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Thursday 28 May 2015

Bureau Veritas publishes Current and Tidal Turbines guidelines

International classification society and certification group Bureau Veritas has published a set of guidelines, NI 603, intended to help the development of current and tidal turbines. The guidelines are backed by a separate guide to certification for marine renewable energy devices including tidal turbines, wave energy converters and ocean thermal energy conversion.

Philippe Donche-Gay, Executive Vice-President and Head of the Marine & Offshore Division of Bureau Veritas says, “Marine renewable energy offers promising sources of clean energy. Emerging technologies that generate electricity by harnessing the power of tidal streams, waves and temperature gradients, are moving from research phase to commercial use. We think that over the next five to ten years, the number of tidal turbines in particular is set to multiply. There is a clear need for standards and certification in this fast-developing field.”

To ensure the commercial viability of their projects, designers and operators involved in marine energy must be able to demonstrate their technologies are safe and offer high quality and reliability. This can be complex in an emerging sector with no real track record, and where international standards are still under development. Bureau Veritas, as an established certification body with extensive experience in renewable energy and marine and offshore energy issues leads the industry with these guidance notes setting standards specific to current and tidal turbines and guidelines on certification for them.

NI 603 Current and Tidal Turbines sets down guidelines applicable to current and tidal turbines which are installed on the seabed and which produce electricity from tidal power, underwater current power or estuary water power. They cover the materials and loads for the support structure, including foundations and turbine and also the requirements for the electrical installation. There are sections on life-cycle considerations, manufacturing, installation, commissioning, maintenance and decommissioning.

The Marine Renewable Energy Guide to Certification sets out how developers in these emerging fields can approach certification of their units and prototypes.

For a graphic of turbines go to http://bit.ly/1As4kK8 and for a copy of both guides e mail john@merlinco.com

Bureau Veritas is a world leader in laboratory testing, inspection and certification services. Created in 1828, the Group has more than 66,000 employees in around 1,400 offices and laboratories located all across the globe. Bureau Veritas helps its clients to improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility. Bureau Veritas is listed on Euronext Paris and belongs to the Next 20 index. Compartment A, ISIN code FR 0006174348, stock symbol: BVI.

  Marine client portal www.veristar.com  

For more information:
Stephane Le Diraison
Product Manager Marine Renewable Energy
+33 (0)1 55 24 74 23


Philippe Boisson
Marine & Offshore Communication Director
Bureau Veritas
+33 (0)1 55 24 71 98 

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RINA launches major ferry safety initiative

Italy-based classification society RINA has launched a major ferry safety initiative.

The Asset Integrity Management scheme for ro-pax ferries covers fire risk mitigation, single-failure risk assessment, enhanced planned maintenance and condition-based monitoring and also food and bacteriological risk management. The initiative also covers specific training for ro-pax crews, including behavioural training to avoid and manage crises,

Paolo Moretti, General Manager Marine, RINA Services, says, “With over 300 ferries in our class we are the world leaders in ro-pax ferry safety. That gives us two things. One is a lot of experience and feedback from vessels in service, the other is a sense of responsibility. We feel that as the class of choice for these types of vessel we should show a lead in safety standards which go beyond regulatory basics.”

RINA’s package of initiatives builds on its recent work with major cruise and ferry operators to extend tailored risk management services to the marine industry.

Moretti says, “Our experience shows that operation and maintenance of these vessels merit particular attention. Extending targeted risk-management to ro-pax operation will bring benefits for operators and in overall safety.”

Specific parts of the ro-pax package are a fire risk identification and mitigation service, a series of training courses for crews and shore staff which focus on teamwork and behaviour in a crisis and a service to identify and mitigate the risk of any single failure impacting the ship and its operations severely. There is also a focus on condition-based monitoring and enhanced and targeted planned maintenance and a bacteriological risk assessment and mitigation service. All of the components are brought together under one Best Management scheme to monitor and follow up the component parts in operation.

The first company to use the new package is Grimaldi Lines which will implement the measures on the 22.5 knot 954-passenger ro-ro pax vessel Florencia.

The package builds on work done last year with major passenger fleet operators including Carnival, MSC Cruises and Moby Lines to extend an approach to operations and maintenance based on risk-prevention, assessment and management.

