The Russian energy boom makes the Arctic a hot spot for shipping. Cyprus based Unicom, the wholly-owned subsidiary of Russian Sovcomflot, has a total of 11 cold-climate ships on order, and they are not the only ones gearing up for winter.
The energy boom in Russia is firmly on the shipping industry’s agenda. Even under the warm Cyprus sun, discussions among shipping professional’s turn to winter, ice and snow, and the need for winterisation of ships, equipment and staff training for cold climates.
“We believe that in the next five to 10 years, 20% of the world’s energy will come from the Arctic area. The strategy from Sovcomflot is to enter into energy shipping in the arctic, and we believe we are strategically placed for operating in that area,” says Robert Thompson, fleet director and deputy managing director of Unicom.
Breaking the ice
And Unicom is ready to break the ice. “Currently we have in operation three Aframaxes, and 10 arctic class smaller tankers. In the building stage we have 11 ice class ships: two LNG carriers, two SuezMax, four medium range vessels, and three ice-breaking tankers of 70,000 dwt (dead weight tonnes) each,” says Robert Thompson.
In fact, there aren’t enough slots for all Unicom’s newbuildings at this time.
The two ice-braking tankers are able to push through 1.5 meters of ice with ease. However, tests of the models show that the ships will be able to potentially break through 12 meter of ice ridge under certain conditions.
No easy oil
“There’s no such thing as easy oil and the Arctic certainly offers a host of challenges for shipping. However, we at Unicom feel that we know cold very well,” says Robert Thompson, and continues; “The best way to meet the concerns from the Nordic governments regarding these environmentally sensitive areas is to build proper ice-classed ships of sufficient strength, and properly train crews.”
Another thing Unicom will do is to build bigger ships.
“The main benefit of bigger ships is to reduce the number of physical transits, and still transport the same or more oil and gas. In terms of environmental danger, bigger ships are usually more robust, so the biggest risk for pollution is actually in port or during transfer of oil, not during the transit,” says Robert Thompson.
Unicom co-operates with other major owners and class societies in the development of suitable ice tonnage, concentrating not just on the hull strength but the winterisation element.
“We are cooperating with Stena to develop a B-Max concept with double redundancy. The ship will carry about 200,000 tonnes and be the largest Baltic capable lifting ship in the world. Other projects are also in hand with Aker Arctic Technology in Sweden,” says Robert Thompson. “And I would suggest that IACS set up an ice team, and then talk to the likes of Sovcomflot, Stena and Bergesen, to tap into their experience. We could all benefit from sharing.”
A boom for ice class
All these developments translate into what seems to be a worldwide boom for large ice-classed ships. Ice-class is typically divided into two levels, Baltic and Arctic Ice rules, and then into sub-categories indicating levels of structural strength.
“In building these new types of ships, we are breaking new ground and appreciate getting more help and information than we used to get from the class societies. Certainly there are more lectures, presentations and so on,” says Robert Thompson.
“We have made a concerted effort in sharing information regarding operating in ice and Arctic conditions. As per the end of October 2005 there are on order more than 200 ice-classed tankers. Of these, DNV is to class more than half,” says Jan Koren, DNV’s business director – tankers.
Robert Thompson agrees with DNV’s assessment, and sees the challenge in obtaining enough ice-trained crew for all these ships. “For us the answer is training, training and training.”
Harsh working conditions
It’s not just anybody that can go outside to hack free an ice-covered hatch in 50 centigrade below zero temperatures. Add a brisk wind, and a crew member can freeze badly in a matter of minutes if not properly protected. This working environment requires skills and the right equipment. Over the next five years, Unicom believes that about 4,000 ice trained seafarers will be needed for these new ice-classed ships.
“We have a lot of experience in ice. A lot of our masters have been on icebreakers and ice-going tonnage, and at the moment we have no problems getting qualified staff. However, to meet the demand for ice-trained crews, we have started a training course for those that have already been in ice in order to update them. An in-house simulator has also been built, specifically designed for our SuezMax ships, which simulates operations in the new Russian export-port of Primorsk,” says Robert Thompson.
Russian ship crews
The ties to Russia and other former Soviet states is a clear advantage for Unicom, in what has turned into a tough fight for qualified crew in the shipping industry.
“The Russian culture is that they prefer to work for a Russian company provided a competitive remuneration, which I believe we are offering, and our retention rate is very good. Another advantage of having a mostly Russian crew is that we have one working language, Russian,” says Robert Thompson.
Growth is the target
Growth is the number one target for Unicom, which currently is number 12, both in terms of numbers of tankers and total fleet deadweight. Frontline lives up to its name at number 1 with its many large tankers, in front of oil-majors such as ExxonMobil. Unicom has set itself an ambitious target, and sees operations in the Arctic as a way towards the top.
“We are building all these ice class ships and we are training all these people to operate them. This is certainly were our boom will be in the foreseeable future. Our strategic goal is to achieve a ranking of number 3 in the world in size, or as close to it as we can,” says Robert Thompson.