tor svensen dnv-gl merger: increased safety focus nor-shipping press conference, 2013 06 03

Tor Svensen

DNV-GL merger: increased safety focus

Nor-Shipping press conference, 2013 06 03

© Det Norske Veritas AS. All rights reserved.

Strengthening the role of class through the DNV-GL merger

2

DNV-GL merger on track

Setting the direction for Class

Increased safety focus

Moving the industry towards better risk management

Strengthening innovation and technology development



3

DNV-GL merger on track

December 2012: DNV and GL announced the merger

April 2013: New executive management team announced

Today:- On-going integration planning process in

both companies- Competition filing in progress globally- Business as usual for both companies until

competition clearance is completed



4

17,000employees

5,600 maritime employees

2,500Mill. EURO (2012)

100countries

DNV-GL: A leading classification society

Americas3,000 staff Asia / Oceania

4,000 staff

Europe / Africa / Middle East10,000 staff



5

Setting the direction for Class

Continuous drive to improve safety a no.1 priority

Drive the agenda for improved risk management

Leading the industry on technology and innovation by investing significantly in R&D

Strong focus on competence development and the human element

A strong and competent Class will help the maritime industry becoming safer and more efficient



6

Safety trends are negative

The improving trend on safety has reversed

Navigational error still accounts for more than half the accidents and serious incidents

Best safety trend in Offshore Shipping

Increased use of risk management and safety barriers is the way forward



7

Safety trends and major accidents

Source: IHS Fairplay

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

5

10

15

20

25

30

Serious accidents (only)All vessels, excluding Fishing and Miscellaneous categories

(1990-2012)

Fre

qu

en

cy

pe

r 1

,00

0 s

hip

ye

ars



8

Big differences in safety between vessel categories

Offshore Supply No. 1 in safety performance

Average accident frequency within the other ship segments are six times that of Offshore Supply in 2012

Source: IHS Fairplay “Other categories”: General Cargo , Tankers, Ro-Ro, Bulk, Container

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0

5

10

15

20

25

30

35

Serious accidents (only)Selected vessel categories (1990-2012)

Other categories Offshore Supply

Fre

qu

en

cy

pe

r 1

,00

0 s

hip

ye

ars



9

Navigational accidents - around 50% of the total

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Distribution of navigational vs. non-navigational accidents All vessels, excluding Fishing and Miscellaneous categories

(1990-2012)

Non-navigational

Navigational

Source: IHS Fairplay



10

Our main focus moving forward

Identifying high risk areas

Safety barrier approach to prevent large scale accidents

Focus on risk based rules and survey procedures

We aim to drive the industry forward on safety using better risk management



11

Consequences

Barrier 1 Barrier 2 Barrier 3

Harm /Loss



12

Learning from major accidents

Recent large scale accidents demonstrate the need for effective safety barriers

Costa Concordia, Macondo, Fukushima



13

Learning from Offshore Shipping

Structured work processes and well trained staff on board technology advanced vessels

Pro-active risk management and barrier approach

Further development of competence standards

A new DPO (Dynamic Positioning Operator) certification concept launched in 2012 to ensure safer and more efficient operation



14

Embedded software - a new risk area addressed by DNV

Software errors represent a significant source of systems malfunctions and can lead to accidents

DNV launched in 2009 ISDS (Integrated Software Dependent Systems)

ISDS installed onboard more than 10 mobile offshore units and fixed platforms

Introducing the same practices into shipping

INTEGRATED DP/MANOEUVRING/NAVIGATION

THRUSTER CONTROL

SHIP SERVICE SYSTEMS, BALLAST

MACHINERY CONTROLS, PMS

(PORT/STBD SPLIT)

PROPULSION CONTROL AND MONITORING

HVAC CONTROL

SAFETY STATION w/LARGE SCREEN

GAS TURBINE CONTROL AND MONITORING

INTEGRATED MACHINERY CONTROL AND MONITORING, PMS, FLUID CONTROL, HVAC

INDEPENDENT COMM. BUS(ES) FOR MANUAL PROPULSION CONTROL

INTEGRATED DP/MANOEUVRING/NAVIGATION

THRUSTER CONTROL

SHIP SERVICE SYSTEMS, BALLAST

MACHINERY CONTROLS, PMS

(PORT/STBD SPLIT)