“What we are doing is bringing the disciplines used in offshore industry into passenger ship operations,” explains Moretti. “It began with a hot spot analysis service and we have extended that to a Single Point of Failure standard approach.  The scope of this analysis is to assess the risk associated with a single failure of particular equipment or systems which may have severe consequences on the ship’s service and operation and to identify the most appropriate mitigating measures to be implemented. The analysis evaluates the ship’s system availability in the case of any single failure.”

The systems to be analysed, which can include propulsion and safety systems, navigation systems, sanitation and hotel services, the consequences to be considered for the people on board and the definition of likelihood are all decided in cooperation with the customers depending on their objectives.

“We think of this as a Marine Asset Integrity System, and that was the platform for developing a specific package for ro-pax ferries,” says Moretti. “As it goes beyond prescriptive requirements it can be tailored to the individual circumstances, ships and routes of each operator. Our experience helps them to focus on the things that might go wrong and the consequences if they do, and then our risk management services help to find ways to limit the likelihood of those critical issues going wrong. It means taking a long hard look at how big complex systems like ro-pax and other passenger ships work. It covers not just machinery and systems and operations but issues such as bacteriological risk, which is a big concern for passenger ships. Simple in principle, very complex in practice and requiring both experience and specific skills.”

RINA is the global classification leader for passenger ferries and joint leader in the combined cruise and ferry market globally.


For a photo of ro-pax ferry Florencia go to http://bit.ly/1FCPnZb
or e mail john@merlinco.com for a photo and for brochures detailing the new services.

RINA Services S.p.A. is the RINA group company active in classification, certification, inspection and testing services. RINA is a multi-national Group which delivers verification, certification, conformity assessment, marine classification, environmental enhancement, product testing, site and vendor supervision, training and engineering consultancy across a wide range of industries and services. RINA operates through a network of companies covering Marine, Energy, Infrastructures & Construction, Transport & Logistics, Food & Agriculture, Environment & Sustainability, Finance & Public Institutions and Business Governance. With a turnover of over 330 million Euros in 2014, over 2,750 employees, and 163 offices in 60 countries worldwide, RINA is recognized as an authoritative member of key international organizations and an important contributor to the development of new legislative standards. www.rina.org

VISIT RINA AT NOR-SHIPPING STAND No D04-34
Contacts:
Giulia Faravelli
Media Relations Manager RINA
+39 010 5385505

Victoria Silvestri
Media Relations RINA
+39 010 5385555


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Thursday 21 May 2015

D’Appolonia expands civil engineering capability

D’Appolonia, the engineering consulting company of Italy’s RINA Group, has strengthened its civil engineering capability by acquiring Milan-based civil engineering consultancy SC Sembenelli Consulting. The move brings to the group global expertise in major civil engineering projects with particular experience in dams and hydropower, civil and hydraulic infrastructures.

Roberto Carpaneto, CEO, D’Appolonia, says, “Sembenelli brings us a strong brand name and key technical skills which complement our geo-technical and earthworks expertise. They widen our ability to support major projects such as port and dam construction and development. Sembenelli also fits well with our environmental focus as they are involved in major sustainable regional developments around the world.”

Piero Sembenelli, founder of SC Sembenelli, says, “We are a small company with a big brain. We have been sought after for major projects because of our innovative approaches, our ability to think outside traditional solutions and the quality of our approach. Together with D’Appolonia we can deliver expertise to civil engineering projects on a very large scale.”

Founded in 1983 Sembenelli has been involved in over 250 projects in 40 countries. It was a pioneer in the use of geo-synthetics. Sembenelli designed the temporary works and the excavations for the Panama Canal Third Set of Locks Project, designed part of the Three Gorges Dam on the Yangtze River in China and has performed geo-technical studies for the Riyadh Metro. In Italy it designed four major dams for the River Po which could produce a significant part of the national power output and worked on major motorway projects. It is currently developing part of the detailed design of the Brenner Basis Tunnel.

Says Carpaneto, “In addition to the civil engineering capability Sembenelli gives us the opportunity to consolidate our presence in growing markets such as Africa where it has worked on hydro-electric plants in Rwanda and major dams in Nigeria, Algeria and Egypt for example.”


D’Appolonia S.p.A provides integrated engineering services to the public and private markets in the areas of the environment, oil and gas, infrastructure and transport, electronics and telecommunications. D’Appolonia is part of the RINA Group, a leading international classification, verification and certification provider.



