koos Frowein, VP Finance and Investments, Odfjell Terminals.

It was a successful meeting in which the QHSE team reached an agreement on how to deal with incident notification and reporting, QHSE reporting, training and audits.

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BRiEFingS odfjell quarterly magazine

imagine yourself as a top manager in an international corporation. One of your toughest tasks would be to select the best ideas from many initiatives.

To do this it would be essential to gain an overview of all concurrent initiatives and ensure that all ‘bad’ ideas are dropped. You would then need to make all chosen initiatives comparable, control the connection to the company strategy, get assessments on cost, complexity, urgency and risks, and make sure decisions are aligned with other managers. For the ongoing initiatives you would need to give help and support.

When you put all these factors into a global context with competing demands and a largenumber of stakeholders the above appears almost un-manageable. It is thus essential that you have an organised and structured process in place so you can get help from business and technology experts.

For information and communications tech-nology projects in Odfjell a project portfolio process has been established to facilitate this structure. This is called Project Portfolio Management or PPM for short. PPM addresses the project initiation, the project selection and the project performance monitoring processes.

For the initiation process it is important that all initiatives have a single point of entry. Also allinitiatives needs to be reviewed by a manager at SVP level before it is started. To implementthis a small ‘project initiation template’ is made.

Next step is then the project selection itself. It is difficult to make project proposals comparable.The Odfjell project selection process tries to mitigate this by providing a standardised ‘proj-ect charter template’. The template contains a list of best practice themes to elaborate the business value, costs and risk of an initiative. We are aware that all project initiatives have a unique context and therefore some level of tailoring is required in order to write a good project charter. The ICT department offers general training to assist with the understand-ing of template themes and purposes.

The charter creation process is intended to anchor and align the needs among the keystakeholders and to create ownership for the project outcome. Some of the project chartersections are also purpose made to ensure that all organisational expertise is fully utilised. Onepitfall in the project charter process is the ‘Straw-Man’ approach where the author fills out the template alone. This approach is damaging as it take away the discussion process that should have taken place among the stakeholders.

The actual balancing and tradeoff among many initiatives is done by the ICT Steering Committee (ICT-SCM). This is a board of Odfjell SVPs lead by our CEO, Jan Hammer. The project budget will be given by this committee. The ICT-SCM is enabled and administered by ICT VP Matt Duke.

An important function for the ICT-SCM is to give the approved projects a sequenced prior-ity to prevent too many initiatives starting in parallel. As a result, some projects therefore may be put on hold due to pending availability of business experts and ICT resources.

The ICT-SCM will also receive a project performance overview of ongoing projects. Day-to-day project governance will be managed by the individual project steering committees and project managers. Major decisions such as project terminations and budget changes outside the contingency frames will typically be escalated to the ICT–SCM.

For Odfjell Terminals, a Global Change Advisory Board lead by Koos Frowein (Vice PresidentFinance and Investments) enables the same function as ICT-SCM. Koos Frowein is also a regular member of the ICT-SCM.

Competitive initiativesBy Tom Hagesæther, ICT Portifolio Manager, Bergen

Doing our best to be the leaders in our field

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advanced leadership i, Part iiBy Olav Skintveit, Senior Advisor Operation. Bergen

Odfjell Tankers held a Leadership Course in Bergen during three weeks in March and five Filipino 2nd Officers and four norwegian 2nd Officers attended.

During the first week the participants were introduced to our Cargo Handling Course, with several lecturers from Odfjell Tankers and Odfjell Management. Many subjects were covered over the week including: elements of the booking process, demurrage, the new Commodity Book, tank preparation, planning of bunker, performance and weather routing, how to take care of the tank coating, rules and regulations, physical properties of various chemicals, chemi-cal reactions, introduction to petrochemicals, wall wash testing, how to stow a chemical tanker and presentation of the new stowage program Orca. The participants also got the opportunity to test the stowage program. This informative

first week concluded with how to optimise vessels and there were also presentations and information provided on Company Procedures.

The two last weeks were more practical and the

participants worked at Odfjell Tankers together with selected mentors. The participants circu-lated between the four operation groups and the Marine Service Group, where an experienced Operator acted as their mentor.

Type specific ECDiS courses in Manila and BergenBy Vidar Børve, Electrical & Automation Manager, Bergen

As part of the new requirements regarding the Electronic Chart Display and information System (ECDiS) on board our vessels, we have received four navskills stations from the supplier Furuno. The navskills stations will be placed in Manila and Bergen and will allow our crew to carry out Furuno ‘type specific’ ECDiS computer-based courses here.

The first of these courses was carried out in Bergen at the end of December 2013. The course takes approximately two working days and those taking the course must obtain more than an 80% pass mark on the final examination. You are allowed three attempts at the examination but if you do not score the required grade you will have to retake the course.

The feedback from the course participants so far has been very positive. The course has been described as both user-friendly and informative.

The Furuno ECDIS system is the first system we have carried out computer based training on. We will continue to use the same method on our other ECDIS systems.

Our Competence Manger Fredrik Larsen says that approximately 450 seafarers shall carry out type specific ECDIS courses and hopefully all navigation officers will have been examined by the end of 2014.

The new ECDiS requirements: • For vessels built before July 2012, ECDIS will be required after July 2015.

• For vessels built after July 2012, ECDIS is already mandatory. (Bow Nangang, Bow Pioneer and upcoming newbuildings from Hyundai Mipo Dockyard.)

All of our navigation officers have generic ECDIS training. However it is also necessary to have type specific ECDIS training for the different equipment on board.

Captain Meidel Eriksen doing the final examination

From left: Unni Monsvold Mjelde (Senior Ship Operator) mentoring Franklin Lira

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BRiEFingS odfjell quarterly magazine

the transition phase is completed:

- Dan Odfjell stands down By Margrethe Gudbrandsen, Communication Manager, Bergen

After more than half a century with the Company, Dan Odfjell, aged 76, has decided to stand down from his position as Director of the Board. The transition of control to his son and fourth generation, Laurence W. Odfjell, is thus completed.

The history of the Company may be described as being divided into two different phases: one before Dan joined in 1959 when the Company was mainly a general dry cargo shipping company, and subsequently, as the Company moved to become a world-leading chemical tanker and tank terminal operator, then with Dan very much at the steering wheel.

