staff centre shipmanagement health, safety and quality...

Staff Centre Shipmanagement Health, Safety and Quality Annual

Report 2016

TECHNICAL, SAFETY & OPERATIONAL MANAGEMENT

Staff Centre Shipmanagement Health, Safety and Quality Annual

Report 2016

TECHNICAL, SAFETY & OPERATIONAL MANAGEMENT

ISM Certified

IMO No. 5033921

Staff Centre Shipmanagement Ltd.

3rd floor, Sigurd Hall Business Centre

54/23 Francuzskiy Boulevard

Odessa, 65009, Ukraine

ISO 9001:2008 Certified

Tel: +380 487 34 00 65 Fax: +380 487 34 00 64 E-Mail: [email protected] Web: www.staff-centre.com

http://www.staff-centre.com/

The Staff Centre Shipmanagement Ltd. aims to be recognized as the global supplier of the quality services to the shipping industry with absolute regard for safety and marine environment.

Introduction

Staff Centre Shipmanagement Ltd. specializes in providing ships with technical, safety, security and operational support from shore-based management. The Company offers the complete range of ship management and marine consultancy according to the highest international standards, designed to relieve the Shipowners of the routine workload related to operation of their vessels.

Our management system based on sturdy procedures is fully compliant to SOLAS Chapter IX (ISM Code) and Chapter XI (ISPS Code), is ISO 9001:2008 certified and is approved by Liberian government and respected IACS members, such as Bureau Veritas and NKK.

Health, Safety, Security and Quality

Promoting the health of our employees through suitable working conditions;

Providing a safe and controlled working conditions for our employees;

Maintaining the safety and security of our employees

Safety Management

Full safety management in accordance with ISM Code;

Implementation of electronic safety management system (E-SCMS);

Evaluating and monitoring of Shipping Performance Indicators (KPIs)

Technical Management

Ensuring optimal vessel technical management and operational efficiency;

Arranging repairs and dry docking;

Supplying stores, spare parts, lubricating oils and fuels;

Maintaining records and certificates

Consulting and Investments

Foundation of the ship-owning company;

Evaluation and purchase vessels for our clients;

Register, classify, insure, manage and operate the fleet;

Arranging sale or scrap of vessels after the years

Shipmanagement Ltd.

STAFF CENTRE

Our Team

Korneliu Russu Managing Director Graduated from Odessa State Maritime Academy with Master’s Degree in navigation in 1984. Started his career in Black Sea Shipping Company as navigational officer. In 1995 got diploma of Deep Sea Captain and till 2007 was working as Captain on the vessels of Staff Centre Shipmanagement Ltd. Joined Staff Centre Shipmanagement Ltd. team in 2007 in position of DPA. From 2011 till now is working in position of Director of Staff Centre Shipmanagement Ltd.

mobile: +380 50 390 74 82 e-mail: [email protected]

Borys Kononenko Technical Manager Graduated from Kherson State Maritime Academy (1972) and Odessa State Maritime Academy (1980) with First Class Engineer degree. Started his carrier in Black Sea Shipping Company (1973-1990). Worked in position of chief engineer for 15 years. In 1999 joined Danaos Shipping Company in position of Technical Supervisor. In 2002 was employed by the company Univan as Technical Superintendent. Joined the team of Staff Centre Shipmanagement Ltd. In January 2003 in position of Technical Manager.


Yuiry Krylov

Crewing Manager Graduated from Odessa Higher Engineering Marine School in 1981 and started his career in Black Sea Shipping Company as a navigational officer. In 1991 got Captain’s diploma and had been working as a Shipmaster on the BLASCO bulk carriers until 1998. During 1998 – 1999 was working as Crewing Manager in UKMAR Ukraine and UKMAR Shipmanagement Ltd. In 2000 resumed his sea career and was working as a Master on the bulk carriers operated by Ocean Agencies Ltd. In 2003 joined Staff Centre as Crewing Manager.


Management

Vasyl Vasylyev Marine Safety & Quality Superintendent / Designated Person / Company Security Officer Graduated from Kaliningrad High Naval College with Master’s Degree in Naval Navigational support & Sea Navigation in 1975. Completed naval carrier in 1998 and same year joined Merchant Fleet. Since 1998 was working as Shipmaster on Bulk Carriers operated by Ocean Agencies Ltd, London and under management of Staff Centre Shipmanagement Ltd. Joined Staff Centre Shipmanagement Ltd. in September 2011.


Stanislav Sergeychik Manager of Purchasing Department Graduated from University of Westminster in London with degree in Economics for Business in 2004. Same year he was employed by Staff Centre Shipmanagement Ltd. as a Purchasing operator. Currently occupies position of Manager of Purchasing Department.


Tatyana Garnyk Financial Manager Graduated from Odessa Marine Engineering Institute. Since 1993 till 1995 was working as economist in Black Sea Shipping Company. In 1995 continued her carrier as Financial Manager in Marnel, Ukmar. Since 2000 till 2005 worked in Chesva Enterprises Ltd. as Financial Manager. Joined Staff Centre Shipmanagement Ltd. in June 2005.


3rd Floor, Sigurd Hall Business Centre, 54/23 Francuzskiy Boulevard

Odessa, 65009, Ukraine

Phone: +380 487 34 00 65

Fax: +380 487 34 00 64

E-Mail: [email protected]

www.staff-centre.com

Fleet list

In the beginning of 2016 the Company Staff Centre Shipmanagement Ltd. had 12 ocean-going bulk carriers in management. Half of managed fleet vessels are new-buildings built in 2010-2012.

№ Vessel’s name Built Type DWT Flag Class

1 ANARITA 2012 Bulk Carrier 58018 Liberia BV

2 ARCADIA 2012 Bulk Carrier 58018 Liberia BV

3 ARVIKA 2012 Bulk Carrier 55848 Liberia NKK

4 ALMERIA 2011 Bulk Carrier 57002 Liberia BV

5 AVIONA 2011 Bulk Carrier 56898 Liberia BV

6 ARIZONA 2010 Bulk Carrier 56969 Liberia BV

7 ARNICA 2010 Bulk Carrier 56106 Liberia NKK

8 ARINAGA 1999 Bulk Carrier 47263 Liberia NKK

9 IRON KOVDOR 1998 Bulk Carrier 72474 Liberia NKK

10 ALPENA 1998 Bulk Carrier 48475 Liberia NKK

11 AMANDA 1997 Bulk Carrier 46500 Liberia NKK

12 USOLIE 1990 Bulk Carrier 68789 Liberia NKK

Vessel: ANARITA

Type: Bulk Carrier

Built: 2012, China

IMO №: 9636008

DWT: 58018

GRT: 32839

Main Engine: Man B&W 6S50MC-MK7

Flag: Liberia

Class: BV

In management: Since 2012

Vessel: ARCADIA

Type: Bulk Carrier

Built: 2012, China

IMO №: 9635999

DWT: 58018

GRT: 32839

Main Engine: Man B&W 6S50MC-C7

Flag: Liberia

Class: BV


Vessel: ARVIKA

Type: Bulk Carrier

Built: 2012, Japan

IMO №: 9624043

DWT: 55848

GRT: 31538

Main Engine: DU Wartsila 6RT-Flex50

Flag: Liberia

Class: NKK


Vessel: ALMERIA

Type: Bulk Carrier

Built: 2011, China

IMO №: 9592721

DWT: 57002

GRT: 33044

Main Engine: MAN B&W 6S50MC-C

Flag: Liberia

Class: BV


Vessel: AVIONA

Type: Bulk Carrier

Built: 2011, China

IMO №: 9592745

DWT: 56898

GRT: 33044


Flag: Liberia

Class: BV


Vessel: ARIZONA

Type: Bulk Carrier

Built: 2010, China

IMO №: 9592733

DWT: 56969

GRT: 33044


Flag: Liberia

Class: BV


Vessel: ARNICA

Type: Bulk Carrier

Built: 2010, Japan

IMO №: 9514418

DWT: 56106

GRT: 31759

Main Engine: MAN-B&W /6L50MC-C

Flag: Liberia

Class: NKK


Vessel: ARINAGA

Type: Bulk Carrier

Built: 1999, Japan

IMO №: 9200342

DWT: 47263

GRT: 25955


Flag: Liberia

Class: NKK


Vessel: IRON KOVDOR

Type: Bulk Carrier

Built: 1998, Japan

IMO №: 9168465

DWT: 72474

GRT: 37818

Main Engine: MAN-B&W 6S60MC

Flag: Liberia

Class: NKK


Vessel: ALPENA

Type: Bulk Carrier

Built: 1999, Japan

IMO №: 9162980

DWT: 48475

GRT: 25980

Main Engine: Mitsubishi 6 UEC 50LSII

Flag: Liberia

Class: NKK


Vessel: AMANDA

Type: Bulk Carrier

Built: 1997, Korea

IMO №: 9122289

DWT: 46500

GRT: 27681

Main Engine: MAN B&W 6S50 MC

Flag: Liberia

Class: NKK


Vessel: USOLIE

Type: Bulk Carrier

Built: 1990, Korea

IMO №: 8800315

DWT: 68789

GRT: 37519

Main Engine: B&W 6S 60MC

Flag: Liberia

Class: NKK


MANAGEMENT SYSTEM

Contents

Staff Centre Shipmanagement Preview 2016 ......................................................................................... 1

Fleet Update ........................................................................................................................................................... 1

Scheduled Dry Dock of SCM Fleet .................................................................................................................. 1

Riga Shipping Dinner 2016 .............................................................................................................................. 2

Diploma in Maritime Accident Investigation ............................................................................................ 3

Diploma in Ship Superintendency ................................................................................................................. 4

Certification in Dry Dock Planning and Management ........................................................................... 5

Participation for O’Brien’s Response Management’s Incident Management Team Tabletop Exercise .................................................................................................................................................................... 6

Certification in Internal Auditor Training Course Based on ISO 9001:2015 and ISO 19011:2011 Standards ...................................................................................................................................... 7

Crew Training Enhancement ........................................................................................................................... 8

Foundation of Subsidiary Management Company - Coastex LLC ...................................................... 9

Implementation of New Planned Maintenance System ..................................................................... 10

Crew Mail Program .......................................................................................................................................... 11

E-SCMS: Electronic Staff Centre Shipmanagement System ........................................................... 12

ISO 9001:2008 Compliance .......................................................................................................................... 13