For photos of Sembenelli projects e mail john@merlinco.com or download from http://bit.ly/1FCPnZb

RINA is a multi-national Group which delivers verification, certification, conformity assessment, marine classification, environmental enhancement, product testing, site and vendor supervision, training and engineering consultancy across a wide range of industries and services. RINA operates through a network of companies covering Marine, Energy, Infrastructures & Construction, Transport & Logistics, Food & Agriculture, Environment & Sustainability, Finance & Public Institutions and Business Governance. With a turnover of over 330 million Euros in 2014, over 2,750 employees, and 163 offices in 60 countries worldwide, RINA is recognized as an authoritative member of key international organizations and an important contributor to the development of new legislative standards. www.rina.org

For more information:
Giulia Faravelli
Media Relations Manager RINA
+39 010 5385505

Victoria Silvestri
Media Relations RINA
+39 010 5385555

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Friday 15 May 2015

Naval architects count the cost of ship design errors




 

 

International Transport Intermediaries Club (ITIC) says recent claims experience demonstrates that naval architects need to be aware of the need to protect against their exposure to liability for damages resulting from errors in design work.
 
ITIC cites by way of example a case involving the operator of a passenger and ro-ro ferry service which appointed a naval architect to design a landing craft ferry. The design was to be based on that of an existing vessel operated by the company. Prior to beginning the design work, the parties entered into a design agreement under which the naval architect’s liability was limited to approximately $750,000.
 
Shortly after the vessel was launched, the operator noticed various issues relating to its performance, including vibration, lack of manoeuvrability and stopping capability. The vehicle loading ramp was also at an excessive angle in certain conditions, making the loading of vehicles difficult and, in some cases, impossible. The operators took the view that urgent rectification work was required so that improvements could be made before the approaching summer season.
 
The vessel was drydocked and third-party experts were engaged to provide a report detailing the extent of the problems and their potential causes. Based on the findings of the report, the operators brought a claim for $3.5m against the naval architect, alleging that the performance issues were attributable to design errors. The operators subsequently acknowledged that the naval architect’s liability was limited to $750,000.
 
ITIC appointed an expert naval architect to inspect the vessel and comment on the extent to which the apparent performance issues could be attributed to design errors. The expert found that the naval architect was at fault, but that the claimant had incurred significantly more costly and extensive rectification work than was necessary. ITIC entered into negotiations with the operators in order to resolve the matter, and the claim was settled for slightly less than the limit of liability under the contract.
 
In another case reported by ITIC, a naval architect entered into a contract with a shipyard to design the structure and access arrangements for new lifeboats and their davits to be fitted to a specific vessel. The naval architect undertook the design analysis, using data received from the manufacturer of the lifeboats, and produced design drawings.
 
It was understood that the yard was to seek classification society approval of these designs before starting the build work under the terms of the yard’s contract with the shipowner. However, due to time restraints and pressure from the shipowner, the yard decided to start building prior to obtaining class approval.
 
The lifeboat support structure was manufactured and installed by the yard according to the naval architect’s design. The yard subsequently noticed that the davits were flexing under operation, even without the lifeboats. An internal investigation within the naval architect’s office determined that an error had occurred whereby information provided by the lifeboat manufacturer had not been converted correctly by the naval architect’s computer program, with the result that the calculations were out by a factor of 1000. This error was not identified during the naval architect’s quality assurance process and, as a result, the structural platform, as designed and built, was not fit for purpose.
 
The yard raised a formal complaint advising the naval architect that the work on the davit support structure had to be rectified because of the error. A few months later it claimed that rectification had cost £347,254. ITIC assessed the claim and was also able to raise arguments that the contract terms excluded some components of the claim and that the yard should not have started construction before the classification society had approved the designs. A settlement was eventually agreed at £255,000.

ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com

 

 

For more information:                             

Charlotte Kirk                                              

ITIC                                                               

Tel. +44 (0)20 7338 0150                          

Fax. +44 (0)20 7338 0151                         

charlotte.kirk@thomasmiller.com                       

 

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Thursday 14 May 2015

Energy and marine propel RINA international growth

Expanding international testing, inspection, certification and consulting engineering group RINA has grown strongly during 2014, propelled by an upturn in marine, acquisition in the energy sector and international diversification. Turnover for 2014 grew 13 per cent to Euro 333 million. EBITDA (adjusted) grew to Euro 37.7m.