Dan always had his mind set on the family business. Although somewhat reluctant to return from New York to Bergen in 1963, he set a condition for moving back, that he would be allowed to establish Minde Chartering as an in-house brokerage and chartering depart-ment. Through this, Odfjell was able to widen industry knowledge, to develop market intel-ligence - indeed to get closer to the customers. His two years as a New York junior broker convinced him, that the chemical tanker trade was a niche market in which the Company could grow and succeed. With experience and knowledge, Dan and his good colleagues developed modern stainless steel tankers for the customers, making transoceanic carriage of a variety of chemicals and specialty bulk liquids increasingly possible.

During the period 1960-1973 the Odfjell fleet almost doubled, a pioneering time. Dan was also instrumental in the Company's move into tank terminals, opening the first tank terminal in Buenos Aires in 1969. The pace really picked up however in the early 1970s. With an entrepreneurial flair, a strong will and an extraordinary endurance, he embarked upon and completed a series of bold new-building projects around the world, with great technological advances within chemical tanker design and equipment. With insight of the mar-kets, he knew how to create a strong position

On 7 May 2014, the Annual general Meeting elected kristian Mørch as new Director of the Board, replacing irene Waage Basili who had given notice that she would not stand for re-election.

Kristian Mørch, our new Board Director, is Danish citizen born 1967. Mr Mørch is Partner and group CEO of the Clipper Group since 2011. Before joining Clipper he held various positions in A.P. Moller-Maersk between 1987 and 2010, the last two years as COO of Maersk Tankers. He holds an MBA from IMD (Switzerland), and is an AMP graduate from Harvard Business School. Kristian Mørch owns no shares and has no formal ties to major shareholders of Odfjell SE.

The Meeting also supported the Nominating Committee's proposal and re-elected Laurence Ward Odfjell, Christine Rødsæther and Jannicke Nilsson as directors of the Board for a new two-year period. The General Meeting and the Board thanked resigning Board Director Bernt Daniel Odfjell for his 55 years of service to the Company and also the outgoing Board Director Irene Waage Basili for her efforts over the last six years.

through establishing several international offices worldwide.

In 1988, Dan became President/CEO of Odfjell, and he cleared the way for a strong and rapid fleet development through newbuilding projects, acquisitions of secondhand tonnage and partnerships. When ordering new tonnage, the Company was always looking for the most advanced ships, for a competitive advantage. Also the tank terminal business has witnessed a tremendous growth, now being established in eight countries with altogether 12 terminals.

new Board Member in Odfjell

Kristian Mørch

Dan Odfjell started his career at sea

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the transition phase is completed:

- Dan Odfjell stands down By Margrethe Gudbrandsen, Communication Manager, Bergen

Throughout his 55 years working for the Company, Dan has focused on becoming a leading global logistics service provider. This is achieved through safe and efficient operations of chemical tankers, LPG/Ethylene carriers and tank terminals. Stepping down at the Annual General Meeting in May he said: - I have had my ideas and the urge to start and to develop projects, and the stamina never to give up. But I am perhaps not the best person for day-to-day affairs. I have been fortunate however to have worked with excellent people who have taken our projects to ever higher

levels and, not least been able to carry them out.

Dan hardly is the typical ship-owner. He sheds high living. Indeed in many ways he is a modest man, enthusiastic as one of a team: - A leader should care for and be preoccupied more with his business than of himself or his money. To enjoy, to build and to love what you are doing and the people around you is essential. An egalitarian attitude, respect, and to be part of the team is to me a key element to succeed, in an intensive high capital business, such

as shipping, Dan said in a speech to the local shipping community in 1994.

In his concluding remarks at the Annual General Meeting he said: - One thing that I shall miss perhaps the most, and that I regret time did not sufficiently allow for, was to be more on board our ships, to listen, to discuss and to learn from our many trustworthy mariners. I started my career at sea, and actually is where I feel I belong.

Dan Odfjell started his career at sea

Being together with employees is important for Dan. Here from an Officer`s Conference in Bergen

Dan is standing down at the General Meeting 7 May 2014. From left: Jan A. Hammer, Dan Odfjell and Laurence W. Odfjell

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100 YEARS odfjell quarterly magazine

in the early morning of 9 April 1940, Bergen and several other norwegian major ports are occupied by nazi-germany through a surprise attack. The Odfjell fleet comprises seven ships, plus two small tankers under construction. Total crew is about 200. Two ships are in home waters, and five on the high seas. The Company momentarily loses all control and soon also all contact with the latter ships especially after the uS join the war in 1941.

The ships in home ports are quickly controlled by the occupants. Also the new small tanker Rogn – under construction – is confiscated. They are employed in the coastal trade between Rotterdam and Kirkenes, in the very north of Norway. They suffer terrible losses: Birk drifts into a minefield at Kirkenes and sinks in February 1942; 26 crew perish. Selje is bombed and capsizes in the North Sea in May the same year, with the loss of 15 Norwegian crew as well as several German Navy cadets. Rogn is the sole survivor of the war, suffering badly through neglected upkeep and maintenance.

The Norwegian exile Government in London, via Nortraship (The Norwegian Shipping and Trade Mission), eventually takes control of the five ships on the high seas. But in the summer of 1940 – after the fall of France – Gran and Gabon are detained in French West Africa by the pro-German Vichy authorities. In 1941 Gran is requisitioned, placed under French flag, and renamed St Odette. With a French crew she is torpedoed and sinks off Sicily the following year. Together with the crew from several other detained Norwegian ships, those from Gran are put in a series of prisoners-of-war-camps until the French join the allied cause late 1942. Seven Norwegian mariners perish under these conditions.

The little tanker Lind is detained in Sweden, together with several other Norwegian ships. She takes part in two escape operations in 1942. On the second escape in March, only

the history of odfjell:

- World War ii and the post-war reconstructionBy Bård Nielsen, retired Odfjell Fleet Manager

Lind and one more ship make it to Britain, out of the ten ships involved.

During the summer and autumn 1945 the Nortraship vessels are gradually returned to their owners. Time to take stock: Three ships out of eight are lost, one severely run down,

and the four remaining are also worn down. New ships are urgently needed, but what new trades are feasible?