Company Vision, Objectives and Policies ................................................................................................ 14

HSQ Report 2016 Highlights ......................................................................................................................... 15

Risk Management 2016 ...................................................................................................................................... 16

Near Miss Reports Review 2016 ..................................................................................................................... 18

Accidents Review 2016 ....................................................................................................................................... 21

Proactive Health Approach ........................................................................................................................... 25

Enclosed Space Concerns ............................................................................................................................... 26

Page 1 of 2 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2016 Created: March, 2017

MANAGEMENT SYSTEM

Zika Virus Issue.................................................................................................................................................. 27

Accident Control Measures ........................................................................................................................... 28

Incidents Review 2016 .................................................................................................................................... 29

Mitigation of Cargo Liquefaction Risk ....................................................................................................... 30

Prevention of Anchor and Chain Loss ....................................................................................................... 31

Security Risk Response ................................................................................................................................... 32

Cyber Security .................................................................................................................................................... 33

Possible Ignition of Smartphones ............................................................................................................... 34

Incident Control Measures ............................................................................................................................ 35

Port State Control Inspections 2016 ........................................................................................................ 36

Concentrated Inspection Campaigns 2016 ............................................................................................. 43

USCG Inspections 2016 ................................................................................................................................... 44

Company Performance Profile and Ship Risk Profile under the Paris MOU .............................. 45

High Performance Company 2016 ......................................................................................................... 45

Ship Risk Profile 2016 ................................................................................................................................ 47

PSC Performance Control Measures .......................................................................................................... 49

LISCR Annual Safety Inspections 2016 .................................................................................................... 50

Joint Ship to Shore Exercise 2016 .............................................................................................................. 51

RightShip Performance 2016 ....................................................................................................................... 52

Conclusion .............................................................................................................................................................. 55


MANAGEMENT SYSTEM

Staff Centre Shipmanagement Preview 2016 Fleet Update In accordance with Shipowners decision m/v ALPENA and m/v AMANDA left the SCM fleet in April and August 2016 respectively. Scheduled Dry Dock of SCM Fleet In the course of 2016 SCM vessels were due and passed the following scheduled dry dock repairs:

SCM Vessels Scheduled for Dry Dock 2016

Vessel Class Type of survey Date

AVIONA BV Special / Dry Docking August 20, 2016

ARCADIA BV Special / Dry Docking January 20, 2017

General view of m/v ALPENA

m/v AVIONA upon sailing from docking m/v ARCADIA during docking repair

General view of m/v AMANDA


MANAGEMENT SYSTEM

Riga Shipping Dinner 2016 Marines Services Group as founder and organizer and with a support of the event's general sponsor ABLV Bank held the tremendous shipping industry events for the Shipowners and the top-level executives. On 28-29th of April 2016, the top management of Staff Centre Shipmanagement Ltd. attended the Riga Shipping Dinner event, which gathered together 130 guests - Shipowners and shipping industry representatives of such countries as Latvia, Lithuania, Estonia, Ukraine, Russia, Israel, Sweden, Denmark, Germany and Austria for the first time in Riga. The Riga Shipping Dinner 2016 event started with the specialized ABLV Bank seminar on financing opportunities for the Shipowners. During the seminar Marine Services Group presented a topic on the ship insurance requirements. Among the numerous activities the central one was the Gala Dinner in one of the best and most elegant restaurants in Riga - Biblioteka No.1. All these things just supplemented and fulfilled the main objective of the campaign - to meet the shipping industry decision-making representatives at one place and in informal atmosphere to discuss current industry matters and business development opportunities. After this international event Staff Centre Shipmanagement Ltd. received some requests from different participants to arrange pre-purchasing and condition evaluation surveys on board of different type of vessels. The mentioned pre-purchasing and condition surveys were made in accordance with recommended international practice by our superintendents, who are multifariously educated professionals with experience of work in the positions of Masters, Chief Engineers and Engineers of ship repair yards and within the range of services provided by Staff Centre Shipmanagement Ltd.: http://www.staff-centre.com/evaluation-and-survey Page 2 of 56 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2016 Created: March, 2017

http://www.staff-centre.com/evaluation-and-survey

MANAGEMENT SYSTEM

Diploma in Maritime Accident Investigation

We are very pleased to announce that the Managing Director of Staff Centre Shipmanagement Ltd. Mr. Korneliu Russu has completed a professional development course and has been awarded a Diploma in Marine Accident Investigation issued by North West Kent College and Lloyd’s Maritime Academy. Upon completion of the course the participant is able to:

• Understand the relevance of incident and accident investigation and the role of the investigator; • Understand the processes, protocols and conventions for accident investigation; • Describe the methods for gathering data, including interview techniques and conducting analysis; • Gain a good working knowledge of the human factors involved in marine accidents; • Discuss the shipping industry culture as it affects the causes of accidents and their investigation; • Communicate the findings of a marine accident investigation through a detailed report with

recommendations. Page 3 of 56 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2016 Created: March, 2017

http://www.staff-centre.com/upload-files/Diploma.pdf

http://www.staff-centre.com/upload-files/Diploma.pdf

MANAGEMENT SYSTEM

Diploma in Ship Superintendency We are very glad to inform that the Technical Superintendent of Staff Centre Shipmanagement Ltd. Mr. Andriy Litovenko has completed a comprehensive professional development course and has been awarded a Diploma in Ship Superintendency issued by North West Kent College and Lloyd’s Maritime Academy. Upon completion of the course the participant is able to:

• Describe the role of a ship superintendent, required skills and responsibility; • Demonstrate communication skills and the ability to write high quality business reports; • Discuss the maritime legal knowledge required by a superintendent; • Explain ship and cargo legal terminology; • Evaluate insurance issues relevant to the vessel and its cargo; • Explain key regulations and how a superintendent accesses relevant details; • Identify the surveys and certificates required for a vessel; • Demonstrate the key engineering knowledge required by a technical superintendent; • Explain the process of accident investigation; • Explain procurement and inventory management; • Analyze cost control procedures for superintendents; • Identify and explain key shipboard and technical issues for main vessel types; • Integrate learning from across the course to a topical case study situation; • Produce a detailed and well-structured business report.


http://www.staff-centre.com/upload-files/Diploma_in_Ship_Superintendency.pdf

MANAGEMENT SYSTEM

Certification in Dry Dock Planning and Management

We are very pleased to announce that the Technical Superintendent of Staff Centre Shipmanagement Ltd. Mr. Vladimir Eliseev has successfully completed the essential dry docking training course and received the Certificate in Dry Dock Planning and Management issued by Lloyd’s Maritime Academy.

Upon completion of the course the participant is able to:

• Enhance your knowledge of dry dock planning; • Build ones skills in the writing of effective tender documents; • Discover the benefits of a clear and fully-detailed specification; • Understand the role project management plays in an effective dry docking operation; • Examine costing whilst preparing/reviewing proposals and managing the dry docking process; • Realise the shared success in working with the shipyard; • Evaluate and mitigate the risks in dry docking procedures.


http://www.staff-centre.com/upload-files/Certificate_in_Dry_Dock_Planning_and_Management.pdf

MANAGEMENT SYSTEM

Participation for O’Brien’s Response Management’s Incident Management Team Tabletop Exercise

We are pleased to inform that DPA/CSO of Staff Centre Shipmanagement Ltd. Mr. Vasyl Vasylyev participated in an Incident Management Team Tabletop Exercise with a Worst Case Discharge (WCD) scenario, as required by US Coast Guard Regulations (33 CFR 155.1060 (a) (3)) and State of California Regulations (Section 820.01 (a) (2) (A)) as described in the “National Preparedness for Response Exercise Program (PREP) Guidelines.” Incident Management Team Tabletop Exercises (IMT TTX) shall be conducted annually. Per the PREP guidelines, one or more representatives from each plan holder organization that the incident management team represents must participate in the exercise. Once in every three-year cycle, one table top exercise will include a worst-case discharge (WCD) scenario. Records of these exercises are to be kept at the office of the Incident Management Team and the vessel owner/operator.


http://www.staff-centre.com/upload-files/Vasyl_Vasylyev.pdf

http://www.staff-centre.com/upload-files/Vasyl_Vasylyev.pdf

MANAGEMENT SYSTEM

Certification in Internal Auditor Training Course Based on ISO 9001:2015 and ISO 19011:2011 Standards We are very pleased to announce that the Marine Assistant of Staff Centre Shipmanagement Ltd. Mr. Sergii Shevchenko has successfully completed the Internal Auditor Training Course based on ISO 9001:2015 and ISO 19011:2011 Standards and received the Certificate in this field. Upon completion of the course the participant is able to:

• Prepare, conduct and follow-up on ISO 9001:2015 audit activities; • Identify and apply the benefits and requirements of an ISO 9001:2015 audit; • Gain the skills to assess an organization’s capability to manage its QMS; • Initiate, prepare and conduct audit activities; • Prepare and distribute the audit report; • Complete audit and follow-up.


MANAGEMENT SYSTEM

Crew Training Enhancement Staff Centre Training Department is designated to train all Masters, Officers and ratings in order to develop the best possible environment on board which shall ensure a safe navigation and high technical standard at any time. The crew shall be able to manage all possible situations, equipped with the particular knowledge required. All crew members are trained by high qualified Masters and Chief Engineers in accordance with the up-to-date world standards of the technical and nautical innovations using SeaGull Online, Company’s PMS program, ECDIS, Stability Calculation, IMDG Course, Videotel etc. Training process is conducted in compliance with the International Conventions STCW, SOLAS, MARPOL, ISM and ISPS Codes, IMO recommendations, National Requirements and requirements of Shipowners. During 2016 the additional special courses were developed, certified and approved to improve individual professional knowledge and practical skills of crewmembers in the following areas:

• IMO 3.27 – Security Awareness; • IMO 3.26 – Designated Security Duties; • IMO 3.19 – Ship Security Officer; • IMO 1.10 – HAZMAT; • English for Deck Officers; • English for Deckhands; • English for Engine Officers; • English for Engines ratings; • English for cooks and stewards.