Ugo Salerno, Chairman and CEO of RINA S.p.A., says, “2014 was an important year for RINA. We were not only able to seize opportunities for new business around the world such as major development projects in Egypt and Turkmenistan, but we were also able to take advantage of signs of recovery in shipping and opportunities in energy. We now look forward with optimism because our spirit of innovation, our deep research and strong competences give us a platform for success. The hard work of our people, their talent for constantly reinventing themselves to meet the market needs and their ability to cross frontiers and feel at home everywhere underpin RINA’s development.”

Results for RINA’s Energy business line stood out in 2014, growing 23 per cent thanks to the consolidation of the acquisition of materials specialist CSM (Centro Sviluppo Materiali) and outstanding growth in countries such as Indonesia and Brazil.

Floating offshore units have a specific focus within RINA. They include offshore support vessels, mobile drilling rigs, offshore field construction units, oil and gas import and export offshore terminals and floating production and storage units. Class and class related specialist services to this sector grew throughout 2014, totalling at the year’s end about 1.45m GT and 320 units in operation or ongoing new building and conversion projects.

The Marine business grew 5 per cent. RINA Services, the group company which delivers ship classification and certification ended the year with a classed fleet of 5,166 vessels totalling 34m GT and with an order book for 680 vessels totalling 4.6m GT. RINA also confirmed its place as the global leader in classification of passenger ro-ro ferries and ro-ro vessels in general and as a major player in the cruise ship sector, whether measured by classed fleet or new order book.

New orders in 2014 included two mega cruise ships for MSC Cruises. The 5,300-passenger vessels will be built by Fincantieri and will include innovative open spaces and very high environmental performance. RINA Services is also classing a significant jumboisation project for MSC Cruises, the Renaissance Project. Also in the cruise sector Seabourn Cruise Line ordered two 604-passengers luxury cruise vessels to RINA class at Fincantieri and RINA class was chosen for two similar vessels to be built for Silversea Cruises.

RINA also focussed on providing value-added services to shipowners, always aiming to reduce costs, reduce risks and improve fleet availability. The strong service ethic of RINA’s global network led shipowners to move 400 ships totalling 2.6m GT to RINA class during 2014.

Within the rest of the group, Business Assurance grew 3.5 per cent and Transport and Infrastructures grew 20 per cent and for the first time were able to compete in major projects outside Italy. Food testing and certification grew 13 per cent with Agroqualità, RINA’s food company, becoming the leader in South Italy and the second largest nationally.

RINA’s consulting engineering company D’Appolonia grew 7 per cent thanks to  diversification and international growth in areas such as the Mozambique, India, Uruguay, USA.

RINA’s group strategy of growth through targeted acquisition continued with the acquisition of material specialist CSM, Tunisian food laboratory Lab21, Brazilian certification company Bracert and marine survey company Hayes Stuart in Canada. This international growth was underpinned by the capital investment of Intesa Sanpaolo and Vei Capital who together provided Euro 25m in capital and put at the disposal of the group a further Euro 75m to fund the international growth plan.

 RINA is a multi-national group which delivers verification, certification, conformity assessment, marine classification, environmental enhancement, product testing, site and vendor supervision, training and engineering consultancy across a wide range of industries and services. RINA operates through a network of companies covering Marine, Energy, Infrastructures & Construction, Transport & Logistics, Food & Agriculture, Environment & Sustainability, Finance & Public Institutions and Business Governance. With a turnover of over 330 million Euros in 2014, over 2,750 employees, and 163 offices in 60 countries worldwide, RINA is recognized as an authoritative member of key international organizations and an important contributor to the development of new legislative standards.        

Contacts:
Giulia Faravelli
Media Relations Manager RINA
+39 010 5385505

Victoria Silvestri
Media Relations RINA
+39 010 5385555

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RINA Services acquires QIC Inc to expand oil and gas services

Expanding international testing, inspection, certification and consulting engineering group RINA has acquired Houston-based QIC Inc as part of its strategy to expand and internationalise services to the oil and gas industries.