Fredrik Odfjell is evacuated from occupied Norway to Britain in the spring of 1945. Whilst in Britain, and with peace restored, he enters

An allied convoy in the Atlantic during World War II

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WW ii After Norway is occupied in 1940 the occupants take control of the ships in home waters, whereas the deep-sea ships are controlled by the Government in exile in London, through the Nortraship organisation. The former comprises some 500 ships, mostly smaller, and the latter about 1,000 ships. The home fleet loses 119 ships, and 631 mariners and 432 passengers perish. The Nortraship fleet loses nearly 500 ships. It is manned by some 30,000 mariners; about 3,000 perish: A loss rate of 1 in 10. Thus, out of 10,000 Norwegians who loses their lives due WW II, one third are mariners. And many that survive the convoy service are traumatized for life.

into a newbuilding contract on behalf of the Company, for a sister ship to Gran. From the UK he precedes to the US. This visit would prove essential to the reconstruction of the Company. He negotiates to acquire two of the war-surplus US standardized dry-cargo ships, and also negotiates a partnership with the International Freighting Corporation, a subsidiary of DuPont. The two dry-cargo ships are then employed in the US East Coast – South America liner trade. The first of these ships is named Bowhill, after IFC president Mr Bower and vice president Mr Hill, and the second Bowplate – the beginning of a naming tradition that lasts to this day.

The replacement for Gran is delivered in 1947, named Bowgran, and the following year the Company finally takes delivery of the small tanker Hegg – the one that was under construc-tion in 1940.

The reconstruction of the Norwegian merchant fleet is much hindered by the currency restric-tions imposed by the Labour Government during the final years of the 1940s. This has the effect that Norwegian shipping is largely unable to reap the full benefits of the boom

caused by the Korean War. But developments put an end to this limitation: Norway agrees to join the Marshal Plan, and also the newly established OEEC – and both these promote a free trade environment among its participants.

A new generation takes the helm: Fredrik Odfjell passes away in 1950, and his brother Abraham in 1960. They are succeeded by their sons, cousins Bernt Daniel (BD) and Johan Odvar (JO). During the 1950s the dry cargo business is looked after by BD, while JO pushes the small tanker business. The former is largely maintained, while the latter expands. The fleet is modernized, and the tankers grow in size. World trade grows steadily, and the closure of the Suez Canal in 1956 provides an extra boost to shipping.

But it is a new small tanker that steals the limelight when she is delivered from the

Norwegian Stord Verft in 1960: The new Lind is the world’s first stainless steel tanker. This really is a most significant ship, pointing the way forward towards the modern chemical tanker.

The 1960s saw a fundamental redirection of Company business. In 1963 B. D. Odfjell jr. (Dan) returns to Bergen, having worked for shipping brokers in New York. He shares JO’s view that the future of the Company lies in the specialised tanker business, and he also believes the Company should set up its own chartering operation – thereby gaining control of a larger part of the value chain. The change is fundamental: In 1960 general cargo ships made up 85% of the Odfjell tonnage, and tank-ers only 15%. By 1965 the two groups were of equal tonnage and by 1969 the dry cargo ships have all been sold off, and a LPG gas carrier has meanwhile joined the tankers, with more on the drawing board, with pressurized stainless steel tanks, 'the Everything Carrier'.

One by one the features of the modern chemi-cal tanker is tried out, on one series of ships after the other, but not yet all on the same ship. Besides, a new business venture is launched: Odfjell’s first tank terminal opens for business in 1969, the TAGSA terminal in Buenos Aires. Another step to broaden the participation in the value chain.

But a fresh new challenge is rearing its ugly head: As the size of ships grows, so does the environmental impact of marine accidents. Several severe cases within the industry hit the headlines during the late 1960s. This causes the International Maritime Organisation (IMO) to act, creating fresh opportunities for those who can interpret the signals in time and decline for those who cannot.

To be continued.

From left: Bernt Daniel (BD) and Johan Odvar (JO)

The new Lind (1960) is the world`s first stainless steel tanker

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OuR odfjell momentSThe 100 Moments campaign will run throughout 2014. in this edition of Quarterly we proudly present the ten best photos in the campaign that were submitted in the period from 1 February – 9 May 2014. The winners will receive a small token of appreciation. in each Quarterly edition during 2014 we will present the best photos from each period, so keep submitting your favourite Odfjell moments to: [email protected]

1. Odfjell headquarters in springtime. By Tina Steimler Kartvedt2. Bow Sea. By Victor Michael Deligencia3. Making cake on board Bow Sky. By Jobby Paguagan4. By Susan Chong5. Bow Gallant at Falmouth UK. By Francisco Villan6. Happy colleagues on Bow Sea. By By Victor Michael Deligencia7. Catwalk on Bow Sea. By Victor Michael Deligencia8. Odfjell Academy training. By Mario Dumangas9. Sharing experience through photos. By Rhannel P. Alaba10. Bow Saga SF Houston Pilot. By Ralph Tolentino

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winners of kids drawing competitionBy Margrethe Gudbrandsen, Communication Manager, Bergen

in late March two drawings of the kids draw-ing competition were selected as winners. The drawings by Andreana Aleksie P. Bacay (10 years) from the Philippines and Jakob Jamt Ånonli (14 years) from norway, were selected as the winners by the external jury, artist Torild Stray.

We received 68 wonderful drawings in total for this competition from all around the world. With so many fantastic drawings, it was a tough decision for the artist to select the winners. The two winners will be invited as honoured guests to the naming ceremony of a new vessel in Korea in August/September this year.

We would like to thank all the children who submitted drawings for this competition. It was clear that they had put a lot of work into their drawings. We hope that those working on board our newbuilding will be very happy to find out that the new décor on board has been made by children of Odfjell employees.

The winners:

Andreana Aleksie P. Bacay (10 years old, The Philippines)Andreana is the daughter of Captain Lorico Bacay. She is a grade 4 student at Morning Star Montessori School. She loves to read books, paint and make fashion design. She also plays the violin. Andreana has loved painting since she was young and really likes to inspire people and show her emotions through her drawings.

Jakob Jamt Ånonli (14 years old, norway)Jakob is the son of Gina Jamt Ånonli, Finance Coordinator at the headquarters in Bergen. He is a grade 9 student in the middle school. He is interested in computer technology and likes to play football in his spare time. He is really excited about winning this drawing competi-tion and is looking forward to participating at the naming ceremony in Korea.

Andreana Aleksie P. Bacay Jakob Jamt Ånonli

Artist Torild Stray, the external jury, studying the submitted drawings

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crew and allottees conference in cebu - Celebrating Odfjell's 100th year By Jennifer Franco, Information Officer, Manila

On 26 April 2014, 50 crew families from Cebu and nearby provinces joined Odfjell in the Philippines (OiP) in celebrating Odfjell’s 100th year. 170 ‘Odfjellans’ from the region gathered at the Waterfront Hotel and Casino in Lahug, Cebu to participate in the activity.

Owner’s Representative Carl Martin Faannessen opened the event with updates on the Company’s financial standing and developments in the fleets. In his opening remarks he also emphasized the family’s role in promoting safety among seafarers on board. He encouraged the families to always remind their seafaring family members to come home safe.