For more details please visit the appropriate page on our website: http://www.staff-centre.com/crewing

The biggest safety challenge facing shipping is that of retaining the best crew on board and professional ashore in the office. “Investing in education is an investment in the future”.


http://www.staff-centre.com/crewing

MANAGEMENT SYSTEM

Foundation of Subsidiary Management Company – Coastex LLC Coastex LLC is an independent subsidiary Company of Staff Centre Shipmanagement Ltd. which was founded in November 2016 and issued with its own Document of Compliance with aim to provide a full management of general cargo fleet. Coastex offers the widest specter of services for fleet starting from new built plan approval, building supervision, commissioning and further management including all associated services, such as crew supply based on training programs, aimed at increasing of the crew members’ professional skills and knowledge. Coastex Management Services include every aspect of operating and managing a vessel safely, efficiently and effectively in accordance with Shipowners’ needs, in line with the vessel’s design and the requirements of insurers, Flag States, Class Societies, Charterer’s, ISM Code and in accordance with the highest industry standards and services. This includes every aspect of monitoring the vessel conditions, the vessel’s performance, vessel operations in regards to safe and efficient cargo handling and cargo conditioning, planned and project maintenance, regular condition assessment, dry docking, deck/engine maintenance, and repair planning and supervision, budget control, certification and others in order to take care of a vessel throughout her life time. Our experience and database of seafarers allow us to serve not only our managed fleet, but to work as a Crewing company with various Shipowners worldwide and satisfy the needs of every vessel out of our direct management in full. Our Training Centre operates as a self-sufficient establishment as well. Training Centre's staff consists of experienced Marine Technical Superintendents with vast knowledge of safety and technical procedures at sea, its organization and implementation.

For more details please visit appropriate website: http://www.coastex.eu/

We value our partners and employees equally, believing only such approach can reward the company with good reputation and recognition.


http://www.coastex.eu/

MANAGEMENT SYSTEM

Implementation of New Planned Maintenance System The PMS software is a system which allows Managers to schedule and plan maintenance of the vessel. A new PMS was developed by Staff Centre IT Department and implemented on some vessels during 2016 year and planned to be installed on all SCM vessels during forthcoming 2017 year. The newly developed software has modular architecture and can be introduced in ‘simple to implement’ modules, with optional added value functionality to meet the needs of individual vessel with its inherent equipment. The PMS’s interface provides a simple traffic light system to highlight any equipment that requires attention and indicates dates when tasks are due. Duly trained responsible crew on board the vessel can use the system to record when tasks have been completed, attach comprehensive history, pictures, comments, request new parts, or maintain stock (if required). Any update made on the ship’s system is automatically made available to view in the shore based office application for further review and monitor by responsible Superintendent. The basic system features a planned maintenance section based on a tree structure containing the list of machines/equipment to be maintained. Each item on the tree can have an unlimited number of Jobs attached. A traffic light system gives a visual indication of the status of each job. Jobs are can be issued by printing out a work order, which identifies the Item and details the work to be done. A description of the work done is entered into the work order.

For more details please visit the relevant page on our website: http://www.staff-centre.com/software-development

Newly implemented Planned Maintenance System developed by Staff Centre Shipmanagement Ltd.


http://www.staff-centre.com/software-development

MANAGEMENT SYSTEM

Crew Mail Program Crew Mail Program is an e-mail system specially tailored for seafarers use by Staff Centre IT Department. This service provides private e-mail accounts for individual crewmembers. Crew details are updated and distributed automatically from the Management Office to all SCM vessels. Mail service is provided to all seafarers such that, where feasible, mail from seafarers is posted to the seafarer’s home country via the Company’s pouch mail at no cost to the seafarer. Mail for seafarers is dispatched to the ships at regular intervals in accordance with the requirements of E-SCMS CRWOM 4.5. With aim to save data traffic, e-mail is only sent to the vessel if the crewmember is registered on board. Whenever a crewmember is on leave, his private correspondence is automatically removed to avoid data accumulation. Main features of Crew Mail Program:

• A full communication solution;

• Operates separate from the commercial communication onboard;

• Eliminates the need to manage crew mail boxes;

• Complete control over size of e-mails;

• Each crewmember keeps the same e-mail address regardless of ship assignment;

• Full compliance with MLC 2006, Chapter B 3.1.11 requirements.

Seafarers may enjoy the privacy of having their own secured e-mail box system developed by Staff Centre IT Department.


MANAGEMENT SYSTEM

E-SCMS: Electronic Staff Centre Shipmanagement System The E-SCMS incorporates business, personnel and technical management and the execution of all activities deemed as vital in obtaining safety, environmental and quality performance in service and customer satisfaction. E-SCMS applies to all critical activities executed by the Company ashore and onboard. Activities performed on behalf of the Company by contractors and suppliers are monitored accordingly. The Company ensures that contractors and suppliers maintain a similar level of safety, environmental and quality performance.

For additional information about E-SCMS please watch the video or download E-SCMS presentation in MS PowerPoint 2011 format from our official website: http://www.staff-centre.com/e-scms

Business Management

Personnel Management

Safety Performance

Technical Performance

Environment Performance

Quality Performance

E-SCMS main page

Crew Operation Manual

Company Operation Manual

Fleet Operation Manual

Safety & Environment Manual

Specific Fleet Operation Manual

Forms Manual

Ship Specific Plans

Scope of E-SCMS


http://youtu.be/G3wdguOmalg

http://www.staff-centre.com/upload-files/E_SCMS_presentation_ru.pptx

http://www.staff-centre.com/e-scms

MANAGEMENT SYSTEM

ISO 9001:2008 Compliance E-SCMS is ISO 9001:2008-Complient Management System certified by Bureau Veritas. This is full-scale Business Management System with primary focus on safety, quality and overall business performance and efficiency. This certification was combined with the ISM/ISPS certification, as there are overlaps to take advantages for Company’s performance. Auditor pointed out positive indications and improvement of Management System.

Key benefits of ISO 9001:2008

Well defined and documented procedures

Improves and establishes training processes

Defines roles and responsibilities

Quality is constantly measured

Procedures ensure corrective action is taken whenever defects occur

Improves relationships with customers and suppliers

Provides for regular improvements; audits/reviews of performance


MANAGEMENT SYSTEM

Company Vision, Objectives and Policies The Staff Centre Shipmanagement Ltd. aims to be recognized as the global supplier of the quality services to the shipping industry with absolute regard for safety and marine environmental.

Quality Policy

Safety and Environmental Policy

Health Policy

Drug and Alcohol Policy

Security Policy

Technical Management Policy

Navigation Policy

Human Resource Policy

Crewing Policy

Preventing human injury or loss of life

Avoiding damage to the marine environment

Avoiding damage to the property

Policy of zero accidents and incidents

Policy of zero spills to the sea


MANAGEMENT SYSTEM

HSQ Report 2016 Highlights Staff Centre Shipmanagement Ltd. provides a strong focus on health, safety, environment and competence and shall always be prioritized during operation.

The main risk from our activities and services is the possibility of incident occurring during operations and possible impact on the safety of our seafarers, environment and any resulting economic consequences for Shipowners, local community and reputation of our Company. In this connection, Management of Company employs advanced risk management procedures and aims to implement a strong safety culture.

The report aims to provide a clear and transparent overview of SCM’s health, safety and quality performance covering the calendar year 2016 and comprehensive analyze of safety related data through the years.

We made every effort to ensure the all gathered and presented data contained in the report is as accurate and as reliable as possible for further presentation to seafarers, customers and external stakeholders.

HSQ Principles develop the HSQ policy;

establish HSQ definite objectives and targets;

provide the necessary resources to organize the management of HSQ appropriately;

ensure systematic HSQ risk management including the establishment of relevant procedures;

develop and communicate procedures or work instructions;

establish and maintain an audit program carrying out periodic audits;

record and report all accidents, incidents and near miss to ensure learning and follow-up actions;

conduct annual HSQ management review based on a system of regular monitoring of the HSQ performance of agreed indicators;

establish a documentation system to ensure full control of the HSQ management system


MANAGEMENT SYSTEM

Risk Management 2016 A well-structured HSQ system contributes to improving safety not only within a Company or an organization but also within the marine environment that the Company works in. Management commitment and comprehensive support of the occupational health and safety aspects are the basic factors to ensure that a safety spirit is present and taken seriously by everyone in the Company. There are several advantages that Company can benefit from an integrated HSQ management system. First of all, there is a combined HSQ policy; everyone is working towards the same direction. Environmental issues are dealt along with health and safety issues in terms of risk management or hazard identification and there is no an overlap. Most importantly, the interactive evaluation of all these components results in the simultaneous improvement of a Company’s quality standards. An HSQ policy should be in accordance with the Company policy with targets for improving quality standards and commitment for future improvement related to HSQ aspects. A Company therefore collects data for measuring its performance by using the following sources: health & safety incident management; PSC performance, root cause investigations, annual management review.

Fleet Overview 2016

Vessel Near Misses Incidents Accidents

ALMERIA 2 0 0

ALPENA 0 0 0

AMANDA 0 0 0

ANARITA 2 0 0

ARCADIA 0 0 0

ARINAGA 0 0 0

ARIZONA 1 0 0

ARNICA 8 0 0

ARVIKA 5 0 0

AVIONA 2 0 2

IRON KOVDOR 12 0 1

USOLIE 15 0 0

TOTAL 47 0 3


MANAGEMENT SYSTEM

47

3

50

8

62

5

61

8 5

0

10

20

30

40

50

60

70

Near Misses Incidents Accidents

Num

bers

2016 2015 2014 2013

4 4 4

6

4

3

4 4 4 4

3 3

1

2

0

1

2

3

4

5

6

7

Num

bers

Near Miss Accident

Dynamic of Near Miss, Accident and Incident Reports during 2016

SCM Safety Performance through the years


MANAGEMENT SYSTEM

Near Miss Reports Review 2016 Near miss reporting is a perfect tool of proactive safety and risk management that enables organizational communication and learning about potentially hazardous events and situations. It is a culture in which there is considerable informed endeavor to reduce risks to the individual, ships and the marine environment to a level that is as low as is reasonable practicable (MSC-MEPC.7/Circ.7). 47 near miss reports were received during 2016 from SCM managed vessels in accordance with the ISM Code and E-SCMS SEM Chapter 8.4 requirements.