QIC (www.qicinc.com) is a leading testing, inspection and certification (TIC) company serving major and independent operators as well as manufacturers in the energy industry. The company provides highly trained and experienced quality field inspectors, consultants, engineers and specialists to deliver customers mission-critical, quality surveillance and ensure asset integrity. Founded in 1990, and headquartered in Houston, Texas, QIC has expanded its presence globally with locations in Louisiana, the United Kingdom, Singapore and Malaysia. Existing QIC management will continue to lead the company’s operations as part of the RINA group of companies.

“We are very pleased with the opportunities this combination will bring to our loyal customers and employees,” said Douglas Fletcher, founder of QIC. “We could not have selected a better partner than RINA to drive expansion and take QIC to the next level.”

QIC will maintain its brand and operate as a RINA group company. The acquisition reflects RINA’s strategy of growing by acquiring high quality companies with complementary expertise and access to new markets, among which US holds a great potential for the Italy-based company. At the same time, QIC will be able to widen the range of services offered to its clients and expand into areas where RINA is already strong as a certification and classification society.

“QIC is a well-established TIC company with a strong, blue-chip customer base of operators and manufacturers operating globally with expertise that complements that of RINA,” said Stefano Socci, General Manager Americas, RINA Services. “The RINA and QIC combination will allow us to more rapidly expand our presence in the global offshore and subsea markets.”


RINA is a multi-national group which delivers verification, certification, conformity assessment, marine classification, environmental enhancement, product testing, site and vendor supervision, training and engineering consultancy across a wide range of industries and services. RINA operates through a network of companies covering Marine, Energy, Infrastructures & Construction, Transport & Logistics, Food & Agriculture, Environment & Sustainability, Finance & Public Institutions and Business Governance. With a turnover of over 330 million Euros in 2014, over 2,750 employees, and 163 offices in 60 countries worldwide, RINA is recognized as an authoritative member of key international organizations and an important contributor to the development of new legislative standards.

For more information, visit www.rina.org.
 

Contacts

RINA
Giulia Faravelli
Media Relations Manager RINA
+39 010 5385505

Victoria Silvestri
Media Relations RINA
+39 010 5385555
victoria.silvestri@rina.org
QIC
Chad Fletcher
Vice President
+1 281 370 2700

Kyle Fletcher
Vice President
+1 281 370 2700

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Wednesday 13 May 2015

London P&I Club underlines importance of proper enclosed space entry drills

The London P&I Club says a recent claims incident resulting in the deaths of two crew members on board a bulk carrier loaded with coal underlines the importance of proper crew training and awareness in relation to the dangers associated with entry into harmful hold atmospheres.

In the latest issue of its StopLoss Bulletin, the club reports an incident in which the deck crew on an anchored ship loaded with a cargo of coal for discharge were asked to obtain samples from each of the vessel’s cargo holds. A misunderstanding occurred involving the method of sample collection to be employed and, when one of the cargo hatches developed a fault and failed to open fully, the sampling device used from the main deck was discarded.

A crew member entered the hold with the aim of collecting a sample, and unfortunately collapsed at the bottom of the ladder. The crew member had been seen entering the hold by a duty watchman on deck, who subsequently decided to enter the hold himself to effect a rescue. Sadly, he suffered a similar fate. A full muster and enclosed space rescue was undertaken after the alarm was raised by the standby man on deck. Sadly, two fatalities occurred in this incident as a result of the inhalation of an oxygen-depleted atmosphere.

Ian Barr, claims director with the London Club management team, says. “The incident highlights the importance of sound decision-making under such circumstances and the need for proper training of ships’ crews with regard to the potential dangers of bulk carrier hold atmospheres.”

The club has meanwhile reminded its members about new SOLAS Regulation 111/19, which came into effect on 1 January this year. This requires that all persons involved in enclosed space entries, death of crew members, harmful hold atmospheres,and/or those assigned enclosed space rescue duties, are required to take part in enclosed space entry and rescue drills at intervals not exceeding two months. The new SOLAS regulation prescribes both the frequency and content of such drills.