Learning about Odfjell historyOne of the aims of the event is to inform crew

families about Odfjell’s roots as a company. Information Officer Jennifer Franco presented the milestones of Odfjell’s 100 years in the shipping industry. A fun quiz show about Odfjell was conducted after the presentation. As part of the event, the crew families were given a chance to share their message to Odfjell. Electrician Arne Alegarbes and Chief Steward Primitivo Cahutay, both long-serving sailors, delivered inspirational messages about their years with Odfjell. Both expressed their grati-tude and pride to have taken part in shaping Odfjell’s 100 years.

Special presentations from children of seafarers The children of the seafarers rendered special

dance and song number for the crowd. Czarina Rae Cahutay, daughter of Chief Steward Primitivo Cahutay, delivered a remarkable speech about her experiences as a seafarer's daughter.

100 year celebrations in other Philippine regionsIn 2014, all Odfjell crew and family gatherings to be hosted by OiP will celebrate Odfjell’s 100th year. Other regional venues will include Davao, Iloilo and Manila.

Thank you to all crew families who participated in Odfjell’s 100 year celebration in Cebu!

As part of our 100 years celebration we have made a leaflet presenting the Odfjell history through the past 100 years, presenting how a Norwegian family business starting up with only one vessel has developed into today's world-leading logistics service provider for chemicals, other specialty bulk liquids and LPG/Ethylene.

OuR HiStory By Margrethe Gudbrandsen, Communication Manager, Bergen

The children took also part in the celebration

25 years awardee Electrician Arne Alegarbes sharing his message to Odfjell

Owner's Representative in the Philippines, Carl Martin Faannessen, delivering the opening remarks

26


SEA AnD SHORE odfjell quarterly magazine

Odfjell once again entered a team of sporty runners into the annual Holmenkollen Relay Race in May this year.

Back from left: Torbjørn Røsland, Ole Ivar Steinsland, André Lillebø, Lars Erik Kleiven, Leif Hopland and Hans GannestadMiddle from left: Luis-A. Salomon, Leif Gunnar Alvær, Hilde Aarsæther and Kristine Irgens SolemFront from left: Kevin Grinland, Kristoffer Ramstad, Jarl Kåreson Hakvåg, Karoline Andrea Gjellestad and Sindre Lauvås

Odfjell India moved into a new office location 8 March this year. Due to lack of space at the previous office location, there was a need for more work stations and a bigger conference room. The current office is bigger, better and more modern, and with this in place we are ready to meet the expected growth in our activities in this area.

The official office warming ceremony was performed on 8 March and the office was fully functional from 24 March. We want to thank all those being involved in the process.

At the end of March, Odfjell (uk) vacated their central London offices which they had shared with unisea Maritime since the merger of Odfjell Tankers and Seachem back in 2000.

The old style mews building situated in the up market area of Belgravia, close to Buckingham Palace, will be converted back to its original use of a residential property. Odfjell (UK) considered various options on the location for their new office including several sites within central London and on the outskirts. We finally decided on locating in Leatherhead, strategically placed only 30-40 minutes from both Heathrow and Gatwick air-ports, close to the Orbital London M25 motorway and still only 35 minutes in to the heart of London by train.

new office for Odfjell ukBy Peter Grimes, Managing Director, Odfjell UK

The Odfjell UK office building in Leatherhead, London

new office for Odfjell india in MumbaiBy Manisha Desai, Commercial Manager, Odfjell India

The 2014 Holmenkollen Relay Race

10th anniversary celebration for Odfjell koreaBy JH Kim, General Manager, Odfjell Korea

On 26 March, Odfjell Korea celebrated its 10th anniversary at the Park Hyatt Hotel, Busan where floor-to-ceiling glass windows offer breath-taking views of the ocean. It has been ten years since Odfjell took over the ‘General Agency’ activities from the sub-agency in Korea. As activities changed hands the agency began operating under the name ‘Odfjell’ and cost savings could be made. 67 port calls of Odfjell Tankers vessels and 180 port calls of Odfjell Asia vessels were operated in Korea last year.

2014 is a memorial year, not only for Odfjell Korea but also for the Odfjell Group celebrat-ing its 100th anniversary. I look forward to continued success in our worldwide busi-ness and would like to express my heartfelt

thanks to all Odfjell colleagues in Bergen and those in overseas offices and of course to our team in Korea. We also wish all the best to Port Captain Jan Harald Otterskred who will relocate to Singapore this coming July.

‘Ghana Hom’ puja being performed by Hindu priest wishing the business, the office and its staff prosperity and peace. Manisha Desai and Sujata Shetty are the lucky ones representing Odfjell at this Puja

Odfjell India staff at the new office reception area

Everybody had an enjoyable dinner admiring the spectacular views

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The Odfjell movie was magnificent on the 40 foot spandex screen and the room came alive as the movements of the vessels and personnel on the screen manifested itself with clarity and sound

Bank presentation in Bergen:- Building long-term relationshipsBy Margrethe Gudbrandsen, Communication Manager, Bergen

Showing our odfjell roots at afPm in San antonioBy Arlene Adams, Alexis Colon and Petter Maasoe - The Houston AFPM committee

The 39th Annual AFPM took place in San Antonio, Texas. This is the most attended con-vention in the uS, with this year nearly 3,000 participants from all corners of the world. The venue was upbeat, especially in terms of the shale gas expansions, new plant produc-tions and joint ventures. However, there were also concerns regarding the continued weak results for the shipping companies.

Nevertheless, Odfjell made every effort to make the 100-year celebration a proud moment. Most years the hired suite and meeting rooms are functional and practical. This year we spruced it up and added a bit of flare for the celebration.

There were many attendees and as always, the Odfjell annual reception brings more people to the event than just those invited as it has become a ‘regular event’ in everyone’s AFPM calendar. This year people came prepared for the 100-year celebration with some arriving early and many staying late. As usual, the blend of Odfjell wines, combined with deli-cious food and a positively exuberant mood created a successful reception, which will long be remembered.

At the annual Odfjell bank presentation on 13 May 2014, 15 of our lending banks with 30 bankers took the opportunity to get an in-depth presentation of our financial status and our business areas.

After the presentations the guests were invited to a dinner at Ulriken – the high-est of the seven mountains surrounding Bergen, 643 meters above sea level. In a speech delivered from Martin Konitzer of HSH Nordbank, he stated that Odfjell is a very reliable and a true long-term partner, and that events like these bank presentations

are of great importance for both the banks and Odfjell. – The substantial interest in participating is a good sign that our guests welcome what we are doing and building a strong long-term relationship with them, says Tom A. Haugen, VP Finance.