Near Miss Reports Statistic

Year Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total

2016 4 4 4 6 4 3 4 4 4 4 3 3 47

2015 3 8 7 6 2 2 4 6 3 4 3 2 50

2014 12 20 12 6 6 3 3 0 0 0 0 0 62

2013 0 0 0 0 1 14 12 7 6 1 8 7 61

9

14 17

2 5

Failure to follow rules andregulations

Failure to follow Company'sprocedures

Failure to use PPE properly

Failure to follow maintenanceInstructions

Using defective equipment ormachinery

4 1 1

14

20

6 1

Mooring operation

Galley activities

Cargo operations

Deck maintenance

Deck general

Engine Room general

Working aloft/overside

Supplying operations

Shipboard Operations Possible Consequences

Direct Cause Root Cause

3 2

36

6

Mechanical damage

Pollution

Injury

Fire

22

20

2 2 1

Lack of knowledge

Personal factor

Lack of supervision

Lack of training

Inadequate assessment ofoperational readiness

Inadequate equipment


MANAGEMENT SYSTEM

Our past analyze of near miss reports revealed common findings related to working aloft procedures while maintaining of pilot ladders and routine maintenance of deck equipment as well as possible hazard occurrence while mooring operations. In this connection as it was established by Health and Safety Action Plan 2016 a focused campaign was carried out to improve awareness and competence of crew on the most frequent findings in combination with practical training and familiarization with both the operation and maintenance of related equipment. Therefore, as it was planned, a safety campaign on “Working aloft” was initiated during the course of safety awareness week on SCM fleet.

Completing of working aloft permit and further supervision of intended work with correct PPE on board of m/v ARINAGA


MANAGEMENT SYSTEM

In the same period UK P&I Club issued the first of a serious on current risk topics with a focus on mooring operations. The findings in respect of ineffective grease points and keeping mooring on the drum ends were raised during above mentioned inspection by Club representatives. That’s why the relevant publication was circulated within SCM fleet for further familiarization, awareness and training as well as for refreshing knowledge of experienced seafarers. After careful evaluation of received information from near miss reports it was determined another areas for improvement to avoid possible accidents, particularly prevention of smoking and correct PPE wearing while appearance on open deck.

Familiarization with circulated P&I publication and further safe mooring operations on board of m/v ARINAGA


MANAGEMENT SYSTEM

Accidents Review 2016 At sea, just as ashore, most accidents are preventable. However, the environment and working conditions aboard seagoing vessels pose additional hazards not found ashore. The responsibilities to avoid accidents flow from the top down; from the shore establishment to the Master, to each and every individual aboard. "Safety awareness" by all hands is the biggest single factor in reducing accidents. In the Staff Centre Shipmanagement Ltd., all involved staff aim for a corporate culture making health, safety and security an integral part of seafarers mindset, supported by the Company policy to a have a workplace free from accidents. All our employed seafarers work under challenging conditions and the Management of our Company with its high professional staff do their utmost to control risks to seafarers’ health and safety from work activities.

Accidents Statistic ltd


2016 0 1 0 0 0 0 0 2 0 0 0 0 3

2015 0 0 0 0 0 0 0 0 0 0 0 0 0

2014 0 0 0 0 0 0 0 0 0 0 0 0 0

2013 0 0 0 1 0 1 2 1 0 0 0 0 5

Staff Centre Shipmanagement Ltd. cares for safety that is a core value and permanent consideration in the way we perform our shipboard operations.


MANAGEMENT SYSTEM

Staff Centre Shipmanagement Ltd. promotes behaviour-based safety culture and is committed to open clear and honest communication about our safety performance by providing annual safety statistics available to all our seafarers and stakeholders. The management of Company focuses on safety that demonstrated in many ways. Responsible staffs ensure that all seafarers on board are provided with personal safety equipment that exceeds statutory requirements. Responsible persons hold “Toolbox Talks” through of operational tasks to evaluate safety risks and mitigating actions for all non-routine jobs and as precaution measures for all routine works. We aimed to raise awareness of the risk of security incidents, accidents, illness and bodily hazards and to increase seafarers’ understanding of how to deal with such risks.

Risk assessment procedure before working aloft on board of m/v ARVIKA

Preparation for working aloft on board of m/v ARVIKA


MANAGEMENT SYSTEM

However in spite of all implemented procedures, supplied equipment and trained seafarers – three accidents occurred on SCM vessels during 2016 year. Based on the results of the investigations appropriate accident reports were completed and closed out in strict conformity with Company’s procedures.

07 February 2016 while dry docking of m/v IRON KOVDOR and after preparation of life boat for painting, 3rd Officer lost balance and felt down from the installed ladder resulting in a broken hand. First medical assistance was rendered, x-rayed and subsequently 3rd Officer was repatriated. Lessons learned/Preventing measures: Before any works to be performed by assigned crew, responsible person – Chief Officer should arrange detailed study of subject work and safe techniques. Particular attention should be paid for specific tasks and scope of work with identification of all risks and threats.

09 August 2016 while dry docking of m/v AVIONA, oiler-turner during climbing up on the first shelf stand to get spare parts, stumbled and fell down on his right arm from height 1 meter. As a result he received closed fracture of right hand. After rendered medical treatment the oiler was repatriated home. Lessons learned/Preventing measures: A ship in shipyards presents unique combination of hazards in addition to the routine onboard hazards; therefore all vessels and the Company personnel must be particularly diligent about ensuring their safety. Chief Officer as the Safety Officer and the 2nd Engineer as a person in charge in ER should provide the appropriate familiarization, instructions to the responsible crew before performing the work and ensure direct supervision during the course of the work if deemed necessary.

21 August 2016 after leaving shipyard on board of m/v AVIONA, during unmooring operations a deck cadet step over mooring line and caught it by the second leg due to this fell down on the deck and received right shoulder slip. After medical treatment the deck cadet resumed his duties. Lessons learned/Preventing measures: All inexperienced persons on board should be trained in mooring operations by Chief Officer. Inexperienced crew such as cadets and rating should only be allowed to handle lines under direct supervision. All mooring operations shall be carried out calmly without rushing about.


MANAGEMENT SYSTEM

Review of Shipboard Staff Illness

Vessel Nature of sickness Treatment Status of employee

AMANDA Oiler: Wart on the bone

Medical treatment by local doctor with tablets

Fit for light duty for some days

IRON KOVDOR Able seaman: Toothache

Medical treatment by local doctor Fit for duty

IRON KOVDOR Able seaman: Lumbago

Medical examination by local doctor

Unfit for duty, repatriation to home

IRON KOVDOR Able seaman: Pain in left kidney

Medical treatment by local doctor with medicines Fit for duty

ARINAGA Oiler-welder: Natural cataract

Medical examination by local doctor Fit for duty

ARNICA Able seaman: Hypertension crisis



ALMERIA Chief Officer: Left post auricular atheroma with infection


ALMERIA Chief Engineer: Fever

Medical treatment by local doctor with medicines Unfit for duty for 3 days

AVIONA Ordinary seaman: Pain and discomfort in left kneel

Medical treatment by local doctor with medicines

Fir for light duties for 7 days

ARVIKA Able seaman: Toothache


ARVIKA Ordinary seaman: Toothache

Medical treatment by local doctor Unfit for duty for 1 day

ARVIKA Bosun: Missing of tooth stopping


ARVIKA Oiler-turner: Wound

Medical treatment by local doctor Unfit for duty for 7 days

ARVIKA Deck Cadet: Toothache


ARCADIA Deck Cadet: Cholecystitis



ANARITA Engine Cadet: Earache


ANARITA Oiler-turner: Domestic foreign body in eye


ANARITA Chief Engineer: Sharp toothache



MANAGEMENT SYSTEM

Proactive Health Approach The PEME team of UK P&I Club together with their accredited clinics provide the latest advice and information on a range of illnesses affecting crew. Seafarers are among the most isolated demographic working groups in the world in relation to access to medical care, both in emergency situations and for primary health care. On a large, slow vessel in the middle of the ocean, a seafarer may be several days away from quality medical services. In accordance with the World Health Organisation definition of health as a state of complete physical, mental and social well-being, ISWAN runs a campaign on health issues for seafarers and provides information to support Seafarers' health and welfare while employment on vessels. Company Actions All above mentioned publications are distributed as required on all SCM vessels via booklets and leaflets to seafarers to develop personal skills and to keep healthy.

Staff Centre Shipmanagement Ltd. strives for implementing precaution measures and appropriate procedures to continuously improve Health and Safety performance.


MANAGEMENT SYSTEM

Enclosed Space Concerns The challenge of entering enclosed spaces safely is a subject that has tragically been with the industry for many decades. It is unknown exactly how many seafarers, shore side workers, surveyors and stevedores have died in enclosed spaces on ships and offshore units, but it is estimated that there are dozens of fatalities every year. In 2016, the SOLAS convention on enclosed space entry was amended requiring all vessels to carry portable atmosphere testing equipment on board. The revised regulation requires ships to carry an appropriate portable atmosphere testing instruments, capable, as a minimum, of measuring concentrations of oxygen, flammable gases or vapours, hydrogen sulphide and carbon monoxide, prior to entering enclosed spaces. However, even with the potential threat to life these spaces can cause, the UK P&I Club’s Risk Assessors are still finding instances where the proper, and now legally required, precautions are not being carried out effectively.

Company Response Upon careful studying of described recommendations the Safety Department launched a special verification of SCM vessels for strict compliance with regulations. On the first stage all related procedures for enclosed space entry were carefully checked for minimum requirements set by the shipping industry. Another expert’s finding was connected with the absence of multi-gas detector tubing long enough to reach all areas of the space to be entered. In this connection all SCM fleet was requested to inform about availability of required appliances and a result all vessels were supplied with necessary accessories in full volume.

It is imperative that those who join the industry learn at an early stage of the dangerous of entering into enclosed spaces. “No enclosed space should be entered without proper precautions.”


MANAGEMENT SYSTEM

Zika Virus Issue The World Health Organization has declared the recent outbreak of Zika virus a “global public health emergency”. The Zika virus is a mosquito-borne disease, transmitted by the Aedes mosquito – the same type of mosquito that spreads dengue, chikugunya and yellow fever. It typically occurs in tropical areas with large mosquito populations and is known to circulate in Africa, the Americas, Southern Asia and the Western Pacific. Advice to help prevention and transmission of the Zika Virus:

• Use insect repellent and re-apply as directed; • Wear long sleeved clothing (preferably light-coloured); • Use physical barriers where possible – closed doors, closed windows, sleeping under a mosquito

net; • Empty, clean or cover containers that hold even small amounts of water so that places where

mosquitoes can breed are removed. Company Preventive Measures Shipboard Management Teams on SCM Fleet was appropriately informed and aware about the outbreak of Zika Virus. Subject and contents of issued Company Safety Bulletin was discussed during the safety meeting on board and all seafarers were familiarized in a proper manner. Masters of SCM vessels that were trading within mosquito zones were requested to take all recommended precaution measures to protect on board crew. The risk of seafarers contracting the Zika virus and taking it back to their home countries is a serious global health issue. Measures to prevent infection and spread of the virus should therefore be a priority.