The London P&I Club has recently produced a new Bulk Carrier Hold Safety poster which it hopes will raise awareness of the circumstances under which it is safe to enter a cargo hold.

www.londonpandi.com

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Tuesday 12 May 2015

AKD completes rapid auction of containership in Aruba after bank arrest

ROTTERDAM-based law firm AKD has completed the sale at auction of the container vessel Caribbean Sea in the courts of Aruba following its arrest by Rabobank for outstanding mortgage debts in excess of $28m. The entire arrest and auction process was completed in just 20 days, underlining the reputation of the Kingdom of the Netherlands as a highly advantageous jurisdiction for those looking to arrest ships and arrange for their swift judicial auction.

The 2007-built vessel arrived and was arrested in Aruban waters on 25 March, 2015 as security against an outstanding debt of $28,398,786, and was sold at auction on 14 April.

AKD partner Haco van der Houven van Oordt, who oversaw the arrest and auction procedure, says, “The completion of the arrest and auction process in such a short space of time underlines why the Kingdom of The Netherlands is widely recognised as a haven for arresting ships and arranging for their swift judicial auction.

“Most mortgagees know of the many advantages of auctioning ships in Rotterdam, but comparatively few realise that one can also take advantage of the same system when auctioning elsewhere in the Kingdom, in places such as Aruba.

“Leave for arrest is granted without delay on production of a simple written application containing a summary of the claim. No formal power of attorney and no proof of the claim is required. In addition, counter-security is seldom called for. And, there is also no liability for any marshal fees or similar costs.

“On this occasion, it was decided to arrest and auction the Caribbean Sea before the Aruba courts, given the trading area of the vessel in the Caribbean. The legal systems throughout the Kingdom are almost identical, and offer the same opportunities to those seeking enforcement or security in connection with maritime claims.

“After careful preparation and a preparatory meeting with the local judge, the auction process was quickly put in place and thereafter completed very swiftly. This was a case of legal certainty being achieved without delay, an important consideration in what continue to be very difficult times in the shipping industry.”

AKD’s Transport & Energy team provides a full range of legal services. AKD is a full-service firm with over 250 lawyers. www.akd.nl

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Thursday 7 May 2015

Liberian Registry strengthens position as safest major flag by investing in new technology

The Liberian Registry has developed a unique satellite-based Compliance Assistance Programme (CAP) which has helped ensure regulatory compliance and prevent detentions in some of the world’s most active Port State Control (PSC) areas. In the process, it has contributed to Liberia being named as the best-performing major ship registry worldwide over the last three years, a period during which it has featured on all PSC White Lists and has been included in the prestigious US Qualship 21 programme. Moreover, during this same period, the Paris Memorandum of Understanding (MoU) statistics confirm that Liberia had the best detention rate amongst the largest major flag states.

The development further strengthens the leading role which Liberia has established over a number of years as the world’s most technologically innovative flag state. The CAP tracks ships when they enter selected jurisdictions and allows the registry’s risk analysis team to perform detailed reviews of vessels, their history, and the ports at which they are calling. As a result, Liberian vessels have experienced a decrease in detentions in heavily trafficked PSC regions such as China.

The CAP supplements the existing electronic services already provided by Liberia and is part of a program which adopts a uniquely proactive approach to ensuring that ships flying the Liberian flag are properly prepared for their upcoming port calls, and that any possible deficiencies are handled prior to entering port. The system is totally electronic and non-burdensome, and is provided at no extra cost to owners and managers.

Scott Bergeron, CEO of the Liberian International Ship & Corporate Registry (LISCR), the US-based manager of the Liberian Registry, says, “The Compliance Assistance Programme is just the latest in a series of technological innovations designed to make Liberia the safest and most efficient fleet afloat. Other examples of the registry’s pioneering approach to technology include the introduction of the online filing of seafarer credentials, enabling owners to save tens of thousands of dollars each year and streamlining the turnaround time for issuing seafarer documents.

“Liberia was also the first flag state to institute the electronic delivery of original documents, which has been hailed by the industry as a ground-breaking service that demonstrates that Liberia is up to speed with 21st century technology and its application to the shipping industry.

“Recently, Liberia also created an online application system that allows Liberian-flag owners and managers, as well as those from other non-party states, to receive their Wreck Removal Certificates without delay through the registry’s online portal. Liberia is also the first flag state to launch its own powerful state-of-the-art mobile application (app) to enable owners, managers and operators to communicate and interact with the registry on a round-the-clock basis.

“The Liberian Registry has always been a highly proactive flag, working tirelessly to support owners and managers. Liberia’s significant investments in technology, such as the Compliance Assistance Programme, strengthen its position as the world’s largest quality ship registry.”