The evening’s entertainment was free and performed by the nature itself. Being at an altitude of 643 gave the opportunity to see down at the city of Bergen. This evening, the weather portrayed a combination of fog and sun, making the view pretty mystical and spectacular of the sunset over Bergen.

The three key messages that firmly embedded throughout the evening were: Who we are, Our History and Our Message.

The movie was magnificent on the 40 foot spandex screen and the room came alive as the movements of the vessels and personnel on the screen manifested itself with clarity and sound. Our history was also displayed on the big screen, which was easy to follow and extremely impressive. Our Chairman’s speech

was genuinely personal and powerful, engaging every attendee in the room. Out of the 200 guests on the evening, none left without know-ing our roots, our presence or our mission.

Thank you to all who joined the celebrations and to those working tirelessly behind the scenes, both from overseas as well as locally. We hope the 100-year event manifests itself as well, if not better in the other regions, as the 100-year celebrations continues.

From left: Laurence Odfjell, Bjørn Amundsen (Handelsbanken), Paal Minne (Nordea), Hans Ljøen (Nordea) and Dave Ellis (Odfjell Terminals)


28

The rescued sailboat alongside Bow Clipper for evacuation of the three sailors

Bow Clipper rescued three sailors 350 miles off Virginia By Margrethe Gudbrandsen, Communication Manager, Bergen

On Thursday 22 May, Bow Clipper rescued three sailors, Larry Monesson, 60, Sean Monesson, 40, and James Moore, 40, after their 41-foot sailboat, the Elusive, was beset by storms in the Atlantic Ocean, approximately 350 miles east of Virginia Beach.

The father of James Moore contacted Coast Guard 5th District Command Center watch-standers at approximately 1 a.m. the 22 May reporting he received a message via satellite phone from his son. The message stated the crew of the Elusive were experiencing high winds, 25-foot ocean swells and engine failure, but were attempting to repair the engine and not requesting assistance at the time.

District command center watchstanders established a communication watch with the

crew of the Elusive. The watchstanders also conducted a search for the closest automated mutual-assistance vessel rescue (AMVER) ships to the distress and conducted an enhanced group call (EGC), a broadcast service using the Inmarsat communication system, asking for possible assistance from ships in the area.The crew on board Bow Clipper responded to the Coast Guard's EGC broadcast and con-tacted the crew of the Elusive via VH-F radio. At approximately 5 p.m., a crewman on board the Elusive contacted the district command center watchstanders and informed them the situation worsened, and the crew intended to abandon ship and transfer to the Bow Clipper.The two crews coordinated the rescue and at approximately 7:15 all three people were reported safe on board Bow Clipper. – Thanks to the incredible seamanship of Captain Manner

and the entire crew of Bow Clipper all three of us made it off the sailboat intact, and I cannot thank them enough for that, James Moore expressed.

- The early communications by the crew of the Elusive and the proactive response by the crew of Bow Clipper allowed the watchstanders to arrange for Bow Clipper to be in position to effect an immediate rescue when the situation aboard the sailing vessel Elusive deteriorated, said Lt. Cmdr. Tim Eason, the 5th District's search and rescue mission coordinator.

Bow Clipper brought the three sailors to Wilmington, North Carolina.

SEA AnD SHORE odfjell quarterly magazine

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PERSOnnEL odfjell quarterly magazine

Don Williams Operator 28.04.14

Aaron WatkinsOperator 28.04.14

James Leist Operator 28.04.14

kyle Walker Operator 28.04.14

Lyndon Simon Operator 28.04.14

Josh Warfield Operator 28.04.14

Loyd Dean Supervisor I&E 28.04.14

Joe nassif President OTH & Odfjell USA 01.03.14

nEW HiRES

Jing Jiang Accountant 26.03.14

Arnel Pinedo Coordinator Fleet Performance 24.03.14

Smita Manik kharat Trainee 14.04.14

Jason Carter Operator 28.04.14

Hadya kamal General Accountant 21.04.14

Samantha Sims Accounts Payable Clerk 07.04.14

Alan PetersonMechanical Integrity Engineer 05.05.14

Fernando Pavan Marulli Purchases Auxiliary 24.02.14

Rogério Luiz Dos Santos Accounting Analyst Sr. 17.02.14

Phillip nandlalOperator 28.04.14

It is with deep regret we have to inform that Fitter Role Losauro suddenly passed away on board Bow Elm 31 May. Role Losauro started as Fitter on board Bow Hunter in 2007. Since 01.02.2014 he held the position as Fitter on board Bow Elm.

Our thoughts are with his family and friends for the loss they have suffered.