MANAGEMENT SYSTEM

Accident Control Measures The health of our seafarers is very important to our Company and it’s our understanding that working at sea can be particularly demanding on a person’s health. In order to accommodate all working factors, inherent risks and hazards the management of our working environment is integrated into the overall management system E-SCMS with Safety and Environmental Manuals. Strictly following prescribed safety related requirements may significantly reduce possible risk of unnecessary accidents. Our goal is to focus more on overall occupational health, implement better procedures for assessing execution, assessing and monitoring the health of our seafarers and identify ways to further improvement. The Management of Staff Centre Shipmanagement Ltd. is making every effort to improve and have confidence in its organization and undertaken safety initiatives.

Health and Safety Action Plan 2017

Title Description Actions

1 Safety Procedure

at Shipyards

To provide suitable and appropriate procedures to vessels in management which will mitigate any dangerous risks while dry docking.

A new chapter regarding safety at shipyards to be developed and implemented within E-SCMS by Safety Department.

2 Safety Awareness

Week

To reduce the high number of incorrect PPE wearing and smoking in prohibited locations within the fleet reported via near miss reports.

Safety weeks on matters such as correct PPE wearing and smoking in allowed locations to be run during the course of Safety Awareness week.

3 Safety Training

Ensure that deck cadets and ratings received adequate CBT (Computer Based Training) on safety issue before employment.

A Videotel package to be provided by Training Centre to all deck cadets and ratings for familiarization with possible shipboard risks and to officers for knowledge refresher.

4 Health and Working

Standards

To provide a useful information to seafarers on improvement their health and welfare onboard.

Special publication in relation to seafarer’s health and welfare issued by relevant authorities to be circulated by Crewing and Safety Department if necessary.


MANAGEMENT SYSTEM

Incidents Review 2016 Staff Centre Shipmanagement Ltd. is committed to safe fleet operations and preventing incidents. The Company works in unison to ensure safety by prudent enhancing all aspects of operations, including technologies, systems, frameworks, education and training programs. We also comply with various international regulations designed to promote navigational and operational safety and strive to properly meet needed requirements. Our main goal is zero incidents in all our activities and even this goal was achieved this year, the Company continues to work towards preventing incidents and operating our vessels safely. A number of safety initiatives were undertaken by Safety and Technical Department to prevent possible incidents and subsequent consequences and possible unnecessary expenses to Shipowners.

Incidents Statistic


2016 0 0 0 0 0 0 0 0 0 0 0 0 0

2015 0 0 2 0 2 1 1 1 0 1 0 0 8

2014 0 1 1 0 0 0 3 0 0 0 0 0 5

2013 0 0 0 3 0 0 0 0 1 2 2 0 8

This year may be treated as the calm year in the sense of absence of serious incidents within SCM fleet.


MANAGEMENT SYSTEM

Mitigation of Cargo Liquefaction Risk During the last six years, more than a hundred seafarers have lost their lives on vessels carrying cargo that may liquefy, mostly from southern Asian ports. The vessels have capsized and sunk; the cause of the casualties has been attributed to cargo liquefaction and loss of stability. Some of the vessels had only been in service for a few years, so poor condition has not been the issue.

Cargo liquefaction leads to a free surface effect and/or cargo shift effect that influences the ship’s stability adversely. Studies have shown that the stability consequences may be largest for ships with full-width holds from side to side, in other words the typical bulk carrier configuration. For vessels with a more narrow cargo hold, such as ore carriers, stability will usually not become an issue. However, they may instead suffer structural damages due to significantly higher pressure acting on the vertical structures.

Depending on the degree of liquefaction and the vessel’s design and reserve structural capacity, the stresses from a liquefied cargo might exceed the allowable limits and the structure might suffer from permanent deformations. In worst case, this could lead to structural failure.

Company Proactive Approach

Although there are vessel design options that reduce the risks of cargo liquefaction, the main improvements are operational. However DNV GL has developed a guideline which describes such operational recommendations, this publication was implemented into E-SCMS and circulated within SCM fleet to inform Master about possible risks and recommendation for safe cargo loading operations and shipboard monitoring and from other side responsible office personnel assist Masters before preloading operations.


MANAGEMENT SYSTEM

Prevention of Anchor and Chain Loss There has been a negative development regarding loss of anchor and chain. The costs for loss of anchor are increasing, and bulk carriers are also affected. Consequences due to salvage, replacement and PSC detentions are the result, and it may also have a severe impact on the safety – in worst case putting ship and crew at risk.

A half of the losses appear to be related to operational issues, such as:

• staying at anchor in overlay heavy weather; • anchoring in waters to deep; • not securing the anchor chain properly while at anchorage; • failure of the winch/motor.

Consequences of loss of anchor and chain:

• high cost to replace anchor and chain; • potential collision with other ships / grounding; • delays and possible off-hire period; • cost for removing lost anchors.

Company Preventive Measures

Taking into account past incidents and technical failure of anchoring equipment within SCM fleet it was taken decision to review Company’s anchoring procedures reducing the risk of technical breakdown to the minimum. Safety Department in cooperation with Technical Department reviewed all issued international best practices publications on safe anchoring procedures as well as IACS requirements and elaborated more clear procedures in respect of safe depth for anchoring and policy when to leave anchoring while deterioration of weather conditions.


MANAGEMENT SYSTEM

Security Risk Response More crew were kidnapped at sea in 2016 than in any of the previous 10 years, despite global piracy reaching its lowest levels since 1998, the ICC International Maritime Bureau's (IMB) annual piracy report revealed today. In its 2016 report, IMB recorded 191 incidents of piracy and armed robbery on the world's seas. However, the focus of recent attention has shifted away from the Indian Ocean to West Africa, while the majority of incidents (though mostly lower level) are now being reported in South East Asia. Most of the incidents in West Africa are occurring off the coast of Nigeria, as well as Benin, Ghana, and Togo.

Company Actions In order to mitigate the risk of piracy attacks on SCM vessels, comprehensive instructions and security procedures are being continuously updated and supplied to the vessels by Security Department. The instruction includes detailed reporting procedures, latest available information as well as precautions to be taken on board the ship in connection with a transit in high risk areas. From other side, commercial operators also took steps to ensure the security of our crew and vessels by using of armed guards on board in addition to other relevant applied security measures. The reduction of security risks has been attributed to the combined success of self-protective measures taken by our Company including the industry BMP4 requirements, the continued use of private maritime security companies and information support from office to vessels before high risk areas transit.


MANAGEMENT SYSTEM

Cyber Security Cyber security is another new term to have entered the Shipowners’ lexicon. As technology continues to develop, information technology and operational technology on board vessels are increasingly networked together and more frequently connected to the worldwide web. This brings a greater risk of unauthorized access or malicious attacks to ships’ systems and networks. Risks may also occur from seafarers having access to the systems on board ship, for example by introducing malware via removable media. However, high level IMO guidance addressed to all stakeholders (not just ship operators) might provide a useful supplement to industry best practice. Meanwhile studies conducted by both the London marine insurance market and the International Group of P&I Clubs consider that the likelihood of a successful cyber-attack against a ship is low. ICS believes that cyber threats are best addressed by existing Safety Management Systems required under the IMO International Safety Management (ISM) Code rather than, as some governments have suggested, augmenting the International Ship and Port Facility Security (ISPS) Code regulations.

Company Response The cyber risk is evaluated and corresponding procedures with relevant steps are addressed within E-SCMS, however the industry’s new cyber security Guidelines should further assist in potential cyber risk exposure and suitable preventive measures to be taken to mitigate the risk. This information should also be brought to the attention of each seafarer by Training Centre and keep under Master control.


MANAGEMENT SYSTEM

Possible Ignition of Smartphones Samsung has announced an expanded voluntary recall on all original and replacement Galaxy Note7 devices sold or exchanged in the United States in cooperation with the U.S. A possible cause for the self-ignition of the batteries may be the defective and/or damaged circuitry within the batteries which could cause them to discharge rapidly, to overheat, ignite and ultimately to explode. Bringing these phones on vessels is strongly discouraged and, if brought aboard, they are to be turned off and disconnected from any charging equipment. The Coast Guard recommends taking the following actions in instances where a Galaxy Note 7 is discovered on a vessel:

• Turn off the phone;

• Disconnect the phone from any charging equipment;

• Disable all applications that could inadvertently activate the phone such as the alarm clock;

• Protect the power switch to prevent it from being turned on;

• Keep the device accessible under constant supervision. Company Remedial Actions At the same time it was reported from one of SCM vessel that during the charging of smartphone Lenovo P70 it suddenly ignited in the cabin, fortunately in the presence of the crewmember. Appropriate near miss report was filed and sent to Company. All SCM fleet was informed via Safety Bulletin that all models of smartphones should be kept in safe place considering fire safety and must not be left unattended particularity during the charging period.


MANAGEMENT SYSTEM

Incident Control Measures Proactive approach to our safety performance may be adopted only by encouraging the continuous search for innovative ideas, areas of improvement and ensuring that all appropriate information within our E-SCMS is followed. This will be achieved by good cooperation between both our personnel working ashore and those working on board our vessels. The Management of our Company has undertaken a massive review of E-SCMS by setting clear requirements as the response of increasing tendency of anchoring equipment failures and as a result no incidents of such nature were reported during this year. Focus on security related information sharing was a key issue resulting in reduction of security incidents. As identified by the ISM Code, commitment from the highest level of the company is vital to ensure that personnel will act safely at all times. Our Company will continue to work towards a strong improvement in policies and procedures combined with personal commitment to reduce the risk of possible incidents.

Incident Control Measures Action Plan 2017


1 Cyber Security

Awareness

To ensure appropriate working procedures are in place to avoid cyber security related incidents.

A review of current IT procedures to be undertaken by Safety Department and adopted for easy understanding by seafarers.

2 Safety Performance

Sharing

To keep SCM vessels informed about recent international safety trends.

Information regarding safety related issues to be reviewed via maritime public sources, analyzed and provided to SCM fleet with further recommendations.