PROPULSION CONTROL AND MONITORING

HVAC CONTROL

SAFETY STATION w/LARGE SCREEN

GAS TURBINE CONTROL AND MONITORING

INTEGRATED MACHINERY CONTROL AND MONITORING, PMS, FLUID CONTROL, HVAC

INDEPENDENT COMM. BUS(ES) FOR MANUAL PROPULSION CONTROL



15

Strengthening Innovation and Technology Development

Investing 5% of turnover in R&D

Investing in R&D will be a catalyst for innovation and technology development in the maritime industry

Research in collaboration with the industry through JIPs

Leading to safer and more cost efficient shipping

R&D is a key enabler to developing highly competent people



16

The power to take the lead

Increased safety focus- Identifying high risk areas- Safety barrier approach - Goal based rules- Risk based approach towards rules and survey procedures

Superior technological skills and research and innovation competence



17

Safeguarding life, property and the environment

www.dnv.com



18



19

Decreasing likelihood of loss of life in Tanker and Bulk

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

0.0E+001.0E-032.0E-033.0E-034.0E-035.0E-036.0E-037.0E-038.0E-039.0E-031.0E-02

FatalitiesTankers (1990-2012)

Fre

qu

en

cy

pe

r s

hip

ye

ar

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

0.0E+00

5.0E-03

1.0E-02

1.5E-02

2.0E-02

2.5E-02

3.0E-02

FatalitiesBulk Carriers (1990-2012)

Fre

qu

en

cy

pe

r s

hip

ye

ar



20

Decreasing likelihood of loss of life in Tanker segment

Source: IHS Fairplay Vessel categories: Tankers (A1)

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

0.0E+00

1.0E-03

2.0E-03

3.0E-03

4.0E-03

5.0E-03

6.0E-03

7.0E-03

8.0E-03

9.0E-03

1.0E-02

FatalitiesTankers (1990-2012)

Fre

qu

en

cy

pe

r s

hip

ye

ar

Tanker segment showing positive trend in terms of fatalities

Trend in light of approximately flat accident trend the past 22 years



21

Decreasing likelihood of loss of life in Bulk Carrier segment

Source: IHS Fairplay Vessel categories: Bulk Carriers (A2)

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0.0E+00

5.0E-03

1.0E-02

1.5E-02

2.0E-02

2.5E-02

3.0E-02

FatalitiesBulk Carriers (1990-2012)

Fre

qu

en

cy

pe

r s

hip

ye

ar

Bulk Carrier segment showing similar trend as Tankers



22

Set the right direction and be the leader

Rethink the safety approach- Must focus on the big-consequence

incidents- How should class address this?

- Rethink the safety pyramid - Barrier thinking – risk based rules- Software and complex systems at sea –

learning from offshore- Focus on human elements



23

Big differences in safety between vessel categories

Offshore Supply No 1 in safety performance

Oil majors focus on safety in the tanker industry

General Cargo has mixed fleet quality and aging vessels

Average accident frequency within General Cargo is six times that of Offshore Supply in this period

Source: IHS Fairplay Vessel categories: General Cargo (A31), Oil (A13), Ro-Ro Cargo (A35),

Bulk Dry (A21), Chemical (A12), Container (A33), Offshore Supply (B21)

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0.0E+00

5.0E-03

1.0E-02

1.5E-02

2.0E-02

2.5E-02

3.0E-02

3.5E-02

4.0E-02

4.5E-02

Serious accidentsSelected vessel categories (1990-2012)

General Cargo Oil Bulk Dry Chemical

Container Offshore Supply Ro-Ro Cargo

Fre

qu

en

cy

pe

r s

hip

ye

ar



24

Extended and improved focus on safety

Focus on human factors- Safety culture / Safety climate- Human centred solutions- Operational competence - Safety through consensus is yesterday’s

solutions

Turn our focus even more into the technological and innovative way to achieve continuously safer shipping

tor svensen dnv-gl merger: increased safety focus nor-shipping press conference, 2013 06 03

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