karen Tan Administrator HR 28.04.14

Albert Then Accounts Assistant 21.03.14

Armando A. Antenor Marine Superintendent 01.04.14

Jeroen Mostert Group Business Controller 01.04.14

Hans goris Maintenance Specialist E&I 01.04.14

Alex Schoots Process Safety Engineer 01.04.14

Shamlin Chetty Ship OperatorFrom Durban to Bergen24.03.14

Anup Chatterjee Senior Ship Broker From Mumbaito Houston01.04.14

RELOCATiOnS

Bergen

einar Kvalheim Senior Ship Operator 17.04.89

25 YEARS

30 YEARS

25 YEARS rOTTerDaM

Martinus den Hertog Warehouse Employee 01.05.89

Bergen

Conny Fredheim Crewing Officer 01.06.84

HOuSTOn

MAniLA

ROTTERDAM MuMBAi SingAPORE

SHAngHAi FLuMAR BERgEn HOuSTOn

IN MEMORY OF Role Losauro

30


FLEET & TERMinALS odfjell quarterly magazine

as per 6 june 2014

TiME CHARTERED/POOL YEAR STAinLESS nuMBER SHiP BuiLT DWT CBM STEEL, CBM OF TAnkS

Bow Tribute 2014 49 622 53 188 - 22 Bow Trajectory 2014 49 622 53 188 - 22 UACC Mansouria 2013 45 352 52 566 - 22 UACC Marah 2013 45 249 52 565 - 22 UACC Masafi 2012 45 352 52 565 - 22 Chemroad Hope 2011 33 552 37 161 37 161 18 RT Star 2011 26 199 27 912 27 912 18 SG Pegasus 2011 13 086 14 523 14 523 16 Southern Koala 2010 21 290 20 008 20 008 20 BW Stream 2010 19 998 22 161 22 161 20 Bow Tone 2009 33 625 37 974 37 974 16 Bow Hector 2009 33 694 37 384 37 384 16 Southern Ibis 2009 19 905 22 158 22 158 20 Southern Jaguar 2009 19 997 22 157 22 157 20 BW Mia 2008 19 702 22 094 22 094 26 Bow Sagami 2008 33 641 38 000 38 000 16 Bow Kiso 2008 33 641 37 974 37 974 16 Bow Heron 2008 33 707 37 365 37 365 16 Celsius Mayfair 2007 19 999 21 714 21 714 20 Bow Fuji 2006 19 805 22 140 22 140 22 Celsius Manhattan 2006 19 807 22 143 22 143 22 Moyra 2005 19 806 22 838 22 838 18 Bow Sky² 2005 40 005 52 126 52 126 40 Bow Architect 2005 30 058 36 290 36 290 28 Celsius Monaco 2005 19 999 21 851 21 851 22 Celsius Mumbai 2005 19 993 22 186 22 186 22 Chembulk Sydney 2005 14 271 16 571 16 571 20 Celsius Miami 2005 19 991 22 192 22 192 22 Golden Top 2004 12 705 13 388 13 388 22 Chembulk Wellington 2004 14 312 15 591 15 591 20 Bow Asia² 2004 9 901 11 088 11 088 20 Bow Singapore² 2004 9 888 11 089 11 089 20 Bow Americas 2004 19 707 22 735 22 735 36 SG Friendship 2003 19 773 21 651 21 651 26 Bow Jubail² 1996 37 499 41 488 34 209 52 Bow Mekka² 1995 37 272 41 606 34 257 52 Bow Riyad² 1995 37 221 41 492 34 213 52 Bow Eagle 1988 24 728 32 347 19 662 25 JBU Sapphire³ 2009 19 860 22 144 22 144 16

Number of ships: 81 2 272 494 2 555 595 1 954 616 2 264

¹ Vessel beneficially owned through financial lease. ² Vessel on bare-boat charter. ³ Vessel on variable time charter/pool.

CHEMiCAL TAnkERS OWnED YEAR STAinLESS nuMBER SHiP BuiLT DWT CBM STEEL, CBM OF TAnkS

LPg/ETHYLEnE CARRiERS OWnED

YEAR nuMBERSHiP BuiLT DWT CBM TYPE OF TAnkSBow Gallant 2 008 10 282 8 922 LPG/Ethylene 2 Bow Guardian 2 008 10 282 8 922 LPG/Ethylene 2

TiME CHARTERED Berlian Ekvator 2 004 26 776 35 000 LPG/Ammonia 3

Number of ships 3 47 340 52 844 7

Bow Pioneer 2013 75 000 86 000 - 30 Bow Nangang 2013 9 156 10 523 10 523 14 Bow Dalian 2012 9 156 10 523 10 523 14 Bow Fuling 2012 9 156 10 523 10 523 14 Bow Lind 2011 46 047 48 698 - 29 Bow Elm 2011 46 098 48 698 - 29 Flumar Brasil 2010 51 188 55 452 - 14 Bow Harmony 2008 33 619 38 052 38 052 16 Bow Saga¹ 2007 40 085 52 126 52 126 40 Bow Sirius¹ 2006 49 539 52 155 52 155 40 Bow Sea 2006 49 511 52 107 52 107 40 Bow Engineer 2006 30 086 36 274 36 274 28 Flumar Maceio 2006 19 975 21 713 21 713 22 Bow Summer 2005 49 592 52 128 52 128 40 Bow Spring ¹ 2004 39 942 52 127 52 127 40 Bow Star 2004 39 832 52 127 52 127 40 Bow Santos 2004 19 997 21 846 21 846 22 Bow Sun 2003 39 842 52 127 52 127 40 Bow Firda 2003 37 427 40 645 40 645 47 Bow Chain 2002 37 518 40 621 40 621 47 Bow Andes 2000 16 020 17 120 17 120 22 Bow Condor 2000 16 121 17 622 17 622 30 Bow Fortune 1999 37 395 40 619 40 619 47 Bow Master 1999 6 046 7 018 7 018 14 Bow Pilot 1999 6 008 7 005 7 005 14 Bow Sailor 1999 6 008 7 011 7 011 14 Bow Cecil 1998 37 369 40 515 33 236 47 Bow Flora 1998 37 369 40 515 33 236 47 Bow Balearia 1998 5 846 6 075 6 075 20 Bow Oceanic 1997 17 460 19 616 19 616 24 Bow Bracaria 1997 5 846 6 071 6 071 20 Bow Brasilia 1997 5 800 6 067 6 067 20 Bow Cardinal 1997 37 446 41 487 34 208 52 Bow Faith 1997 37 479 41 487 34 208 52 Bow Aratu 1997 13 843 15 834 15 834 29 Bow Querida 1996 10 106 11 181 11 181 18 Bow Cedar 1996 37 455 41 488 41 488 52 Bow Atlantic 1995 17 460 19 588 19 588 24 Bow Fagus 1995 37 375 41 608 34 329 52 Bow Clipper 1995 37 221 41 596 34 328 52 Bow Flower 1994 37 221 41 492 34 213 52 Bow Victor 1986 33 000 34 500 21 975 31

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TiME CHARTERED/POOL YEAR STAinLESS nuMBER SHiP BuiLT DWT CBM STEEL, CBM OF TAnkS