3 ECDIS Procedures

To ensure that navigational procedures reflects Company’s safety policy and requirements.

ECDIS procedures to be reviewed by Safety Department with aim to reflect specific Company’s requirements and policies.

4 Security Training

To keep SCM vessels informed about different HRA activities and ensure safety precautions measures in place.

Information in respect of security related issues to be reviewed via maritime public sources, analyzed and provided to SCM fleet with further recommendations to preventive measures.


MANAGEMENT SYSTEM

43

20

37

2 4

59

52

44

8 7

48

30

35

12

1

65

92

36

13 16

0

10

20

30

40

50

60

70

80

90

100

TOTAL NUMBER OFPSC INSPECTIONS

TOTAL NUMBER OFPSC DEFICIENCIES

PSC INSPECTIONSWITHOUT

DEFICIENCIES

PSC INSPECTIONSWITH LESS THAN 3

DEFICIENCIES

PSC INSPECTIONSWITH MORE THAN 3

DEFICIENCIES

2016 2015 2014 2013

Port State Control Inspections 2016 Port state control is the inspection of foreign ships in national ports to verify that the condition of the ship and its equipment complies with the requirements of international conventions and that the ship is manned and operated in compliance with these rules. If a deficiency is found, this may result in significant consequences:

• Possible delays and off-hire times due to detentions; • Negative impact on Company rating; • Increased targeting of your ship and company by MoUs, combined with more detailed PSC

inspections and increased risk for PSC detention; • Negative exposure leading to a loss of reputation.

Our clients and their customers treat PSC detentions very seriously and a prospective charterer is unlikely to charter a ship that has a bad history PSC records. 43 Port State Control (PSC) inspections were carried out on SCM managed fleet during 2016.

Port State Control Performance


MANAGEMENT SYSTEM

2

3

12

2

18

7

6

5

4

6

5

3

4

3

6

5

8

4

4

6

1

7

8

7

7

8

5

4

5

7

1

4

4

3

9

4

3

4

4

7

0 5 10 15 20

OTHER INSPECTIONS

USCG

TOKYO (MOU)

RIYADH (MOU)

PARIS (MOU)

MEDITERRANEAN (MOU)

INDIAN (MOU)

BLACK SEA (MOU)

ABUJA (MOU)

LATIN AMERICA (MOU)

2016

2015

2014

2013

Port State Control Inspections Map


MANAGEMENT SYSTEM

6

1

without deficiencies

< 3 deficiencies

4


3

1 without deficiencies

> 3 deficiencies

3


3

1 without deficiencies

> 3 deficiencies

8

1


< 3 deficiencies

3


4


ABUJA (MOU)

7

LATIN AMERICA (MOU)

BLACK SEA (MOU) INDIAN (MOU)

MEDITERRANEAN (MOU) PARIS (MOU)

RIYADH (MOU) TOKYO (MOU)

USCG

1

without deficiencies1

OTHER INSPECTIONS

4

4 3

3 9

3 2 2 without deficiencies

> 3 deficiencies4

4


MANAGEMENT SYSTEM

5

3

4

3

8

1

7

5

1

1

4

2

2

1

7

6

2

3

4

1

2

1

1

4

1

1

2

1

0 5 10 15

LIVING CONDITION

ALARMS

FIRE SAFETY

RADIO COMMUNICATION

EMERGENCY SYSTEMS

WATER/WEATHERTIGHTCONDITION

STRUCTUAL CONDITION

DOCUMENT

CREW CERTIFICATE

SHIP CERTIFICATE

2016

2015

2014

2013

Port State Control Deficiencies by Category


MANAGEMENT SYSTEM

2

1

5

3

11

14

11

11

1

1

1

3

6

2

1

2

1

1

1

3

7

7

3

2

1

2

1

3

0 5 10 15

MLC 2006, HEALTH PROTECTION, MEDICALCARE, SOCIAL SECURITY

ISPS

ISM

MARPOL ANNEX VI

MARPOL ANNEX V

MARPOL ANNEX I

PROPULSION AND AUXILIARY MACHINERY

LIFE SAVING APPLIANCES

SAFETY OF NAVIGATION

WORKING CONDITION

2016

2015

2014

2013

Port State Control Deficiencies by Category


MANAGEMENT SYSTEM

5

6

7

2 Failure to follow Company's procedures

Failure to follow maintenance instructions

Failure to follow rules and regulations

Using defective equipment

14

3

3 Lack of supervision

Lack of training

Inadequate purchasing

0.465

0.881

0.625

1.415

0

0.8

1.6

2016 2015 2014 2013

Deficiency Ratio Trend

SCM Deficiency Ratio

Direct Cause of PSC Deficiencies 2016

Root Cause of PSC Deficiencies 2016


MANAGEMENT SYSTEM

Fire Safety Findings Our comprehensive analysis reflects that deficiencies related to fire safety is the most common finding type during 2016 year. The great numbers of PSC deficiencies related to fire safety have significant consequences on operational cost, and from other side they may have a severe impact on the safety of the crew, the ship, crew and its cargo. Consequences of defective fixed fire extinguishing installations:

• In case of a fire, the system may not be able to put out the fire; • Crew may try to extinguish the fire manually – increasing the risk of injuries/fatalities; • Increased extent of damage to the ship.

Analysis PSC findings and statistics from insurance companies, indicate that the majority of fires on ships originate in the engine room. Company Remedial Actions Observed PSC findings related to fire safety are typical maintenance issues, therefore it is required to carefully review the planned maintenance system (PMS) and ensure proper maintenance procedures are implemented. Regular maintenance routines shall include practical guidance to crew, especially for focus areas. UK P&I Club has issued a special risk focus publication on fire safety in the engine room, and a special focused awareness campaign will be launched by Safety and Technical Department to improve awareness and competence of crew in combination with practical training and familiarization with both the operation and maintenance of related equipment on board of SCM vessels. Page 42 of 56 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2016 Created: March, 2017

MANAGEMENT SYSTEM

Concentrated Inspection Campaigns 2016

Port States have conducted the Concentrated Inspection Campaigns (CICs) from 1 September through 30 November 2016 on the following subjects:

1. Black Sea MoU: Cargo securing arrangements;

2. Caribbean MoU: Crew familiarization with enclosed space entry;

3. Indian Ocean MoU: Cargo securing arrangements;

4. Mediterranean MoU: Cargo securing arrangements;

5. Paris MoU: ILO Maritime Labour Convention;

6. Riyadh MoU: Pilot transfer arrangements;

7. Tokyo MoU: Cargo securing arrangements;

8. Vina del Mar Agreement: Cargo securing arrangements.

Company’s procedures regarding these matters were checked and reviewed to provide up to dated recommendations and requirements. Seafarer’s complaints procedures were totally reworked to reflect full compliance with regulations. Special pocket checklist on MLC, 2006 was circulated on SCM vessels to provide adequate guidance and familiarization of all involved staff on board and demonstrate good results during PSC inspections.

Concentrated Inspection Campaigns on SCM Fleet during 2016

Vessel Date Place and type of inspection MOU Def.

ARINAGA October 17, 2016 Aviles (Expanded Inspection) Paris MOU NO

USOLIE November 04, 2016 Klaipeda (Expanded Inspection) Paris MOU NO

ARNICA November 23, 2016 Tuapse (Initial Inspection) Black Sea MOU NO

Other Special Purpose Inspections on SCM Fleet during 2016

Vessel Date Place Type of Inspection Def.

USOLIE August 01, 2016 Antwerp, Belgium MARPOL Inspection NO

IRON KOVDOR August 16, 2016 Klaipeda, Lithuania ITF Inspection NO

ARIZONA September 16, 2016 Owendo, Gabon MARPOL Inspection NO

ANARITA October 02, 2016 Karachi, India MARPOL Inspection NO

ARINAGA October 25, 2016 Antwerp, Belgium MARPOL Inspection NO

ARVIKA November 10, 2016 Providence, USA MARPOL Inspection 1


MANAGEMENT SYSTEM

USCG Inspections 2016 The U.S. Coast Guard administers a wide range of maritime safety laws related to merchant vessels, the protection of merchant seamen, and the protection of the environment. These laws require the development of safety standards, the licensing of operating personnel, and the inspection of vessels to ensure compliance. The Coast Guard’s program is not limited to United Sates vessels. Certain foreign flag vessels coming within United States jurisdiction are required to meet various international and domestic vessel safety standards as well.

The U.S. Coast Guard is responsible for the inspection and regulation of many commercial vessels. The purpose of the inspection process is to ensure that a vessel has a suitable structure, proper equipment, and accommodations. The inspection process begins with the approval of a design and plans, and inspection continues throughout construction. After the initial inspection (upon completion of the vessel), subsequent inspections ensure that the vessel is maintained in a condition consistent with safety of life and property and in conformance with applicable marine safety laws and directives.

During the reporting year four USCG inspections were carried out on SCM vessels without deficiencies owing to proactive approach applied by the Management of Company through comprehensive preparation of vessels for the intended inspection, arranging earlier annual flag inspection without additional expenses to Shipowner as well as close cooperation of shipboard crew.

Upon completion of inspection on board of m/v ARINAGA USCG Inspectors verbally congratulated Chief Officer and Chief Engineer with good preparation of vessel for inspection and excellent ship’s maintenance.

4

7

3 3

0.00 0.43

0.67 0.33

0

1

2

3

4

5

6

7

8

2016 2015 2014 2013

USCG Inspection Statictics

USCG Inspections SCM Deficiency Ratio


MANAGEMENT SYSTEM

Company Performance Profile and Ship Risk Profile under the Paris MOU

High Performance Company 2016

One of the parameters to determine the SRP is the Company Performance, explained in annex 7 of the Paris MoU text. Company performance takes account of the detention and deficiency history of all ships in a company’s fleet while that company was the ISM Company for the ship. Companies are ranked as having a very low, low, medium or high performance. The calculation is made daily on the basis of a running 36-month period. There is no lower limit for the number of inspections needed to qualify except a company with no inspections in the last 36 months will be given a “medium performance”. Company performance takes account of the detention and deficiency history of all ships in a company’s fleet while that company was the ISM Company for the ship. Companies are ranked as having:

• Very Low Performance Profile – significantly increase the risk for all managed vessels to be

assigned as “High Risk Ships” automatically, notwithstanding the age and PSC history, with shortening of PSC inspections interval to 5/6 month.