The Liberian Registry is one of the world’s largest and most active shipping registers and has long been considered the world’s most technologically advanced maritime administration. It has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive service to owners.

www.liscr.com


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Friday 1 May 2015

Implementation of new revenue recognition accounting standards set to be delayed

Proposals to push back by 12 months the implementation dates for new international accounting standards covering revenue recognition will have implications for many companies, including those in the shipping industry.

On 28 April, the International Accounting Standards Board (IASB) tentatively decided to defer by one year implementation of the IFRS 15 standard, Revenue from Contracts with Customers. While the vote was not unanimous, with 11 members in favour of the change and three against, it is now extremely likely that the new standard will apply only for accounting periods beginning on or after 1 January 2018. Before finally ratifying the decision, the IASB is proposing to issue a narrow-scope exposure draft. A response period of at least 30 days is expected, with the intention to finalise by July 2015.

The IASB decision to defer implementation follows the 1 April decision of the US standard-setter, the Financial Accounting Standards Board (FASB), to have its staff draft a proposed Accounting Standard Update modifying the implementation timetable for the new revenue recognition standard, also putting back the implementation deadline by one year. The Proposed Accounting Standard Update, Revenue from Contracts with Customers (Topic 606), was issued on 29 April. If ratified, it will accomplish the deferral and early adoption provisions which were voted upon at the 1 April meeting of the FASB. As part of the update, the FASB has also asked for feedback on specific issues in order to better inform its decision process.

Early adoption of the standard will continue to be permitted by the IASB and is now expected to be allowed by the FASB.

David Chopping, technical partner at Moore Stephens, London, says: “There are many reasons why IFRS15 is likely to be deferred, but the main issues relate to the time that some companies need to develop policies, systems and expertise in order to be able to follow the new standard. Changing the basis for recognition of what is the largest single figure in most companies’ accounts is always going to be a complex and time-consuming task, not least for those in the shipping industry.

“Feedback to IASB, FASB and the IASB / FASB Transition Resource Group (TRG) indicates that some preparers of accounts are convinced that it is going to take even longer than originally thought. There are also some possible changes to the standards being recommended by the TRG. If these go ahead, it will mean that some companies will have to amend what they are planning to do to deal with implementation based on the standards as currently in issue. Even if they don’t, it still has an effect – companies are understandably reluctant to commit time and resources to new standards until they are entirely confident that the new standards won’t change again before coming into force.”

Michael Halkias, a principal with MSPC New York says: “Given that these rules have been gestating for almost 13 years, the proposed delay is perhaps not altogether surprising. Although the decision by the FASB to change the implementation date and allow early adoption is considered tentative, the minutes of the meeting show that votes held on both the deferral and the ability to adopt early were unanimous (7-0).

“Allowing entities to adopt early is a significant change from the initial guidance, which forbade early adoption. This also adds a considerable additional level of complexity when comparing the results of different entities, as there are now essentially four different potential adoption dates in total for publicly-listed and non-public companies which follow US reporting rules.”

International Financial Reporting Standards are a set of generally accepted accounting principles (GAAP) developed by the International Accounting Standards Board (IASB) and used by companies to prepare financial statements. They are followed, or are in the process of being adopted, by more than a hundred countries, including all EU member states.

Michael J Halkias comments, “Both IFRS 15 and its US equivalent will apply to all contracts with customers except for those within the scope of other standards, such as leases, insurance contracts and financial instruments. This broad application will impact essentially all companies which currently generate revenues from any other areas, and the scope is likely to increase in the near future for shipowners. It is possible that a large number of contracts in the shipping industry will no longer be considered leases when the new lease accounting proposals come into force.”

The deferral of implementation is to be welcomed, as it recognises the complexity of dealing with the process of transition.

Moore Stephens LLP, based in London, is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime and insurance adviser. MSPC, based in New York, is a regional accounting firm with extensive experience of servicing the maritime industry and public registrants. www.moorestephens.co.uk

For more information:
David Chopping
Moore Stephens LLP
Tel: +44 (0)20 7334 9191
david.chopping@moorestephens.com

Michael J Halkias
Tel: +1 (212) 682-1234
mhalkias@mspc-cpa.com

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