Bow Tribute 2014 49 622 53 188 - 22 Bow Trajectory 2014 49 622 53 188 - 22 UACC Mansouria 2013 45 352 52 566 - 22 UACC Marah 2013 45 249 52 565 - 22 UACC Masafi 2012 45 352 52 565 - 22 Chemroad Hope 2011 33 552 37 161 37 161 18 RT Star 2011 26 199 27 912 27 912 18 SG Pegasus 2011 13 086 14 523 14 523 16 Southern Koala 2010 21 290 20 008 20 008 20 BW Stream 2010 19 998 22 161 22 161 20 Bow Tone 2009 33 625 37 974 37 974 16 Bow Hector 2009 33 694 37 384 37 384 16 Southern Ibis 2009 19 905 22 158 22 158 20 Southern Jaguar 2009 19 997 22 157 22 157 20 BW Mia 2008 19 702 22 094 22 094 26 Bow Sagami 2008 33 641 38 000 38 000 16 Bow Kiso 2008 33 641 37 974 37 974 16 Bow Heron 2008 33 707 37 365 37 365 16 Celsius Mayfair 2007 19 999 21 714 21 714 20 Bow Fuji 2006 19 805 22 140 22 140 22 Celsius Manhattan 2006 19 807 22 143 22 143 22 Moyra 2005 19 806 22 838 22 838 18 Bow Sky² 2005 40 005 52 126 52 126 40 Bow Architect 2005 30 058 36 290 36 290 28 Celsius Monaco 2005 19 999 21 851 21 851 22 Celsius Mumbai 2005 19 993 22 186 22 186 22 Chembulk Sydney 2005 14 271 16 571 16 571 20 Celsius Miami 2005 19 991 22 192 22 192 22 Golden Top 2004 12 705 13 388 13 388 22 Chembulk Wellington 2004 14 312 15 591 15 591 20 Bow Asia² 2004 9 901 11 088 11 088 20 Bow Singapore² 2004 9 888 11 089 11 089 20 Bow Americas 2004 19 707 22 735 22 735 36 SG Friendship 2003 19 773 21 651 21 651 26 Bow Jubail² 1996 37 499 41 488 34 209 52 Bow Mekka² 1995 37 272 41 606 34 257 52 Bow Riyad² 1995 37 221 41 492 34 213 52 Bow Eagle 1988 24 728 32 347 19 662 25 JBU Sapphire³ 2009 19 860 22 144 22 144 16

Number of ships: 81 2 272 494 2 555 595 1 954 616 2 264

¹ Vessel beneficially owned through financial lease. ² Vessel on bare-boat charter. ³ Vessel on variable time charter/pool.

STAinLESS nuMBER TAnk TERMinALS LOCATiOn OWnERSHiP CBM STEEL, CBM OF TAnkS

Odfjell Terminals (Rotterdam) BV Rotterdam, NL 51 %** 1 636 100 32 550 281 Odfjell Terminals (Houston) Inc Houston, USA 51 %** 331 334 82 033 100 Odfjell Terminals (Charleston) LLC Charleston, USA 51 %** 79 491 - 9Odfjell Terminals (Jiangyin) Co Ltd Jiangyin, China 28.05 %** 99 800 30 000 22 Odfjell Terminals (Dalian) Ltd Dalian, China 25.5 %** 119 750 18 350 51 Odfjell Terminals (Korea) Co Ltd Onsan, Korea 25.5 %** 313 710 15 860 85 Oiltanking Odfjell Terminal Singapore Ltd Singapore 25.5 %** 365 051 13 520 79 Oiltanking Odfjell Terminal & Co. LLC Sohar, Oman 15.17 %** 1 294 780 - 66 Noord Natie Terminals Antwerp, Belgium 12.75 %** 350 000 50 800 241 Exir Chemical Terminals PJSCO BIK, Iran 35 % 22 000 1 000 18

Total terminals 10 terminals 4 612 016 244 113 952 STAinLESS ESTiMATEDPROJECTS AnD EXPAnSiOnS LOCATiOn OWnERSHiP CBM STEEL CBM COMPLETiOnOdfjell Nangang Terminals (Tianjin) Co.,Ltd Tianjin, China 24.99 %** 137 800 7 000 Q4 2014Odfjell Terminals (Houston) Inc Houston, USA 51 %** 47 970 30 800 Q2 2014/Q3 2015Oiltanking Odfjell Terminal Singapore Ltd Singapore 25.5 %** 12 000 0 Q1 2015Odfjell Terminals (Quanzhou) Fujian Fujian, China 25.5 %** 184 000 - Q1 2016

Total expansion terminals 2 new terminals 381 770 37 800

TAnk TERMinALS STAinLESS nuMBERPARTLY OWnED BY RELATED PARTiES*) LOCATiOn CBM STEEL CBM OF TAnkS

Depositos Quimicos Mineros S.A. Callao, Peru 52 980 1 600 43 Granel Quimica Ltda Santos I, Brazil 97 720 19 880 99 Granel Quimica Ltda Rio Grande, Brazil 61 150 2 900 32 Granel Quimica Ltda Sao Luis I, Brazil 75 710 - 35 Granel Quimica Ltda Ladario, Brazil 8 060 - 6 Granel Quimica Ltda Triunfo, Brazil 12 030 - 2 Granel Quimica Ltda Teresina, Brazil 7 640 - 6 Odfjell Terminals Tagsa S.A Buenos Aires, Argentina 38 826 530 56 Odfjell Terminals Tagsa S.A. Campana, Argentina 68 580 10 190 102 Terquim S.A. San Antonio, Chile 32 840 - 25 Terquim S.A. Mejillones, Chile 16 870 - 7 IMTT-Quebec Quebec, Canada 293 130 5 500 53 Total tank terminals partly owned by related parties 12 terminals 765 536 40 600 466

PROJECTS AnD EXPAnSiOnS PARTLY OWnED BY RELATED PARTiES*) LOCATiOn CBM COMPLETiOn

Granel Quimica Ltda Aracruz, Brazil 30 000 - ready Q3 2015 Granel Quimica Ltda Santos II, Brazil 52 000 - ready Q4 2015Granel Quimica Ltda Sao Luis II, Brazil 52 750 - ready Q3 2014Terquim S.A. Mejillones, Chile 50 000 - ready Q3 2015 Granel Quimica Ltda Palmas, Brazil 10 000 - ready Q2 2014 Total expansion terminals partly owned by related parties 4 new terminals 194 750 -

grand total (incl. related tankterminals partly owned by related parties) 22 terminals 5 377 552 284 713

*) Tank terminals and projects partly owned by Odfjell family. **) Odfjell SE's indirect ownership share

On ORDER:CHEMiCAL TAnkERS YARD DELiVERY DWT OWnER COMMEnTS

Hyundai Mipo Dockyard., Ltd 2014 49 622 Odfjell " 2014 49 622 Odfjell

number of newbuildings: 2 99 244

LPg/ETHYLEnE CARRiERS YARD DELiVERY CBM OWnER COMMEnTS

Nantong Sinopacific Offshore & Engineering Co., Ltd 2015 17 000 Odfjell Gas " 2015 17 000 Odfjell Gas " 2016 17 000 Odfjell Gas " 2016 17 000 Odfjell Gas " 2016 22 000 Odfjell Gas " 2016 22 000 Odfjell Gas " 2017 22 000 Odfjell Gas " 2017 22 000 Odfjell Gas

number of newbuildings: 8 156 000

GranelQuimicaLtdaAv. Paulista 460, 18° andarCEP 01310-000 São Paulo, SPBRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5832