• Low Performance Profile – increase the risk for all managed vessels to be assigned as “High Risk Ships” automatically, notwithstanding the age and PSC history, with shortening of PSC inspections intervals to 5/6 month.

• Medium Performance Profile – good results adding “0” negative points to managed vessel’s Risk Profile and increasing the PSC inspections intervals to 10/12 month. However, not allowing to any managed vessel to become “Low Risk Ship”.

• High Performance Profile – best possible result adding “0” negative points to managed vessel’s Risk Profile and giving to all fleet vessels good chance to become “Low Risk Ship” and increasing the PSC inspections intervals to 24/36 month. In this case the actual “Risk Profile” of all ships in fleet will depends on own PSC history only.


MANAGEMENT SYSTEM

Paris MOU Inspections History over the last 36 Months

No Vessel’s name Data of inspection

Type of inspection Port of inspection IS

M

defi

cien

cies

Non

-ISM

de

fici

enci

es

Num

ber

of

dete

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1. USOLIE 04/11/2016 Expanded Klaipeda, Lithuanian 0 0 0

2. ARINAGA 17/10/2016 Expanded Aviles, Spain 0 0 0

3. IRON KOVDOR 06/06/2016 Expanded Bilbao, Spain 0 0 0

4. ALMERIA 03/05/2016 Initial Gibraltar 0 0 0

5. ARNICA 28/04/2016 Initial Huelva, Spain 0 1 0

6. ARIZONA 16/04/2016 More detailed Porto Marghera, Italy 0 0 0

7. ARCADIA 26/03/2016 More detailed Kavkaz, Russia 0 0 0

8. AVIONA 15/03/2016 Initial Leixoes, Portugal 0 0 0

9. ARVIKA 06/02/2016 More detailed Gibraltar 0 0 0

10. ALPENA* 02/12/2015 Expanded Santander, Spain 0 1 0

11. AMANDA* 19/10/2015 Expanded Ancona, Italy 0 2 0

12. USOLIE 29/09/2015 Expanded Murmansk, Russia 0 0 0

13. ANARITA 08/06/2015 Initial Swinoujscie, Poland 0 0 0

14. ARVIKA 06/06/2015 Initial Lower Cove, Canada 0 0 0

15. IRON KOVDOR 14/04/2015 Expanded Klaipeda, Lithuanian 0 0 0

16. ARINAGA 12/02/2015 Expanded Thessaloniki, Greece 0 3 0

17. ARCADIA 05/11/2014 More detailed Kavkaz, Russia 0 0 0

18. USOLIE 22/08/2014 Expanded Aughinish, Ireland 0 1 0

19. ALPENA* 14/08/2014 Expanded Constanta, Romania 0 0 0

20. ANARITA 01/08/2014 Initial Kavkaz, Russia 0 0 0

21. AMANDA* 14/07/2014 Expanded Swinoujscie, Poland 0 2 0

22. AVIONA 17/02/2014 More detailed Gent, Belgium 0 0 0

Total: 0 10 0

* ̶ including all ships in a Company’s fleet while the Company was the ISM Manager for the ship


MANAGEMENT SYSTEM

Parameters for Company Performance

General Parameters Results

How many PSC inspections has the fleet undergone in the Paris MOU region? 22

In how many detentions have these inspections resulted? 0

How many Non ISM deficiencies have been recorded during these inspections? 10

How many ISM deficiencies have been recorded during these inspections? 0

Has a refusal of access order been issued to any ship of the fleet? No

Since the moment when New Inspection Regime (NIR) of the Paris MoU on Port State Control entered into force on 1 January 2011 for all 27 member states, our Company has initiated campaign targeting the improvement of a risk profile for each managed ship as well as increase the Company's performance level in general. As result of this campaign and based on the above mentioned statistic, we are pleased to inform that since 20th of June, 2016 Staff Centre Shipmanagement Ltd. was awarded by "High Performance Company" rating in Paris MOU of Port State Control and each of managed vessels is classified since this moment as "Low Risk Vessel". Main benefit of this rating is increasing of PSC inspection intervals from 10-12 month for Standard Risk Vessels (or even 5-6 month for High Risk Vessels) to 24-36 month for Low Risk Vessels (except ships over 12 years old). Company Rating and Ship's Risk profile is valid for current moment only (similar to RightShip star rating) and could be reduced at any moment subject to negative PSC inspection results of any managed vessel as well as are affected by Overriding and Unexpected factors.

Ship Risk Profile 2016 Every day a number of ships will be selected for a port State control inspection throughout the region. To facilitate such selection, the central computer database, known as ‘THETIS’ is consulted by PSCO’s. This information system, hosted by the European Maritime Safety Agency, informs national PSC authorities which ships are due for an inspection. Data on ships particulars and reports of previous inspections carried out within the Paris MoU region are provided by the information system as well. Each ship in the information system will be attributed a ship risk profile (SRP), in accordance with Annex 7 of the Paris MoU text. This SRP will determine the ships priority for inspection, the interval between its inspections and the scope of the inspection. Periodic Inspections are carried out at intervals determined by the ship risk profile. Overriding or unexpected factors might trigger an inspection in between periodic inspections. This category of inspection is referred to as an Additional Inspection. Ships become due for periodic inspection in the following time windows:

• For HRS – between 5-6 months after the last inspection in the Paris MoU region.

• For SRS – between 10-12 months after the last inspection in the Paris MoU region.

• For LRS – between 24-36 months after the last inspection in the Paris MoU region.


MANAGEMENT SYSTEM

Periodic Inspections and Additional Inspections count equally. Therefore the time span for the next periodic inspection re-starts after an additional inspection. A ship’s risk profile is recalculated daily taking into account changes in the more dynamic parameters such as age, the 36 month history and company performance. Recalculation also occurs after every inspection and when the applicable performance tables for flag and R.O.s are changed.

Parameters for Ship Risk Profile

General Parameters Results

Type of ship Bulk carriers – 2 negative points

Is the ship older than 12 years 1 point if Yes / 0 points if No

Flag State performance Liberia for all fleet / White List – 0 points

Is the Flag IMO Audited Yes for all fleet – 0 points

Recognized Organization Performance NKK, BV – HIGH performance – 0 points

Is the RO recognized by one of the Paris MOU member States NKK, BV – 0 points

ISM Company Performance «High» – 0 points

Historical Parameters in the last 36 months for each vessel in accordance with the table below

Ship Risk Profile under Paris MOU

Vessel’s name

Total number of inspections Paris MOU

within last 36 months

Total number of non ISM

deficiencies

Total number of ISM

deficiencies

Number of detentions

Ship’s current Risk Profile

ALMERIA 1 0 0 0 LRS

ANARITA 2 0 0 0 LRS

ARCADIA 2 0 0 0 LRS

ARIZONA 1 0 0 0 LRS

ARNICA 1 1 0 0 LRS

ARVIKA 2 0 0 0 LRS

AVIONA 1 0 0 0 LRS

IRON KOVDOR 2 0 0 0 LRS

USOLIE 3 1 0 0 LRS

TOTAL 15 2 0 0


MANAGEMENT SYSTEM

PSC Performance Control Measures The commitment of Port State Control inspectors is to check vessels for compliance with international rules and regulations. Cases of noncompliance are systematically stored and the accumulated PSC finding records represent a unique picture of the typical deficiencies on bulk carriers, covering both technical and operational issues. By analyzing these findings methodically, it is possible to identify improvement areas for SCM vessels. Analyze of raised deficiencies revealed a weak link appertaining to inadequate maintenance which might be connected with the human factor. In this connection some steps may be taken to improve the PSC performance:

• evaluate the Safety Management System covering these elements;

• review the planned maintenance system for proper implementation;

• launch focused campaigns to improve frequent findings.

PSC Performance Action Plan 2017


1 PSC Data Analyze

To share PSC data deficiencies trend received from different public sources.

Safety Department shall review and analyze monthly PSC information published by NK Class with aim to react and prevent possible deficiencies on SCM fleet.

2 Best Practice

Sharing

To share best practices found during different types of inspections.

Safety and Technical Department shall accumulate and share best practices coming from shipping industry and various types of inspections.

3 New Regulation Implementation

Implementation of new regulations and industry requirements.

Timely follow-up of new incoming regulations and shipping industry requirements by Company Departments.

4 PMS Standards

Review the planned maintenance system for proper implementation.

Responsible Department shall review PMS requirements on commonly raised findings.


MANAGEMENT SYSTEM

12

10

1 1

10

1

11

3

2

0

2

4

6

8

10

12

14

ASI without deficiencies ASI with less than 3 deficiencies ASI with more than 3deficiencies

2016 2015 2014 2013

LISCR Annual Safety Inspections 2016 The Liberian Registry is comprised of more than 4,160 vessels aggregating 148 million gross tons, representing 12 percent of the world’s ocean going fleet. Liberia has earned international respect for its dedication to flagging the world’s safest and most secure vessels. The Liberian Registry is recognized at the top of every industry “white-list” including the International Maritime Organization and the major Port State Control authorities such as the U.S. Coast Guard as well as the Paris and Tokyo MOU regimes. The Liberian Registry is administered by the Liberian International Ship & Corporate Registry (LISCR, LLC), a private U.S. owned and globally operated company. LISCR is internationally recognized for its professionalism and commitment to reduce redundant workflow procedures in order to increase efficiency. The Registry is managed by industry professionals who understand the business of shipping and corporate structures. Its proficient administration is one of the most effective and tax efficient ship and corporate registries in the world.

The Flag Administration actively participates in prevention of PSC deficiencies. The Liberian Registry developed the Advance Notice of Arrival (ANOA) program a few years ago to assist vessel owners and operators ensure regulatory compliance and prevent detentions by Port State Control (PSC) authorities. The next evolution is the Registry’s Compliance Assistance Program (CAP). The aim of the CAP is to assist owners and operators to reduce deficiencies and avoid undue delay of vessels due to a detention. Most detentions can be avoided, if deficiencies are corrected or reported before a vessels arrival in port. By increasing the efficiency and effectiveness of the ANOA program vessel operators and their DPA(s) will have additional information to confirm compliance and/or reporting before arrival.

LISCR Annual Safety Inspections History


MANAGEMENT SYSTEM

Joint Ship to Shore Exercise 2016 To ensure the smooth and safe operation of the fleet during May-June, 2016 period Staff Centre Shipmanagement Ltd. held Joint Ship to Shore Exercises. The majority of SCM vessels demonstrated a "Good" result. All crew showed good skills and knowledge of their duties during the emergency situations. Responsible officers demonstrated perfect skills and knowledge of communication procedures and GMDSS equipment while establishing contact with assigned rescue coordinating centers. All safety related equipment was found in good working condition. All emergency actions were arranged in strict conformity with established procedures and checklists contained in relevant chapters of SOPEP & ECP. During the course of the drills a direct link was established with Company Emergency Response Team which provided timely respond and arranged coordinated actions as per established procedures using Ship's Contingency Folder (for office use). It should be noted that during the Joint Ship to Shore Exercises Campaign 2016 Masters of SCM fleet demonstrated a creative approach by presenting good captured photos of actions by crew and providing relevant documentation appertaining to the specific type of drill.

Notwithstanding these facts a Joint Ship to Shore Exercise Booklet to be reviewed by responsible personnel in due time by inserting the following requirements:

1. Master should send two separate test messages from Inmarsat C terminals at the beginning of the drill with aim to check operability and possibility to use one of means of communication with office during emergency situations;

2. List of actions during the assigned drill should be added with the requirement of preserving VDR data.

Joint Ship to Shore Exercises 2016

Vessel Date Type of drill Results

ALMERIA May 18, 2016 Steering gear failure and grounding Good

AMANDA May 17, 2016 Fire on board and steering gear failure Good

ANARITA June 09, 2016 Oil spill and MOB Good

ARCADIA May 19, 2016 Bomb threat and search for unauthorized persons Good

ARINAGA May 23, 2016 Fire on board and steering gear failure Satisfactory

ARIZONA May 20, 2016 Steering gear failure and collision Good

ARNICA May 24, 2016 Oil spill and MOB Good

ARVIKA May 19, 2016 Pirate attack and fire onboard Good

AVIONA May 26, 2016 Steering gear failure and MOB Good

IRON KOVDOR May 16, 2016 Fire onboard and abandon drill Good

USOLIE June 15, 2016 Steering gear failure and grounding Good


MANAGEMENT SYSTEM

RightShip Performance 2016 RightShip was formed to improve dry bulk safety and quality standards and draw on the significant ship vetting expertise of global commodity companies, BHP Billiton and Rio Tinto. As major charterers and shippers, the founding businesses had developed vetting systems to manage their own marine risk. RightShip combined their expertise and resources to develop a Ship Vetting Information System (SVIS™) as a comprehensive risk management tool, which was in service until 2016. In 2006, international food, agriculture and risk management company Cargill joined as an equal equity partner. RightShip is focused on helping industry avoid preventable incidents, while reducing the carbon dioxide emissions emitted by the world marine fleet. We do this by condensing information, providing rapid and consistent analysis and advice, monitoring and complying with international standards, and bringing expert support and advice within the reach of even the smallest business. In 2016 RightShip introduced all customers to the next generation vetting tool, RightShip Qi. Pronounced ‘key’ – and an acronym for Quality Index – RightShip Qi is all about improving maritime safety and efficiency. RightShip have moved from a system that estimates risk to one that is predicting the risk of an incident, and, where the factors in SVIS were independent, in Qi the system is calculating the interrelationship between the factors using an IBM predictive analysis tool. Essentially, this is because SVIS and RightShip Qi are different risk measurements:

1. SVIS was reactive, and so had to wait for something to go wrong before being considered in the model;

2. RightShip Qi is predictive, and so learns from other ships in similar circumstances. Given the recent fleet renewal we identified an opportunity to get smarter at predicting risk, as there is much inherent risk waiting for something to go wrong before acting.

SVIS has been in use for 15 years, and over this time the general safety standards of vessels has gradually improved. This was reflected in the SVIS star rating, so over time, more and more vessels achieved higher rating scores – which was appropriate for the SVIS platform. As such the ‘average’ rating for a vessel in 2016 was around 4 stars. The problem with this was that 4 or 5 stars indicate a superior vessel, and whilst this was the case in the earlier days of SVIS, more recently it has not always been so. The RightShip Qi platform takes advantage of modern technology and developments in risk rating algorithms, and provides us with a more dynamic star rating. Qi has been designed so that an ‘average’ vessel has an ‘average’ star rating – which in a 5-star scale, is a 3 star risk rating.

There are many influences on a vessel’s risk rating – each of which is comprised of multiple, inter-related factors.

The principal risk factors are summarized into 9 risk groups that are not considered in isolation, but rather interact with each other differently for each individual vessel prediction. These are:

1. Regulator Risk - models the interaction between a vessels Classification Society & Flag State; 2. Casualties Risk - casualty performance of the vessel in recent years; 3. Vessel PSC Risk - performance of the vessel at recent PSC Inspections; 4. Builder Risk - average casualties in the early life of vessels from each yard; 5. Size Risk - model context regarding a vessel’s size; 6. Age Risk - age of vessel in years; 7. Type Risk - model context regarding a vessels type (Bulk Carrier, Containerships, General Cargo,

Tankers & Others); 8. DOC PSC Risk - average performance at PSC inspections for vessels sharing the same DOC

Manager; 9. Continuity Risk - considers the continuity of standards & systems across DOC Holders, Flag States

& Classification Societies. Page 52 of 56 STAFF CENTRE SHIPMANAGEMENT HSQ ANNUAL REPORT 2016 Created: March, 2017

MANAGEMENT SYSTEM

RightShip Star Rating of SCM Fleet

No Vessel’s name Class Flag Appertaining Risk Factors Rating

1. ALMERIA BV Liberia

1. Casualty Risk: Vessel run aground on October 12, 2013; 2. Builder Risk: Vessel was built on China Shipyard;

2

2. ANARITA BV Liberia 1. Builder Risk: Vessel was built on China Shipyard; 4

3. ARCADIA BV Liberia 1. Builder Risk: Vessel was built on China Shipyard; 4

4. ARINAGA NKK Liberia 1. Age Risk: 17 years; 3

5. ARIZONA BV Liberia

1. Builder Risk: Vessel was built on China Shipyard; 2. Casualty Risk: Vessel was stranded in Russia on February, 2012; 3. Vessel PSC Risk: Vessel was detained in USA on March 03, 2015;

2

6. ARNICA NKK Liberia 1. Additional factors; 4

7. ARVIKA NKK Liberia 1. Additional factors; 4

8. AVIONA BV Liberia 1. Builder Risk: Vessel was built on China Shipyard; 2. Additional factors;

3

9. IRON KOVDOR NKK Liberia 1. Age Risk:

18 years; 4

10. USOLIE NKK Liberia

1. Age Risk: 26 years; 2. Vessel PSC Risk: Vessel was detained in China on October 10, 2012;

3

Note: Star Ratings for vessels in fleet are based on January 23, 2017


MANAGEMENT SYSTEM

In order to improve the ships rating, what a management company needs to do is:

1. Sustain incident-free performance; 2. Sustain PSC performance at a vessel & DOC level; 3. Retain and Maintain strong Class, FLAG & DOC holders; 4. Provide timely corrective & preventative action when incidents occur.

There are also 4 additional factors that are taken into account that lie outside the predictive model, each of which have a positive impact on the risk rating. These are:

1. Audit - Management Review; 2. Certification - Green Award; 3. Association – Intercargo; 4. RightShip dry inspection.

Company Actions

It should be noted that an incident or casualty has an effect on the vessels risk rating calculation for a period of 5 years with diminishing severity over time.

In order to keep to RightShip principles and maintain high rating of vessels as much as possible from management side the Safety Department prepares and submits a company response reports on PSC inspections in case where three or more deficiencies raised or assigned with codes 15, 16, 17, 18. The reports are developed in accordance with the template provided by RightShip representatives and consist of nature of deficiencies, root cause analysis and subsequent corrective and preventive actions applied to avoid repetition in future. Upon receipt of reports RightShip provide a response on satisfactory review and original star restoring.


MANAGEMENT SYSTEM

Conclusion Extraordinary financial pressures on Shipowners resulting from the difficult time on global markets have made it a challenge to Shipowners in making progress on safety related modernization in 2016. This also provoked a pare-down invest in safety training as well as maintain of vessels to high level of safety standards. The financial impact also appertains to the high costs of compliance with environmental regulatory requirements such as compliance with ballast water management.

From other side there are safety concerns with regard to the obsession with ECDIS systems as the primary means of navigation, where risks of uncompleted specific training by ship officers, undetailed Company procedures and other hidden risks.

Another one of the biggest safety challenges in 2017 will be preventing further loss of lives, ships, cargo and from the inherent risks while loading of cargoes liable to liquefaction.

Also in the age of increasing use of technology, cyber risk management systems should be considered as a part of companies’ safety management systems as per the ISM Code.

Notwithstanding all these challenges we need to manage successfully the human factor which is the key parameter in shipping industry and thus we have to pay the utmost importance in ensuring that we have the right staff onboard and ashore at the right time.

Apart from this the Company has to manage and implement efficiently the new technologies to provide high quality ship management service.

We will try to make an every effort to maintain and even improve further perfect PSC performance of the Company which is considered as the “ticket” to commercial success and attractiveness.

“Trusting us you will be awarded with a high quality and technology based shipmanagement solution.”


MANAGEMENT SYSTEM

Key Actions and Success in 2016

• Incidents free year;

• High Performance Company under Paris MoU;

• Low Risk Ships under Paris MoU;

• Decrease of PSC deficiency ratio almost in twice;

• Quality education of shorebased staff by world recognized organisation;

• Implementation of newly developed PMS on the majority of vessels;

• Development and further additional services providing by Training Centre;

• Business processes digitalization;

• Cost saving budget performance.

What We’re Aiming in 2017

• Further improvement of safety, reliability and business performance;

• Continuous enhancement of personnel competence;

• Ongoing development of training facilities and capabilities;

• Implementation of newly developed PMS on the whole SCM fleet;

• Maintaining a position of High Performance Company under Paris MoU;

• Preparation for ISO 9001:2015 transition.


Staff Centre Shipmanagement Ltd. 3rd Floor, Sigurd Hall Business Centre,

54/23 Francuzskiy Boulevard Odessa, 65009, Ukraine Tel.: +380 487 34 00 65 Fax.: +380 487 34 00 64

E-mail: [email protected] www.staff-centre.com

staff centre shipmanagement health, safety and quality...

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