TagsaS.AAv. Alicia Moreau de Justo 1960,piso 4 Of. 4021107 Buenos Aires, ARGENTINATel: +54 11 4001 9700Fax: +54 11 4001 9701

TerquimS.AMolo Sur S/NP.O. Box 148, San AntonioCHILETel: +56 35 21 1050Fax: +56 35 21 1161

DQMS.AAv. Enrique Meiggs, 240Urb.Chacaritas, Callao, PERU Tel: +51 1 614 0800Fax: +51 1 614 0801

OdfjellSingaporePteLtd6 Shenton Way, # 27-08/09 OUE Downtown 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285

FlumarTransportesdeQuimicoseGasesLtdaAv. Paulista 460 - 18 andarCEP 01310-000 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5807

OdfjellTankersEuropeASConrad Mohrs veg 29P.O.Box 6101 Postterminalen5892 Bergen, NorwayTel: + 475527 0000Fax: + 475527 9070

OdfjellTerminals(Houston)Inc.12211 Port RoadSeabrook, TX 77586, USATel: +1 713 844 2200Fax: +1 713 844 2211

OdfjellTerminals(Charleston)LLC1003 East Montague AvenueNorth Charleston S.C 29405, USATel: +1 843 714 6300Fax: +1 843 714 6350

OdfjellTerminals(Rotterdam)BVOude Maasweg 6, P.O. Box 5010Harbour Number 4040, 3197 KJ Rotterdam-BotlekThe NETHERLANDSTel: +31 102 953 400Fax: +31 104 384 679

NoordNatieTerminalsNVHaven 227-241, Blauwe Weg 442030 Antwerp - BelgiumTel: +32 (0)3 543 99 00Fax: +32 (0)3 543 99 38

OiltankingOdfjellTerminals&Co.LLC.P.O. Box 369, Fajal Al QubailPC 322 SULTANATE OF OMANTel: +968 2670 0300Fax: +968 2670 0306

OiltankingOdfjellTerminalSingapore PteLtd1 Seraya AvenueSINGAPORE 628208Tel: +65 6473 1700Fax: +65 6479 4500

OdfjellTerminals(Korea)Co,Ltd136, Cheoyong-Ri Onsan-Eup, Ulju-Gun, Ulsan 689-892, SOUTH KOREATel: +82 522 311 600Fax: +82 522 376 636

OdfjellTerminals(Dalian)LtdNew Port, Economy & TechnologyDevelopment Zone 116601, Dalian P.R. CHINATel: +86 411 8759 5500Fax: +86 411 8759 5549

OdfjellTerminals(Jiangyin)Co.,Ltd1314 West Binjiang RoadShizhuang,New Harbour City, JiangyinJiangsu 214446 P.R. CHINATel: +86 510 8666 9111Fax: +86 510 8666 9110

OdfjellNangangTerminals(Tianjin)Co.,LtdRoom D310, Section D Office Building, Servicing Area, TEDA (Nan-Gang Industrial Zone) 300280 Tianjin, PR CHINA

OdfjellTerminalsQuanzhou(Fujian)Co.,Ltd3rd Floor, Xingtong Shipping Tower, 6th Port St East, Quangang District, Quanzhou, 362800 Fujian Province, P.R. ChinaTel: +86 595 2772 8628Telefax: +86 595 2772 8680

inTERnATiOnAL OFFiCES

OdfjellUSA(Houston)Inc.13100 Space Center Blvd.Suite 600Houston, TX 77059USATel: +1 713 844 2200Fax: +1 713 844 2211

OdfjellSingaporePteLtd6 Shenton Way, # 27-08/09 OUE Downtown 2SINGAPORE 068809Tel: +65 6349 1300Fax: +65 6224 2285

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

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

OdfjellBrasilLtdaAv. Paulista 460 - 18 andarCEP 01310-000 Sao Paulo SP, BRAZILTel: +55 11 3549 5800Fax: +55 11 3549 5808

OdfjellShanghaiSuite B, 13FHuamin Empire Plaza728 Yan An West RoadChangning DistrictShanghai 200050, P.R. CHINATel: +86 21 5239 9469Fax: +86 21 5239 9897

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

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

OdfjellIndia408 A Everest GrandeMahakali Caves Road, Andheri (East)Mumbai 400093, INDIATel: +91 22 6695 4701Fax: +91 22 6695 4707

OdfjellDurban(Pty)Ltd 61 Bulwer Road, GlenwoodP.O.Box 4045Durban 4021, SOUTH AFRICATel.: +27 31 2770880Fax: +27 31 2770899

OdfjellTankersAS,KoreaBranchRoom 1815, Gwanghwamun Officia Bldg.163 1-Ga Shinmunno, Jongno-GuSeoul, 110-999 SOUTH KOREA Tel: +82 2 775 9760Fax: +82 2 775 9761

OdfjellKoreaLtd.136, Cheoyong-Ri,Onsan-Eup, Ulju-GunUlsan 689-892, SOUTH KOREATel: +82 52 227 5527Fax: +82 52 227 5567

OdfjellPhilippinesInc.4th Flr Atlantis Beacon Tower2315 Leon Guinto St. Malate, Manila 1004PHILIPPINESTel: +6325280341Fax: +6325262256

Odfjell(UK)LtdDorset HouseRegent ParkKingston RoadLeatherhead KT22 7PLUNITED KINGDOMTel: +44 1372 824330

OdfjellPeruAv. EnriqueMeiggs, 240Urb. Chacaritas,Callao, PERUTel: +51 1 614 0800Fax: +51 1 614 0801

OdfjellChileRosario Norte 100Office 304Las CondesSantiagoCHILETel: +56 2 2294 700

OdfjellMiddleEastJLT,DubaiUnits no. 2402-2404, Platinum TowersJumeirah Lake TowerP.O.Box 75450Dubai, UNITED ARAB EMIRATESTel: +971 4 426 9700Fax: +971 4 426 9701

OdfjellSE-OdfjellTankersAS–OdfjellGasASConrad Mohrs veg. 29, P.O. Box 6101 Postterminalen - 5892 Bergen, NORWAYTel: +47 5527 0000Fax: +47 5528 4741 - Fax: +47 5527 9070 (Chartering/Operations)

OdfjellTerminalsBVOude Maasweg 6, P.O. Box 5010Harbour Number 4040 - 3197 KJ Rotterdam-Botlek, THE NETHERLANDSTel: +31 102 954 700Fax: +31 102 954 719

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odfjell quarterly magazine june 2014

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